1. Building a Global Brand…
Nina Beinart, Greg Bodenlos, Ranu Rajkarnikar, Dan Silverman

2. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

3. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

6. INTERNATIONAL HISTORY
• Founded IKEA in 1943 in
Sweden
• First store openings outside
Scandinavian territory in 1973
(SUI) and 1974 (GER)
• First U.S. opening in 1985
(Philadelphia)
• UK and HK openings in 1987
• Opened 27 new stores in 2007
in 7 regions
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

7. GLOBAL REACH
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

11. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

12. IKEA’S KEYS TO SUCCESS
• Democratic Design
• Vertical Integration
• Strong Brand Image
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

13. DEMOCRATIC DESIGN
• Offer a wide range of
home furnishings of good
design and functionality
• Balance of form,
functionality, and low
price
• The price tag is
“designed” first
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

14. VERTICAL INTEGRATION
• 1,300 suppliers and 27 distribution
centers
• Operations cover every step of
production
• Enables the group to save cost at
each stage
• Delivers high-quality furniture at
lower prices than its competitors
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

15. STRONG BRAND IMAGE
• Cost-Consciousness
• Sensible Design
• Unconventionality
• Social/Environmental Awareness
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

16. THE IKEA EXPERIENCE
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

17. THE IKEA BRAND MESSAGE
“IKEA has everything
you need to live and
make a home”
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

18. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

19. CONSISTENCIES AMONG GLOBAL
STRATEGY
• Perceived as a value brand,
following their “affordable
solutions for everyday living”
tagline
• Image of being hip and modern,
has been called “a one-stop
sanctuary for coolness”
• Maintain Swedish influence
• Store experience
• Highly anticipated store openings
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

20. DIFFERENCES AMONG GLOBAL
STRATEGY
• Advertising through the media
– Commercials: “Tidy Up”
campaign (France)
• http://www.youtube.com/watch?v=MM-Xz7W5SBM
– Winter Sale (USA)
• http://www.youtube.com/watch?v=eTOVaG36xJE
• Adapting products to national
markets
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

21. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

22. NON-TRADITIONAL MARKETING
• PR Stunts and
“Guerrilla
Marketing”
– Used to promote
new campaigns
“Everyday Fabulous at
IKEA”
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

23. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Campaign promotes IKEA making everyday things
“fabulous”
•This tactic puts
their promise into
action
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

24. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Often used to promote new store openings
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

25. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Very interactive, unusual, and memorable
– Geared towards young
hip crowd
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

26. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Tailored to different nations
•Europeans often
use balconies for
storage
•This makes the
brand more
relevant to its
audience
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

27. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Japanese value design and cleanliness
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

28. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

29. LOCATION STRATEGY
• Entering markets where suppliers are readily
available
• “Supply is the bottleneck”
• Focus on China (Asia overall) as an emerging market
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

30. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

31. DISCUSSION QUESTIONS
1. For the future, as IKEA expands further into new markets, will it
be more beneficial for the brand to stick to a consistent
strategy, or to adapt more to local market needs?
2. What do you think of IKEA’s non-traditional approaches to its
marketing strategies? What are the potential risks associated
with these bold initiatives within the global market?
3. How will IKEA as a brand appeal to its current customers as
they grow older? Would it make sense to extend the brand
towards a more upscale product line, or would this alienate its
current customers?
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS