4Ps of marketing (marketing mix) in the International Context of IKEA, the biggest furniture retailing company in the world.

1. MARKETING MIX IN INTERNATIONAL CONTEXT
BY:
VATSAL VORA

2. • World’s largest furniture selling
company. (Retailer)
• Based in: Sweden
• HQ: Leiden, The Netherlands
• Founded in: 1943 by Mr. Ingvar
Kamprad
• Competitors:
1. Walmart (USA)
2. Tesco (UK)
3. Pepperfry (India)
4. Amazon (Global competitor)

3. • Suppliers:
1. Bring.com: Food logistics
company, supplying food and
beverage products to IKEA
cafes.
2. Whirlpool: Providing with
kitchen electronics such as
microwave, refrigerators, etc.

4. • IKEA relies on design innovation to
bring only great quality and
beautiful designs to the market and
its stores. It has developed cost
efficient and innovative methods to
match people’s expectations of price
and quality.
• The product range varies from one
country to another. IKEA brings
product to the local market after
researching the local cultures and
people’s lifestyles.

5. • For example: India’s hot and
humid climate means untreated
pine furniture, which would
otherwise be suitable for
countries such as the US, would
not work. IKEA not only
modified its materials, but also
elevated the designs of its metal
and wooden furniture after it
discovered that Indian residents
commonly clean their floors with
water.
• Most famous IKEA product is a
bookshelf called “BILLY” (pic on
the right)

6. • There is a grand total of 296 IKEA stores in 36
countries/territories. The IKEA Group itself owns 262
stores in 24 countries.
• the most important part is how its stores are design.
These maze like stores are so beautiful and cosy
inside. There are cafes that serve affordable but good
quality food. Model homes inside these stores are a
good source of interior decoration ideas for the
customers.

7. • The IKEA customers are generally more
satisfied with the prices they are paying. It is
because of the quality. IKEA matches prices
with product quality. IKEA products are not
expensive but they are not too cheap either
• The cheapest IKEA prices in the world can
be found in Poland. Its prices ranked by far
the lowest when comparing prices both
including and excluding VAT. Average prices
in Slovakia, the second cheapest country for
IKEA products, are 12% higher than in
Poland.

8. Country
Store
Average
USD ($)
Average
GBP (£)
Average
EUR (€)
Poland $164.98 £106.32 €132.16
USA $188.03 £121.35 €149.65
Germany $188.72 £121.77 €151.62
Source: https://www.idealo.co.uk/press/248-worldwide-ikea-price-
comparison.html

9. • IKEA's advertising campaigns were based on
unique marketing conditions and cultural
sensibilities of each country, which varied
significantly across markets.
• For example, European advertisements,
especially in the UK, were more straight-
forward than those in North America, which
were generally more witty. IKEA was present
in some countries such as Canada, Australia
and Germany for over twenty five years while
in countries such as the US, Britain and
Italy, it had been around for only a little
more than a decade.

10. Source: https://www.businesstoday.in/magazine/lbs-case-
study/how-ikea-adapted-its- strategies-to-expand-in-
china/story/196322.html

11. IKEA is a company that can be
termed as being “uniquely
similar” as it works on a
concept of keeping a unique
taste in each country by keeping
the quality and the materials
similar throughout the world.