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Case Title:

IKEA: Re-entering The Land of Rising Sun

Publication Year : 2006

Authors: Abhijit Sinha

Industry: Retailing

Region:Scandinavia US

Case Code: MES0061K

Teaching Note: Not Available

Structured Assignment: Not Available

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Abstract:
IKEA, the Swedish home furnishing company entered into Japanese home furnishing industry during the decade of 80s. However, during that time, the company failed to mark its presence in Japanese home furnishing industry. Analysts commented that, since the company failed to adapt the localization strategy it failed. In 2006, the company again plans to make an entry in Japan. Though, this time the company plans to stress upon the localization strategy. The company modified its furniture and other home furnishing items to suite the taste and preference of the Japanese audience. This case discusses in details about the marketing strategy adopted by IKEA to make a successful entry in Japan. It also covers the 4Ps of marketing and segmentation-targeting-positioning strategy adopted by the company.

Pedagogical Objectives:

  • To understand the importance of localisation strategy in the context of IKEA’s failure venture in Japan
  • To discuss the market dynamics of furniture Industry in Japan during 2006
  • To analyse IKEA’s STP strategy.

Keywords : IKEA; Japanese home furnishing industry; Market Entry Strategies Case Study; Product; Price; Place; Promotion; Distribution; Positioning; Targeting; Segmentation; Otsuka Kagu; Localisation strategy; The IKEA concept; Home furnishing retailing

Contents : 
Ikea: The Swedish Giant
Japanese Home Furnishing Industry: A New Perspective
Ikea’s First Foray In Japan: The Disaster
Ikea: Re-Thinking Its Strategy In Japan
Mission Japan – Part Two
What Lies Ahead
Japanese Home Furnishing Industry
Ikea’s Pre-Launch Promotion In Japan
Ikea Campaign: Everyday Design

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