Tag Archives: market research

IKEA Opens its First Store in India

IKEA has opened its first store in India. The store, located in Hyderabad, cost roughly $100 million to build and is an estimated 400,000 square feet. The company plans to have up to 25 stores in India by 2025.

India has a large and complex retail base. The country’s 1.3 billion people account for about $30 billion per year for furniture and household items. However, unlike the U.S., 95% of the goods are sold through small shops that offer specialty products or single-category stores. IKEA’s broad product mix and store operations had to be significantly revised for India. While the store layout is similar to other IKEAs, the displays are different, featuring hundreds of products priced at 100 rupees or less ($1.45 U.S.).

To research how India’s people live and shop, employees visited about 1,000 homes in different areas of India to understand consumers’ needs. Some differences: most Indians do not use knives to eat, women are shorter than Europeans, and children often sleep in the same room as their parents until they are school-age. In addition, India’s government requires foreign-owned, single-brand retailers to use local suppliers for 30% of the value of the goods sold in India.

IKEA, the Sweden-based multinational, now owns and operates 415 stores in 49 countries around the globe. With revenue in excess of $42 billion (U.S.), and an estimated 12,000 products, the company uses more than 1% of the world’s commercial-product wood.

It’s not always easy to change, but entering a new market requires research and revision.

Group Activities and Discussion Questions:

  1. Ask students about their experiences at IKEA. What works, doesn’t work?
  2. View the IKEA India website: https://www.ikea.com/in/en/
  3. A video of IKEA India store is available at: https://economictimes.indiatimes.com/industry/services/retail/ikea-says-namaste-to-indian-customers-as-it-throws-open-its-first-store-in-hyderabad/videoshow/65340339.cms
  4. Discuss how to build and use a SWOT analysis grid: strengths, weaknesses, opportunities, and threats.
  5. Divide students into teams. Have each team develop a SWOT for IKEA in India.
  6. What are the issues and risks?

Source:  Goel, V. (7 August 2018). Ikea opens first India store, tweaking products but not the vibe. New York Times.

 

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Paper, Not Plastic

Plastics and trash are quickly mounting and are endangering the beauty and health of our environment. All acts – large and small – are important to protect the environment. As consumers, we recycle, repurpose, or try to reuse. And, for corporations, the stakes are even higher as they look at their responsibility to people and the planet.

Many corporations have committed to reducing waste in their operations. For example, McDonald’s committed to having 100% of its packing globally come from renewable, recycled, or certified sources by 2025. And, beginning in September 2018, McDonald’s in the UK will be replacing plastic straws with paper ones. McDonald’s has 1,361 outlets in the UK and it uses around 1.8 million straws per day in the UK alone. While it may seem like a small item, plastic straws are the sixth most common type of trash on a global scale. Because of the plastic’s composition, it is difficult to recycle plastic straws.

McDonald’s is implementing the program in response to petitions calling for the switch from plastic, warning that plastic straws pollute the oceans, harm seabirds and marine life. An estimated 1 million birds, and more than 100,000 sea mammals die each year as a result of eating or getting tangled in plastic waste.

Let’s skip the straws.

Group Activities and Discussion Questions:

  1. Discuss the importance of social responsibility.
  2. What is the triple bottom-line for social responsibility?
  3. View video on the McDonald’s change: https://youtu.be/wH61dYMieJo
  4. View Blue Planet video clip about plastic waste: https://youtu.be/I4QNolP7Khc
  5. Divide students into teams. Each team should identify a simple environmental problem and a solution.
  6. How should the solution be marketed?

Source: The Guardian, New York Times, Brandchannel.com, other news sources

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New Diet Coke Flavors and Package

Diet Coke is definitely a mature product. And, like many mature products, it needs to continue to fit into today’s consumer’s lifestyle in order to stay relevant. First introduced in 1982, Diet Coke was recently relaunched with four bold, new flavors and a new packaging look. (And, if you’re a fan of the traditional Diet Coke, don’t worry, it will still be available.)

Coca-Cola took two years to research and develop the new drinks, speaking to more than 10,000 people across the country to get ideas on flavors, packages, and more. Based on the results, the company tested more than 30 new flavors. The final results are now in and ready for drinking. The new flavors that had the most positive consumer response include Ginger Lime, Feisty Cherry, Zesty Blood Orange, and Twisted Mango. The new Diet Coke flavors are also packaged in slim 12-oz. cans (same can as DASANI sparkling drinks) and come singly and in eight-packs.

Coca-Cola is walking a fine line between maintaining an existing and still popular brand (Diet Coke) and building a new flavor profile and brand look for an iconic product.

What are you thirsty for today?

Group Activities and Discussion Questions:

    1. Discuss the stages in the product life cycle. What are the marketing objectives in each stage?
    2. Where does Diet Coke fit on the product life cycle?
    3. Discuss how Coca-Cola worked to reposition Diet Coke.
    4. View the press release and story: http://www.coca-colacompany.com/stories/diet-coke-flavors
    5. Show a video of the new product line: https://youtu.be/51QDzjEOBc4
    6. For information on packaging and design: http://www.coca-colacompany.com/stories/diet-coke-design
    7. Divide students into teams. Have each team draw a product life cycle and place various products and services into each stage.
    8. Next, have students brainstorm on how to reposition or revise products/services to that they can move into an earlier stage of the life cycle.

Source: Brandchannel.com (10 January, 2018). Diet Coke relaunches in North America with new design and flavors.

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