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A Marketing Excellence - IKEA

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Sandra S Kurian
Sandra S Kurian

IKEA is a Swedish home furnishings company founded in 1943 that sells ready-to-assemble furniture and home accessories. It has nearly 400 stores in 48 countries and pioneered flat-pack furniture designs. IKEA's vision is to offer well-designed, functional home products at affordable prices. Its marketing strategy includes its product range, stores, catalogues, and communications. While IKEA has changed how people shop for furniture through its do-it-yourself model and affordability, this strategy faces challenges in expanding to new markets from competition and cultural differences regarding DIY.

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MARKETING EXCELLENCE :
Introduction Swedish Home furnishings company founded by Ingvar Kamprad in 1943 Sells Ready to Assemble furniture, kitchen appliances, Home accessories. Almost 400 stores in 48 countries Pioneers of the revolutionary in-flat packing design
What lies in the Name - IKEA I - Ingvar K - Kamprad E - Elmtaryd A - Agunnaryd
Vision To create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home- furnishing products at prices so low that as many people as possible will be able to afford them.
4 step strategy to introduce a product Step 1 Establish a Retail Price
4 step strategy to introduce a product Step 2 Select Manufacturer
4 step strategy to introduce a product Step 3 Deciding materials to be used for manufacture
4 step strategy to introduce a product Step 4 Design Phase
Distinct Key Features
Do it Yourself (DIY) nature of the Ready to assemble (R2A) products sold Use of Beonics Traffic insight visitor flow system Long open hours
Eco friendly , recycle based , functional and minimalistic approach to customers and products Names for Products instead of numeric Codes
IKEA Marketing Mix IKEA Product Range The Store The IKEA Catalogue Advertising, PR and other forms of communication
Question 1 What are some of the things IKEA is doing well to reach consumers in different markets? What else could it be doing ?
The things IKEA is doing well Offered leading edge design and functional home furnishings at low costs Updated the products regularly to stay in demand
Addresses customer diverse needs based on regional factors, deviating from the traditional Scandinavian principles Engages customers at many levels, online and offline
What else it could do ? Engage more foreign employees to understand various regional demographics and purchase patterns Gain more cooperation from local suppliers from new potential market zones Expand the online publicity further.
Question 2 IKEA has essentially changed the way people shop for furniture . Discuss the Pros and Cons of this strategy , especially as the company plans to continue to expand in places like Asia and India .
Powerful Brand Image; symbol of innovation, authenticity and affordability Popularity can be utilised to expand markets and endorse social initiatives People get accustomed to the useful DIY nature Post purchase satisfaction due to the life system and democratic designs approach results in increase of customers The number of customers, physically entering furniture stores is diminishing due to online shopping So, consequent reduced customers Less life of the products due to pure nature Reduction in customer sample space in Asia because of resentment to DIY culture Reduction on customer sample space due to inhibitions on product variants Competition from conventional furniture giants
Summary IKEA implements a 4 step strategy to introduce a new product IKEA begs to differ from other furniture giants due to its simple and unconventional methods IKEAs marketing strategy is straightforward There is still scope for improvement on the current strategy
Bibliogrpahy Page 198-199, Marketing Management by Philip Kotler and Kevin Lane Keller (15th edition) https://nippaku.wordpress.com/2015/09/21/living-in-japan-pros-and- cons/ http://www.craigsewell.co.uk/bim-projects-role-of-manufacturer/ http://www.ikea.com/ https://sweden.se/society/energy-use-in-sweden/ /vikassonwane/ikea-marketing-strategy- presentaion http://www.rydeparramattadrafting.com.au/builders-plans/ /riddhimachopra/ikea-case-study https://www.google.co.in/search?tbm=isch&q=thankyou+ikea&ei=O9hKW e_WFIHxvgS1hIbgAg&emsg=NCSR&noj=1#imgrc=dGfNiAg3VZ_lRM: /OsamaAlbarrak/ikea-strategic-case-study
A Presentation by SANDRA S KURIAN ( Mar Athanasius College of Engineering, Kothamangalam, Kerala ) during the internship under Prof. SAMEER MATHUR ,IIM Lucknow.
A Marketing Excellence - IKEA

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A Marketing Excellence - IKEA

  • 2. Introduction Swedish Home furnishings company founded by Ingvar Kamprad in 1943 Sells Ready to Assemble furniture, kitchen appliances, Home accessories. Almost 400 stores in 48 countries Pioneers of the revolutionary in-flat packing design
  • 3. What lies in the Name - IKEA I - Ingvar K - Kamprad E - Elmtaryd A - Agunnaryd
  • 4. Vision To create a better everyday life for the many people. We make this possible by offering a wide range of well-designed, functional home- furnishing products at prices so low that as many people as possible will be able to afford them.
  • 5. 4 step strategy to introduce a product Step 1 Establish a Retail Price
  • 6. 4 step strategy to introduce a product Step 2 Select Manufacturer
  • 7. 4 step strategy to introduce a product Step 3 Deciding materials to be used for manufacture
  • 8. 4 step strategy to introduce a product Step 4 Design Phase
  • 10. Do it Yourself (DIY) nature of the Ready to assemble (R2A) products sold Use of Beonics Traffic insight visitor flow system Long open hours
  • 11. Eco friendly , recycle based , functional and minimalistic approach to customers and products Names for Products instead of numeric Codes
  • 12. IKEA Marketing Mix IKEA Product Range The Store The IKEA Catalogue Advertising, PR and other forms of communication
  • 13. Question 1 What are some of the things IKEA is doing well to reach consumers in different markets? What else could it be doing ?
  • 14. The things IKEA is doing well Offered leading edge design and functional home furnishings at low costs Updated the products regularly to stay in demand
  • 15. Addresses customer diverse needs based on regional factors, deviating from the traditional Scandinavian principles Engages customers at many levels, online and offline
  • 16. What else it could do ? Engage more foreign employees to understand various regional demographics and purchase patterns Gain more cooperation from local suppliers from new potential market zones Expand the online publicity further.
  • 17. Question 2 IKEA has essentially changed the way people shop for furniture . Discuss the Pros and Cons of this strategy , especially as the company plans to continue to expand in places like Asia and India .
  • 18. Powerful Brand Image; symbol of innovation, authenticity and affordability Popularity can be utilised to expand markets and endorse social initiatives People get accustomed to the useful DIY nature Post purchase satisfaction due to the life system and democratic designs approach results in increase of customers The number of customers, physically entering furniture stores is diminishing due to online shopping So, consequent reduced customers Less life of the products due to pure nature Reduction in customer sample space in Asia because of resentment to DIY culture Reduction on customer sample space due to inhibitions on product variants Competition from conventional furniture giants
  • 19. Summary IKEA implements a 4 step strategy to introduce a new product IKEA begs to differ from other furniture giants due to its simple and unconventional methods IKEAs marketing strategy is straightforward There is still scope for improvement on the current strategy
  • 20. Bibliogrpahy Page 198-199, Marketing Management by Philip Kotler and Kevin Lane Keller (15th edition) https://nippaku.wordpress.com/2015/09/21/living-in-japan-pros-and- cons/ http://www.craigsewell.co.uk/bim-projects-role-of-manufacturer/ http://www.ikea.com/ https://sweden.se/society/energy-use-in-sweden/ /vikassonwane/ikea-marketing-strategy- presentaion http://www.rydeparramattadrafting.com.au/builders-plans/ /riddhimachopra/ikea-case-study https://www.google.co.in/search?tbm=isch&q=thankyou+ikea&ei=O9hKW e_WFIHxvgS1hIbgAg&emsg=NCSR&noj=1#imgrc=dGfNiAg3VZ_lRM: /OsamaAlbarrak/ikea-strategic-case-study
  • 21. A Presentation by SANDRA S KURIAN ( Mar Athanasius College of Engineering, Kothamangalam, Kerala ) during the internship under Prof. SAMEER MATHUR ,IIM Lucknow.