2. Trivia- Details, details,
details……
▪ Founded In 1943 by Ingvar Kamprad a 17 year old in Almhunt, Sweden
▪ It sells ready-to-assemble furniture, accessories and home appliances.
3. The Rise And Rise Of
IKEA
▪ Ikea has become a retail titan in home furnishings.
▪ It is the largest furnish retailers currently.
▪ In fiscal year 2016 it sold a $37.8 billion worth of goods.
▪ As of December 16 it has 392 stores spread out over 48 countries.
4. Ikea For You…..
The Company’s Vision is
to create- A BETTER
EVERYDAY LIFE FOR
THE MANY PEOPLE.
5. Questions
Addressed
1.What are the product
offerings, segmentation
and positioning strategy of
the company to fulfill its
vision?
2. What are some of the
things IKEA is doing well to
reach consumers in
different markets?
7. 1. Product Differentiation
2. Cost leadership
Ikea has been able to generate remarkable levels
of interests and devotion from its customers.
It does it through:-
8. Product
Differentiation
▪ IKEA boasts of over 12000
products foraying into all of
the possible furniture
category.
▪ To keep its content fresh it
replaces about 1/3rd of its
furniture every year
providing the user a new
array of options in each turn
of the year.
.
The Billy Bookcase
9. Each product is
recognized by its unique
name.
ex: The Billy bookcase,
Hektar lamps, Lack side
table
LACK side table
HEKTAR lamp
10. Cost Leadership
IKEA reduces prices across all its products annually.
It is able to achieve it through:-
▪ Flat packaging
▪ DIY(Do it Yourself)
▪ Higher customer involvement in every step of the buying
process and hence intervening in the whole Buying Decision
Model.
All of the above factors allow IKEA to reduce cost for its offerings.
11. IKEA is famous for its DIY concept of
selling furniture where the users
themselves have to transport, assemble
furniture reducing costs.
12. IKEA in DIFFERENT
markets
IKEA has always tried to
offer and created new ones
depending upon the tastes
of its customers be it the its
rooster theme placemats for
Chinese customers or a
larger dining table for its
Hispanic loyalists.
13. They have altered
their store policies,
products according to
the customer in every
possible segment be it
through geography,
culture, age.
14. THE IKEA
STORE
▪ The IKEA store is a world in itself.
▪ It is designed in a manner that the
customer is enticed to buy.
▪ IKEA store has its own food catalogue
serving Swedish as well a local delight.
▪ People come to the store and are able to
spend a full day in it and hence often
enticed to buy.
15.
16. Advertisements
▪ IKEA has been very unique in its
advertisements and promotion
campaigning which includes:-
1. Prizes, promotional vouchers to
the Ikea store.
2. A recent example of a
campaign ‘AMBASSADOR OF
KUL’ where customers had to
live in an IKEA store for three
days to win prizes.
3. Has massive online presence.
17.
18. Nearly 70% of its
marketing revenue
goes in the print media
in creation of its
phenomenon
catalogue.
19. Pro’s-
1.Created a cult of a following of its customers who are loyal and a great
influence on the buying decisions of the rest of the public
2. A ready assortments of successful and innovative products which are
ready to pounce upon the new markets.
Con’s-
1.A huge investment is required for the whole IKEA process to work.
2. With IKEA targeting the emerging markets the potential customers
here are entirely different than IKEA has dealt with before and hence
their strategy may not work here.
Ikea has essentially changed the way people shop for furniture.
The pros and cons of this strategy are:-
20. Summary
▪ Trivia
▪ The Rise and Rise of Ikea
▪ Ikea For You
▪ The Customer
▪ Advertisement
▪ Pro’s and Con’s Of Marketing Strategy
21. Disclaimer
Created by Mayank DeepakThar of JIIT
Noida, during a marketing internship
Under Prof. Sameer Mathur,
IIM Lucknow.
Hinweis der Redaktion
This presentation is about IKEA currently the largest retailer in the world. It has done this by successfully decoding the consumer and his world. So lets trace its journey.
It all started when a 17 year old Ingvar Kamprad founded IKEA in 1943 who used to sell pens. It began to sell furniture five years later.
The first store was opened in Almhult Sweden and it now operates as The IKEA museum.
The Ikea logo and most of the IKEA stores are blue and yellow representing the national Swedish colours.
Throughout the years it has continued to successfully grow its buissness in 48 countries of which the majority are developed. On the backdrop of 2016 it had profits of about $3.8 billion.
The company’s vision is to create and I quote “A BETTER EVERYDAY LIFE FOR THE MANY PEOPLE” on which it has created a successful brand.
We will see through the answers of these questions how it has successfully understood the consumer market and how it has expanded to different countries and adapted itself to cater to the local markets.
Ikea has established itself as the quintessential cult brand and the buissness week has described it as global cultural phenomena. It has a massive following from its customer.
Generating a remarkable levels of interests and devotion from its customers.
It has been able to achieve this through 2 factors:-
Product Diffrentiation
Cost leadership.
Ikea provides a lot of variety for its different type of consumers. It has its own designing centers who roll out new products every year attracting new customers.
It replaces 1/3rd of its products every year to stay relevant.
Since the founder was dyslexic he found it easier to remember product by its name rather than using a complex code giving IKEA a uniqueness of a kind.
It has a procedure for naming all of its products for example it uses Danish city names for naming its carpets,
Chairs and desks after mens names.
What allows IKEA to gain so many customer is by having extremely low prices and it does this consistently through the years.
Achieving this seemingly impossible tasks is done through using the customer in almost every process of buying the furniture and hence intervening in the whole Buying Decision model.
It has concepts of flat packaging and Do it yourself where customers themselves have to build their furniture from pieces given by IKEA.
So they come buy and themselves transport and assemble the furniture reducing the costs for IKEA.
It has adapted itself differently in different markets. Recently it is entering emerging markets like china where it had to remove the concept of do it yourself as the Chinese customers did not want to assemble it itself. It introduced new products that became successful locally.
It has maintained effective communications with its customers post-purchase to understand how the furniture works for them introducing changes or new products to satisfy their needs.
Ikea is coming to india in 2017 in Hyderabad.
IKEA is famous for its larger than life stores. They are in a sense a world in themselves.
It is designed in a winding one, way format so the customers have to go through the entire store to get out. Being large customers usually have to spend a full day on it and hence are more enticed to buy the product.
Ikea has its own resturants in the store serving Swedish as well as local delicacies. IKEA even has its own food catalogue.
It has been very unique in its advertisements and promotion campaigns.
Example being the Ambassador of Kul contest where the customer had to spend 3 days in an Ikea store to win prizes.
It often offers vouchers to first customers and has online campaigns as well.
It often uses quirky, witty tag lines and engages its customers to take part in the campaign.
An example being the campaign who is the messiest men or women?
Now which gender wouldn’t like to save their face?
The all famous IKEA catalogue has become a must have.
It uses up nearly 70% of IKEAS marketing revenue.
It has become available across different formats.
Members of IKEA get the special edition too.
The pros and cons of its marketing strategy are
First the pro’s:-
It has the so called bees as its loyal customers who often influence others to buy.
So many markets are left to be entered that may give an idea how massive IKEA may become.
Con’s:-
A new store requires a huge investment and uncertainties always remain.
So we saw some facts and trivia about Ikea
How it expanded
What was the company’s vision
How it designed its offerings for the customer
Its Advertisement Strategy
And We ended by Analyzing the marketing strategy of the company.
So in this presentation we focused on how IKEA understood the consumer market well.
I am very thankful to Professor Sameer Mathur for giving me this Oppurtunity to intern under his guidance.
