Questions 1. How has IKEA successfully sold its home furnishing products in so many countries around the world? Do global customer segments truly exist? 2. How important is the role of IKEA’s Swedish brand image? What are the implications for marketing? 3. To what extent has IKEA practised a standardised strategy versus an adapted strategy in its global marketing? What are the advantages and disadvantages of this approach? 4. Some say communications, especially the Internet and television, enable a global culture to be broadcast to all societies. Are the cultures of the world becoming more similar or more different?

1. IKEA
Case Study 12.1
Crossing cultural boundaries to furnish the globe
Presented by Persia Brooks, Bozheng Wu (Cahil), Yunhan Zhu (Fred)

2. 1. How has IKEA successfully sold its home furnishing products
in so many countries around the world?
Vision – IKEA’s vision statement is ‘To create a better life for many
people’
Concept - IKEA’s company mantra or vision is ‘You do your part. We
do our part. Together we save money.’
Strategy – To produce good quality products at low cost prices.
Ensuring products are sustainable, modern, innovative inspired and
wide variety.
IKEA

3. http://www.youtube.com/watch?v=MJ6YL3IekYs
IKEA
Communication Strategy
In 2013 IKEA distributed their catalogue to 43 countries, in 62 versions
in 30 different languages
It was estimated that over 100 million copies were distributed all free
of charge, taking 70% of marketing budget
IKEA’s website is customized for 48 countries in 34 different languages;
this alone is a mass communication effort

4. Do global customer segments exist?
IKEA’s customer segments:
• Consumers who love ideas based around hidden and limited space
• Middle/lower class population
• All age groups
• New home buyers/families
• Students
• Consumers who love innovative designs
• Consumers who love multi functional designs
IKEA

5. 2. How important is the role of IKEA’s Swedish brand
image?
• Brand image:
• “brand” is considered to be a product which has a unique and
consistent character.
• “image” is the compound of individuals’ personal experience of the
products.
• country of origin is one of plenty factors which influence customers
perceptions of brand image.
• IKEA: a high-quality and affordable brand image.
IKEA

6. IKEA
What are the implications for marketing?
Country-of-origin effect:
Known as made-in image, which make some psychological influences.
the country of origin decide the first impression of the product.
IKEA: popular in Swedish market due to local-made product
advantages
Popular in other foreign market due to brand image.

7. 3. To what extent has IKEA practiced a standardized
strategy versus an adapted strategy in it’s global
marketing?
Standardized strategy is good for IEKA when their early globalization pl
an
• IKEA concentrates on developing in other western countries.
• Furniture products with High quality and high standard are importan
t for customer in developed countries.
An adapted strategy should be practiced for IKEA
• Nowadays, Marketing in Asian and other developing country is impo
rtant
for IKEA
• The new standard of products should be update, the customers fro
m
developing need a suitable and adjustable standard.

8. IKEA

9. What are the advantages and disadvantages of this approach?
IKEA
Advantages:
• cost saving;
• effective control on the branch;
•Integrating and strengthen the general brand image.
disadvantages:
• could not be suitable for Asian marketing and customers in
developing countries;
•Adjusting the standardized strategy will bring the risks and costs.

10. 4. Some say communications,
especially the Internet and
television, enable a global culture
to be broadcast to all societies.
IKEA

11. Are the cultures of the world becoming more similar or more
different? Discuss.
Becoming more similar:
• Cultures of world becoming more similar due to mass movements
of people from country to country
• More people are learning about other cultures, which is integrating
into multiple-cultures
• Due to the development of technology. Internet, television and
mobiles give people the potential to share and learn.
• Multinational corporations accelerate the assimilation of cultures
• Believe it or not, people are influenced by the cultures they are
exposed to more than they think.
IKEA

12. Are the cultures of the world becoming more similar or more
different? Discuss.
Becoming more different:
• Personality cultures have more resources because of the global
cultures are available;
• Different cultures beget more subcultures.
IKEA

13. Any Questions?
Thank you 
IKEA