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Product and Service Design Case Study


PRODUCT AND SERVICE DESIGN
CASE: IKEA: DESIGN AND PRICING
GROUP 3
He Jing Wu Dan Wang Nan Wang Guan Lin

2012-11-5

1

IKEA Background
IKEA is an internationally known home furnishing retailer. It has grown rapidly

since it was founded in 1943. Today it is the world's largest furniture retailer.

To create a better everyday life for the many people supports this vision by offering a wide range of welldesigned, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

2012-11-5

2

History

1920s 1940s-1950s 1960s-1970s 1980s 1990s 2000s

The IKEA story begins develops IKEA into a furniture retailer The IKEA concept starts to take shape expands dramatically into new markets grows even more Stores opened in Russia and Japan

1920S 1940s-1950s

1960s-1970s 1980S

1990S 2000S

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3

Products

1

workspace

3

bedroom

5

Children’s

2

Living room

4

kitchen

6

textile

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4

Developing a New Product

Pick a price

Choose a manufacturer

Design the product

Sell it

Ship it

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5

Competitive Priorities

Price strategy

Store display and market strategy

Product strategy Competitive Priorities

Valued added strategy

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6

Competitive Priorities
Product strategy
?Market positioning: Household products suppliers ?Product style ?Series widely

Price strategy Price strategy
?“low price” in design ?Continuous Creation to cut down cost ?Long-term relationship with certain suppliers ?Global production management and logistics system ?Flat and self-service package

Competitive Priorities
Store display and market strategy Store display and market strategy
?High Recognition degree in arrange and brand ?Symbol of lifestyle and culture

Valued added strategy
?Priority consideration of environmental problems ?High quality while environmental concern

?Experiential service

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7

Features of The Concept
? Positive teamwork for product development

? Mutual benefit cooperative relationship with suppliers

? Optimize distribution and logistics

? Personalized and considerate service

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8

Features of The Concept

Teamwork

Cooperative Relationship

Distribution and Logistics

Service

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9

Criteria for Location

IKEA Dalian
Address:
No.51, Haida South Street, Xigang District, Dalian

Map

Outdoor Scene
2012-11-5 10

Criteria for Location

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11

Summary and Question

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12


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