2. What is IKEA?
Largest Global
Furniture Retailer!
Operates in around
41 countries!
32 Bn Euros
revenue in 2015!
3. HISTORY OF IKEA
Founded in 1943 by
INGVAR KAMPRAD in
Sweden.
Originally sold pens,
Christmas cards and seeds
from a SHED!
1985 – First store in
USA opens.
5. IKEA Attributes
USP – Leading edge
Scandinavian
Design at extremely LOW prices.
Unusual Swedish
product names.
Most items come BOXED,
to be ASSEMBLED by
customers.
7. Brand Positioning
HIGH Quality at LOW Prices.
“Do-It-Yourself”.
INNOVATIVE designs which can be
FLAT PACKED.
Family-friendly.
SAVINGS passed on to customers.
10. Cost Reduction and Customer Satisfaction Strategies
Stores located a good
distance from cities.
Stores optimized to SAVE
ENERGY and open for
long hours.
One way format floor.
13. (Contd.)
Caters to local tastes
of each country.
Smart product
placement in stores.
Incentives during
store launch.
14. PLAYS ON -
Key Psychological
Processes
Buying Decision Process
15. 1)a. What are some of the things IKEA is doing right to reach
consumers in different markets?
Affordable pricing and looks after
customer’s interests.
Stores located at a good distance
from the city.
Boxed items make it cheaper and
easier to transport for both itself
and customers.
Sources its products from multiple
companies all over the world.
16. 2)b. What else could it be doing?
It can develop a marketing strategy to
influence the reference groups of their target
customers.
Could build stores near cities
for greater accessibility.
Could invest in eco-friendly
products.
Product customization according to customers.
17. 2. IKEA has essentially changed the way people shop for
furniture. Discuss the pros and cons of this strategy.
-> PROS:
“Ambassador of Kul” like events.
Successfully combined low cost with
good quality. Items come boxed.
Greater outreach to customers,
maintaining their loyalty.
18. ->
CONS:
Assembling own items.
Not maximising on the growing
technology available for marketing and
advertising.
Having to travel long
distances.
Lack of innovation in products.
19. Conclusion
IKEA has expanded too fast in the world which
has led to problems.
It would be recommended that IKEA expands
slowly,
It should keep working
hard to keep customers satisfied.