MARKETING PLAN OUTLINE

IKEA JEDDAH, KINGDOM OF SAUDI ARABIA

DEBOARH MAE R. BONOAN

I. MARKETING BACKGROUND

A. Overview of the Industry

1. Market Size

Saudi Arabia has the highest in the world per capita GDP with more than $86,000
a year, a figure that is foreseen to grow as the economy continues to expand. A
survey conducted by MasterCard Worldwide for Index of Consumer Confidence
issued in December 2012, found out that Arab consumers were among the most
positive in the region. Saudi Arabia was ranked second on the index for the first
half of 2011, while its overall rating on the index of 83.6 was well above the
regional average of 71.6.

The huge jump in demand is feeding growth in shopping supply, with a steep rise
in retail space coming onto the market over 2010. According to a report released
by property consultancy Colliers International at the end of 2011, the total gross
leasable (GLA) available to the retail sector in Jeddah topped 630,000 SQM, up by
some 30% since 2009.

Saudi Arabians’ retail, hospitality and tourism sectors have given a small foretaste
of what to expect in 2022 during the Asian Cup held lately. Though there will be
doubts for some deflation for the sector following the World Cup, but it
would not be that extreme, as the expected expansion of the domestic economy
and population growth should soak up the increased retail capacity long after the
final whistle in 2022.

2. Market Trends

Saudi Arabia has many specialist furniture stores, but only a few which cater to
Western tastes, so Saudi Arabia’s Western expat community often imports goods
from abroad or sticks to very specific ranges in the country's biggest furniture
retailers, Homes R Us and Home Centre.
 Arabs in general love elaborate, extravagantly designed furniture and there are
many stores which cater to their tastes. There are no online shopping options for
consumers looking to buy furniture. Creation and use of an effective and cohesive
multi-platform strategies for marketing and sales.

B. Market Profile

As mentioned earlier, the furniture industry, through the effects of modern

technology rising and globalization is on the process of welcoming various
substantial changes. In the past, the furniture industry has been traditionally known
to just give its attention to incorporating various product innovations and often
times on customer service innovation. But with the introduction of the Internet and
modern gadgets, e-commerce had now also found its way towards the furniture
industry to upgrade the shopping experience of their existing customers and even
potential ones.

The rise of online transactions are now paving the way for retailers to stray away
from investing too much money on brick-and-mortar- outlet stores and focus more
on establishing a well-known and strong web presence and digital stores. With this
innovations present, virtual window shopping are now becoming a trending habit
for shoppers and fashion retailers are now not just limited to in-store purchases.

C. Environmental Analysis

1. Analysis of Opportunities and Threats

Furniture industry is one of the most basic industries not only in advanced
industrialized countries but also in newly industrialized countries. In the global
manufacturing industries, the contribution of furniture industry is around 4% in the
total production. Because of the globalization and improvement in the economic
situation of consumers, social values and living standard of people has been
changed. This change has given a drastic impact on the performance of Furniture
 industry. Therefore, the rapid changes of the business environment make IKEA
choose the cost leadership which means that low cost price to gain the market share.
Due to the changes in the preference of the consumers and rapid growth of the
newly industrialized countries such as Saudi, this low cost strategy is not working
well in two major dimensions: in term of the customer side, as mentioned above,
many customers tend to consider the IKEA as a high price brand; in term of the
business the company, low cost leadership tend to come with large volume of sale
and a large market in the industry, but both of these two are not achieved perfectly
by the IKEA in Saudi Arabia.

On the other hand, some of the threats that can pose challenges to IKEA
intensifying competition. Many low cost retailers such as centre point, Al Shaheen,
Home R US or Home Center are entering home ware specialists market where
IKEA operates. These large retailers have similar specifics as IKEA, including low
costs, well managed supply chain and huge market presence and can easily gain
some market share from IKEA.

Growth of average consumer income. Growth of average consumer income means

that people buy less low price and low quality products, which is exactly what
IKEA offers in its stores. With the rising income people will be less attracted to
IKEA and will turn to retailers that offer higher quality home ware products.

2. Key Success Factors

IKEA; Solving the worst part of buying furniture as people used to see furniture as

an investment for the next 20 years, they tended to be anxious and indecisive, thus

IKEA resolve such idea.

 IKEA brings a seminal change in home business. Hitting the right demographic -

Clever target customers: young people

 Not expensive, but not too cheap.

  Stores are a destination - As e-commerce becomes more popular, shoppers need

incentive to come into stores.

 IKEA has elaborate showroom and cafeteria - IKEA is a standalone store.

II. COMPETITIVE ANALYSIS

A. Competitive Positioning

Saudi Arabia is one of the countries in the world that is known for its shopping malls
and districts and this poses a very competitive environment for IKEA. Some of the
competitors of IKEA include:

a. Mall of Arabia – shopping mall located in Jeddah in the Kingdom of Saudi

Arabia. The mall is located on the eastern side of the Medina Road and south
of Makkah Road, near the King Abdulaziz International Airport. The mall has
an area of 261,000 square meters. It also contains Kidzania Jeddah
b. Abyat – the biggest retail store in the Middle East. The concept, idea, and
trademark was developed 100% locally. Provide all the products a home
owner, contractor, or company needs in order to build the perfect house with
our great selection of products and services
c. eXtra Store –established in Saudi Arabia in 2003 by United Electronics
Company (UEC) Commercial Registration number (2051029841), to provide
customers with complete shopping experience for consumer electronics and
home appliances. eXtra offers all the leading international brands and stocks
an extensive product range including TV, audio systems, computers, mobile
phones and IT communications, cameras, home appliances and personal care
products. The product range is supported by comprehensive after sales services
such as extended warrantee, free home delivery and AC installation. In addition
it offers anytime anywhere computer maintenance, remote assistance over the
phone 24 hours 7 days a week, and mobile setup with total back-up and
maintenance through its trade mark Force 24/7. With 3 dedicated service
 centers across the kingdom, eXtra also offer household machines and
electronics repairs

B. Market Shares/Sales Volume/Sales and Profit Trends

The Saudi Arabian home furniture industry has become one of the most vibrant and fastest growing
industries in the GCC region.

 The growing number of real estate development and increasing demand for residential property,
along with the governmental initiatives to develop socio-economic infrastructure, are driving
the furniture industry in the country.

 Since the local manufacturers are facing a shortage of raw materials and parts required for
manufacturing furniture products, the demand is met by importing furniture products.

 The rising interest and investment of foreign players, either to increase their presence or to
expand in different emirates, are further boosting the country’s home furniture industry.

 It is anticipated that in the future, the demand and supply gap may reduce with the expected
decline in the import of furniture products.

 Rising internet penetration is increasing the demand for online furniture. Role of media has also
played a pivotal role in increasing the demand for furniture products. Consumers get new
innovative ideas on redecoration of houses from various TV programs and magazines, which
cater to home furnishings. E-commerce has played an important role in advertising and
promotion of furniture products across the country.

Scope of the Report

A complete background analysis of the Saudi Arabian home furniture market, which includes an
assessment of the parental market, emerging trends in the segments and regional markets, and
significant changes in market dynamics and market overview, is covered in the report.

Key Market Trends

Bedroom Furniture Segment
Bedroom furniture is considered as a form of decorative art. The furniture included in the market
segment ranges from beds with mattresses of different shapes and sizes, to clothes closets,
nightstands, and dressers.

 The revenue of the bedroom furniture segment was valued at USD 3 billion in 2015.
 Globally, in 2017, the United States generated most of the revenue in the bedroom furniture
segment.

Living-room and Dining-room Furniture Segment

In Saudi Arabia, the demand for living-room and dining-room furniture is increasing. The segment
includes furniture used in living rooms, parlors, lounges, lobbies, and dining rooms.

 The revenue of the living-room and dining-room segment was valued at USD 4 billion
in 2018.
 Globally, in 2017, the United States generated most of the revenue in the living-room and
dining-room segment.
 Competitive Landscape
The report covers major international players operating in the Saudi Arabian home furniture
market. In terms of market share, some of the major players currently dominate the market.
However, with technological advancement and product innovation, the mid-size to smaller
companies are increasing their market presence by securing new contracts and tapping new
markets.

Major Players
1. Saudi Modern Factory
2. Riyadh Furniture Industries Co.
3. Al Mutlaq Furniture
4. Al-Abdulkader Furniture Co. Ltd
5. Al Aamer Furniture
* Complete list of players covered available in the table of contents below
The following shows the market share value of furniture market by category for the
years 2013-2017:

Kitchen & appliances

23.60%
Home electronics
45%
13% Home improvement

16% Dining
4.40% 9.70%
2.70%
Living room
Bedroom
Men's outerwear
C. Marketing Strategies

1. Product

A lot of IKEA furniture is designed to be “Do It Yourself” DIY rather than be

pre-assembled by the consumers. This will allow consumer to get the product
at a lower cost and use of packaging. This is also a practice point for many of
the chain in the Asian countries where public transportation is being utilized in
everyday ‘s life. However, the flat-pack distribution channel allows the
consumers for an easier access of public transportation from the store to their
homes for the assembly of their purchase. IKEA Group had also identified the
product by a single name. Most names are Swedish in origin. Giving an
example, a product named “DUKTIG”, meaning good and well behaved is a
direct translation to the kids toy, “EFFEKTIV” which means efficient and
“SKARPT” being translate into sharp or clever.

2. Price

The imperative of an individual product Pricing serves as an essential feature

of the marketing mix. The products are usually charged according to the balance
of affordability by consumers for them to make their purchases and by
determining the amount of sales achieved by IKEA will obtain a profitability
target to their ultimate objective. Theoretically, there are a set of strategies
CATEGORY 2018 SALES VOLUME
Kitchen & appliances £21.3bn
Home electronics £11bn
Home improvement £5.7bn
Dining £4.2bn
Living room £2bn
Bedroom £1.2bn
Men's outerwear £700m
concerning pricing has been adopted by IKEA: The Long-Term Aspiration of
IKEA An analysis has been conducted by IKEA on how the company positions
 per se in the marketing place with three proposals and determining how the
‘furniture-giant’ is being properly financed.

3. Promotion

In every advertisement from different countries they created, they always

display slogans related to the goods and IKEA. Each country’s IKEA has
different slogans and advertising methods which adapted to the countries
culture itself. IKEA have shown high profile of the high profile of the
advertisement campaigns which also includes the online advertisements.
 PUBLICITY
 EVENTS SPONSORSHIP
 IKEA can provide sponsorship for the events functions.

4. Place

Improving the features of the company’s website included the above

mentioned, promotional offers and with an incremental of showrooms, road
shows in the shopping mall and furniture fairs in countries that lack of the
presence of IKEA. IKEA could expand the market into Indonesia, as Indonesia
is one of the Asian strong economy growths and have attracted many businesses
to be set up in the country. Given the advantage of the strong economic growth
coupled with an absolute demographical flow are bound to benefit IKEA to
establish their nature of business in Indonesia and generate profits and the
incremental of sales. 3. PRICE STRATEGY Promotion fairs- reduce product
prices to clear the old stock.

C. Strengths and Weaknesses of Competition (in terms of 4 P’s)

1. Product

Strength: Unlike IKEA’s largest competitors, the company has fairly

diversified businesses. In addition to its furniture products, the company
operates restaurants, houses and flats. Although, firm’s main business is
 designing, manufacturing and selling furniture it is not so affected by the
changing forces in this market as other furniture retailers.
Weakness: IKEA’s main competitive advantage derives from low costs, which
in part are achieved due to standardized products. Standardized products attract
fewer customer segments. Therefore, the business inability to offer better
quality more customized products allows its competitors to fill that niche and
fortify their position in it.
2. Price

Strength: Low prices are the cornerstone of IKEA business idea and the
company always try to do things as efficient and cost-effective as possible. To
drive costs down all the time, the company must find new and innovative ways
to do that and to incorporate them in its businesses model. The business’
innovations include new materials that contribute more to sustainable
environment and are less costly or using newest ways of packaging, handling
and transporting materials.

Weakness: Can be much higher that the prices of products offered by IKEA.

3. Promotion

Strength: IKEA carefully thought about how to sell their products effectively.
SOCIAL MEDIA
Sales promotion and discounts- in the past, printed coupon were distributed to
create awareness of promotion. Now, the online media (e.g. websites and
mobile platforms- apps) I. Websites IKEA can use promote their offers and
latest events (e.g. furniture fairs) online
Mobile platforms- apps
Social media is to advertise their promotions of products and discounts. It can
be included locations of stores in shopping malls and megastores, online orders
and deliveries. The apps can provide a delivery tracking system.
 Weakness: IKEA has been criticized for selling the extract same products on
the global market (Bjork, 2000, Lewis, 2005).

4. Place

Strength: Their current location can be of advantage to the business since this
can already reach a number of customer and are already well-known in the
community/area.

Weakness: Their area in where they are currently settled in can also have many
competitors nearby.

III. COMPANY BACKGROUND

A. Company Profile

Founded in 1943 in Älmhult, Sweden, IKEA is the world's largest furniture retailer.
In the 2016 fiscal year, the company generated a global revenue which exceeded
35 billion Euros. One of the key competitive advantages IKEA has is its extensive
knowledge about the customers. The company understands the purchasing factors
that influence customers to buy and implements the best practices to induce that
decision and, as a result, has become one of the most loved companies worldwide.
IKEA offers low prices and a huge range of products. Designers constantly
introduce new design products that look stylish in the eyes of customers. All the
products are designed so they are easy to transport and assemble. Moreover, the
company offers the widest product range and positive shopping experience. All of
these factors are aligned with what customers want and need and which results in
higher sales. Without such extensive customer knowledge and best practices to
benefit from that knowledge, IKEA would be unable to outcompete its current
competitors.
 According to Millward Brown Optimor's "Brandz Top 100 Most Valuable Global
Brands 2016", not only is IKEA the fifth most valuable retailer in the world, but it
is also the most valuable furniture retailer brand in the world, valued at over 18
billion U.S. dollars. The business operates 389 stores and is present in 47 countries.
More than 780 million customers visit IKEA stores every year.

B. Current Position of the Company/Brand in the Market

Taking its retail experience even further, IKEA, part of Al-Fustian Group of
companies, has announced the launch of online shopping for its website. Customers
within the country can now browse over 1,800 products and furnish their homes
with IKEA, without having to leave their homes at all.

C. Company/Brand Strengths and Weaknesses Analysis

Company Strengths Analysis:

1. Brand reputation and market presence. According to Interbrand, IKEA is the

most valuable furniture retailer brand in the world, valued at nearly $US 12.8 billion

in 2012. The business operates 332 stores in 38 countries and is present in the major

world markets. More than 600 million customers visit IKEA stores every year.

Worldwide market presence and strong brand reputation ensures that customers

will often choose IKEA over its competitors.

2. Diversified product portfolio. Unlike IKEA’s largest competitors, the company

has fairly diversified businesses. In addition to its furniture products, the company

operates restaurants, houses and flats. Although, firm’s main business is designing,

manufacturing and selling furniture it is not so affected by the changing forces in

this market as other furniture retailers.

 3. Supply chain integration. IKEA is committed to long lasting relationships with

its suppliers. In this way, the company can order large volumes and benefit from

lower prices and greater quality while suppliers are assured of guaranteed orders.

IKEA sources its materials close to suppliers to reduce transporting costs. The

company also uses IWAY approach to closely integrate suppliers with its supply

chain. All the efforts of closely integrating supply chain results in lower costs and

a competitive advantage.

Company Weaknesses Analysis:

1. Negative publicity. The company has been criticized many times for issues like

poor treatment of employees, questionable advertising practices or lobbying

government authorities. Negative publicity decreases brand reputation and

customer loyalty.

2. Low quality of products and services. IKEA is unable to find compromise

between continuous cost reductions while maintaining the same quality of products.

According to UK Customer Insights report on IKEA by Verdict, IKEA’s customers

are less satisfied with its product and services quality than the average customer in

UK buying at other stores. Firm’s cost reductions lead to decreasing product

quality, which was followed by higher number of products returned and damaged

brand.

3. Standard products. IKEA’s main competitive advantage derives from low costs,

which in part are achieved due to standardized products. Standardized products

attract fewer customer segments. Therefore, the business inability to offer better
 quality more customized products allows its competitors to fill that niche and fortify

their position in it.

D. Brand Consumer Profile

1. Identified Market Segments

Salaried workers have shown high spending ability and higher acceptance of new

products and new ideas. Whereas for the segment that includes shoppers that shop

IKEA for the first time and students, these consumer segments are more price

conscious due to limited budget spending and value for money products. The table

below illustrates the four different target market segments in accordance to the

Demographical Approach:

Target Market Categories Action taken by Customers

Young adults and Middle-aged Manageable financial capabilities, acceptance of new
group products and innovative concepts.
Students Budget limitations and sensitivity in price being
offered
Office workers Furniture shoppers (First-Timers)
Children Parents pay more attention to their child physical and
cognitive response.

2. Market Needs being Addressed

IKEA have always been accentuating on their three value strategies, which
includes:
 their signature products
 best price and
 good services provided by the staffs

IKEA’s customers does more than minimal requisite purchase to IKEA’s

products; the customers are able to identify not just with their culture but the
‘style’ of legitimacy where IKEA has propose for their products to induce the
 attraction of more consumers. According to Kerin, Hartley and Rudelius
[2010], they mentioned to IKEA Management and cited that “It’s not what you
say about your IKEA furnishings that matters, it’s what IKEA furnishings says
about you”. Customer value and satisfaction are very important parts to the
success. Consumers tend to make purchases from the firm that they choose
believe in comparison of the offers made to their desired value.

3. Buying Patterns

The furniture implications of this trend are highlighted in an MDPS survey on

household finances, published in 2014. This report, using data on 3723 families
from the fiscal year 2012/13, showed an average monthly income of SAR
R88,217 ($24,200) for Arab households and SAR 24,415 ($6700) for foreign
ones, a spread partly explained by differences in average household size (8.7
and 4.3 persons, respectively).

On the other hand, the following are the factors that influence the buying
patterns of consumers in Saudi Arabia:

a. The sense of “luxury power” that heavily influences the purchasing

decision related to luxury products.
b. Social status.
c. Materialism.
d. Role of vanity and social influence.
e. Brand consciousness.
f. Fashion involvement.

4. Usage Habits

As the real GDP growth of had reached 3.7% in 2020, it is expected that private
consumption to have expanded by 9.5% in 2020, according to BMI Research
 and consequently, this surge is projected to continue, with household spending
forecast to increase by an average of 15.8% per annum through to 2025.

E. Present Marketing Strategy

1. Segmentation, Targeting, and Positioning

In this segment of discussion, there are 4 segmentation themes in the target

market: (1) Geographical, (2) Demographic, (3) Psychographic and (4)
Behavioural segmentations. The first theme will be discussed on the location
statistics where customers are based. The second theme is an objective attribute
based on the customer’s income level, individual racial and their occupation.
The third theme will be on the subjective attribute based on their traits and
individual lifestyle and demands. The fourth theme is focused primarily on the
attitudes of customers of what beneficial purpose they make their purchases,
how often they tend to buy and why they had choose to buy the products.
2. Marketing Mix (4 P’s)

Marketing mix is the set of controllable, tactical marketing tools that the firm
blends to produce the response it wants in the market (Kotler and Armstrong,
2008). The marketing mix consist of everything the firm can do influence the
demand for its product. There are four variables known as product, price, place
and promotion (Kotler and Armstrong, 2008)

In terms of the Products, IKEA offers a wide variety of high-end luxury brands
known worldwide. As for Price, its price margins are considered to be high
enough since its products are branded. In terms of Promotion, IKEA entirely
relies on the word-of-mouth or referral from its loyal customers but starting to
create a web presence through IKEA’s website and social media. And as for
Place, the current location of IKEA are situated in an area where it can reach a
number of customer and even potential ones.

3. Competitive Strategies Employed

 The following are the various competitive strategies employed by IKEA:

a. Keeping up with growing consumerism through offering a wide range

of luxury brands with various range of products.
b. Providing in-store entertainment and other numerous techniques that
can enhance a unique customer experience.
c. Having an effective and comprehensive sell-through analysis
management to ensure which products are moving fast and keeping
track with the latest fashion trends and consumer preferences.

IV. IDENTIFIED MARKET OPPORTUNITY

IKEA, as one of the well-known retailers of high-end fashion items in Saudi Arabia
also had a plenty of identified market opportunities that they should take in
consideration such as:

a. Building a more effective and consistent multi-platform strategy that integrates

all the elements of the business so that the business can reach more number of
customers in various channels.
b. Offering customers a product that they cannot find online.
c. Integrating the concept of personalization; rearranging the store in a way that
will fit target customer’s personality.
d. Innovating synergies between in-store and online experiences.

e. Managing, measuring, and optimizing performance to ensure overall customer

satisfaction.

V. PROPOSED TARGET MARKET

A. Demographics
 IKEA apply demographic bases for its market. Demographic segmentation consists

of the individual age group, gender orientation, based on family life-cycle,

occupations, income level of a single customer and the society interaction level in

conjunction with the economic factors. Females of average age of 38 visited IKEA

the most. Lately the company’s target is to young couples whom own apartment; a

survey has been done which includes the number of young married adults, working

professionals and first time furniture shoppers.

B. Psychographics

In this segment, this primarily emphasizes on the customer’s behaviour, common

activities, personal well-beings and their beliefs. In Europe and North America, the

customers would rather choose their products simple and natural in design but when

furniture durability started to wear-out, the furniture can be substitute at any point

of time in accordance to their own preference along with their lifestyle trends and

demands. However in Asia, customers have chosen of home decoration pursuit of

the luxury lifestyle, in particular in the decision to purchasing bulky furniture.

C. Behavioral – Certain products are based on the substantive purchasing behavior of

the consumers. The impact of consumer buying behavior, customers’ demand,
range of income groups, commodity prices, and consumer attitudes. The income
ranges from the low income, middle income group and the high income category
that IKEA divided into.
D. Geographic – The existing target market and potential consumers located near or
within the place where the business is currently situated.

VI. MARKETING OBJECTIVES

A. Overall Marketing Objectives

 In three years’ time, it is expected that IKEA had now incorporated various and
innovative ways that can help the business to enhance its market segmentation and
positioning in the furniture industry. Such innovations are expected to enhance the
overall market shares, sales both in volume and value, profits, and distribution.

B. Specific Objectives and Targets

1 YEAR 2 YEARS 3 YEARS

MARKET The market shares To strengthen Market will
SHARES at time is expected customer continue to expand
to go on a steady relationships and with going on top
pace with the use implementing over other
of innovative smart hiring competitors
marketing practices
strategies

SALES Strengthening Encourage Strong web

(VOLUME AND referral method of bloggers to make presence in social
VALUE) increasing sales reviews of the media platforms
business and its
retail products; use
of social media to
its advantage

PROFITS Analyzing gross Review and Increase prices

profit margins improve operating
procedures

DISTRIBUTION Develop key Taking ownership Establishing a

measurements and of the marketing pricing strategy
track performance campaigns and practices to
employed resolve pricing
conflicts

VII. OVERALL MARKETING STRATEGY

 Marketing strategy is considered to be a fundamental key in the aiming for a success
of a company or organization of any type. This includes a number of steps or ways
that can help the company to better introduce itself to its target consumers – and aside
from traditional marketing strategies such as theories and approaches that can be
applied; now, as modern technology is rapidly emerging and taking over most of
people’s daily lives, the marketing strategies that are being used also finds itself to be
changing over the years. This includes the introduction of social networking sites to
be used as another alternative platform for reaching a wider range of consumers
across the global market; and also combining two or more approaches such as
traditional and modern ones in order to ensure that company objectives and goals will
be met and can also give satisfactory to its consumers.

In fact, the key to future brand success will be the creation of a cohesive and effective
multi-platform strategy and the transformation of the brick- and-mortar store network
into a modern, multi-format, innovative sales environment that integrates online,
mobile and social platforms, and actual stores, making them work together to create an
optimized cross-channel experience. And in order to do this, a number of marketing
strategies with a focus on the 4 P’s of Marketing must be employed.

VIII. THE MARKETING MIX

Product Strategy Product Packaging

Description/Features/USP

PRODUCT Ensuring that products High quality products; no The packaging will
are always updated to defects in any forms be from the
the newest trends individual brands
so that consumers
would feel that
they although they
brought it from the
store of that
certain brand;
They would not
feel any difference
 Offering products that The packaging will
is timely needed by Products are guaranteed to be pleasing to the
consumers be truly useful and worth a eyes; easy-to-
customer’s money carry; had good
label and
instructions guide

PRICING Pricing Strategy Detailed Product Costing Selling Price

Index vs.
Competition
Markup Pricing Determined by dividing the This can be one
markup by the retail price way in order to
attract customers
that what they’re
buying is cheap in
comparison with
other stores but
with the same high
quality

DISTRIBUTION Distribution Strategy Trade Channels Distribution

Scheme
Direct to end users Marketing campaigns Through freight,
Pricing courier, and
Sales process logistics operators
that uses the
support of land,
air, and water
transportation
Open for franchising Mall stores Being available in
General Merchandisers various and easy to
Bazaars locate locations
that can be of
convenience to
customers across
locally and in
other countries

PROMOTION Overall Promotions Advertising Consumer and

Strategy Trade Activities
The overall Advertising can be done Apply push-and-
promotions strategy through means of pull marketing and
than can be employed tarpaulins, giving out then align
is through the use of brochures and pamphlets, objectives with
social media platforms referral marketing, and strategies
 as many people through social media
nowadays are digitally marketing
inclined

Merchandising/Point Publicity/Public
of Purchase Relations/Events
Materials
The use and display of Initiating bloggers to make
free and discounted reviews about the business
items at the counter to and post it online; create
encourage more fashion-related
customers to purchase engagements
an item

IX. 3-YEAR FINANCIAL FORECASTS

A. Sales Volume/Value Projections

QAR 800,000,000.00
685,873,000 700,343,000
QAR 700,000,000.00
582,130,000
QAR 600,000,000.00

QAR 500,000,000.00

QAR 400,000,000.00

QAR 300,000,000.00

QAR 200,000,000.00

QAR 100,000,000.00

QAR 0.00
Year 1 Year 2 Year 3
 B. Detailed Marketing Budget and Marketing Timetable

1 YEAR 2 YEARS 3 YEARS

Product Marketing 650,000 790,000 812,000
Content 590,000 610,000 750,111
Paid Advertising 645,900 755,000 880,900
Public Relations 400,000 515,000 665,489
Branding and 490,000 500,000 635,500
Creative
Events 620,000 725,171 840,000
Others 428,160 440,000 505,000
TOTAL QAR3,824,060 QAR4,335,171 QAR5,089,000

Activities Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Public relations

Sales
support/collateral

Brand consistency

Website
improvement and
maintenance

Updating information
in social media
platforms

Distributing
brochures and
pamphlets

Search engine
optimization
 C. INCOME STATEMENT

INCOME STATEMENT
For the Fiscal Year Ending December 31, 2020-2023

Revenue 1/31/2016 1/31/2017 1/31/2018

Total Revenue 482,130,000 485,873,000 500,343,000
Cost of Revenue 360,984,000 361,256,000 373,396,000
Gross Profit 121,146,000 124,617,000 126,947,000
Operating Expenses
Research Development - - -
Selling General and 97,041,000 101,853,000 104,698,000
Administrative
Non Recurring - - -
Others - - -
Total Operating Expenses 458,025,000 463,109,000 478,094,000
Operating Income or Loss 24,105,000 22,764,000 22,249,000
Income from Continuing
Operations
Total Other -2,467,000 -2,267,000 -7,126,000
Income/Expenses Net
Earnings Before Interest 24,105,000 22,764,000 22,249,000
and Taxes
Interest Expense -2,548,000 -2,367,000 -2,330,000
Income Before Tax 21,638,000 20,497,000 15,123,000
Income Tax Expense 6,558,000 6,204,000 4,600,000
Minority Interest 3,065,000 2,737,000 2,953,000
Net Income From 15,080,000 14,293,000 10,523,000
Continuing Ops
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting - - -
Changes
Other Items - - -
Net Income
Net Income 14,694,000 13,643,000 9,862,000
Preferred Stock And Other - - -
Adjustments
Net Income Applicable To 14,694,000 13,643,000 9,862,000
Common Shares
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https://www.statista.com/topics/1961/ikea/

IKEA (2013). About IKEA. Available at:

http://www.ikea.com/ms/en_GB/about_ikea/index.html

The Times 100 (2012). Business Case Studies. Ikea case study. Available at:
http://businesscasestudies.co.uk/ikea/swot-analysis-and-sustainable-business-
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Interbrand (2012). Best Global Brands in 2012. Available at: http://www.interbrand.com/en/best-

global-brands/2012/Best-Global-Brands-2012.aspx

Wikipedia (2013). IKEA. Available at: http://en.wikipedia.org/wiki/IKEA

https://www.chinaabout.net/evaluation-ikeas-strategic-choices-implications/

https://jgdb.com/essays/ikea-strategic-marketing-plan

https://www.mdps.gov.qa/en/statistics1/Pages/LatestStats/2065179.aspx