Enter the world of elites!

IKEA was founded in 1943 by a17 yearOld Swede and the company grew into a Retail Titan in home furnishingsand global Cultural phenomenon.

TOCREATEA BETTEREVERYDAYLIFEFOR THE MANY PEOPLE

ONE-STOP SANCTUARY FOR “COOLNESS”

“THE QUINTESSENTIAL CULT BRAND”

UNIQUENESS AT ITS BEST!!!!!

BILLYBOOKCASE

HEKTARLAMP

LACKSIDE

TABLE

‘Product names are easier to remember than codes or numbers’

IKEA stands out because of

BARGAIN PRICES

MATCHINGCONSUMER INTERESTS

EFFICIENTDESIGN

CATERING TOLOCALAND REGIONAL TASTES

FLEXIBILITYOFPRODUCTDELIVERYANDASSEMBLY

QUIRKYMARKETINGCAMPAIGNS

Connection with

IKEA’s SUCCESSATTRIBUTES TO

Cultural FactorsSocial FactorsPersonal Factors: 1. Lifestyle 2. Occupation 3. Economic condition 4. Personality 5. Self concept

Q1. What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing?

1.Located all over the world (increasing international visibility)2.Easy access to IKEA (stores located a good distance from city centers, customers generally travel 50 miles round trip)3.Affordable pricing and looking after people interests (value for money) at a price which is less than competitors.4.Provide uniform products, but also customize products based on customer preferences (adaptability)5.Items come boxed and require own assembling by the customer hence easy transportation of the items6.IKEA adopted a strategy of having many suppliers for their requirements which results in getting the best price for the product.

what else can it do -

1.IKEA can expand its product line by producing high end products.2.IKEA can expand its business into interior designing and crockery products.3.IKEA can go for environment friendly technology.4.Product customization can boost up IKEA’s sales.5.Use of social media to reach out more customers.6.IKEA can expand to new markets e.g. Asia and Africa.

Q2. IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy.Pros:1.IKEA’s low cost concept keeps it ahead of its competitors.2.IKEA has successfully combined low cost with good quality.3.IKEA’s ability to find ways to alter designs to save on manufacturing costs.4.Using unconventional names for their products that people can easily remember (belief is that people remember names better than they do codes)5.IKEA’s ability to adapt its product design strategies according to the market.6.Do it yourself saves people money and they assemble conveniently.

Cons:1. No innovation in products.2. Uniformity can turn into rigidity3. Visiting an Ikea store costs money even though purchasing it products saves it.4. Less inclination to customer service.

•About IKEA• IKEA’s vision•Reasons for IKEA’s uniqueness•Questions and answers

DISCLAIMERCreated by Srishti Wahie, DTU, during a marketing internship

under the guidance of Prof. Sameer Mathur, IIM Lucknow.