IKEA Brand Scorecard Final Essay

IntroductionThe denouncescore card is an essential element used to evaluate the overall equity of a fault. The scorecard is an powerful way to asses the unmet needs of the shufflings customers, it enables the give away to stay relevant and effective in the commercializeplace in a methodological manner. The scorecard should be able to fill either gaps that have developed within the strike offs approach to centering and its strategic direction, as healthful as developing and maintaining a functional management system that can grow as the brand grows, while remaining comprehensive and completely brand relevant. (Kaplan and Norton, n.d.) In harm of evaluating the on-line(prenominal) situation of a brand, a brand scorecard enforces a successful management plan by directly addressing what is at the core of the brand. It allows for the brand managers to objectively rate their brand against their get conform of standards, based on their strategy. disgrace Planning1 IKEAs Missio n & VisionIn suppose to create a viable scorecard to measure against the IKEA Brand against, it is important to define exactly what the mass and the mission of the IKEA Brand is and if they watch over their vision and mission.According to IKEAs business concept , At IKEA our vision is to create a break down everyday livelihood for the more or less people. Our business idea supports this vision by offering a capacious range of sanitary-designed, functional home furnishing crops at prices so low that as many another(prenominal) people as possible forget be able to afford them(Ikea.com, 2014). From their own definition of what their vision is it can be said that they aim to vastly improve the quality of the lives of people who be in a reject income bracket, whilst still maintaining a certain level of product superiority and status. The IKEA brands vision is to use the concepts of conservation and reductivism to their full potential, by foc use on the effectiveness of si mplicity and the functionality of each product rather and then purely the aesthetical components.The price of each IKEA product makes a large part of what their brand vision entails, Low 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 Potential GoalsIn line with the Ikea vision there will endlessly be consumers in need of their products. By following their current goals such as property prices low at design phase, there atomic number 18 strict product requirements which need to be met in legal injury of function, efficient distribution, quality and impact on the environment.A certain level of quality is incessantly maintained by using effective negotiation skills and carrying out rigorous quality control evaluations on their materials.Awareness and measurement of their brand environmental impact Ikea are transparent in their approach to choosing suppliers and using sustainable materials that can be recycled and re red-hoted as well as monitoring and controlling a high standard of their social and working conditions.Consumer friendly product throughout 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 f breeds to work. This increases healthy living for their employees and reduces carbon emissions. They also designed their water cans to stack on top of each other neatly, reducing the amount of trips it would take to transport them to the stores.Maintain existing stakeholder relationships Ikeas hold backs that the intercourse lines between suppliers, manufacturers and of theirstakeholders are clear and concise according to both their vision and mission.In order to rag the potential goals of the Ikea Brand, it is necess ary to consider the following statement Its non difficult to manufacture costly fine furniture just spend the money and let the customers pay. To manufacture beautiful, durable furniture at low prices is not so light it requires a different approach. It is all about finding saucer-eyed solutions and saving on every method, process or approach adopted but not on ideas. (Ikea.com, 2014).We have identified two potential goals for IkeaSimplistic Assembly Process their assembling instructions are crafted so that consumer can easily interpret the instructions in a straightforward manor resulting in easy product assembly.Bettering current environmental impact ensuring that they maintain their current best practice with circumstantial reference to their means of distribution and manufacturing, by making sure that they are highly sensible of the environmental impact of the resulting change magnitude traffic that may occur from erecting stores.3 Corporate ObjectivesTo produce bra zen-faced 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 Analysis4.1 Macro scotchal High profits, high growth and good profit margins has contributed to the retail market. affectionate 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.Environmental IKEA have implemented regular measurement tools and inspection to monitor all noise, water, air pollution 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 choose to work with and the stand ards that they demand on manufacturers in terms of the law.1.2. commercializeThe market 43 manufacturing units in 12 countries. The Chinese market has almost doubled ascribable to large urbanization needs. (Li Fangfang, China Daily USA, 29 August 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 re starts, they have developed the current technologies in manufacturing, they have encouraged their suppliers to use the latest in research and outgrowth and the have make 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 extremely affordable. It appeals to those wanting the latest st yles but also to the market that cannot afford costly furniture.Location IKEAS stores are generally located just outside of the main townshipdue to their stores being so large.4.3 Micro SWOT AnalysisStrengthsPowerful Brand Image simple 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 care slopped 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 might be closed IKEA Swedish designs could limit their target marketQuality of furniture is not built to be life longOpportunitiesUntapped Markets (Africa)Make consumers more than aware of IKEAOpen high end stores or little express storesCreate more online store presenceThreatsIncreasingly competitive pricingSocial trends such as a slow down in first time home owner buyers Economic factors such as less spending power due to recession effects5 expose IssuesQuality of Products some products may vary in quality from country to country. Things such as a countries standards for manufacturing may not be as high compared to another country and therefore 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. Differentiation with the currenteconomic climate, many furniture stores are producing low cost 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 cloggy and therefore they have less spending power which has lowered expenditure on goods such as furniture.6 AssumptionsThe 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. There 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 and latest people as its main consumers in particular those love 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 mainly target the younger market who like innovative products.8 Brand objectivesTo increase market dispense in news segments such as Africa, Asia and South America. The benefits of this would be increased profits, brand awareness 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 investment in wind and solar energy through to 2015 as part of new sustainability strategy in order to be completely independent from using energy and resources. This will nurse their consumer from price spikes and their own organization 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 million light sources in stores with low energy consumption LEDs, as well as only sell LED lights in their stores from 2016. ( volition Nichols, BusinessGreen, part of the Guardian Environment profit theguardian.com, Tuesday 23 October 2012)10 Communication ObjectivesTo develop better communication and in tegration strategies so that IKEA has the same brand quality through their organisation transnationally.11 Task BudgetThe Ikea brand focuses on their project management, employee management and their resource management processes by directing all employees in a positive 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 advance 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. Here are some more examples to illustrate give and take, IKEA style. (Ikea.com, 2014)By ensuring this positive management style they are able to put their business objectives to the right 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 correctly.1 The IKEA brand makes a point of acknowledging its brand recital and the various ways that it has left 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 appropriate market 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 continuously seeking to source affordable and quality suppliers. The importance of continuously having their correct target market in mind is always a census thought in the mind of the brand managers.3-The IKEA brand strictly sticks to their current incorporate identity, all the brand collateral is consistent, they make a point of d oing all merchandising 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 damages policies in place that allows the consumer the ability to deal 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 continue with their awless approach to innovation.8 IKEA has a pricing strategy that is unarguably inline 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 treated as potential development and there is no apparent product hierarchy.10 The IKEA brand is a green focused brand throughout its entire supply chain, it upholds a impeccable environmental process. However there is room for feeler within their distribution sector.ReferencesBusinesscasestudies.co.uk, (2014). Introduction Building a sustainable supply chain IKEA IKEA case studies and cultivation Business Case 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 Faced By Ikea Marketing Essay. Retrieved from http//www.ukessays.com/essays/marketing/competitive-advantage-and-problems-faced-b y-ikea-marketing-essay.php?cref=1