Plan_EverSpring

EVERSPRING

Managing Marketing ProcessesManaging Marketing ProcessesFall 2012Fall 2012

EverSpringEverSpring

Final Marketing Final Marketing PlanPlanPresentationPresentation

• World’s biggest home furnishing retailer• 70 years’ experience• Mission: to offer a wide range of home furnishing

items of good design and function, excellent quality and durability, at prices so low that the majority of people can afford to buy them.

• Vision: affordable solutions for better living

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What isWhat is

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27/9/2012

CURRENT CUSTOMER

• Well-designed & functional products, low prices

• Price: extremely price/cost conscious

• Distribution: 28 distribution centers, 11 customer distribution centers, 16 countries

• Promotion and communication: direct marketing, IKEA food services, the internet, interior design, and public relations

CURRENT OFFERING


• IKEA- kiosk based loyalty program

• Products come with accessories

• Buys in bulk – obvious low price

CUSTOMER LOYALTY

• Flat packaging – easiness

• High quality and updated design & low price

CAPABILITIES ANALYSIS


priceprice featuresfeatures designersdesigners packingpacking

• Over 2000 suppliers, Swedwood

• Cash on hand• Privately-owned• Cutting down on all unnecessary expenses

• Strong and positive brand identity• 40.6% of Swedish market


0

20

40

60

80

100

120

一月二月三月四月

亚洲区欧洲区北美区

Helpful Harmful

Internal Strength:-Biggest in Swedish home furnishing-Strong customer loyalty-Unique business model-Vertical integration

Weakness:-Weak in multi-channel-Store location-Hard to reach small town

External Opportunity-Growing concern over sustainability-Customer price-consciousness-Low-cost manufacturing and material in Asia

Threat:-Pressure from other retailing channels-Bleak economic environment

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Meet The LOHAS

$550 $550 Billion Billion Global Global

Market Market

Don’t Greenwash me!Don’t Greenwash me!

Lifestyles Of Health And Sustainability

Consumerism is OK, guilt is not!


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IKEA has trendy, functional IKEA has trendy, functional design for low prices – it design for low prices – it let’s me update my let’s me update my apartment every year!apartment every year!

IKEA says it is IKEA says it is sustainable but it is sustainable but it is

notnot..

MEET THE “TRAS”A warm, cotton, guilt-free sockA warm, cotton, guilt-free sock

Made of sustainable and Made of sustainable and recycled cottonrecycled cotton

A patchwork, A patchwork, random design random design reinforces it’s reinforces it’s recycled viberecycled vibe.

““Trasmatta” – or rag rug in Trasmatta” – or rag rug in SwedishSwedish

53% Would buy clothes 53% Would buy clothes from IKEAfrom IKEA


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THE HOSIERY MARKET


Hosiery 2011

Lindex

H&M

KappAhl

Gina Tricot

adidas

Björn Borg

Twilfit

Wolford

MQ

2008

2009

2010

2011

Lindex 20.0 19.9 19.8 19.8

H&M 9.4 9.1 9.6 9.5

KappAhl 4.5 4.5 4.3 4.3

Gina Tricot 2.6 3.0 2.8 2.9

adidas 2.1 1.9 1.8 1.8

Björn Borg 1.5 1.7 1.8 1.8

Twilfit 2.0 1.7 1.7 1.8

Wolford 1.3 1.3 1.4 1.4

MQ 1.1 1.0 1.0 1.0

Others 55.5 55.9 55.8 55.7

Total 100 100 100 100

Hosiery industry in Sweden(% Retail Value)

THE COMPETITION


Brand CompetitionProduct Competition

Generic Competition


• Björn Borg– Niche/Design– Brand/Loyalty– 79SEK per pair

• MQ– Appeals to fashion-

conscious adult consumers– 59SEK per pair

• Lindex and H&M– Wide and varied product

portfolio– 79SEK (H&M), 4pack for

79SEK (Lindex)– Lindex - not for men

KEY COMPETITORS’ KEY COMPETENCIES

SUBSTITUTES



Where? IKEA!!!

increase IKEA’s home clothing presence

meet increased consumer demand

maintain IKEA’s image and mission

everyday sustainability

comfy & good-lookingcustomer attitude

At IKEA, we start designing with the price.

29.50 SEKH&M: Similar sock for

79.50

"We look at the competition, take their price, and then slash it in half“1


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BY THE NUMBERS – IN SWEDEN


3.9%of the market by the end of Year 1 for IKEA

16M

pairs is the market for socks in 2012

1.7pairs purchased per person in 2012

OBJECTIVE

627,000

pairs sold by IKEA

29.50:-

Price/pair

15:-Cost/pair

14.5:-Profit/pair

1/62visits need to result in purchase

18.5MSEK Revenue

9.4MSEK Cost

9.1MSEK Profit

WHERE WE’LL SELL IT

Bargain bins

say they buy more than planned on buying on a trip to IKEA

buy from these bins

70% 50%


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SOCKS!

Promotions:- Bring in old cotton products, get a pair of socks- In Store Experience: The Great Sock Hunt!- Sock design competition- Instagram competition


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- Catalogue Featured Page

Advertising:

- Socks placed in the catalogue photos with other sustainable offerings

SOCKS! SOCKS!

SOCKS!

SOCK

S!

SOCKS!


DISTRIBUTION

PRICINGPRODUCT

PROMOTION

Minimal Promotion (catalogues & exhibitions at stores)

Dependent on raw material, recycling period, manufacturing & shipping

LOW 29,50 SEK as compared to competitors

Monthly basis (Dependent upon where manufactured, packaging & delivery time )


• Ensuring quality & amount of raw materials (specially Recyclable)

• Machinery and labor requirement

• Controlling quality & quantity of recycling & production

• Step by step procedure

• Good packaging

In case of less recyclable raw material availability use organic cotton to compensate

Keeping huge storage capacities to reduce reliability on production

• Rules for import

• Control distribution lines

• Packaging & delivery

Initial sales & promotional offers

Survey after a month

Check loyalty cards information

If sales too low, reduce prices

THANK YOU!


ANY QUESTIONS?

Plan_EverSpring

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