Ikea Promotional Strategies

4252 words 18 pages
IKEA
Bulgaria

IKEA assignment

Prepared by:

George Georgiev
Evgeniya Mincheva
Zornica Rasheva

Executive Summary

Furniture remains the largest home furnishings and housewares sector.

Bulgaria’s furniture industry is a dynamically developing sector in the past few years. It is well known that most furniture companies in the country are based on strong traditions and good correlation between price and quality, but (as in many other countries), although the major part of the customers on the inner market prefer Bulgarian-made furniture, high prices are seen as a sign of high quality, so most furniture pieces produced by the companies are considered high priced and hardly affordable for the majority of people.

IKEA was founded in 1943 by
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In 2006, the GDP was 6.1% which was almost double the GDP of EU. In 2007 it reached 6.5% and for 2008 it is expected to top 7%. The level of employment has been rising also for the past two years. In 2007 it reached 9% per capita and it is expected to reach 7% in the first half of 2009. In 2007, the level of inflation has dropt dawn to 4.1%. However, according to the data gathered by the National Statistic Institute (NSI), the shrinking of the labor market and the rising of salaries will be the main reason for high inflation in 2008 and 2009. In 2006 the interest rates were 3.9%, in 2007; it has increased to 4.8%. Presently, the interest rates are 4.78%.

Socio-cultural Factors

- The dominant one is Orthodox Christianity. The average age of the Bulgarian population is 75 years. The older generations are not wealthy. Women and men share equal rights. However, it is still noticeable the fact that greater percentage of the women are still being only housewives. A positive attitude towards foreign products occurs on first place. The average Bulgarian person cannot allow to himself long time for leisure. Only a small percentage of the population has time for leisure. According to a research done by the National Statistical Institute, the annual income per capita is 2831 BGN.

Technological Factors

- the adoption of new technologies in Bulgaria opens new markets for the Bulgarian products and services and also increases their quality; - distribution has

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