2. How was it started?
IKEA was founded in 1943 by a 17 year-old Swede named
Ingvar Kamprad who sold pens, Christmas cards, and seeds
out of shed on his family farm.
The name IKEA derived from Kamprad’s initials IK and first
letters of farm Elmtaryd farm and village of Agunnaryd where
he grew up.
4. Unconventional Product names
The strange product names makes them unique and easy to
remember the products.
Sofas, coffee tables, bookshelves, media storage and doorknobs
are named after places in Sweden (Klippan, Malmö)
Beds, wardrobes and hall furniture after places in Norway
Carpets after places in Denmark and dining tables and chairs after
places in Finland.
5. ➢ By looking at the problem of waste
and recycling a little differently, the
company has set out on an exciting
journey in sustainability and begun
pioneering ways to turn trash into
➢ The desk pad contains 50% recycled
materials, and the offcuts can go
right back into production, so
nothing is ever wasted.
WASTE INTO USE
8. IKEA REDUCES PRICES 1-3% ANNUALLY.
HOW CAN IT DO SO?
IKEA continuously seeks out
new ways to run its business
People have very thin wallets
and we should take care of
9. ➢ IKEA’S designed products are well made and appeal to the
➢ Replaces approximately one third of its product lines each
11. DO IT YOURSELF
Do it yourself (DIY) is the
method of building,
modifying, or repairing things
without the direct aid of
experts or professionals.
This strategy makes storage
and transportation easier and
cheaper for the store.
12. ENERGY EFFICIENT METHODS
IKEA buys in bulk, controls
the supply chain, uses
lighter packaging materials,
and saves on electricity
through solar panels, low-
wattage light bulbs, and
energy from its own wind
farms in six different
13. CUSTOMER EXPERIENCE
Bright and inviting store atmosphere.
Resembles Modern Theme park with
One stop shopping experience.
Free wireless internet access.
14. Analyzing consumer markets
Plastic placemats with rooster themes during the
Larger glasses for the U.S. market.
Designed wardrobes for U.S. markets with deeper
IKEA sold king size beds and a wide range of styles to
attract U.S. consumers.
15. QUIRKY MARKETING CAMPAIGNS
➢ IKEA is known for its quirky
marketing campaigns, which
help generate excitement
and awareness of its store
➢ “Ambassadar of Kul”
IKEA has evolved into the largest furniture retailer in the world.
IKEA culture center:
The aim is to maintain and transfer knowledge about IKEA values
and the IKEA culture to IKEA co-workers.
On 30 June 2016, we opened the IKEA Museum in Älmhult which
offers IKEA co-workers and the general public the chance to
discover and be part of the IKEA story in a whole new way.
17. 4 P’s of IKEA
Low prices constitute
the IKEA vision,
business idea and
concept. IKEA makes
low cost furniture for
offices. It focusses on
cost control and
IKEA has got an excellent
place and distribution
materials in proximity with
supply chain to reduce
transport costs and using
more of ocean transport
than road transports are
some strategies adopted
IKEA uses promotion
tools like TV, print, online
ads, billboards etc. in its
marketing mix. Online
promoted IKEA products
problems faced by
people, and offering
IKEA gives utmost
importance to its
at IKEA believe in the
idea that they are
with passion for home
employee culture is
based on togetherness,
enthusiasm and fun.
Extension of their retail services to Emerging Market Economies
where middle class population is rapidly increasing.
Increase sourcing its supply from emerging markets, which are
characterized by low cost labor to sustain its competitive
19. Q & A
What are some of the things IKEA is doing well to reach consumers in
Wide variety of products.
Low prices and good quality.
Discuss the pros and cons of IKEA’s strategy?
Pros: Catchy names for products, cost savings, cultural
Cons: Size and scale of IKEA, changing social trend.