Jysk Case Study

The following chapter assembles the findings of the thesis by relating the industrial environment and the Russian market to JYSKs company profile and current strategy. Having analysed the major reasons pulling towards standardization and adaptation based on JYSKs overall strategy and the complexities of the Russian market, we conclude this thesis by suggesting how JYSK may benefit from their present standardized strategy, as well as the potential opportunities that adaptation of certain marketing elements could provide. Through the framework of the 7 P’s, we will categorize what JYSK should take into consideration in their entry strategy to Russia in terms of Product, Price, Promotion, Place, Physical Evidence and People & Process.

15.1 Product

This suggests some change in the strategic positioning of JYSK in Russia. Due to the fact that IKEA has paved the way for Scandinavian design in Russia, JYSK may be able to exploit these positive biases towards the Scandinavian country image, which may enable JYSK to set slightly higher prices than in their other international markets. This way, JYSK should not compete directly with smaller, local furniture manufacturers, as Russians generally perceive these products as low cost and low quality products. The country of the manufacturer is thus likely to play an important role in determining the Russian’s perceived risk of purchase and how much they are willing to pay. As an effect, it is important that JYSK price their products higher than local furnishings manufacturers in order to overcome the Russian consumers’ uncertainty regarding the quality of JYSK’s products. JYSK should instead emphasize their good quality level offered at reasonable prices, thus competing against other Western home furnishing brands offering the same high quality standard but at higher prices. Within this mid-market, JYSK can act as a cost leader. It is important to note that these above recommendations may require that JYSK will have

This scepticism and mistrust of advertising exemplifies a high uncertainty avoidance culture that the Russians live in. As Russians put significance in feministic values they have negative views on comparative advertising and other persuasive attempts of advertising, as such techniques go against societal norms and values. Instead, there is a general preference for so-called claim-less informational advertising that involves a high level of information content in advertising (Wells & Auken, 2006). Advertising and promotion in Russia should thus put emphasis on informational appeals rather than symbolic associations or persuasion. The information content will naturally be lower when the two last avenues are followed. As print advertising is generally more informative than for instance TV commercials and radio, the distribution of JYSK catalogues could provide Russian consumers with the information needed and