Case solutions for HBR Ikea Invades America with last slide comparing it with Metabical positioning. User can be contacted on pndyamit@gmail.com for editable copy.

1. IKEA INVADES AMERICA
A CASE STUDY AS A PART OF MARKETING MANAGEMENT I
Group 2
• Akash Jain
• Akshat Modi
• Amit Kumar Singh
• Amit Pandey
• Anirban Sinha

2. FACTORS ACCOUNTING FOR IKEA’S SUCCESS
• Global network of suppliers
ensures lowest cost possible
• 1300 suppliers in 53 countries
• Flat Packaging helps in
decreasing cost
• Decreased cost from suppliers
• Mix and match between
products possible
• Ease of Logistics
• One-stop Shop Experience
• In-house Restaurants, play
rooms
• Large open spaces
Superior
Shopping
Environment
Uncomplicated
Design
Strong
Purchasing
Power
Low Prices
Establish
Retail Price
Select
Manufacturer
Determine the
material to be
used
Design
Process

3. COMPETITIVE ADVANTAGE
Competitive
Advantages
Economics of
Scale:
Standardization
Economics of
Scope: Restaurants
and other facilities
Economic Design:
Logistics
Network of Supply:
1300 suppliers in
53 countries
Diversity in
Assortment
Distinctiveness of
Design
Strength of Brand
Name
Large Warehouse
Showroom in
Suburban centres

4. POSITIONING STRATEGIES USED BY IKEA
Low Cost
leadership
Strategy
• Unique value chain innovations
Product
Strategy
• Wide range of products
• Diversify Product line and depth
Promotion
Strategies
• High Profile advertisement Campaign
• 70% marketing budget on Catalogues
• Online advertisement

5. PERCEPTUAL MAP

6. SEGMENTATION FOR IKEA

7. SEGMENTATION FOR METABICAL
Demography
 17 until 70 years old
 education level : less than high
school, high school, some collage,
collage
 income level : $25,000 - $80,000+
Geography
 urban and rural people
Behavior :
 Choose drugs to lose their weight
 Choose herbal to lose their weight
 Like sport
 Loyal to brand
 Value oriented
 Health treatment oriented
 Price sensitive
 Choose drugs based on advice
 Check their healthy if there is only damage
Psychography :
People who want to look like a movie star
People who want to be healthier
People who want to wear the skinny jeans
People who want to lose weight with easy
way
People that fine in the way they are
People with BMI’s score :
overweight (25-30), obese (30-40), severely
obese (over 40)
Demography
25 until 65 years old
Collage
$25,000 ++
Behavior
 Choose drugs to lose their
weight
 Like sport
 Loyal to brand
 Value oriented
 Health treatment oriented
 Choose drugs based on
advice
Psychography
People who want to
be healthier
People with BMI
score of 25-30

8. THANK YOU