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Progress Report IKEA Zone ENTER TEAM 4About IKEA IKEA Zone Target Market Competitor Sales Forecast Resources By: YANG WU, JI SUN, SHIYI LI, DEWAYNE WHITFIELD“To create a bettereveryday life for themany people.”About IKEA——the visionAboutIKEA is a values-driven company that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances, small motor vehicles and home accessories. Its major products exude a high-quality, low-cost focus with simple structure and design, targeting at young, cost-conscious customers who desire stylish furniture.AUGMENTED REALITYCompany’s New Innovations in the PipelineThe new IKEA catalogue, now with 3-D Augmented Reality , allows customers to place, move, and test over 100 pieces of virtual furniture in their own homes, to visualize the way theirhomes could look.Directions:•Scan selected pages in the printed IKEA catalogue with the app (available for iOS and Android). •Browse the pages in the digital IKEA catalogue on smartphone or tablet.Core CompetenciesStrengths•Low Cost Structure •Corporate Culture •Brand Image•Strong Focus on SustainabilityWeaknesses•LimitedCustomization•Limited Professional Expenditures•Weak Online SupportWORKING WITH SUPPLIERSIKEA works through a complex network of suppliers around the world to help the company maintain its low-cost position and keep innovative.DEMOCRATIC DESIGN –Design for Everyone Design at IKEA pursues the right mix of form, function, quality and sustainability at an affordable price.INSPIRATION MY PRIVATE DESIGNER Filter•Room Types•Room Styles•Price RangeLiving roomRelax$100 -500IKEA Zone Link LinkInspirer:LilyInspirer:KathyINSPIRATION MY PRIVATE DESIGNERSharing Economy Sarah wantsto design herliving roomand needssomecustomizedideas.Sarah uploadspictures,detailed floorplans, anddesignpreferences onthe IKEA Zone.Three IKEA fandesigners send3-D mockupplans to Sarahwith IKEAfurniture.Sarahpurchases 2piecesthrough thelinks taggedin their plansand thesedesigners getcommissionson the deals.Customer JourneyShareholders Analysis•Get inspirations•Get customized and unique design solutions•Easier access to purchase •Reduce perceived risks(functional risk, financial risk,time risk, psychological risk,etc.)IKEA DesignersCustomers•Get additional income and rewards•Share ideas and thoughts with more people •Psychological benefits •Attract more potentialcustomers•More likely to transferpotential customers topurchase•Establish better relationship with customers •Increase customers loyalty •Make the share community profitable•Free WOM and marketingLorem ipsum dolor sit amet, consectetur adipisicing elit.DAVID TWOHY In-depth InterviewTarget MarketMargia A.Age:32-34Insights:-Loves taking pride in putting together furniture.-Loves the cafeteria and shopping experience at IKEA.-Posts pictures of finished rooms to Social Media.Amanah A.Age:32-34Insights:-Hates Targets low quality furniture products.-Loves the wide selection and price of IKEA.-Thinks the price of delivery is too expensive.-Will sign up to be an IKEA Fan Designer.Priya P.Age:25-29Insights:-Goes to IKEA once a year.-Shops mostly in IKEA and also Craigslist.-Loves the large selection.-Looks to Pinterest for inspiration.-Will sign up to be an IKEA Fan Designer.Persona: Lucy, the Housewife Lucy is a35-year-old housewife with two children.Every morning, she cooks breakfast for her family and sends kids to school with her silver Corolla. Then she cleans the house and sometimes goes shopping in Costco. She is price sensitive and looks for bargains. During her spare time, she likes having tea with friends or reading some home decor magazines. Recently, Lucy’s family moved to a new city due to her husband’s working relocation. Lucy is looking for some decoration ideas and furniture selections.Situation Analysis:•Has a limited budget •Doesn’t know much about home designs •Hasn’t decided thestyle yet and arelooking for inspirations •Hopes to get someprofessional advice butcan’t afford a designer •Has some perceived risks such as pieces offurniture might notmatch the stylesPersonaPersona: Kate, the TeenKate is a18-year-old girl and will start her college life in Sep. Her parents give her financial support every month and she is considering about getting a part-time job. Kate lives through the Internet Age and is very familiar with social networking. She likes to share her life and great moments with friends and updates her social networking pages regularly. She wants to be different from others and likes customization. And she enjoys DIY. Situation Analysis:•Has a small budget •Searches online fordecoration inspiration •Prefers unique room style and wants to becool•Prefers cost effective furniture•Will share her roomthrough social mediaPersonaAbout IKEA IKEA Zone Target Market Substitute Sales Forecast ResourcesAbout IKEA IKEA Zone Target Market Substitute Sales Forecast ResourcesSubstitutesPage views pervisitor Visits pervisitor2.003.22Monthly pageviews pervisitor1.61How engaged are visitors to the share space of IKEA?Unmet needsIKEA cannot take direct profits from the share space since designers do not charge anything from visitors.01-----ProfitThere is no enough customized design service available on the site. All the samples are designed for already existed rooms.02-----CustomizationThe website itself does not offer an excellent userexperience from the perspective of the metrics we listed (e.g. lower bounce rate and higher daily time on the page)03-----User experienceThe core feature of share space is not user-friendly since it is difficult to load for PC. Other home decoration website like houzz does a much better job04-----3D planner01020304IKEA ZONE will be a more comprehensive platform entailing two sections: inspiration and design service.The differentiation is the business model behind the website and the transformed strategic role of it to IKEA. If we see the current share space as a promotion channel, the innovative IKEA ZONE will be more like a platform offering interactive communication between users and designers while bringing revenue to IKEA.FunINEfficient EconomicalKey Benefits & AttributionsCost-effective design serviceCommission IncentiveThe new interface/touchpoint will be designed to look like a virtual game.Interesting interface.IKEA will pay commissions to users/designers whose shared pictures/design plans facilitate the deals.IKEA will be committed to offering affordable customized design service to target customersMARKET SIZE (Top Down)Value SourceIKEA Web visits 1.5 billion 100% -Bounce Rate x100% -60% = 40%Need inspirations ofhome design x50%AssumedWilling to orderonline directly x50%AssumedMarket Size =150 million* The existing IKEA Share Space will be integrated into the IKEA Zone, so there will be no negative sales effect on it, instead, the awareness will be substantially improved.Sales Forecast (Bass Model) Excel SpreadsheetHuman Capital•Invite and attractpeople who arewilling to be thepart-time designersIT Support•3D planner•Websitedevelopment andmaintenance such asindirect link to IKEAproducts andpayment methodsMarketing•SEO (to increaseawareness and traffic)•PR andadvertisementsTraining ProgramA series video aim toeducate new users (bothdesigners and customers)about•how IKEA Zone works•how to use 3D planner•the rewards program•IKEA Zone policesRequired Resources。