2. • IKEA has Swedish roots dating back to the 1920s.
• They have focused on high quality, functional, innovative, low
priced home furnishings.
• Over six decades, they have introduced products for everyday
living (not just furniture), broadening their brand’s meaning.
• Sustainability has become an important part of their mission.
• As of 2013, they have a presence in 40 countries.
• Positioning
• Key Marketing activities
• Opportunities to Enhance
• Brand Resonance
• Brand Architecture
• Brand Hierarchy
• Market Channels
• Growth Strategy

3. • Ingvar Kamprad starts selling
matches to his neighbors.
• He later begins selling
seeds, greeting
cards, Christmas tree
decorations, pencils, and pens.

4. • 1943 - IKEA founded when Kamprad is 17 years old. IKEA stands
for “Ingvar Kamprad Elmtaryd Agunnaryd.”
• 1948 – Furniture was introduced. It was produced by local
manufacturers in the forests near Kamprad’s home.
• 1951 – First catalog launched
• 1953 – First furniture store opened in Sweden. This demonstrates
the function and quality of its low priced products.
• 1956 – Furniture for flat packs and self-assembly are started
• 1958 – First large IKEA store opens in Sweden

5. • 1960 – First IKEA restaurant
launched
• 1961 – IKEA began conducting
product quality testing
• IKEA expands into
Denmark, Switzerland, Norway, G
ermany, Australia, Austria, Cana
da, and the Netherlands

6. • 1984 –IKEA family is launched, IKEA
STOCKHOLM range is launched, and
the catalog reached 45 million copies
in 9 languages
• 1985 – IKEA arrives in the US

7. • 1990 – First IKEA
environmental policy
• 1997 – IKEA website
launched, Children’s IKEA
launched, and IKEA 365 +
launched (products for
“preparing, cooking, serving, and
eating food.”)
• 1999 – 2000 – IKEA Foundation
begins. Donations to UNICEF for
children in developing countries

8. • 2001 – IKEA begins running its
own rail line
• 2006 – IKEA Food is launched

9. • The best product doesn’t exist
• Focus 100% on meeting customer expectations
• A connection is forged from your assembly
• Being the customer is a remarkable experience
• Pleasantly surprise customers
• IKEA’s prices are 30 - 50% below competitors
• Target market: age 20 - 35
IKEA vs. the competition:

10. • Image and functional-related considerations in terms of
brand associations.
• Leveraging of secondary associations (country of origin)
• Product offerings
IKEA’s points of difference:
• Category points of parity: home furnishings
• Correlational points of parity: “High quality AND low price”
• A key part of IKEA’s positioning
IKEA’s points of parity:

11. • “Plant a Tree”
• 100% renewable energy
used in Sweden
• Wind energy on the rise
• Steam engine used for
transportation
• 74% of all products are
recyclable
• No more plastic
• Many stores use solar
panels on the roofs
Environmentally friendly company: Expanding the Line:
• Move into other
specified field
• Consumers one-stop-shop
• Introducing new lines of
products
• – Televisions
• – Food
• – Beer (in Sweden)

12. • Store Inaugurations enhance the IKEA experience
• Associations of their Swedish heritage adds credibility
• Products assigned Scandinavian proper names
• Consistency in global strategy and company mission and values
• Limiting channels of distribution adds value to shopping at IKEA
• Innovation on all levels
• Revolutionizing product distribution
• One-stop-shop
• Passing savings onto consumers
• Giving consumers products immediately
Key Marketing Activities:

13. Opportunities to Enhance Positioning:
• Increase awareness about social and environmental
responsibility as a significant POD for IKEA’s brand and
products
• Introduce category extension with IKEA electronics
• IKEA has such a unique offering that it is very hard for
businesses to compete
• Continue to build on the idea of improving the everyday life of
people everywhere

14. 0
100
200
300
400
500
600
700
800
2008 2009 2010 2011 2012
Number of IKEA Store Visits (Millions)
Number of IKEA Store Visits
(Millions)
• Behavioral Loyalty-
• Attitudinal Attachment-
 Austere
 Sensible
 Sustainable
 Simple
 Modern
 Responsible
• Sense of Community-
 IKEA Foundation
Unicef
WWF
Save the Children
• Active Engagement-
 IKEA Share Space
 IKEA Family
IKEA Share Space

15. Salience – Ready to make furniture
Imagery:
Trend setting
Cultured
Environmentally sound
Performance:
Price
Simple design
Easily serviceable
Feelings:
Excitement
Social Approval
Judgments:
Credibility
through pricing
Resonance:
Community for
saving space

16. • IKEA has managed their brand vision, boundaries, and
positioning well.
• IKEA is a branded house – IKEA is the BRAND
• IKEA has done a great job improving their brand image by
transferring equity between their products and services.
Critique:
• IKEA’s branded house helps make introducing new sub-brands less
difficult as equity is easily transferred across product categories.
Architecture:

17. Textiles
&
Rugs
Bedroom
Kitchen
&
appliances
Living
Room
IKEA
shopping
services
Children’s
IKEA
IKEA
365+
IKEA
furniture
IKEA
Food
Lighting
Coffee
& side
tables
TV +
media
furniture
Storage
Sofas
&
armchairs
• Unlike P&G or Kellogg's vast brand portfolios, IKEA keeps
everything under the IKEA umbrella.

18. • New markets
– Expansions into international markets.
– Growing internally.
– The IKEA brand name is represented in more than 330 stores
across 40 countries.
– Catalog has 160 million copies annually in over 25 languages
• New channels
– Didn’t go into other channels of distributions.
– In 2000, took their products online.

19. • Growth Strategy
- Good pace of introduction of IKEA into other markets.
- Didn’t expand into new channels so they have more
control over their product.