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strategic marketing: please read below case and answer the question in your own words ( 1000 words) I need the solution very urgently !! Question
strategic marketing: please read below case and answer the question in your own words ( 1000 words) I need the solution very urgently !!
Question 3: what are IKEA product, pricing, marketing communication and distribution decisions in the two Asian markets? To what extent these marketing mixes have been adapted to the preferences and needs of these markets?
case:
IKEAs entry into Mainland China started in 1998 when it opened its first store in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the Chinese customers. This prudent approach to market entry took IKEA the following 5 years before it opened its first full-scale standard IKEA store in Shanghai in 2003. The store occupies 33,000 square meters and retails more than 7,000 products. Its signature Smland childrens playground is 170 square meters and the free parking area holds 800 cars. A record of 80,000 visitors flocked to the store on the opening day. This new Shanghai store represents an important landmark for IKEAs business development in China.
It is the largest of its stores not only in China, but also in Asia. In the same year, the president of IKEA China, Ian Duffy, unveiled a long-term plan to open ten more stores in mid-sized cities, such as Dalian and Qingdao, by the end of 2010. This plan would require a US$600 million investment. The expansion plans underscored IKEAs confidence in China considering none of IKEAs retail stores in China have yet turned a profit, making them the only loss- making stores in the entire IKEA group (Wei, 2007). Its expansion in China nonetheless saw its sales revenue increased by 500% from 2000 to 2005.
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