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Business

March 16, 2016 | Author: | Posted in e-commerce, mathematics and economics

IKEA : Furniture for the Masses Strategies for the Future

IKEA and H M

IKEA and H M are taking similar approaches to two different markets IKEA sells relatively inexpensive , trendy furniture . H M specializes in inexpensive designer knockoff clothing . Both companies market their products to young , hip consumers who want a fun shopping experience that won ‘t leave them broke . The first similarity between the two companies is their approaches to opening a store . It ‘s all about hype , hype , and more hype . IKEA ‘s Atlanta opening inspired potential customers to camp [banner_entry_middle]

br out for nearly a week (Capell , 2005 ) in hopes of getting their hands on 4 ,000 in gift certificates . H M promoted its L .A . opening for months beforehand . According to the L .A . Times article , H M , .ran a multimillion-dollar advertising campaign featuring Madonna and , in early August , splashed her image across the west face of Hollywood ‘s Roosevelt Hotel

Once the customers are in the store , both IKEA and H M use the layout of the stores to keep the customers interested . IKEA is set up in a circular design , where customers can browse from the starting point walk around , and end up back where they started . While they ‘re shopping they will find furniture set up in rooms that one might be tempted to move into – they ‘re that realistic . H M sets up its clothing by color

The two stores have something else in common , and it ‘s not necessarily a plus – offering customers lower prices comes at a price For IKEA , it means that all furniture is sold in a flat box which the customer will take home , open , and from which they will extract parts to assemble . Two years ago , an episode of CBS ‘s The Amazing Race featured a challenge in which contestants had to choose between two tasks : counting items or assembling an IKEA computer desk . Those who chose to assemble the computer desk did not find it to be an easy task – regardless of their construction or assembly experience . Many were confused by the directions and the explanation of the different parts The benefit to customers is that IKEA is dedicated to cutting costs in to pass those savings down to the consumer . ‘We look at the competition , take their price , and then slash it in half ‘ says Mark McCaslin , manager of Ikea Long Island , in Hicksville , N .Y (Caswell 2005 . As for H M , they face the same limitations as other stores of its ilk , such as Forever 21 and Bebe : the clothes are trendy , but aren ‘t meant to last a lifetime . With styles barely surviving a few months , the clothes don ‘t have to last any longer than the current trend

Low prices don ‘t always lend themselves to huge profits , which is why customers need to buy in bulk . At IKEA , furniture is displayed in intricately-designed rooms , which encourage customers not only to buy the bed , but the sheets , the comforter , pillows… [banner_entry_footer]

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