IKEA Brand Scorecard Final Essay

IntroductionThe soft touchscore card is an subjective element exampled to evaluate the over alone equity of a trade name. The placard is an strong way to asses the unmet needs of the strike outs customers, it enables the differentiate to stay relevant and effective in the commercializeplace in a methodological manner. The scorecard should be able to fill any gaps that feed developed within the notes nestle to management and its strategic direction, as rise up as developing and maintaining a functional management system that tail elevate as the note grows, while remaining comprehensive and completely brand relevant. (Kaplan and Norton, n.d.) In price of evaluating the period situation of a brand, a brand scorecard enforces a successful management plan by straightaway addressing what is at the core of the brand. It allows for the brand managers to objectively rate their brand against their admit set of standards, based on their strategy. stigmatize Planning1 IKEAs Mission & VisionIn order to create a possible scorecard to measure against the IKEA stigmatize against, it is important to de bonny exactly what the wad and the mission of the IKEA Brand is and if they honour their imagination and mission.According to IKEAs handicraft concept , At IKEA our vision is to create a intermit customary life for the many mint. Our business idea supports this vision by pass a wide range of well-designed, functional home furnishing merchandises at prices so low that as many people as possible allow be able to afford them(Ikea.com, 2014). From their proclaim definition of what their vision is it earth-closet be said that they aim to vastly improve the fibre of the lives of people who argon in a lower income bracket, whilst still maintaining a genuine level of product superiority and status. The IKEA brands vision is to delectation the concepts of conservation and minimal art to their full potential, by focusing on the effectiveness of simpli city and the functionality of apiece product rather then purely the aesthetical components.The price of each(prenominal) IKEA product makes a large make out of what their brand vision entails, number one prices atomic number 18 the cornerstone of the IKEA vision(Ikea.com, 2014). By using their low prices as the foundation of their brands vision, Ikea fulfils a widespread and need for product availability.2 latent GoalsIn line with the Ikea vision in that location forget forever be consumers in need of their products. By next their modern goals such asKeeping prices low at design phase, thither argon uncompromising product requirements which need to be met in cost of function, efficient distribution, tint and tint on the environment.A certain level of quality is always maintained by using effective negotiation skills and carrying out relentless quality control evaluations on their materials.Aw atomic number 18ness and measurement of their brand environmental impac t Ikea ar transparent in their approach to choosing suppliers and using sustainable materials that can be recycled and renewed as well as observe and cont sloging a high standard of their social and working conditions.Consumer warm product byout the supply chain, Ikea is true to their environmentally friendly approach from raw materials all the way to the end user.Reduce carbon emissions IKEA gave 9000 bycicles to their employees as well as subsidized their employees fairs to work. This increases healthy living for their employees and reduces carbon emissions. They withal designed their water cans to stack on top of each different neatly, reducing the amount of trips it would take to transport them to the stores.Maintain existing stakeholder relationships Ikeas ensures that the communicating lines between suppliers, manufacturers and of theirstakeholders are clear and concise according to both their vision and mission.In order to access the potential goals of the Ikea Bran d, it is necessary to consider the following statement Its not difficult to manufacture expensive fine furniture just spend the money and let the customers pay. To manufacture beautiful, undestroyable furniture at low prices is not so easy it requires a different approach. It is all about finding simple solutions and saving on every method, process or approach adopted but not on ideas. (Ikea.com, 2014).We keep identified two potential goals for IkeaSimplistic lying Process their assembling instructions are crafted so that consumer can considerably interpret the instructions in a straightforward manor resulting in easy product assembly.Bettering modern environmental impact ensuring that they maintain their current scoop practice with specific reference to their means of distribution and manufacturing, by making sure that they are highly aware of the environmental impact of the resulting increased traffic that whitethorn occur from erecting stores.3 incarnate ObjectivesTo produce cheap and affordable product for the public and their customers To provide a better life for those who cannot afford expensive products To ensure that their customers find what they are looking for in their stores. To provide low prices without compromising on quality4 Situational abbreviation4.1 Macro frugalal High profits, high product and good profit margins has contributed to the retail merchandise.Social IKEA have formed partnerships with WWF and UNICEF in order to educate others to be aware of child labor and destroying forests.technical IKEA have use excellent recycling methods and also encourage their stakeholders to use technology to their advantage in terms of efficiency.surroundal IKEA have implement regular measurement tools and inspection to monitor all noise, water, air taint such as the E-Wheel (IKEA, the Times 100)Legal IKEA has in store terms and conditions and abide by industry best practice in the suppliers that they assume to work with and the standards that they demand on manufacturers in terms of the law.1.2. tradeThe securities industry 43 manufacturing units in 12 countries. The Chinese market has almost duplicate due to large urbanization needs. (Li Fangfang, China Daily USA, 29 majestic 2013). IKEA has almost 300 stores in 36 countries and 42 distribution centres in 18 countries and over 1000 suppliers. (National Geographic, 2013, n.d)Competitors IKEAs main competitors areWal-Mart Stores, Ashley furniture industries, Howden joinery group.IKEA have the competitive advantage because they have researched where to find the best resources, they have developed the latest technologies in manufacturing, they have encouraged their suppliers to use the latest in research and development and the have built sustainable relationships with their stakeholders.Consumers IKEA has a wide spread target market as they have such a vast variety of products that are trendy and super affordable. It appeals to those wanting the late st styles but also to the market that cannot afford pricey furniture.Location IKEAS stores are generally located just outside of the main towndue to their stores being so large.4.3 Micro SWOT AnalysisStrengthsPowerful Brand ImageWide range of products & StylesFunky up & up-to-date Swedish designsCheap & AffordableAble to assemble your own furnitureOne stop shopFriendly atmosphere and layout of their storesThey have restaurants and day careStrong global sourcingWeaknessesAssembling furniture yourself may not appeal to certain clusters of consumersNot too many stores across the globeFor those looking for a quick shopping experience, the store exponent be unappealing IKEA Swedish designs could limit their target market smell of furniture is not built to be life longOpportunitiesuntapped Markets (Africa)Make consumers more aware of IKEAOpen high end stores or smaller express storesCreate more online store presenceThreats more and more competitive pricingSocial trends such as a un wind down in first meter home owner buyers Economic factors such as less outlay power due to recessional effects5 Key IssuesQuality of Products some products may diversify in quality from country to country. Things such as a countries standards for manufacturing may not be as high compared to another country and thusly the end product could be different. Size of organisation if there are any changes implemented to IKEAs strategy or operations, it is difficult to roll out to their entire organisation as they are so massive. distinction with the currenteconomic climate, many furniture stores are producing low terms furniture but may not have the same sustainable values as IKEA. This makes it challenging for IKEA to keep their costs low as well as try and differentiate themselves from their competitors. Spending Power The economic recession has hit consumers hard and therefore they have less spending power which has lowered expenditure on goods such as furniture.6 Assumptions The Ikea brand assumptions are based upon their established and successful financial revenues The Brand has remained current, both socially and culturally. The brand is empathetic and touches the consumers on an emotional level. thither is a considered environmental plan that the brand is aware of in all of its practises. The brand focuses on upholding ethical business practises, it is transparent.7 Segmentation, targeting and PositioningIKEA targets young person and fashionable people as its main consumers in particular those cacoethes modern furniture and accessories. Therefore, its products are more colourful and novel. In addition, IKE fixes the products prices at a lower level, which is quite attracting for the average consumers, such as white-collars. IKEA generally target the younger market who like innovative products.8 Brand objectivesTo increase market share in news segments such as Africa, Asia and South America. The benefits of this would be increased profits, brand a wareness and increased market share. Reduce costs to appeal more to their intended target market in order to increase market share. One way in which IKEA are trying to cut costs is by9 Strategies and plansIKEA plans 1.5bn investing in wind and solar energy through to 2015 as part of new sustainability strategy in order to be completely freelance from using energy and resources. This will protect their consumer from price spikes and their own administration from fluctuating resource and energy prices. IKEA plan to become an energy exporter with their renewable energy.IKEA has dedicated and committed themselves to making sure that delivery trucks are at least 60 to 70 per cent full. They will replace 1.2 one thousand million light sources in stores with low energy consumption LEDs, as well as only sell LED lights in their stores from 2016. (Will Nichols, BusinessGreen, part of the guardian Environment Network theguardian.com, Tuesday 23 October 2012)10 Communication ObjectivesTo d evelop better communication and integration strategies so that IKEA has the same brand quality through their organisation internationally.11 Task BudgetThe Ikea brand focuses on their go for management, employee management and their resource management processes by directing all employees in a compulsive manner, IKEA co-workers enjoy many advantages and opportunities from working in such a free and open environment but all freedoms are counter-balanced with expectations. For example, the expectation that each co-worker is able to assume responsibility for his or her own actions. Although on the surface it is evident that we have a lot of fun together working at IKEA, at the same time all are expected to be very hardworking and conscientious. present are some more examples to illustrate give and take, IKEA style. (Ikea.com, 2014)By ensuring this positive management style they are able to entrust their business objectives to the counterbalance employees. Each task is managed and set according to specific and expected outcomes. The tasks and objectives can be achieved through their smart brand management and budgeting overcompensately.1 The IKEA brand makes a fleck of acknowledging its brand history and the various ways that it has left hand a brand footprint within its brand environment. There are however inconsistencies between what the employees think of the brand and what the consumers think of the brand. It can be recommended that the employee engagement efforts transcends into the distinguish marketing strategies targeted to the consumer. By doing so there will be a far more holistic brand perception.2-The IKEA brand is targeted at a lower income bracket and it does this successfully by always seeking to source affordable and quality suppliers. The importance of continuously having their correct target market in mind is always a nose count thought in the mind of the brand managers.3-The IKEA brand strictly sticks to their current corporate identi ty, all the brand collateral is consistent, they make a point of doing all marketing on an international level. However they must be couscous of their various contact points ( mainly at the smaller branches) as these are sometimes overlooked.4 IKEA is able to deliver a consistent product, there are various return policies in place that allows the consumer the ability to stagger with any product issues in a simply and easy manner.5 IKEA is responsible towards all its stakeholders, it maintains the relationships by using proactive objectives to direct all of its futureinteractions. The brand can improve its equity by reinforcing the current brand image internally, engaging with all the levels of employees.6 IKEA offers products that are appropriate to their brand visions, they better the lives of the consumers.7 IKEA offers various and innovation products. The brand should anticipate with their irreverent approach to innovation.8 IKEA has a pricing strategy that is unarguably inlin e with their brand identity. The pricing strategy has set a ideal brand expectation to the IKEA consumer, It is however of utmost importance that IKEA is alway consistent in terms of pricing.9 IKEA is aware of and involved with every product that they product, each is hard-boiled as potential development and there is no apparent product hierarchy.10 The IKEA brand is a green focused brand passim its entire supply chain, it upholds a impeccable environmental process. However there is room for improvement within their distribution sector.ReferencesBusinesscasestudies.co.uk, (2014). Introduction Building a sustainable supply chain IKEA IKEA case studies and information Business oddball Studies. online Available at http//businesscasestudies.co.uk/ikea/building-a-sustainable-supply-chain/introduction.htmlaxzz3BWC79qBb Accessed 24 Aug. 2014. Ikea.com, (2014). Our business idea IKEA. online Available athttp//www.ikea.com/ms/en_SG/about_ikea/our_business_idea/index.html Accessed 24 Aug. 2014. Ikea.com, (2014). Our low prices IKEA. online Available at http//www.ikea.com/ms/en_SG/about_ikea/the_ikea_way/our_business_idea/our_low_prices.html Accessed 25 Aug. 2014. Kaplan, R. and Norton, D. (n.d.). The balanced scorecard. 1st ed. http//www.ukessays.com/essays/marketing/the-critical-issues-faced-by-ikea-marketing-essay.php Will Nichols for BusinessGreen, part of the Guardian Environment Network theguardian.com, Tuesday 23 October 2012 http//usa.chinadaily.com.cn/business/2013-08/29/content_16929111.htm http//money.howstuffworks.com/ikea4.htm(National Geographic, 2013, n.d, http//www.natgeotv.com/ca/megafactories/ikea-facts) Essays, UK. (November 2013). An Analysis Of Market Segmentation Of Ikea And Bandq Marketing Essay. Retrieved from http//www.ukessays.com/essays/marketing/an-analysis-of-market-segmentation-of-ikea-and-bandq-marketing-essay.php?cref=1 Essays, UK. (November 2013). Competitive Advantage And Problems set about By Ikea Marketing Essay. Retrieved fr om http//www.ukessays.com/essays/marketing/competitive-advantage-and-problems-faced-by-ikea-marketing-essay.php?cref=1