PowerPoint Presentation

MARKETING EXCELLENCE : IKEA

What is ?

Major Global Furniture Retailer!

Market cover over 43 countries.

How it was started?

Founded in 1943 by Ingvar Kamprad in Sweden.Started with selling pens, Christmas cards and seed from a shed!

Grown into retail giant in home furnishing, Business week calling itone-stop sanctuary for coolness & the quintessential cult brand

Companys vision

According to Kampard People have very thin wallets.We should take care of their interests

IKEAs Attributes

Designer Products at very low price.

Most products comes boxed to be assembled by consumers.

Unusual Swedish names for products!

Innovative Designs which are packaged flat.Do it Yourself

HIGH quality at LOW prices.Family-Friendly

SAVINGS passed to costumers. Brand Positioning

Strategies followed by IKEA

Strategies followed by IKEAStores located at good distance from cities.

Stores optimized to save energy and using solar power.

One way format floor.

Finds appropriate products for the right costumers.

Restaurants at its stores.

In-store Child Care Centres.

Promotional Strategies

Creative Advertisements.

Caters to local tastes to each country.

Promise of price reduction by 2-3% on all products annually.

Incentives during store launch.

Smart selection for product arrangement.

Implementation Steps

Establish Retail Price

IKEA sets prices correctly for its products mix.

It surveys the competition in the market to set a benchmark and sets its own price lower than rivals.

Select ManufacturerIKEA sources its products from multiple companies over the world.It selects particular manufacturer from specific country ensuring lowest price to serve its customers.

Determine Material UsedIKEA engineers try to focus on cost efficiency.Multiple type wood selection for single wooden product.Using high quality materials for surface visible and high stress undergoing areas.

Design ProcessInnovative and attractive designs.Flat packaged boxes making easier for consumer to transport it home as well as saving shipping cost thus transferring values.

Pros and Cons of StrategiesPros:

Efficient in combining low prices with quality.

Greater market reach.

Maintaining loyalty.Cons:

DIY might not be appealing to other consumers.Less inclination to consumer services.Have to travel long distance for stores.

Opportunities

Expanding its retails services to emerging markets like India and China.Growing its business to luxury, interior designs and crockery products.Increasing influence of social media.Online retail shopping.

SummaryIKEA caters local taste at low cost throughout the world.IKEA is known for Holistic Marketing.IKEA should increase its focus to expand market in eastern countries like India and China.IKEA must look to increase its customer service.

Disclaimer

Harshit Agrawal

Created by Harshit Agrawal, IIT Roorkee during Marketing Internship by Prof. Sameer Mathur , IIM LucknowProf. Sameer Mathur