Analysis of the IKEA Mini Case from the Marketing Management Textbook by Kotler and Keller

1. CHANGING THE CONCEPT OF LIVING SPACES

2. WHAT IS IKEA??

3. A Swedish company founded in the year 1943
by Ingvar Kampard.
Started the company in his shed. Now it is a
Global Phenomenon.
Company Vision:
“To create a better everyday life
for many people”
“One Stop Sanctuary for coolness”
-BusinessWeek

4. IT’S CORE CUSTOMERS

5. WHAT MAKES IKEA SUCCESSFUL?

6. It understands it’s consumer’s
requirement
And that is………

7. BARGAIN PRICES & HIGH QUALITY
PRODUCTS

8. People have very thin wallets and we
should take care of their needs

9. HOW DO THEY DO IT?

10. By engaging their customers in
Shopping
Shipping
Assembly

11. KEEPING OPERATIONAL COSTS LOW
Buying in bulk and controlling the
supply chain
Using solar panels and wind farms
Keeping land cost and taxes low

13. IKEA ALSO KEEPS TRACK OF THE
CONSUMER BEHAVIOR IN DIFFERENT
REGIONS AND GET FEEDBACK …….

14. IKEA improves itself based on consumer feedback

15. CHINA
Products for small space living

16. Featuring King Size beds Bigger sized cups
Larger Dining sets

17. What are the things IKEA is doing well to reach
its consumers? What else could it be doing?

18. Stores are located all around the world. This makes it
accessible to its customers.
Products are available at reasonable prices.
Products are well packaged in cardboard boxes. This
makes easier for transportation for the customers.
What it can do:
Start the online shopping facility so that they can
reach a wider area and thus more consumers.

19. 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

20. PROS
Ability to offer quality products at bargain prices.
This strategy helps IKEA to be at the top of its game.
Large number of suppliers ensure that the best price can be obtained.
An integrated management system is followed at the global level.
CONS:
This strategy may lead to less product innovation.
The stores may be located too far and the cost of travel may be too high for certain
consumers.
Connection with the customer is lost and hence there is a compromise on loyalty towards
the company.

21. INDIA: Land of opportunities
Able work Force
Favorable Demographics

22. What is IKEA?
How is it successful?
How do they do it?
Keeping track of consumers in different countries
How does it reach to its consumers
Pro’s and cons of the marketing strategy
Let’s Summarize

24. DISCLAIMER
Created by Bharath Ravindranath, MIT Manipal during an internship
with Prof. Sameer Mathur, IIM Lucknow.