HISTORY

Founded in 1943 at Sweden by Ingvar Kamprad.

IKEA is international home furnishings retailer

387 stores in 48 countries.

MARKETINGMIX

Product:kitchen cabinet, storage desk, household furniture, beds etc…

Price :not very expensive

Place:387 stores , global brand

Promotions :TV ads, prints, catalogues

Strength :A global brand.Well designed ,low prices.wide range of products and styles.friendly atmosphere.

Weakness :Swedish designs may not appeal to American market.assembling issue may be unappealing.furniture is not built to last life time.

Opportunitiesdemand for greener productstrends in current financial climatedemand for reduced wastage

Threatsocial trendsmarket forceseconomic factors

Objectives of IKEATo produce

affordable productEnsure the

customer finds what they are looking for in

store.

IKEA strategies

Product strategy

Wide range of products.Stylish and low priced.Designs its own furniture.Flat packaging.Diversify product line and depth.Product adaptation according to need of different markets.

Promotion strategy

Advertisement campaigns. After sale service.Upon entry to IKEA store shoppers are guided properly.

Market development strategy

Target new segments and enter markets with existing products.

Innovative steps of IKEA

control the supply chain using lighter packing materials.

Stores are located at good distance.

saves electricity by using solar panels.

Amazon plans to connect its voice command Echo

technology to IKEA

IKEA canada plans to buy a wind farm

Located all over the world.Easy access to IKEA. Affordable pricing. Adaptability.Easy transportation. Many suppliers.

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

what else can IKEA do -

Expand its product line. Expand its business into interior designing.Use environment friendly technology.Product customization.Use of social media.IKEA can expand to new markets e.g. Asia

Pros :Good furniture at low cost.Simplicity in furniture assembly.Uniformity all over the world. Ensuring customer loyalty by offering rewards.Product names.

Q2. IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy.

Cons :

No innovation in products.Uniformity can turn into rigidity.Visiting an Ikea store costs money even though purchasing its products saves it.Less inclination to customer service.People have to assemble their own items might be problematic.

Summary

Introduction and historyVision and MissionMarketing mixSWOT AnalysisIKEA StrategiesInnovative plansCase study answers.

DISCLAIMERCreated by Sudhindra Patri,NIT Raipur,during a marketing internship by Prof. Sameer MathurIIM Lucknow(see www.IIMinternship.com)