Description
Hi, I will attach the task! Please only take care of the first three points for Marketing! The other three were already finished, same with the finance part. Please end with a conclusion overall for Ikea Global + add everything to the word file. P.S. Just wanted to make sure as they are a multinational company and the financial and marketing info vary from one country to another, that its about Ikea Global
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Sales Forecasts
Present current sales forecasts. For Financial Year 2023 (FY23), IKEA’s total retail
sales reached EUR 47.6 billion. This represents a 6.6% increase compared to the
previous year (FY22) when sales were EUR 44.6 billion.
Analyze the accuracy of past forecasts and adjust future projections accordingly. The
sales forecast for FY23 was accurate, as actual sales reached EUR 47.6 billion, aligning
with the forecasted increase.
The FY22 forecast was also accurate, closely matching the actual sales of EUR 44.6
billion.
The FY21 forecast was likely accurate, given the observed sales of EUR 41.9 billion.
Given the 6.6% increase from FY22 to FY23, you might consider a similar or adjusted
percentage increase for FY24. For example, if the trend continues, you could project a
5-7% increase for FY24.
Assuming a percentage increase, we calculate the projected sales for FY24 using the
formula:
Projected Sales FY24 = FY23 Sales × (1+Percentage Increase)
If, for instance, we choose a 6% increase, the calculation would be:
Projected Sales FY24 = EUR 47.6 billion × (1+0.06) = EUR 50.456 billion
Customer Orders
Trends in customer orders.
With the implementation of more accessible stores in city centers, IKEA has likely
experienced changes in customer order patterns.
The opening of 71 new sales locations, particularly small stores, and plan & order
points, suggests a shift in how customers interact with IKEA.
Online sales have stabilized at 23% compared to 22% in FY22, indicating a consistent
proportion of sales conducted through online channels.
The number of visitors to IKEA’s online channels decreased from 4.3 billion in the
previous year to 3.8 billion in FY23, suggesting a potential change in online customer
engagement.
Changes in order patterns.
The focus on small store formats closer to where people live and work may indicate a
preference for convenience and localized shopping experiences.
There could be a trend towards more frequent but smaller orders, as customers may
find it easier to shop regularly at nearby small stores.
Customer Feedback and Promotions:
Positive Aspect:
Stabilized online sales at 23% may indicate customer satisfaction with the online
shopping experience.
Negative Aspect:
The decline in online channel visitors may raise concerns about customer engagement
or the effectiveness of online promotions.
The implementation of small stores in city centers considered a form of promotion,
emphasizing accessibility and proximity to those customers who their preferences are
towards frequent shopping of small goods has reflected as a successful marketing
strategy implemented during 2023.
References
IKEA. (2024). FY23 Year in Review.
https://www.ikea.com/global/en/our-business/how-we-work/year-in-review-fy23/
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