MGMT20132 - IKEA Catalogue App: Business Case Report & Innovation

This report presents a business case analysis of IKEA's catalogue application, focusing on its innovative features and potential impact on the company's market position. The app aims to solve customer problems related to visualizing furniture in their homes by offering augmented reality features and detailed product information. The report highlights the strengths, weaknesses, opportunities, and threats associated with the app's launch, emphasizing its potential to enhance customer engagement, brand loyalty, and overall profitability. Recommendations are provided for a strategic launch, including target audience evaluation, social media promotion, feedback loop establishment, and continuous app updates. The analysis suggests that the IKEA catalogue app has the potential to provide significant value to customers, strengthen the brand, and drive business growth by leveraging mobile technology and innovative marketing approaches. Desklib provides a platform for students to access similar solved assignments and study resources.

BUSINESS
CASE

Aim of the project
The aim of this report is to
study the launch of catalogue
app by IKEA.

INNOVATION
 Market globalization is continuously increasing these days. Due to this
reason every company needs to make innovation in their marketing
approaches to maintain position in market.
 IKEA is making innovation in its marketing by launching its catalogue
application in the market.
 Catalogue application is web application which helps user to buy
products online.
 This application will allow the customer and buyers of the home
furnishing company to keep updated about latest releases of products,
furniture , and home appliances.
 This app will let customer see how its products would fit in their homes
and how they will look in reality.
 App can list different categories of the product , product specification.
 It will also include multimedia resources like videos and pics of the
furniture and home appliances.

Features of Catalogue
app
This app will use a print catalogue which is placed on the floor to get a
rough idea about products fitness in real life.
This will let user a real experience like they are trying the furniture product
in their room itself.
From this app the IKEA can get customers feedback about the product .
IKEA can conduct a research on the customer to determine the ned and
expectations of them so that app can be evolved according to their
preferences.
By conducting research they can identify the problem faced by the buyers
when buying furniture and questions they have in mind like if the product
will get fitted in their rooms or not.
IKEA is planing to launch the print version of catalogue app which will
feature more than 50 page. Customer can scan with their mobiles to get
supplementary information about the product

Possibilities
Strength of Catalogue mobile app:
 IKEA has solid financial position and good brand image in the market .
Is also design attractive furniture products.
 Launching app will help company in gaining more customer attraction.
Customers will have faster and easy access to furniture store.
 They can see the product online and experience the real life applicability
of the product in their home.
 This app will make customer m easy to navigate thorough one product
to another.
 By launching app the company can easily give information about the
product to their customers. Ikea would be able to achieve market
leadership by launching app.

Possibilities
Weaknesses of Catalogue mobile app:
 It is difficult to identify need and requirement of consumers due to
which challenges will be faced in developing the app.
 Company will face issue like security of app.
 After downloading the app there is a long subscription process. Due to
which some customer will never download the app.
 Text displays on the app is sometime difficult to read for consumer, so
this is also a weakness for the app to be launched.
 Poor mobile optimization would also be a problem for the app

Possibilities
Opportunities of Catalogue mobile app:
 Mobile app market is growing very fast. So this is will be proven
strength for app to be launched by the company.
 There is huge market in demand of mobile application for everything
that make the life of people better and easy going. So there is an
opportunity for IKEA by launching app.
Threats of Catalogue mobile app:
 There is fierce competition in global market and exclusive social media
engagement of people.
 Apps have inimitable functions that leads users in difficult situation.
 Apps now a days required some basic information of the consumer ,so
there is a possibility that customers of IKEA might not want to share the
information.

Business case document
The problem innovation can solve :-
 New mobile Catalogue app by IKEA will solve various problems which
are faced by the customer and buyers of the company.
 In a research conducted by the company in which 70% customer are
facing problem like they do not know really how bog their room are for
the furniture they bought.
 While some of the customers bought the wrong sized furniture.
 Company has also discovered in survey that their customers want to be
able to test the products they get attracted to in the catalogue. Especially
in the cases of bog furniture's . So these problems can be solved using
catalogue app.
 This app will give the consumers to see how the products would fit into
their rooms.

The app uses print catalogue which is placed on the floor
to get approximate idea about the furniture fit.
Its will give users areal life environment to create elevated
picture.
The picture that appear on the screen would make
customers to experience like they are in the customer's
room.
By this innovation of mobile application the company can
enable its customers to test products and this practical
purpose will really helps customers to see how their home s
would look like.
The app is also providing the print catalogue of the
furniture product so that customer can scan with their
mobile phones to get extra information about the product
they are buying .
 Using virtual floor in application, user can assemble the
furniture in their mobile screen and see the furniture look
and fitness in their room .
Sometime people face the issue of not getting all
information about the furniture like quality , material used,
bar codes of furniture etc.
The app can solve this problem also in which all the
information about the product will be made available on the
app by the company.

Benefits of the innovation
The app will provide more value to the customers of the home furnishing
company.
More customers will interact with business of the company by creating
loyalty program on the app.
The app will be proven cost effective for the customer.
Customer time will be saved because they can deal online whatever they
want to buy from the furniture store.
App would be able to convince moire customer by giving virtual
experience of the product in their home.
App will help organization in building stronger brand .
Catalogue app will aware consumers about the IKEA. By regularly
interacting with the target market the app can foster customer's trust .
The more audience trust the brand more they will committed to the brand.
With an app IKEA can demonstrate the their users what their brand stands
for.
Company would be able to connect in better way with the customers.
Thorough Catalogue mobile application , organization will always know
what they are offering to the customers.

It will provide an interface to the users to give the b est
experience of deciding and examining that if they want to
buy the product or not.
This app will help company inn boosting its profits
because when customer satisfaction increases ,sales also
increases.
Consumer base of the company will also increase by
launching catalogue app.
App will help company to inform user of new product and
offers it have for their customers.
Company would be able to stand out form the competition
by launching catalogue app.
Organization can reach out to younger competitors.
By regularly sending emails and messages using app the
company would get more customers .
Consumers will have the ability to change the color of
drawers and cabinets with one click, that feature will help
better visualization of the product.

Delivery of the recommended solutions
It is require d that Catalogue app for IKEA company should be designed
and launched in systematic and strategic way so that it will help company
to boost its selling. Here are some recommendations for company before
launching mobile app:
Company is required to evaluate the target audience like what benefit the
audience will get by app,if Catalogue mobile app will make the company
lead the global market.
 Organization should register its domain and create a landing page where
they will launch their app .
By claiming social media platforms company can popular the pap among
audience before launch. They can use social media account like
Facebook ,Instagram to post news about the new app launch and get
feedback from various people on the internet.
Venture can establish feedback loop for its new app by using several in
app solutions.
Company can notify its app availability using email messaging.

 After launch of app organization should encourage ratings
and review from people.
Monitoring the growth of the app like number of
downloads.
Company should release updates of the app frequently. By
sending regular updates company can solve issues which
arrive during the use of app by customer.
Organization should optimize the recurrence of marketing
communication. By identifying tipping optimal value of app
can be determine
Company should get regular feedback from the customer
by sending emails asking for reviews and ratings of the app.
After launching the app IKEA should partner up with
other app developer so they can expand the integrity of the
app.
Organization need to be engaged with its user and
customers by asking question on social media and
responding the queries put by the audience

THANK YOU