PowerPoint Presentation

How to buy IKEA products from a different country.

Introduction. Aim of this pitch. Agenda and key areas covered in this pitch.

IKEA is a Swedish multinational conglomerate founded in 1943 that offers a range of well-designed, functional and affordable home furnishing products and accessories. The brand is also well known for their D.I.Y (Do It Yourself) tactic in their products..

Potential markets to enter. Statistics as of 2022 Option 1- Sri Lanka Option 2- Maldives Option 3: Seychells Urban population 4,178,622 223,439 107,118 GDP 83.00 USD Billion 6.60 USD Billion 1.40 USD Billion Economic growth rate -1.6% 7.6% 5.0% Unemployment rate 4.3% 6% 3.4% Inflation rate 58.9% 2.48% 2.82% Internet penetration 52.6% 63.2% 79% Online users 11,340,000 342,700 78,300 Revenue from furniture market US$225.30m N/A US$4.02m.

Source: Central Bank of Sri Lanka. FEB 2022 FINANCIAL INCLUSION FACTORS OF OWNS uses EACH mocucT oesavvCE ACCOUNT WITH A FINANCIAL NsmunoN 73.6% 73.4% 73.8% C RON CARD ow•NEßHlP 5.3% MADE A THE INTERNET IN 2.7% 2.1% 32.3% 34.1% ONuNE BANKING IN YEAR 7.7% Accot_NT MPESA, 2.4% usED INTHNET TO YEAR OR PAYMENTS IN THE PAST YEAR 47.2% 4.7% are. X KEPIOS.

Sri Lanka market entry strategy. Choice of entry- Exporting to Sri Lanka from IKEA India..

Ecommerce strategy. Choice of strategy- Sell side.

Digital Marketing Framework. 1. Situation Analysis.

Damro Arpico Furniture Singer Furniture Strengths Strong brand name Recognized brand name due to main core company Recognized brand name due to main core company Has over 241 showrooms globally, which now having 174 showrooms island wide Significant growth in recent past Attractive and competitive prices Loyal customer base Selected assortment that cater to the mass market Free installation services Attractive and competitive prices Competitive, value based and affordable prices Hire purchase facility 0% installment options 0% installment options 0% installment options Warranties Warranties Warranties Great after sales service - - Has an online website - - Innovative designs adopting to trends Weaknesses Furniture is bulky, and not sleek like IKEA’s futuristic designs Lacks assortment and variety Lacks assortment and variety Lacks innovation in smaller merchandise ( eg : bath tub caddies, shower racks etc.) Designs lack sleeker, minimal finishes Designs lack sleeker, minimal finishes Lacks variety, limited number of choices - -.

Opportunities Threats 1. Current revenue from furniture market is US$225.30m (Statista, 2022) 1. Government instability (Central Bank of Sri Lanka, 2022) 2. World trends making sleek, clean furniture more modern and making Sri Lankans desire that style. 2. Increasing in dollar rate tending for items to be more expensive than expected (Central Bank of Sri Lanka, 2022) 3. Demand for quick and easy inexpensive furniture(Central Bank of Sri Lanka, 2022) 3. Irregular import restrictions on non essential items (Central Bank of Sri Lanka, 2022) 4. Lesser unemployment rate making standards of living to increase and afford better looking items. 4. Local brands selling products online and having their own fanbase. 5. Higher urban population making who are trend savvy (Statista, 2022) 5. Declining economic rate (Central Bank of Sri Lanka, 2022) 6. Customers gearing towards purchasing smaller furniture items online (Central Bank of Sri Lanka, 2022) 6. Increasing cost of raw materials and transport making it hard on margins once exporting (Ring, 2022)..

1.4 Potential demand for IKEA products in Sri Lanka.

Digital Marketing Framework. 2. Objectives. 5S base SMART OBJECTIVES KPI Sell O1: Achieve a target sale of USD 50,000 by March 2023. Monthly average sale of USD 16,650 for the first quarter. Save O2: Achieve 100% complete customer queries/ issues resolved by March 2023. Monthly target of achieving a minimum accrued 30% for all completed customer care queries. Sizzle O3: Achieve 50% of website visits linked by social media content by March 2023. Monthly target of getting a minimum accrued 15% traffic from all social media content..

Digital Marketing Framework. 3. Strategy. 3.1 Bases for segmentation/ targeting and positioning.

3.2 Selected strategy from the Ansoff’s matrix. Product Market Existing New Existing Market Penetration The chosen strategy from the Ansoff Matrix is Market Penetration . This is because as mentioned in the previous slides Sri Lanka is the selected country of choice and entering into the market as an ecommerce (digital) website would mean to penetrate the current existing market. New.

Digital Marketing Framework. 4. Tactics. RACE Model 7Ps (in order of the RACE model) Objective Strategy Tactic Standardized/ Adoptive strategy (based from home country- Sweden) Communication tools Message to be communicated Reach Product O3 S3 Introducing the entire IKEA assortment to the Sri Lankan market via the new website. Adoptive to India’s stock (Design, 2018) Social media and sponsored ads, Online news websites Offline news websites, Google Ads, ATL, BTL. Introducing IKEA in Sri Lanka, introductory offers, showcasing the range of products offered, stylized visuals of how to incorporate IKEA into customer homes etc. Place O3 S3 Creating a user friendly UI and UX in the website for easy browsing and easier customer journey- maybe use AI for visual interpretation of how products can look like (Tech Crunch, 2022). Standardized Have a guided shopping experience, FAQs, Live chat bots, clear images and product descriptions in product pages with proper size charts if necessary. Shopping on IKEA Sri Lanka will be the best ecommerce shopping experience you have ever had. Act Process O2 S2 Ensure that the Sri Lankan customers also get the world renowned IKEA experience. Standardized Constant bug fixes, cookies, website updates and site crash tests. 48 hour reply policy from customer care, delivery guarantee, returns and refund policies Convert Price O1 S1.1 Understanding the price ranges that works in the Sri Lankan market, the trends in the market with seasons and what triggers customer’s buying potential. Adoptive Social media, targeted social and google ads. Partner with banks and provide special discounts, hire purchase and installment schemes. Communicate price discounts, upcoming sales, pre order waitlists. Partnering with banks will allow the bank’s database to be pushed into IKEA’s offers as well. Physical evidence O1 1.2 Ensuring payment gateways with banks and shipping fees are secure and properly working. Standardized Secured payment gateways and security checks with codes sent to choice of mobile/ email. Communicate easy payment schemes, secured payments and ease of transaction on IKEA’s secured website. Engage Promotion O1 S1.2 Seasonality matters in Sri Lanka especially during new year and wedding seasons- apart from this look into other aspects that trigger purchasing. Adoptive Social media and sponsored ads, Online news websites Offline news websites, Google Ads, ATL, BTL. Communicate offers, have giveaways, raffle draws, exclusive top customer exclusive deals, loyalty etc. People O2 S2 All employees must ensure that all processes are running smoothly for seamless customer experience and also have proper guidelines in how to manage issues as and when they arise. Standardized Weekly meetings, training and development programs for employees, grievance handling measures to ensure that employees give their best to their jobs for seamless customer service. Customer is king but employees come first..

Digital Marketing Framework. 5. Implementation and Budget.

Ethical Aspects. Consumer data protection and code of ethics will be adhered. Adhere to local labour laws and ensure that employees are remunerated and compensated fairly. Logistics will abide by Sri Lanka’s customs and import laws. IKEA Sri Lanka will have transparent management practices. Help Sri Lanka’s digital ecosystem by introducing technologies (IKEA’s AI). Having way forward plans to incorporate local suppliers into the company operations. Be a healthy competition to local brands inspiring them with the potential they can reach as well..

Conclusion. IKEA will operate as an ecommerce website where customers can make purchases and products will be delivered from the Indian warehouses. All IKEA benefits, promotions, assortment will be available to Sri Lankans to purchase from. IKEA will adopt to Sri Lanka’s market in terms of promotions to obtain maximum market capture. Debit/credit cards will enable online payments. Ongoing sales promotions in the first quarter will be utilized to familiarize and convert customers. All of IKEA’s customer care, return and refund policies will be followed by IKEA Sri Lanka. Marketing communications will be present both online and offline creating a solid and full 360° marketing plan. Business performance will be monitored at the end of the first quarter while weekly checks will be made to ensure smooth operations..

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