This is a mini case study about marketing strategies of IKEA

2. HISTORY
IKEA was founded in 1943 by
a 17 year old Swede named Ingvar
Kamprad. It has come a long way
from selling pens, cards, seeds to
becoming a leader in home
furnishing market with over
650 MILLION customers per year!!

3. VISION
“To Create a Better
Everyday Life for the
many people”

4. What are some of the things
IKEA is doing well to reach its
customers?

5. HIGH QUALITY AND CHEAP PRICE
IKEA reduces price across its products by 1% to 3%
annually.
This is done by engaging the customers to do all the
shopping, shipping and assembly by themselves.

7. UNDERSTANDS THE ROLE OF
CULTURAL FACTORS
IKEA understands the cultural
differences in different countries
and designs its products and
marketing strategies based on its
thorough analysis of cultures.

8. What Else could it be
doing??

9. USE OF SOCIAL MEDIA
MARKETING
IKEA could use websites
like Facebook,
Instagram,etc
to reach out to more
customers.

10. CREATING ECO FRIENDLY
PRODUCTS
IKEA should create eco
friendly products. This can
attract a whole new
segment of environment
conscious Customers. It
would also help in IKEA’s
sustainability in future.

11. IKEA has essentially changed
the way people shop for
furniture. Discuss the pros
and cons of this strategy,
especially as the company
continues to expand in places
like Asia and India.

12. PROS

13. Using unconventional
names for the
products
IKEA uses product names
rather than product codes
which makes it easier for
the customers to remember.

14. Convenience for the
customer
Every Product is boxed. This
makes it easier for the
customers to transport when
buying or if they move from
one place to another.

15. CONS

16. PRODUCT ASSEMBLY
The fact that people have to
assemble their own items
can be problematic for
people who are not good at
fixing or assembling items.
Some people are very Lazy!
Indians especially prefer on
Door delivery and
installation of their
products.

17. LESS innovation in products
IKEA hasn’t concentrated
much on innovating its
products. It has to innovate
if it has to maintain its
leading position in the
industry. Asian and Indian
people like more innovative
and modern products.

18. Shops Located Far From
Cities
IKEA’s outlets are located
very far from the main cities.
This is a strategy to reduce
the land costs and thereby
reduce the price of its
products. But the customers
will have to travel long
distances and spend more
money on fuel to buy IKEA
products.

19. Use of Age old Technology for
marketing
IKEA doesn’t use internet or smart
phone marketing extensively. It relies
heavily on print ads and Television ads.
This may lead to the customers
choosing some other company for their
purchase.

20. SUMMARY
1) IKEA’s HISTORY
2) IKEA’s VISION
3) What are some of the
things IKEA is doing
reach its customers?
What else could it be
doing?
4) Pros and cons of IKEA’s
marketing strategy,

21. DISCLAIMER
Created by S.SHARATH ARAVIND, NIT TRICHY, as part of
the marketing internship under Prof. SAMEER MATHUR,
IIM LUCKNOW.