Hot dogs: marketing strategy
Date of publication: .
Basic moments strategic tactics IKEA:
- low price due to savings on materials;
- maximum simplification of the product;
- purchase large quantities of goods;
- system "itself take away and collect myself" (almost all furniture IKEA is going through a socket wrench).
Thus, in the distant year 1995 IKEA stores were sold hot dogs, which cost just by 5 crowns, although everywhere the average price was up from the 10 15 crowns. Price 5 CZK It was formed due to a fine calculation. Hot dogs - clear and known to all goods that are in pretty high demand. Accordingly, so that everyone can afford it, do not hesitate, the founder of IKEA laid minimal profit. It is not visible on an example of a hot dog, but on a million pieces - is very palpable. Recall the story of the man who asked him to send only one dollar, and subsequently enriched by number of people willing to help.
Over time, Kamprad developed the marketing "hot dog principle". Let's say the cost is determined by the formula "3 + 1 + 1". Three crowns is the purchase price, one crown is taxes and the remaining one crown is for profit. This strategy can, if desired, be applied to any product. Let us conclude: if an entrepreneur wants to attract buyers to his business, his product, then this must be stimulated. Find your "hot dogs" (read: a product in high demand) that will help you get a good reputation and, at the same time, make money on it. There are many examples of such products: extension cords, batteries, microwave covers, sticky dust rollers, drinking water ... The list is endless. The idea is this: you will implement a simple, solid, high-quality and, which is important, season items at low prices.
Well, let's summarize the above, and derive a foundation that can be used on their own business based on the "principle of hot dogs" or as it is sometimes called, "soft compulsion principle"By I. Kamprad:
- select all famous and essential goods;
- goods must necessarily be multigrade and be able to be sold all year round, "non-stop";
- products must be competitive quality;
- choose low-cost goods and reduce the cost as far as possible, and make a good product advertising campaignIn which it unikaliziruem;
- goods must always be in stock, In any amount, as long as necessary to the buyer;
- use the principle of hoarding, ie focus is on the number of sales;
- use the principle of unity: One and all come to us for this product and, most importantly, we are happy to use / consume it themselves.