International Marketing

1. SEGi UNIVERSITY
INTERNATIONAL MARKETING
MANAGEMENT
Tutor:
Students:
Dr. Joanne Hee
Abdulaziz Yahya (SCM 018303)
Alisher Mamedov (SCM 021951)
Azamat Ospanov (SCM 019903)
Md. Siduzzaman (SCM 020912)

2. IKEA
Host Country –
KAZAKHSTAN

3. INTERNATIONALIZATIO
N
• COMPETITION
• REGIONAL ECONOMIC & POLITICAL INTEGRATION
(e.g. NAFTA, EU)
• IMPROVEMENTS IN TRANSPORTATION &
TECHNOLOGY (e.g. lower cost due to satellite, justin-time technology)
• CONSUMER NEEDS (uniform consume segments
emerging worldwide)

4. MARKET-ENTRY
STRATEGY
JOINT VENTURE
– STRATEGIC ALLIANCE
– DIRECT ENTRY
– MARKETING & PRODUCTION (EXTENSIVE CAPITAL)

5. IKEA
COMPANY PROFILE
• Established in 1943 by Ingvar Kamprad & Elmtaryd
Agunnaryd
• World’s most successful mass-market retailer selling
company
• Total sales = €27 bln in 2012
• 230 stores in 33 countries
• Hosting 410 mln shoppers
• 1,500 suppliers in more than 50 countries
Source: IKEA Group Yearly Summary 2012

6. IKEA’s PRODUCT
RANGE
• WIDE IN FUNCTION
Customer can find anything to furnish home (e.g.
from plants to toys and whole kitchen)
• STYLE
The romantic at heart will find just as much as the
minimalist
• QUALITY
Making products at low prices

7. HOME FURNITURE
Source: http://www.ikea.com/us/en/catalog/allproducts/

8. RATIONALE FOR HOME
FURNITURE
• Compactness
Products of IKEA are perfect size calculation that
allows furniture to blend with any type of
apartments
• Design
IKEA has an attractive original design and several
color options
• Convenience
The organization of the child’s working space with
additional elements & plenty of pleasant things

9. RATIONALE (cont.)
• Security
All IKEA products have required certificates & made
of environmentally friendly materials
• Reliability
Durable construction ensure a long life!
• Uniqueness
IKEA products have a profile that reflects the IKEA
way of thinking. It is simple and straightforward. IKEA
products are hard-wearing and easy to live with.

10. Host Country Market
• The furniture market in Kazakhstan is still
undersized in terms of turnover, number of
domestic and foreign enterprises.
• 60% of the furniture is imported from EU and
CIS. In the CIS Russia is the largest trading
partner followed by Belarus.
• In Europe primarily Italian producers have
successfully entered the market, but also
Spanish, German and French producers are
active.

11. KAZAKHSTAN
• The scope of the market is from 1.5 to 2.5 bln.
USD
• The lion's share or about 60-70% falls at home
furniture
• The average growth rate in the furniture market
is up to 15% annually since 2006
Source: Kazakhstan Today http
://www.kt.kz/eng/economy/

12. •
Source:
http://fa.tpo.ir/UserFiles/File/Furniture%20market%20in%20Kazakhstan.pdf

13. EXISTING DEMAND

14. DEMAND cont.

15. RATIONALES FOR
HOME FURNITURE
• GROWING DEMAND due to population growth
• CONSTRUCTION BOOM
• INCREASING EXPOSABLE INCOME
• MOVING IN TOGETHER OR GETTING MARRIED

17. POLITICAL
• Kazakhstan is a Unitary Republic, President – Head
of State
• Political stability, Neutral policy
• From 1991 attracted $180 bln. of investments
• Member of more than 10 international organizations
(eg. Customs Union: Population 173,302,000 peoples)
• 47th of “Ease of doing business index”
Source: THE WORLD BANK PUBLICATION DOING BUSINESS 2012

18. ECONOMICAL
• Kazakhstan posted an annual average GDP growth rate
of 8.3% from 2001—2010, with GDP in 2010 reaching
US$148.1 billion (US$9,070 per capita)
• TOP 10 most improved countries (7,5%)
• Free trade practices promotion
• Foreign direct investment encouragement
• Small and medium-sized businesses support
• Aims to become a country with a high-income economy
(US$15,000 GDP per capita by the end of 2015)
Source: Doing business in Kazakhstan, An introductory guide to tax
and legal issues, http://www.invest.gov.kz/upload/docs/

19. SOCIO-CULTURAL
•
•
•
•
Population: 16.4 million people as of 1 January 2011
Young country
Immigration policy (oralman)
The concept of demographic policy and
strengthening the family

20. LEGAL
• Kazakhstan is a member of ISO 26000
• Settlements between non-residents (legal entities
and citizens) and Kazakhstani residents may
generally be performed in any currency
• The penalties for not having licenses can be
significant
• Corporate Income Tax is at general rate of 20%
• For non-residents tax is reduced to 15% due to tax
treaties, also have SEZs (0%) to attract FDI

23. CONCLUSION

24. LIST OF REFERENCES
• IKEA Group Yearly Summary 2012
• http://www.ikea.com/us/en/catalog/allproducts
• Kazakhstan Today http://www.kt.kz/eng/economy/
• http://fa.tpo.ir/UserFiles/File/Furniture%20market%20in
%20Kazakhstan.pdf
• THE WORLD BANK PUBLICATION DOING BUSINESS 2012
• Doing business in Kazakhstan, An introductory guide to
tax and legal issues, http://www.invest.gov.kz/upload/docs/