A CASE STUDY OF

SUSTAINABLE FURNITURE

AT CHEAP PRICES!!

CORE STRATEGY

• IT REDUCES THE PRICES OF ITS PRODUCTS BY 1-3 PERCENT ANNUALY

• CUSTOMER IS REQIRED TO DO ALL THE SHOPPING SHIPPING AND ASSEMBLY.

•FLOOR PLAN IN THEIR OUTLETS IS DESIGNED SUCH THAT CONSUMERS EXPERIENCE THE ENTIRE STORE.

• UNIFORMITY IN PRODUCTS.

HENCE THIS STRATEGY MAKES TRANSPORTATION AND STORAGE EASIERAND CHEAPER FOR THE STORE, REDUCING ITS COSTS

THIS STRATEGY HAS ITS

THE PROS

ATTRACTS MOST

CUSTOMERS

LOW OPERATIONAL COSTS

THE CONS

DOMESTIC COMPETION IN LOCAL MARKETS

ASIAN MARKETS PREFER TO PAY AHIGHER PRICE FOR

ASSEMBLY SO ‘’DO IT YOURSELF’ IS OFTEN

NOT PREFERED

IKEA NEEDS TO INNOVATE INSTEAD OF MAINTAING UNIFORMITY IN ITS PRODUCTS.

LEADING EDGE DESIGNFUNCTIONAL HOME

FURNISHINGS

EXTREMELY LOW PRICES

SO WHAT IS IKEA DOING WELL TO REACH OUT ITS

CONSUMERSIN DIFFERENT MARKETS?

SRAWBERRY

VANILLA

BUTTERSCOTCH

CHOCOLATE

YES , IKEA IS PROVIDING VARIETY TO VARIOUS CONSUMER TASTES AND PREFERENCES

THE COMPANY CATERS TO LOCAL

ANDREGIONAL TASTES

AROUNDTHE GLOBE

FOR EXAMPLE, WHEN IKEA MANAGERS VISITED EUROPE THEY SAW THAT EUROPEANS PRFER TO

HANG THEIR CLOTHES UNLIKE US SHOPPERS WHO PREFER THEM FOLDED

WHAT ELSE COULD IT BE DOING?

1) DEVELOP ECO- FRIENDLYANDRECYCABLEPRODUCTS.

2) EXPANDINGINTO THE MARKETSOF ASIA ANDAFRICA

3) ADVERTISING CAMPAIGNS

4) AND REACHING OUT THROUGH SOCIAL MEDIA CAMPAIGNS

CASE

FINISHED

FURNISHED

THANK YOU

DISCLAIMERCREATED BY RAGHAV MEHRA DURING

A MARKETING INTERNSHIP UNDER PROF. SAMEER MATHUR, IIM LUCKNOW.