1.
MARKETING EXCELLENCE : IKEA

2.
IKEA was founded in 1943 by a 17 year old
Ingvar Kamprad. It has come a long way
from selling pens, cards & seeds to
becoming a leader in home furnishing
market.
HISTORY

3.
HOW DID THEY DO IT ?

4.
WHAT ARE SOME OF THE THINGS IKEA IS
DOING RIGHT TO REACH CONSUMERS IN
DIFFERENT MARKETS ?

5.
IT OFFERS UNIQUE VALUE PROPOSITION TO
CONSUMERS :
LEADING EDGE SCANDINAVIAN DESIGN AT
EXTREMELY LOW PRICES !!!

6.
THE COMPANY IS ABLE TO OFFER LOW PRICES BECAUSE
MOST ITEMS COME BOXED AND REQUIRE THE CUSTOMER TO
COMPLETELY ASSEMBLE THEM AT HOME.
IT HELPS IN TWO WAYS
 CHEAPER AND EASIER TRANSPORTATION
 EFFICIENT USE OF STORE SHELF SPACE.

7.
WHAT MADE THEM SUCCESSFUL TO ATTRACT
CONSUMERS AND ABLE TO DEFEAT COMPETITORS
LIKE TARGET & PIER ?

8.
 CULTURAL
 THEIR DOORS & WINDOWS ARE PAINTED BRIGHT
YELLOW & BLUE – SWEDEN ‘S NATIONAL COLORS.
 IT DESIGNED PRODUCTS ACCORDING TO THE LOCAL
TASTES OF PEOPLE OF THAT COUNTRY.
THEY ANALYSED CONSUMER BEHAVIOR

9.
IT SOURCES ITS PRODUCTS FROM MULTIPLE COMPANIES
WHICH ENSURES LOWEST PRICE POSSIBLE AND THIS SAVINGS
ARE PASSED ON TO CONSUMERS

10.
IKEA STORES ARE LOCATED A GOOD DISTANCE FROM
MOST CITY CENTERS, WHICH HELPS KEEP LAND
COSTS DOWN AND TAXES LOW.

11.
IKEA STORES SAVE ENERGY BY USING LOW -WATTAGE
LIGHTBULBS SINCE THEY HAVE UNUSUALLY LONG HOURS OF
OPERATIONS; SOME ARE 24-HOURS STORES !!!

12.
OF IKEA ‘S MARKETING STRATEGY

13.
PROS
 THE STRATEGY IS FOCUSED ON
CONSUMER BEHAVIOR DUE TO
CUTURAL FACTORS (NATIONALITY)
IT IS UNIQUE IN THE SENSE THAT IT
SATISFIED NEEDS & WANTS OF
PEOPLE HAVING THIN WALLET.
IT HAS ITS OWN UNIQUE WAY OF
HANDLING OPERATION SO AS TO
REDUCE COST WHICH REFLECTED IN
LOW PRICES OF ITS PRODUCTS.

14.
CONS
 DIFFICULT FOR IT TO ATTRACT
CUSTOMERS INCLINED TOWARDS
EXPENSIVE FURNITURE TO SHOW
THEIR ROLES & STATUS.
STORES ARE LOCATED AWAY FROM
CITIES WHICH CAUSES
INCONVENIENCE.

15.
VISION
 IT IS LARGEST FURNITURE RETAILER IN THE WORLD
WITH 300 STORES IN 38 COUNTRIES.
 AIMS TO EXPAND ITS MARKET TO DEVELOPING
COUNTRIES.
 AIMS TO INNOVATE ITS OPERATIONS TO REDUCE ITS
PRODUCT ‘S COST FURTHER.

16.
 WE SAW HOW IKEA GREW INTO THE LARGEST FURNITURE
RETAILER IN THE WORLD BY ANALYSING CONSUMER
BEHAVIOR.
 WHAT ARE THE PROS AND CONS OF ITS MARKETING
STRATEGY ?
 WHAT IS ITS FUTURE VISION ?
SUMMARY

17.
CREATED BY
ANUGRAH NIMAVAT
BTECH (ELECTRONICS &
COMMUNICATION)
NIT – SURAT
DURING MARKETING
INTERNSHIP UNDER THE
GUIDANCE OF
PROF. SAMEER MATHUR
IIM - LUCKNOW
DISCLAIMER