Post on 17-Dec-2015
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I K E AI K E AMarketing ResearchMarketing Research
IKEA – The BasicsIKEA – The Basics
Founded - 1943 in Smaland, Founded - 1943 in Smaland, Sweden By Ingrav Kamprad Sweden By Ingrav Kamprad
Stores Located Outside Cities In Stores Located Outside Cities In Europe, Asia, US, and CanadaEurope, Asia, US, and Canada
Sells Furniture, Kitchen Needs, Sells Furniture, Kitchen Needs, Decorations, etc.Decorations, etc.
IKEAIKEA In The U.S. In The U.S.
IKEA IKEA –– Management DecisionManagement Decision
Should IKEA Open Smaller Should IKEA Open Smaller Satellite Location In The Satellite Location In The Christiana Mall?Christiana Mall?
Processed Research Processed Research DesignDesign
SurveySurvey
Focus GroupFocus Group
Shopped at an Shopped at an IKEAIKEAShoppedtherebefore
31 25.2 25.2 25.2
92 74.8 74.8 100.0
123 100.0 100.0
No
Yes
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Age Of ParticipantsAge Of ParticipantsAge
34 27.6 27.6 27.6
43 35.0 35.0 62.6
17 13.8 13.8 76.4
19 15.4 15.4 91.9
10 8.1 8.1 100.0
123 100.0 100.0
16-20
21-24
25-30
31-40
40+
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Distance TraveledDistance TraveledDistancetraveled
41 44.6 44.6 44.6
10 10.9 10.9 55.4
33 35.9 35.9 91.3
7 7.6 7.6 98.9
1 1.1 1.1 100.0
92 100.0 100.0
1 Hour
1/2 Hour
2 Hours
3 Hours
4 Hours
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Last Time Shopped Last Time Shopped ThereThere
Lasttimeshoppedthere
8 8.7 8.7 8.7
3 3.3 3.3 12.0
41 44.6 44.6 56.5
40 43.5 43.5 100.0
92 100.0 100.0
Month
Week
Year
Year+
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Distance Discourage Distance Discourage Visit?Visit?
Discouraged
75 81.5 81.5 81.5
17 18.5 18.5 100.0
92 100.0 100.0
No
Yes
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Visits To The MallVisits To The MallVisitstoMall
2 2.2 2.2 2.2
61 66.3 66.3 68.5
21 22.8 22.8 91.3
8 8.7 8.7 100.0
92 100.0 100.0
>1xMonth
1xMonth
1xWeek
2xWeek
Total
ValidFrequency Percent Valid Percent
CumulativePercent
Focus GroupFocus Group
3 Focus Groups: 3 Focus Groups: – University of Delaware Students - DormsUniversity of Delaware Students - Dorms– University of Delaware Students - Off CampusUniversity of Delaware Students - Off Campus– Homeowners in the Newark AreaHomeowners in the Newark Area
Wanted Overall View Of: Wanted Overall View Of: – How These Groups Made Use Of Current IKEA How These Groups Made Use Of Current IKEA – Would Consider Using Smaller Branch Of IKEA Would Consider Using Smaller Branch Of IKEA
Stores Stores
Focus GroupFocus Group
Topics of DiscussionTopics of Discussion– Frequency Of VisitsFrequency Of Visits– Intentions Prior To Entering StoreIntentions Prior To Entering Store– Experience Received At IKEAExperience Received At IKEA– Factor Of TimeFactor Of Time– Feelings Of A Closer IKEAFeelings Of A Closer IKEA– Feelings Of A More Accessible, Scaled Feelings Of A More Accessible, Scaled
Down IKEADown IKEA
Focus Group - ResultsFocus Group - Results
Group 1 – UD Students – DormsGroup 1 – UD Students – Dorms– Seldom VisitedSeldom Visited– Went For Smaller Items (Lamps, Chairs, Went For Smaller Items (Lamps, Chairs,
etc.)etc.)– Time Was FactorTime Was Factor– Liked Idea Of Closer StoreLiked Idea Of Closer Store– Caught In Middle With Proposed IdeaCaught In Middle With Proposed Idea
Focus Group - ResultsFocus Group - Results
Group 2 – UD Students – Off CampusGroup 2 – UD Students – Off Campus– Frequently VisitedFrequently Visited– Went For Larger Items (Beds, Tables, Went For Larger Items (Beds, Tables,
Desks, etc.)Desks, etc.)– Time Was FactorTime Was Factor– Few Showed Extreme InterestFew Showed Extreme Interest– Hesitant To Proposed IdeaHesitant To Proposed Idea
Focus Group - ResultsFocus Group - Results
Group 3 – Newark HomeownersGroup 3 – Newark Homeowners– Frequently VisitedFrequently Visited– Went For Larger Items (Bedroom Sets, Went For Larger Items (Bedroom Sets,
Kitchen Sets, etc.)Kitchen Sets, etc.)– Time Not Much Of A FactorTime Not Much Of A Factor– Might Take Advantage Of Closer StoreMight Take Advantage Of Closer Store– Extremely Hesitant Of Proposed IdeaExtremely Hesitant Of Proposed Idea
IKEA Decision TreeIKEA Decision Tree
Two Initial DecisionsTwo Initial Decisions
– More ResearchMore Research Estimated Cost: $50,000Estimated Cost: $50,000
– No ResearchNo Research Zero Short Term CostZero Short Term Cost Increased Risk With DecisionIncreased Risk With Decision
IKEA Decision TreeIKEA Decision Tree
With No ResearchWith No Research
– OpenOpen Open Single Pilot StoreOpen Single Pilot Store Open Multiple Stores (4)Open Multiple Stores (4)
– Don’t OpenDon’t Open
• 82.5 M/Yr/Full IKEA• 1/3 For Micro = 27.5 M• 27.5 M – 15 M Start-up Cost• = 12.5 M/Yr Micro IKEA w/ No
Market Research
IKEA Decision TreeIKEA Decision Tree
With ResearchWith Research
– Receive Positive or Negative FeedbackReceive Positive or Negative Feedback
– OpenOpen Open Single Pilot StoreOpen Single Pilot Store Open Multiple Stores (4)Open Multiple Stores (4)
– Don’t OpenDon’t Open
IKEA Decision TreeIKEA Decision Tree
ConclusionConclusion
– Agrees With Group Research DecisionAgrees With Group Research Decision
– Negative Research Says Don’t Open Negative Research Says Don’t Open StoreStore
– Research Is Worth InvestmentResearch Is Worth Investment
IKEA Lessons LearnedIKEA Lessons Learned
Larger IKEA PreferredLarger IKEA Preferred
Focus Groups Elaborated On Survey Focus Groups Elaborated On Survey FindingsFindings
Time Is Important Factor In Data Time Is Important Factor In Data
CollectionCollection
Research Worth the InvestmentResearch Worth the Investment
Must Be On Look-Out For Overlooked Must Be On Look-Out For Overlooked Variables Variables
THANKS!THANKS!
Bibliography Bibliography
““Furnishing the world” Furnishing the world” – The Economist The Economist
November 19, 1994; Richard Stevenson.November 19, 1994; Richard Stevenson.
IKEA Invades AmericaIKEA Invades America– Harvard Business School Harvard Business School
September 14, 2004September 14, 2004
www.IKEA.comwww.IKEA.com