Marketing Strategies of IKEA

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A STUDY ON
“MARKETING STRATEGIES OF IKEA”
A Project submitted to
University of Mumbai for partial fulfilment of the requirements
for the award of degree of
Bachelor of Management Studies
Academic Year 2020 - 2021
Submitted By
KARISHMA PADMAKAR PATIL
Roll no: 35
Under the Guidance of
Mrs. Dhanya Panicker
CHEMBUR TROMBAY EDUCATION SOCIETY’S
N. G. ACHARYA & D. K. MARATHE COLLEGE OF ARTS,
SCIENCE AND COMMERCE.
Shri N. G. Acharya Marg, Chembur, Mumbai - 400071.

Marketing Strategies of IKEA
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ACKNOWLEDGEMENT
I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of the project. I take this opportunity thank to UNIVERSITY OF MUMBAI
for introducing the BMS course thereby giving us a platform to conduct this study that has
helped us gain practical knowledge about the course.
I would like to extend my thanks to our Principal DR.VIDYAGAURI LELE & Vice Principal
MRS. AKHILA MAHESHWARI for their constant efforts to conduct this course smoothly.
I would also like to extend my heartfelt thanks to our course Co-ordinator MRS. DHANYA
PANICKER my parents, and librarian & friends for their constant support & encouragement

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CERTIFICATE
CHEMBUR TROMBAY EDUCATION SOCIETY’S
N. G. ACHARYA & D. K. MARATHE COLLEGE OF ARTS, SCIENCE
AND COMMERCE.
This is to certify that KARISHMA PADMAKAR PATIL of T.Y.BMS Semester-VI (2020 -
2021) has successfully completed project on the MARKETING STRATEGIES OF IKEA
under the guidance of Mrs. Dhanya Panicker.
Signature: Signature:
Mrs.Dhanya Panicker External Examiner
Project Guide
Signature:
Mrs.Akhila Maheshwari
Principal
DateofSubmission

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DECLARATION BYLEARNER
I, the undersigned Mrs. Karishma Padmakar Patil here by, declare that the work embodied in
this project work titled “A study on Marketing Strategy of IKEA”, forms my own
contribution to the research work carried out under the guidance of
Mrs. Dhanya Panicker is a result of my own research work and has not been previously
submitted to any other university for any other Degree / Diploma.
Wherever reference has been made to previous work of others, it has been clearly indicated as
such and included in the bibliography.
I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

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SUMMARY
IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was
founded in 1943. Today it is the world’s largest furniture retailer, recognised for its
Scandinavian style. The majority of IKEA’s furniture is flat-pack, ready to be assembled by
the consumer. This allows a reduction in costs and packaging. Ikea is seen across 48
countries across the world in about 390 stores. For the Ikea furniture products to be reachable
among many people, the products of Ikea are affordable and are of good quality. Ikea
produces about 9,500 products and they have about 172,000 employees working for the
company. This wide range is available in all IKEA stores and customers can order much of
the range online through IKEA’s website.
The main objective of this study is to analyse the importance of using marketing strategies of
branding in IKEA. The study will help to find out about the related benefits of branding
mainly. The details of the study will help us to learn about the consumer's awareness about
the brand and how their loyalty can be increased in order to gain a competitive edge. Also,
analysing the importance of branding can help us to find out about the IKEA brand's
strengths, weaknesses, opportunities and threats, by using SWOT analysis tool and by using
STP process, we can know how to segment the market, target the customers and position the
products/services. Whereas, by using 4 Ps of marketing mix, we can find out about the
branded product, its price, promotion and placement. Therefore, since the competition in the
technology industry is increasing, 'A study on using marketing strategy of IKEA' will help the
company in staying at the top of consumer's mind, to cope up with the changes, to gain
competitive edge, to attain goals set by the company, to make improvements for the future
related to products, its pricing strategy, communications used to promote and the placement
of the product.

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TABLE OF CONTENT
Chapters Topics Page No
Chapter no- 1 Introduction 8
Chapter no -2 Literature Review 15
Chapter no -3 ResearchMethodology 56
Chapter no -4 Conclusion 60
Chapter no –5 DataAnalyses andInterpretation 61
Chapter no -6 Questionnaire 72
Chapter no- 7 Bibliography 74

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MARKETING STRATEGIES OF
IKEA

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CHAPTER 1: INTRODUCTION
1.1 Introduction of IKEA
IKEA is the world-leading Swedish multinational conglomerate that designs and sells ready-
to-assemble furniture, kitchen appliances and home accessories and home services. It was
established in Älmhult, Sweden in 1948 which was founded by a 17-year-old Ingvar
Kamprad. Ikea has been the world's largest furniture retailer since 2008. IKEA is named
after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up and,
Aggunaryd the nearby village. Ikea is 39th world top brand with $15.3 B value (Forbes,
2019). IKEA adopts Franchising that gives the company the ability to grow internationally,
maintain an entrepreneurial spirit, safeguarding underlying concept and serve their and
people’s best interest.
Figure 1: IKEA logo transformation (IKEA, 2020)
The group is known for its Scandinavian style modernist designs for various types of
appliances and furniture, and its interior design work is often associated with an eco-
friendly simplicity. The majority of Ikea’s furniture is flat-pack, ready to assembled by the
consumer. In addition, the firm is known for its attention to cost control, operational details,
and continuous product development that has allowed Ikea to lower its prices by an average
of two to three percent.
1.1.1 Vision Statement of IKEA
IKEA’s vision is “To create a better everyday life for the many people”. This can be
reflected by the fact that business idea of entity supports this vision by providing a diverse

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range of functional and well-designed products of home furnishing at economical prices to
ensure that is easily accessible and affordable for everyone.
1.1.2 MissionStatement of IKEA
They are targeting a better every day for all people impacted by their business idea of
“To offer 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” (IKEA, 2020).
The mission statement of an organization is based and developed on the foundation of
its vision and core values that have been established for an organization, reflecting the
course of action and strategy to be implemented by the entity for achieving the prescribed
vision from a long-term perspective.
Through investing in the future, the mission of IKEA revolves around
attaining sustainable long-term growth for the ultimate benefit of suppliers, customers, and
employees. The major foundation of IKEA’s mission is based upon sustainability throughout
its evolution. Thus, to achieve positive environmental and social impacts, it launched
its People and Planet Positive program.
In this regard, a significant portion of the profits generated by IKEA is invested back towards
sustainable solutions, product development as well as towards the development of new and
existing new stores, while ensuring that the ultimate price levied upon the customers is as low
as possible.
The mission statement of IKEA is developed on the major belief that sustainability should be
an affordable option for the majority, rather than being treated as a luxury good. The mission
of IKEA revolves around its approach on developing and designing its products in
accordance with the daily needs of consumers for the welfare of people.
The main idea behind this program was to integrate the mission, vision, and core values of
the organization together to transform and drive innovation in the overall business of IKEA.
As a result, the mission of IKEA to strengthen its competitiveness can be attained through
ensuring long term accessibility to significant energy supplies, raw materials, along with the

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development and maintenance of its supplier base. Not only this, but IKEA also focuses on
the development of cordial relations with customers and its co-workers.
1.1.3 Core Values of IKEA
The success of any organization revolves around its shared values and the respective culture
of the organization. In this regard, the culture and business of IKEA are based upon core
values that are shared by their member. The shared valued that regulates the behavior and
operations inside IKEA are provided as below:
 Humbleness and Will Power: IKEA is reputed as a humble brand with respect to its
business operations, which is particularly evident in its treatment of suppliers and
customers. Their will power can be reflected in their desire to serve, innovate, and get
things done.
 Leadership by Example: The leaders and managers at IKEA believe in the core idea of
leading by example by setting standards for their employees.
 Daring to be Different: A key aspect of IKEA’s business is based upon its idea of
differentiation and is considered something of increasing value at the entity. Old solutions
are always under check, while new options are always evaluated for implementation.
 Togetherness and Enthusiasm: Collaboration with enthusiasm is vital, and perhaps
something of increased value as it assists significantly in resolving issues. Thus, through
collaboration and enthusiasm, the biggest challenges and even complex problems are
being solved.
 Constant Desire for Renewal: An important core value at IKEA is the desire for seeking
innovation and creativity. As a result, IKEA keeps innovating to ensure the provision of
high-quality products for its customers at economical prices.
 Cost Consciousness: In relation to the implementation of daily core values at IKEA, cost
consciousness is indeed a central value and a significant component of IKEA’s business
strategy. Thus, to pass the benefits to the customer and maintain low cost, IKEA is known
to make efficient use of its resources and manage costs effectively.
 Accept and Delegate Responsibility: At IKEA, they believe in authorizing and
empowering people. Accepting and delegating responsibilities are two of the ways to

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develop as independent individuals. Being positive and forward-looking to inspire
everyone to contribute and grow. This attitude comes with trust. Promoting co-workers
with potential and motivate them to outshine their expectations, IKEA has infused a
culture of acceptance and delegation in the organization
1.1.4 History of IKEA
 1943 - IKEA founded by Ingvar Kamprad
 1945 - The first IKEA advertisements appear
 1948 - Furniture is introduced into the IKEA range
 1950’s - The first IKEA catalogue is published as well as IKEA store opens in Sweden &
100th co-worker joins IKEA
 1980’s - LACK table arrives as well as IKEA arrives in France, USA, UK, Italy 4
 1990’s - The first IKEA PS collection is launched, IKEA web site www.IKEA.com is
launched and arrival in China, Spain, Hungary.
 2000’s – IKEA arrives in Russia, Portugal, Japan, Thailand. Takes Social Initiative &
introduction of new products like Stockholm, KLIPPAN sofa, BILLY bookcase etc.
Figure 2: Late IKEA founder, Ingvar Kamprad

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The IKEA website contains about 12,000 products and is the closest representation of the
entire IKEA range. The company is responsible for approximately 1% of world commercial-
product wood consumption, making it one of the largest users of wood in the retail sector.
The company, which pioneered flat-pack design furniture at affordable prices, is now the
world's largest furniture manufacturer. As of November 2017, IKEA owns and operates 415
stores in 49 countries. IKEA is certainly one of the top furniture retailers in the world. Its core
aspects are affordably, functionality and quality. Since their commencement, IKEA has
persistently developed as a company throughout the years and are currently seen as a
distinguished successful worldwide business entity in the furniture industry today. In 2010,
IKEA opened 12 new stores in 7 countries which presently give them an overall record of 318
stores in over 38 countries. Ikea makes use of latest manufacturing techniques to design,
manufacture and sell better products to the customers. According to (Catena, 2015) IKEA
gains from their strategies and good relationships and networks with their supply chain
members, as well as the assumable measures for improvement IKEA could develop in the
future.
Most of IKEA's stores and factories were previously owned by INGKA, a holding company
controlled by the INGKA Foundation, one of the 40 wealthiest foundations in the world.
INGKA Holding B.V., based in the Netherlands, owns the IKEA Group which takes care of
the centers, retails, customer fulfillment, and all the other services related to IKEA
products. At the same time, the IKEA brand is owned and managed by Inter IKEA
Systems B.V., based in the Netherlands, owned by Inter IKEA Holding B.V. Inter IKEA
Holding is also in charge of design, manufacturing and supply of IKEA products. IKEA Group
is a franchisee that pays 3% of royalties to Inter IKEA Systems. For purposes of accounting
and taxation, the IKEA Group and the Inter IKEA Group claim that they are unrelated parties.
However, they are both controlled by the Kamprad family and close associates of the family.
9 new IKEA stores opened in financial year 2018 make a total of 422 stores in more than 50
markets. On August 9, 2018, the first IKEA store opened in India. The company opened its
second India store on the outskirts of Mumbai in December and another in the southern city
of Bengaluru is now on course to be completed in 12 months, by 2025 IKEA aims to open 25
stores in India, some of them with a brand-new touch and appearance.

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Figure 3: Map of countries with IKEA stores (Feb, 2021)
Legend: Current market locations Future market locations No current or planned market locations
1.1.5 Major Competitors of IKEA
The main competitors of Ikea are Amazon, Walmart, Wayfair, Tesco, Pepperfry (India), Sears,
American Woodmark and some Private label brands

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1.2 Motivation of the Study
As the competition in the technology industry has increased, it has become mandatory to
make a study on the importance of using a marketing strategy of branding for IKEA, to stay
at the top of consumer's mind, to cope up with the changing environment, to gain competitive
edge, to make improvements in future and to attain goals set by the company.
1.3 Objectives of the Study
 To analyse the importance of using a marketing strategy of IKEA and to find out how
STP strategies helps IKEA.
 To find out about the product and its related price, promotion and placement and to find
out the strengths, weaknesses, opportunities and threats the company may be facing.
 To conduct PEST analysis of IKEA.
 To study the market development and Growth strategy of the company and to find out
how their marketing strategies helps to gain a competitive edge by differentiating
themselves and how it increases customer loyalty and increases brand awareness.
Figure 4: IKEA, Navi Mumbai.

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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This section will provide the details about the qualitative data, providing a foundation for all
the details to follow.
2.2 What is Branding?
According to Kotler (1999), branding is a ''name, term, sign, symbol or design, or a
combination of all these that identifies the goods and services of one seller or group of sellers
and to differentiate them from those of competitors.''
Branding does not only allow your target market to choose your company over the
competitor's, but it helps in getting your prospects to see you as the only company that
provides a solution to the consumer's problems. It provides a company’s with a recognizable
and trustworthy badge of originality, an intangible guarantee, i.e., a promise of performance
that the product will meet with desired consumers' expectations.
2.2.1 IKEA’s Branding Strategy
Ikea’s branding strategy is based on creating a brand that is close, recognizable and useful.
Ikea has always kept its traditional catalog printed in 17 different languages. They also have
website for convenient ordering for those not near a store. Stores are set up with displays to
act as selling points while helping customers choose design and function.
Key marketing element used by Ikea marketing communicators
 The Ikea concepts.
 The Ikea product range.
 Home furnishing specialist.
 Low price.
 Function.
 The right Quality.
 Convenient shopping.

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 Day out for the family.
Figure 5: Ikea transitioning its print catalog to Pinterest
2.2.2 What is Brand Awareness?''
Brand awareness may include of:
 Brand recognition- is when the consumers have good knowledge of brand when they are
asked questions related to a specific brand and they are able to differentiate a brand on the
basis of having noticed or heard about earlier.
 Brand recall- It allows a customer to recover a brand from his memory when given the
product class/category, needs satisfied by that category or buying scenario as a signal, i.e.,
if they are able to recall the brand from their memory.
E.g., Showing a logo of IKEA, and asking which brand does this logo belongs to.
2.2.3 IKEA’s Brand Personality
The Ikea brand prides itself on offering quality products at affordable prices, as well as
always keeping their customers as their primary focus. With being a customer centric
company, Ikea customers feel happy and comfortable when shopping with them. They know
they will be receiving a quality product at a great price as well as enjoying their shopping
experience, with fun stores, kids play areas and even food courts. Ikea has such loyal
customers it has become known as Ikea Cult(ure). Ikea also connects with its customers by
giving back, other people with likeminded goals appreciate Ikeas efforts to remain earth
friendly, sustainable and charitable. Customers what to buy products from a company that

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they can feel good about giving their money to, because they know Ikea is doing good for our
communities. Some points of differentiation for Ikea are their large stores, set up for families
to enjoy the shopping experience, including food courts. Their flat pack packaging and
unassembled furniture.
2.2.4 IKEA’s Brand Elements
The Ikea logo has remained virtually unchanged since 1967, and is well recognized around
the world. Ikea has upheld its brand image and goals to bring customers great product and
cheap prices since it began, and is what it is most known for. They are also well recognized
for their flat pack packaging and products you must put together on your own
2.2.5 IKEA’s Brand Portfolio
Ikeas primary product is furniture but they also offer storage solutions, kitchen accessories,
and although the association is weak, food products. All with low prices and good quality.
Ikea offers unique and practical in-house designs that attract a broad range of customers.
They keep prices low by recycling, waste reduction, minimal packaging, and in house design.
Ikea products are organized into categories based upon function and are further divided into
many different series, each with its own unique name. For example, under just the Living
Room Category there are about 36 series or individual brands listed on the U.S. Website.
2.2.6 IKEA’s Brand Equity
IKEA’s brand equity come from two important sources, one is its brand name—IKEA and
the other is its blue and yellow brand logo. IKEA always tries to keep consistent quality,
effective distribution channels and standard customers services in all the places where it is.
Through self-assembly, it can reduce costs and ultimately transfer to consumers through
reducing product price. Other important factors which contribute to a high brand equity of
IKEA are brand innovation, cutting-edge design and social initiatives.
The IKEA brand is the most important source of brand equity. Its trademark blue and yellow
logo is another important source of brand equity. It maintains consistent quality, effective
distribution networks and standardization in all countries where it operates. Through the
concept of self-assembly, it can reduce costs and ultimately pass them on to consumers by

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lowering the price of the product. Other major sources of IKEA brand equity are brand
innovation, collaboration with designers and social initiatives,
The picture below is IKEA's customer-based brand equity pyramid drawn by the author based
on the survey and research above.
Figure 6: IKEA's Brand Equity Model.
2.2.7 IKEA’s Products and Services
 Furniture
Rather than being sold pre-assembled, much of IKEA's furniture is designed to be assembled
by the customer. The company claims that this helps reduce costs and use of packaging by
not shipping air; the volume of a bookcase, for example, is considerably less if it is shipped
unassembled rather than assembled. This is also more practical for customers using public
transport, because flat packs can be more easily carried. IKEA contends that it has been a
pioneering force in sustainable approaches to mass consumer culture. Kamprad calls this
"democratic design," meaning that the company applies an integrated approach to
manufacturing and design (see also environmental design). In response to the explosion of
human population and material expectations in the 20th and 21st centuries, the company
implements economies of scale, capturing material streams and creating manufacturing
processes that hold costs and resource use down, such as the extensive use of Medium-

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Density Fiberboard ("MDF"), also called "particle board." It is an engineered wood
fibreglued under heat and pressure to create a building material of superior strength which is
resistant to warp. IKEA uses cabinet-grade and furniture-grade MDF in all of its MDF
products, such as PAX wardrobes and kitchen cupboards. IKEA also uses wood, plastic, and
other materials for furniture and other products. The intended result is flexible, adaptable
home furnishings, scalable both to smaller homes and dwellings as well as large houses. Not
all furniture is stocked at the store level, such as particular sofa colors needing to be shipped
from a warehouse to the customer's home (for a delivery charge). The item can also be
shipped from the warehouse to the store. Some stores charge an extra fee for this service, but
not all. Notable items of IKEA furniture include the Poäng armchair, the Billy bookcase and
the Klippan sofa, all of which have sold by the tens of millions since the late 1970s.
 Smart Home
In 2016 IKEA started a move into the smart home business. The IKEA TRÅDFRI smart
lighting kit was one of the first ranges signaling this change. IKEA's media team has
confirmed that smart home project will be a big move. They have also started a partnership
with Philips Hue. The wireless charging furniture, integrating wireless Qi charging into
everyday furniture, is another strategy for the smart home business. A collaboration to build
Sonos' smart speaker technology into furniture sold by IKEA was announced in December
2017. The first products resulting from the collaboration will launch in 2019.
 Houses and flats
IKEA has also expanded its product base to include flat-pack houses and apartments, in an
effort to cut prices involved in a first-time buyer's home. (This practice is not new; the
defunct Canadian retailer Eaton's sold houses in a similar fashion), The IKEA product, named
BoKlok was launched in Sweden in 1996 in a joint venture with Skanska. Now working in
the Nordic countries and in the UK, sites confirmed in England include London, Ashton-
underLyne, Leeds, Gateshead, Warrington and Liverpool.
 Solar PV systems
At the end of September 2013, the company announced that solar panel packages, so-called
"residential kits", for houses will be sold at 17 UK stores by mid-2014. The decision followed
a successful pilot project at the Lakeside IKEA store, whereby one photovoltaic system was

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sold almost every day. The solar CIGS panels are manufactured by Solibro, a German-based
subsidiary of the Chinese company Hanergy. By the end of 2014, IKEA began to sell
Solibro’s solar residential kits in the Netherlands and in Switzerland. In November 2015
IKEA ended its contract with Hanergy and in April 2016 started working with Solar century
IKEA announced in April 2016, that it was doing a second attempt with SolarCity to sell
solar panels in the United Kingdom. It allows users to be able to order them online and
starting with three stores and by the end of summer available in all United Kingdom stores.
2.2.7 IKEA’s Campaigns
Ikea has done several campaigns to bring awareness to their commitment to being a
sustainable and earth friend brand. Ikea is a brand that has mostly used quirky means to get
their point across. But sometimes, out of the blue, Ikea also comes out with ads that touch our
hearts. If you have followed the ads and campaigns that IKEA comes out with, you’d notice
how the idea isn’t to sell a product, but an idea. And more so, emotions. The ads are
experiences put together creatively.
Here are some of the best IKEA ads and marketing campaigns:
1. Moving Day Campaign
In a guerrilla marketing move, Ikea took a bolder approach and launched It’s ‘Moving Day’
marketing stunt in Quebec caught passerby’s attention with free boxes of moving, printed
with moving tips, checklists, a dinner offer for those yet to set up their kitchens, and a
discount offer for IKEA furniture. The result? Store traffic increased more than 14% from the
same weekend the previous year.
Now here is another incredible IKEA marketing campaign example: IKEA France, to
celebrate the 30th store, installed a vertical outdoor apartment billboard which was then
turned into a climbing wall. Always experimenting and pushing the envelope as far as
possible are key parts to IKEA’s marketing, no matter where in the world it might be.

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Figure 7: IKEA's 'Moving Day' Campaign
Figure 8: IKEA's Moving Day Campaign, France
2. “IKEA. It’s that Affordable” Campaign
“IKEA. It’s that affordable.” is a special offers campaign. But not just that, it reminds people
that beautiful Scandinavian design is as affordable as the least expensive things in their daily
lives. So, they changed the value of furniture and put IKEA’s products right amongst those
things. Instead of money, they used coffees, toothpastes, soda cans and stamps, as a visually
striking new currency. A simple change that changed people’s perceptions. And made them
see IKEA’s affordability in a whole new way.

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The campaign was recognized in the IKEA internal conference in Sweden as an "example of
work" IKEA should always do.
Figure 9:“IKEA. It’s that Affordable” Campaign
3. Augmented Reality
IKEA is not afraid of technology and they are always looking to innovate and experiment. As
a matter of fact, it was probably the first furniture retailer to incorporate the augmented
reality to help customers make the right purchasing decisions. In 2013 when IKEA rolled out
a catalogue app feature called ‘Place in Your Room’ that allowed users to try out their desired
products in their homes. The research has shown that almost 14 % of its customers end up
taking home furniture which turns to be the wrong size for its intended location, the feature
allows 360-degree room views and videos to help customers find out the best matching
products.
Dubbed IKEA Place, the iPhone- and iPad-compatible free application that features products,
based on room dimensions, with 98 percent accuracy." In order to visualize a product within
a space, the application scans the expanse of a room through an iPhone or an iPad camera.
Users can browse through over 2,000 IKEA products on an online database, to make their
selections. Once chosen, users must point the device to the desired spot in a room, then drag
and drop the selected product onto the space.

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Figure 10: IKEA's Augmented Reality App
4. The power of a ‘bookbook’
On watching this ad, you’d think you’re going to experience a technological marvel.
Releasing in 2015, using statement like, “It’s not a digital book or an e-book, it’s a
bookbook.” Thanks to its sarcastic tone, the video went so viral that it eventually succeeded
in representing IKEA’s global brand. The result was a whopping 12 million YouTube
views. It is only in due course that you realise that in the time when Apple is coming out with
their ads for iPhone 6, IKEA was poking fun at the ‘e’ driven times.
Figure 11: IKEA's Bookbook

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5. The Second-Hand Campaign
The second-hand campaign, where Ikea selected used Ikea furniture donated by customers to
be resold and raise sustainability awareness on a national level. When someone buys a new
IKEA sofa, the old one is likely to end up on the junk yard even if it´s still good. Ikea wanted
to raise sustainability awareness, through targeting a narrow group; people about to buy new
furniture. They decided to help our customers sell their old furniture in national media.
IKEA asked customers about to buy new IKEA-furniture: "Can we help you sell your old
furniture?" Lots of people said yes, and they chose approx. 50 real people for the campaign,
and started collecting their old furniture. Then they produced print ads, TVC spots and
banners for these old products featuring the sellers phone numbers. For 8 weeks Ikea shared
all of IKEA´s advertising space with their customers. They turned IKEA´s Facebook page
into a digital flea market where people could sell their old products every Sunday.
Ikea had a 40% increase in our sales of the new products online. Sales in stores increased by
5,5 %. All ads featured the new IKEA-catalogue as packshot, and the number downloaded
catalogue apps increased from 115 000 to over 200 000.
Figure 12: IKEA's Second-Hand Campaign

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6. Out of Home Advertising (India)
IKEA had autos equipped with VR goggles roaming around the city. A passenger would see
things like chairs, sofa’s ahead; little pieces of furniture lying around. For a common Indian
citizen who is likely to have a very little or almost no experience with VR, this was one of the
best techniques to make him remember Ikea. OOH has worked well for Ikea in Hyderabad,
and had continued the same technique to reach out to the many people in Mumbai and
Bengaluru while they were ready to open their stores in those cities.
Figure 13: IKEA's Advertising in India
Figure 14: IKEA auto - VR Tour

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2.2.8 Benefits of Branding a company (IKEA)
1. Emotional Appeal – As stated by Clarity marketing LTD (2005), emotional appeal helps a
great deal in targeting customer's emotions with product names. A strong, recognizable brand
will act like a ‘short cut’ in decision making process, as the customers don't dither over
alternatives or compare options where there is no clear point of difference, and instantly
chooses your brand as they know what it stands for.
For instance, Ikea brand prides itself on offering quality products at affordable prices, as well
as always keeping their customers as their primary focus. With being a customer centric
company, Ikea customers feel happy and comfortable when shopping with them. Therefore,
helps in creating an integrated appeal to specific emotions promoting the product recognition
and sales.
2. Memorability and Familiarity – According to Marcia Yudkin (2012), brand helps to
create a reputation and good will for a company. It is very hard for customers to refer to a
company as "that whatsitsname store" or to refer business as "the shop from the Yellow
Pages." In addition to the company name, it gives people to give constant reminders
reinforcing the identity of companies they will want to buy from. Memorability can come
from the logo, its design, color, style etc which helps to nail your company's name in the
minds of the public. Similarly, after your brand is nailed in the minds of your customers,
that’s when your customers have become familiar and aware of your company’s existence in
the market. Branding allows having huge effects on non-customers too. Psychologists' studies
have proved that familiarity develops liking for it. Also, the customers who have never
bought from your company, may many tomes be willing to recommend your company to
others even without having any personal knowledge of your products or services.
Therefore, Ikea’s blue and yellow logo is a great deal to help customers remember, be
familiar and recommend the brand to others.
3. Premium image and Premium price - Branding allows a company to differentiate
themselves from competitors existing in the market, because of which instead of dealing with
price-shoppers the customers become eager to pay a higher price for your company's goods
and services. A strong brand let the customers associate themselves as being a company that

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offers premium quality, trendy products and is offering unique products that other companies
are not offering.
4. Extensions - When your company's brand is well-established, you can spread the respect
you've earned to a related new product, service or location and win acceptance easily of the
newcomer. For instance, IKEA, it has been entering the “home-building” business to develop
its extension and becoming the 10 Best Brand Extensions of All Time. (Belsky, 2012).
5. Loyalty - When customers have a positive experience with your company's brand, they are
more likely to buy your products and services again in future rather than the competitors.
Customers that are closely bonded with your brand's identity may not only repurchase what
they bought earlier, but may also buy related items of the same brand, and recommend your
brand to others and resist the lure of a competitor's price cut. The brand identity helps to
create and anchor such loyalty.
IKEA draws customers from far distances to its stores, regarding the other existing
competitors brand in the market.
6. Lower marketing expenses – Branding helps a company to invest less in marketing
(promotion) expenses, though you need to invest money in order to create a brand, but it's
more like a one-off investment as once it's created you can maintain it and do not need to tell
the whole story about the brand every time you market it.
For instance, IKEA is a cost-conscious company that believes in delivering affordable prices.
So, their marketing expenses are not extravagant and are always optimised. According to
Registrar of Companies filing shared by market intelligence firm Tofler, Ikea India's
advertising promotional expenses for the fiscal ended 31st March 2020 has declined to Rs
76.3 crore compared to Rs 82.2 crore in the previous fiscal.
7. Greater company equity- Branding your company allows you to get more money when
you decide to sell it. Also, it allows the company to borrow loan even if the company's
facilities and inventory vanished, just because of their brand name.
According to Statista Research Department, In 2021, the IKEA brand was valued at nearly
18 billion U.S. dollars, down from a year earlier in which the value stood at nearly 19.5
billion dollars. (Feb 15, 2021)

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8. Less Risk and Quality Assurance –Lynne Haley Rose (2012) states, when you market a
product/service with a strong, positive brand association, you communicate an assurance of
quality to the potential customers, which makes the consumers more likely to buy from your
branded company rather than a no name company. Often, superior sales are due to the trust
and expectation of quality that the recognized brand has established through an integrated
marketing program.
IKEA has always chosen the low-price strategy for all the products, hoping to provide
customers with the highest value both in price and quality.

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2.3 What is a Marketing Strategy?
A Marketing strategy refers to a business's overall game plan for reaching prospective
consumers and turning them into customers of their products or services. A marketing
strategy contains the company’s value proposition, key brand messaging, data on target
customer demographics, and other high-level elements.
The ultimate goal of a marketing strategy is to achieve and communicate a sustainable
competitive advantage over rival companies. A clear marketing strategy should revolve
around the company's value proposition, which communicates to consumers what the
company stands for, how it operates, and why it deserves their business. This provides
marketing teams with a template that should inform their initiatives across all of the
company's products and services. For example, Walmart is widely known as a discount
retailer with “everyday low prices,” whose business operations and marketing efforts are
rooted in that idea.
According to Peter Drucker, credited as the founder of modern management "The aim of
marketing is to know and understand the customer so well the product or service fits him and
sells itself."
A firm’s marketing strategy content therefore involves explicit or implicit decisions regarding
goal setting, target market selection, positional advantage to be pursued, and timing to attain
firm performance (e.g., Day 1994; Varadarajan 2010). Well-defined strategic marketing
objectives are critical feature of marketing strategy in which managers must make decisions
about what the objectives and priorities of the firm are, translate these objectives and vision of
the firm into marketing-related goal criteria, and set and articulate the desired achievement
levels on each goal. This can be complicated to realize by the fact that many goal criteria and
levels may be incompatible or at least non-complementary in the pursuit of achieving firm
performance. For instance, the firm’s growth revenue and margin growth are difficult to
achieve simultaneously (Morgan et al. 2009). Managers, therefore, have to prioritize
objectives that may be in conflict. Since most definitions of strategy concern plans for how
desired objectives are to be achieved, such goal setting is clearly important in determining
subsequent marketing strategy content decisions. Indeed, such goal selection decisions may be
one of the most important manifestations of strategic choice within the marketing strategy
content (Child 1972).

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Another important feature of marketing strategy content is the selection of the market. This
deals with the segmentation and targeting decisions of the classic STP framework of
marketing strategy, which revolves on market segmentation, target and positioning.
Specifically, this marketing strategy content decision determines where the firm will seek to
compete in order to meet the strategic marketing objectives stipulated. Value proposition is
also a significant feature of the marketing strategy as it is responsible for the choosing of the
specific product and/or service offerings to be delivered into the target market with the
objective of exceeding the customers’ expectations (Slater 1995). The decision surrounding
the value proposition is therefore a measurement of the value offering that managers consider
will create adequate demand at required price points among target customers to allow the firm
to achieve its strategic marketing objectives arranged to total firm performance.
The assumption here is that the value proposition can be delivered by the firm as envisaged
and that the delivered value proposition is perceived by customers in the way that decision
makers anticipate in getting positive returns. This decision of the marketing strategy content
therefore determines which specific resources and capabilities are required to be combined and
transformed to develop and deliver the value offering that consequently leads to firm
performance. In order for a marketing strategy to offer subsequent amount of value and
achieve performance it should be well-timed with market requirements.
Therefore, Timing is an important marketing strategy decision when examining new market
targets or value propositions is the timing of entry or launch (e.g., Green et al. 1995;
Lieberman and Montgomery 1998). Nonetheless, even if a marketing strategy does not
involve such changes to target markets or value propositions, timing is still an important
component of most marketing strategies especially in nowadays-rapid changing consumer
tastes and preferences, which are accelerated by ever changing technologies. Literature reveals
that most firms also have specific timeframes associated with their strategic marketing goals
or regular planning horizons that provide time objectives and constraints within which
marketing plans may be formulated and executed. Such important time considerations can
often impact other marketing strategy content decisions. For example, when a marketing
strategy must be developed to deliver a return on investment in 1 year versus 2 years, then
different market segmentation, targeting, and value proposition decisions may be appropriate
(e.g., Green et al. 1995).

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2.3.1 The 4 Ps of Marketing or Marketing Mix (IKEA)
A thorough marketing strategy covers "the four Ps" of marketing: Product, Price, Place, and
Promotion; and are often referred to as the Marketing mix. The four Ps classification for
developing an effective marketing strategy was first introduced in 1960 by marketing
professor and author E. Jerome McCarthy. The 4 Ps are used by companies to identify some
key factors for their business, including what consumers want from them, how their product
or service meets or fails to meet those needs, how their product or service is perceived in the
world, how they stand out from their competitors, and how they interact with their customers.
The marketing mix is made up of four distinct elements:
1. Product
This represents an item or service designed to satisfy customer needs and wants. To
effectively market a product or service, it's important to identify what differentiates it from
competing products or services. It's also important to determine if other products or services
can be marketed in conjunction with it.
IKEA is one of the leading global retail chains spread across the world. Products offered by
Ikea cover a wide range and the offerings are in the company’s marketing mix. Ikea, from
the very beginning understood the needs of its customers and target prospects, and studied the
potential of this segment and provided variety of options to the customers, so that they were
highly attached and heavily relied upon its name thereby propelling its popularity even
further. It has a detailed list of product catalogue ranging from furniture items and fittings, to
more sophisticated and intricate assemblies to organize a variety of home furniture. Ranges
exist in variety of categories, such as home furnishings, furniture, bathroom fitments,
kitchen fittings, book cabinets, closets, kid’s beds and other fittings, home extensions and so
on.
Ikea has continuously kept changing with a change in the business environment. The designs
have always been fresh and this was the major point of differentiation for Ikea. Ikea is
a brand that has broadly differentiated and has not depended upon a solitary classification of
items or administrations for its extension. The key for Ikea has been to give the business a
wide assortment of items and administrations to satisfy their particular aspirations and to
defeat the obstructions or impediments of confined classes.

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The wide variety of products at Ikea can be explained with the complete
product portfolio mentioned below. Remember, that these are just the product line. The
product depth is immense with each product line having further product extensions and
product varieties.
2. Price
Once the product exists, there is need to place value on it. This is the amount placed on a
product or service that reflects what a person is willing to give for access or ownership of
such a product (Brassington and Pettitt, 2012). Marketing professionals need to consider costs
related to research and development, manufacturing, marketing, and distribution—otherwise
known as cost-based pricing. Pricing based primarily on consumers' perceived quality or
value is known as value-based pricing.
IKEA competes with various global retail chains as well as local supermarkets.
Low prices constitute the IKEA vision, business idea and concept. IKEA makes low-cost
furniture for household and offices. It focusses on cost control and efficient operational
details. This allowed IKEA to lower its prices over the decade to 2010 during a period of
global expansion. IKEA allows not only lower prices but also freebies at the IKEA restaurant
form Monday to Saturday.
In a comparative manner, Ikea has been consistent and has taken after the centre way in
evaluating its administrations and this methodology has created it to flawlessness. However,
it is a point of appreciation for Ikea, that even after being at the top, Ikea offers fantastic
products at low prices, which is the reason its customers have always been retained to Ikea.
3. Place or Distribution Strategy
The type of product sold is important to consider when determining areas of distribution.
Place mainly involves considering distribution channels. Distribution channels can be
described as the route selected to move a product to market through different intermediaries.
This involves considering distribution channels for a product and how it will be similar or
differ from competitors strategies. Basic consumer products, such as paper goods, often are
readily available in many stores. Premium consumer products, however, typically are

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available only in select stores. Another consideration is whether to place a product in a
physical store, online, or both.
IKEA only grants rights to become a franchisee in markets where rights have not already been
given, thereby maintaining their exclusivity. When selecting franchisees, IKEA among other
things, evaluates the following:
1. Experience
2. Local market knowledge and presence (able to demonstrate ability to establish and operate
IKEA stores nationally)
3. Corporate culture and values
4. Financial strength and ability to carry through the investment penetrating a country in full
and in a large-scale retail environment format
IKEA has got an excellent place and distribution strategy as a part of its marketing mix.
Distribution is based on the following principles. IKEA has a global distribution network i.e.,
a large distribution network. It has huge volumes on manufacturing side and flat packages i.e.,
it is useful in increasing value to weight ratio. IKEA has over 25+ distribution centres and has
business operations in more than 50 countries.
Over 9,500 products are sold at IKEA. Procuring materials in proximity with supply chain to
reduce transport costs and using more of ocean transport than road transports by building DCs
in proximity to ports are some strategies adopted by IKEA. Products are transferred from
suppliers to IKEA stores directly. This reduces handling costs, reduces transport and lowers
the carbon footprint. Also. warehouses are attached to retail stores.
4. Promotion
Joint marketing campaigns also are called a promotional mix. Activities might include
advertising, sales promotion, personal selling, and public relations. A key consideration
should be for the budget assigned to the marketing mix. Marketing professionals carefully
construct a message that often incorporates details from the other three Ps when trying to
reach their target audience. Determination of the best mediums to communicate the message
and decisions about the frequency of the communication also are important.

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As expected from a consumer durable brand, Ikea uses all form of promotions. However, due
to its popular brand name, and its pricing structure, the best promotions which bring results for
Ikea are sales promotions and trade promotions. Thus, this is where Ikea concentrates the most.
Using coupons, price discounts, festival promotions, and all other marketing gimmicks in their
bag, Ikea ensures that customers get regular advantages from various deals offered by the large-
scale manufacturer.
Since this is a service marketing brand, here are the other three Ps to make it the 7Ps marketing
mix of IKEA.
5. People
IKEA gives utmost importance to the people, i.e., its customers and employees. Employees at
IKEA believe in the idea that they are straightforward people with passion for home
furnishing. The employee culture is based on togetherness, enthusiasm and fun. Customer
satisfaction is at the core of the values.
In 2020, the number of IKEA co-workers worldwide amounted to nearly 220,000. This is an
increase of almost 70 thousand staff members compared to 2013. The furniture business
operates approximately 500 stores and is present in the major world markets. Additionally,
there were about 825 million customers visit to IKEA stores in the fiscal year of 2020,
compared to the one billion in 2019.
6. Process:
IKEA has several business processes in place. It has 46 production units scattered across 10+
countries. IKEA makes its own wood by owning sawmills and produces high quality
furniture. It has in house production facility with highly developed technologies. It follows
the clean environment slogan. IKEA has the most unique supply chain and inventory
management techniques. Its designs are differentiated in terms of price. It almost buys
products from 1800 suppliers. IKEA itself gives a code of conduct to manufacturers that
states rules and guidelines which help them reduce their checks for environment friendliness.
Further the finished product is delivered in pieces to be assembled by customers which saves
cost.

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7. Physical Evidence
IKEA has 350+ stores in close to 50 countries. Physical evidence for IKEA is its huge store
layouts which provide more than just a shopping experience. It has specific path layouts once
you enter the store and guide arrows which help you to your desired item. Stores are also
equipped with restaurants for refreshments and also baby handling areas for mothers. Also, it
provides large parking space as most of the stores are located outside the cities in large areas.
Most of the stores have an area at the end where used, returned, damaged products are sold
under huge discounts. One of the largest stores are located in Sydney and Montreal.

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2.4 Market Penetration
Market Penetration strategy is to sell more products to the existing users (Meyer & Thu Tran,
2006). Market penetration is a measure of how much a product or service is being used by
customers compared to the total estimated market for that product or service. Market
penetration can also be used in developing strategies employed to increase the market share
of a particular product or service.
Market penetration can be used to determine the size of the potential market. If the total
market is large, new entrants to the industry might be encouraged that they can gain market
share or a percentage of the total number of potential customers in the industry. In other
words, market penetration can be used to assess an industry as a whole to determine the
potential for companies within the industry to gain market share or grow their revenue
through sales. If the market is considered saturated, it means that existing companies have the
vast majority of the market share—leaving little room for new sales growth.
IKEA managed to penetrate the market through providing good quality products at affordable
prices. The design and affordability of the product make it famous and sales increase.
Since IKEA has achieved certain success in the existing market with existing offerings, it is
important for IKEA to do a good job of maintaining existing consumers and avoid the loss of
these consumers to switch to other brands. Therefore, IKEA must increase the quality of
customers services and collect customer’s feedback in a timely manner. For example, IKEA
should reasonably arrange the delivery and installation time of the goods according to the
consumer's time. There should be no delays in the work of the customers or failure to
complete the delivery and installation of the goods in accordance with the agreed time.
Secondly, it is needed to strictly control the quality of existing products, and there should be
no defective products or products with quality problems that are sold to consumers, which
will affect consumers' support and trust in the brand. Finally, collect feedback from
consumers on IKEA's shopping experience, after-sales service, and customer service
department's problem-solving attitude in a timely manner, and then making timely
adjustments to adjust the brand's image in consumers' minds. Through these, IKEA can
maintain a long-term good relationship with consumers and sell more existing products to
existing customers.

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2.5 SWOT Analysis of IKEA
To evaluate the progress, success, and faults of IKEA, SWOT analysis is being used.
SWOT analysis is a strategic planning tool which helps to evaluate the Strengths,
Weaknesses, Opportunities, and Threats of an organization. It helps in identifying the internal
and external areas that needs improvement and internal and external areas that can be proved
successful.
1. Strengths
 Brand recognition.
IKEA is one of the most recognizable and well-known furniture brands worldwide. The
brand has more than 600 million customers annually. And you can currently shop for
IKEA products in more than 38 countries. Combine the brand recognition with the low-
cost furniture options, and it’s no wonder IKEA is as popular or as well-known as it is.
 Countless designs.
IKEA designers create stylish, newly designed products. But it goes further than physical
decorations. The products are developed for easy transport and assembly. In the store,
you’re able to see the finished, assembled piece. But when you walk out, you’re given
each item in bits and pieces because it’s easier to put in your car and take home.
 Affordability
The inexpensiveness of IKEA products is the true strength of the brand. Maintaining that
same level of cost-effectiveness is what keeps customers coming back for more. The
company searches for new ways to drive down costs, but without affecting the appearance
of their products that consumers have come to expect.
 Market research
IKEA knows the ins-and-outs of their customers. If they didn’t, the company would have
a hard time providing what their customers want. And what their customers want are a
collection of affordable furniture and home appliances.
If IKEA didn’t know this is what their customers want, they wouldn’t be able to sell so
many units. Nor would they bother to put in so much work into the development and
design of their countless products.
 A Supplier’s dream.
IKEA is able to buy bulk quantities of products because of a long-lasting relationship
with their suppliers. For IKEA, buying large quantities is cheaper than buying a few

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pieces at a time. It’s also great for suppliers. The suppliers don’t worry about large
quantities of inventory taking up space in their warehouses. They know IKEA can take
the inventory and sell it hundreds of millions of customers.
 Strong culture on Sustainability.
Being the largest wood consumer in the world, IKEA will be in the crossfire of
government, environmental activists, and consumers if it does not have a sustainable way
to source its raw material. The company has a strategy that seeks to transform the whole
value chain to minimize the use of raw materials, select sustainably sourced material to
reduce environmental impact, improve efficiency in production, and logistics.
2. Weaknesses
 Heavily relies on third-party manufacturers for its product.
Even though IKEA has a plan to expand its own factory-manufacturing capacity, more
than 50% of its furniture is produced by third party manufacturers. IKEA has less control
over the production process, thus cost per unit might not be as optimized as if the
company manufactures the products themselves.
 Low quality.
IKEA products are known for being lesser quality. This seems to be a by-product of
offering inexpensive products. How can it be affordable and high quality? IKEA has yet
to find a solution.
On social media, you’ll likely find someone criticizing IKEA’s less than stellar product
quality.
And because they can’t live up to greater quality expectations, other companies now have
the opportunity. Whether these companies can provide both quality and cost-effective
furniture and kitchen appliances is yet to be determined.
 Bad press.
IKEA has had a few run-ins with bad press. Employees have complained about poor
treatment. The brand has faced ridicule for advertising techniques in non-western
countries. And the worst offense: children being hurt or killed in relation to IKEA
furniture. IKEA has also had to recall dangerous products because they’ve led to injuries.
Although the saying “any press is good press” may come into mind, in IKEA’s case, bad
press leads to distrust from their customers.

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3. Opportunities
 Expand in the developing market.
90% of IKEA sales are from OECD countries, and 70% in Europe. According to
company data and Euromonitor Report “Passport: Company Profile on IKEA Group”,
China, India, and other developing countries in Asia and South America are the most
rapidly growing new markets for IKEA. Therefore, the company should concentrate its
resource and open new stores in those markets to diversify its revenue and income away
from a sluggish European economy.
 Saturated markets:
Places like India and China where there is huge population and where people need unique
solutions to their space usage problems are countries which Ikea should target and focus
on.
 Online shopping.
Additionally, you can purchase IKEA products through their website. Online shopping is
becoming more popular as years go on. Especially around holidays like Black Friday,
where people want to avoid long lines for fantastic sales.
IKEA is in a firm spot to accentuate their sales by offering more products online.
Considering the company has more than 800 million online visitors, it’s definitely a sales
channel IKEA should focus more efforts into.
 Grocery stores.
Did you know about IKEA’s food outlets? With the growing demand for healthy food
options, IKEA can push its grocery businesses into grocery stores.
 Environmental Friendly:
There is a certain growing demand for eco-friendly products in the consumers these
days. This might help in the growth strategy for Ikea.
4. Threats
 Fast competition.
For instance, the competition for furniture products is growing. We’re seeing global
brands like Walmart offering inexpensive home products. Although their catalogue isn’t
as expansive as IKEA’s, that may only be a matter of time.

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 Possible lawsuits.
Then there’s the bad press. Depending on the specifics, IKEA may be subject to lawsuits
from consumers who were injured by IKEA products. In truth, it doesn’t even require a
lawsuit to crush a business. All it takes is a mob of angry consumers on social media to
create more bad buzz, bad reviews, and intense backlash. IKEA needs to be aware of
how they’re viewed online to counteract this perception.
 Counterfeit:
Many local/regional companies have copied Ikea’ products. Ikea needs to constantly
keep updating and innovating their offerings to stay ahead of such copy-cats and not
down trade on their revenues.
.

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2.6 STP Process
It consists of a set of three strategies namely (Segmentation, Targeting and Positioning) that
is created after branding, and further helps in developing marketing strategies for the
brand. The STP process demonstrates the links between an overall market and how a
company chooses to compete in that market. It is sometimes referred to as a process, with
segmentation being conducted first, then the selection of one or more target markets and then
finally the implementation of positioning. The goal of the STP process is to guide the
organization to the development and implementation of an appropriate marketing mix.
IKEA segmentation, targeting and positioning involves a set of consequent marketing
decisions that constitute the core of company’s marketing strategy.
Figure 15: STP Process
1. Segmentation
Segmentation is dividing the market into smaller groups of buyers with distinct needs,
characteristics, or behaviours that might require separate marketing strategies or mixes. As
stated by University of Southern California (2012), when the market is divided into sub
groups, known as market segments, in order to create product differentiation strategies and to
exploit these segments to the firm's own use.
STP Process
Segmentation is dividing the market into smaller groups of buyers with distinct needs,
characteristics, or behaviours that might require separate marketing strategies or mixes.

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i. Geographic Segmentation - grouping consumers based on their region, city, climate etc.
ii. Demographic - group consumers based on age, gender, race etc.
iii. Geodemographics - used for classifying and characterizing neighbourhoods or localities
based on the principal that residents living near each other are likely to have similar
demographic, socio-economic and lifestyle characteristics.
iv. Psychographic - divides a market into different groups based on social class, lifestyle, or
personality characteristics
v. Behavioural – Divides buyers into segments based on consumer knowledge, attitudes,
uses or response to a product
The segmentation for IKEA would be predominately demographic and psychographic.
Consumers are highly educated younger white-collar population that have strong cultural
values and beliefs. The younger millennials are liberal in their cultural views and less
concerned with symbols, more concerned with sustainability and humanitarian practices.
2. Targeting:
After dividing the market into segments, the organization then evaluates the different
segments and decide how many or which segment it can serve best. Almost all organizations
use Market Segmentation approach to target marketing because people are different and seek
different ways to satisfy their needs. This approach divides broad markets, consisting of
customers possessing different characteristics, into smaller market segments in which
customers are grouped by characteristic shared by others in the segment.
The targeting market for IKEA would be urban areas that has an increased population of
millennials. According to the United Nations “…54 per cent of the world’s population lives
in urban areas, a proportion that is expected to increase to 66 per cent by 2050” (July 2014).
Targeting this area of the population will increase sales, growth and expansion internationally.
3. Positioning:
Positioning is concerned with the perception customers hold regarding a product or company.
In particular, it relates to marketing decisions an organization undertakes to get customers to
think about a product or company in a certain way compared to its competitors. Consumer

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typically form their understanding of the product over a period of time using information
from a variety of sources.
IKEA is positioned as the world leader in the home furnishing retail chain. The strongest
sales coming from catalog shoppers and store/warehouse locations. The distributors are
limited so there is more one on one with the consumers giving IKEA a competitive
advantage. Most of IKEA locations are in large urban areas and IKEA is positioned with direct
investments, franchises, and exporting. The positioning of IKEA adds to its strengths and
competitive advantage. Consumers get the combined experience of supporting a socially
responsible and diverse company while saving money and getting quality furnishings for their
homes. Additionally, IKEA promotes diversity and equality throughout the whole company
that gives it an additional layer of competitive advantage to management of the organization
and strength in the market.

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2.7 PESTLE Analysis Of IKEA
PESTLE Analysis of IKEA analyses the brand on its business tactics. IKEA PESTLE
Analysis examines the various external factors like political, economic, social, technological
(PEST) which impacts its business along with legal & environmental factors. The PESTLE
Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as IKEA, as it
helps to understand market dynamics & improve its business continuously. PESTLE analysis
is also referred to as PESTEL analysis.
Let us start the IKEA PESTLE Analysis:
1. Political Factors:
The political factors in the IKEA PESTLE Analysis can be explained as follows:
IKEA operates in more than 40+ countries. The political decisions and policies of each
countries are very crucial for the company. If the government is business friendly than it
becomes very easy for IKEA to start its operation without many complications. Recently it
has opened up its store in India as the government of India is promoting the campaign of
‘make in India’ wherein it wants the multinational companies to produce in India for Indians
and for the world. This campaign benefited the IKEA and it opened up its first store
immediately after a business-friendly government came into power in India.
2. Economic Factors:
Below are the economic factors in the PESTLE Analysis of IKEA:
The country’s GDP, its per capita income, inflation, purchasing power etc has a lot of impact
on the operations of IKEA.
It is also prone to economic slowdown. The Brexit which is about to be completed by
December 2019, has impacted the business of the company. After Brexit it will be difficult
for the company to hire workers from Britain. Moreover, the free flow of goods and services
within the EU will stop after Britain exit from the union. But the good news is coming from
the developing nations where it is expanding its business rapidly and started seeing great

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sales. It opened up its first store in India in 2018 and is planning to open up 25 stores in India
by 2025.
3. Social Factors:
Following are the social factors impacting IKEA PESTLE Analysis:
Social and cultural factors have deep impact on operation of the business. different countries
have different cultures, what is good in one country could be a sin in another country. so, it
becomes very important for IKEA to take care of the values and culture hold by people of the
country in which it is operating. In its Russian catalogue, IKEA removed the same-sex couple
from the magazine as homosexuality is still viewed negatively in Russia. while Russians may
be happy with this decision of IKEA, but other countries where homosexuality is allowed
called this act of IKEA as regressive and narrow minded. While it is necessary to take care of
the culture of the country, it also necessary to stand up for what is right as the company get
support from many different countries if not from the said country’s
4. Technological Factors:
The technological factors in the PESTLE Analysis of IKEA are mentioned below:
IKEA is updating itself rapidly to keep up with changing business environment and rapidly
changing technologies. IKEA is investing heavily on it research and development and
bringing in more and more technologies to keep its customers satisfied. It has held its first
Tech festival in Shanghai wherein it displayed all the technology advancement the company
is making and its future plans. It is also working on robotic powered furniture which could
turn a tiny flat into a palace or bedroom into a living room. It is also working on a plan to use
autonomous vehicles as an extension of homes, offices and local institutions.
In one such case they had fitted in autonomous car a grocery holder in the back seat where all
the groceries can be stocked.
5. Legal Factors:
Following are the legal factors in the IKEA PESTLE Analysis:

46
Since it is working in many countries, it needs to take care of the laws pertaining to
respective countries. Any violation of law can put the company into a lot of trouble. It is
necessary for the company to source 30% of its inventory from local sources in India. That is
the condition put by the government to let IKEA open up its store in India. A copyright
infringement lawsuit has been filed against the company by American furniture brand Emeco
against IKEA citing that IKEA has copied the design of a chair design by the Norman Foster.
It is now seeking compensation for the damage and wants that IKEA stop producing that
chair immediately.
6. Environmental Factors:
In the IKEA PESTLE Analysis, the environmental elements affecting its business are as
below:
With the increasing awareness of people of the climate change, it became the huge
responsibility of companies to provide products and services which are sustainable in one
way or another. IKEA is ensuring that it will become as sustainable as possible.
IKEA has released a 2030 sustainability strategy document which emphasized on using only
renewable and recycled materials. IKEA is a huge challenge for a company which has 400+
stores in 40+ countries, but the company is determined to achieve this target by 2030. They
are investing heavily in solar and wind panels and also sourcing wood and cotton from
sustainable sources.
To conclude, the above IKEA PESTLE Analysis highlights the various elements which
impact its business performance. This understanding helps to evaluate the criticality of
external business factors for any brand.

47
2.8 FIVE FORCES Analysis Of IKEA
IKEA is a well-known Swedish brand of home furnishing products. The brand uses a variety
of store formats to reach its consumers. Two main reasons behind the growing popularity of
the brand globally are low prices and good quality of its products. IKEA is both financially
strong and has a strong brand image. The focus of IKEA has remained on customer
convenience and product innovation. While its products are good in quality, they are priced
competitively to attract customers in large numbers the customers have a variety of options
before them, which are affordable. Cost leadership and product quality has enabled IKEA to
become a market leader.
This is a five forces analysis that helps know how these forces affect the competition for
IKEA. It is based on Porter’s five forces model. These five forces are there in every industry
and business and affect the attractiveness and competitiveness of the industry. This model can
help businesses and business managers at planning and strategy formulation for business
success.
1. Bargaining power of suppliers:
The bargaining power of IKEA suppliers is low because while their number is large their
small size and weak financial position does not allow them enough clout. IKEA can easily
switch from one supplier to another whereas if a supplier loses business from IKEA, it can be
a difficult situation for him. As a result, IKEA gets to set the rules of the game and its
suppliers are required to follow. IKEA has launched a code of conduct for its suppliers called
IWAY. These suppliers are also responsible for communicating the code of conduct to their
sub suppliers. IKEA conducts around 1000 audits each year and checks regularly for any kind
of violations. It has formed rules related to child labour, discrimination, minimum wages and
safe working environment. The suppliers must comply otherwise they can be removed. In this
way, you can see that between IKEA and its suppliers, the brand has the upper hand.
2. Bargaining power of buyers:
While the bargaining power of individual buyers is insignificant in case of IKEA, as a group
they hold some significant clout which is why there is so much focus on attracting and
retaining the customers. Customers across all the industries have grown more empowered in

48
the 21st century. Apart from increased competition, technological growth has brought this
change about. The balance is now tilted in the favour of the customers. IKEA also focuses
heavily on marketing and promotion. While its pricing strategy is made to suit the customers’
pocket, it has also focused on digital marketing and ecommerce for a better shopping
experience. Overall, the bargaining power of the buyers can be understood as low to
moderate. The factors that moderate the bargaining power of the buyers are the low prices,
good quality of IKEA products and the marketing strategy of IKEA.
3. Threat from substitute products:
The threat from substitute products for IKEA is low. There are several factors that moderate
this threat. One of them is brand image. Through years IKEA has built a reliable brand image
where the level of trust between the customers and the brand is high. Its affordable pricing
strategy and customer service also moderate the threat from substitute products. However, the
most important factor is the availability of the large range of products under one roof. Hardly
one of the competitors offers such a wide range of products. Based on all these factors
including the popularity of IKEA and its products, the threat from IKEA gets minimized.
4. Threat from New entrants:
The threat of new entrants entering the market and stealing market share is low to moderate.
New brands can enter on a smaller scale but then they will not have any major effect on the
business of IKEA. There are several players in the home furnishing, most small players. If a
new brand enters the market, it will take it time, efforts as well as investment to grow into a
large brand and grab a large market share. Apart from infrastructure and human resources,
innovation and strategy al can be time consuming and requiring major investment. Marketing
is also a major cost apart from operations. The barriers to entry are low but there are still
some major barriers in the way of becoming a large and well-known brand. So, all these
factors minimize the threat from new players keeping it low to moderate.
5. Level of competitive rivalry:
The level of competitive rivalry in the home furnishing industry is moderately high. The
battle for market share is not as high as in several other industries but still IKEA has got a
large number of competitors. Apart from the home furnishing brands that compete directly

49
with IKEA, the super markets and brand stores also sell home furnishing products and pose a
competitive threat to IKEA. IKEA’s popular and reliable image, its marketing strategy and
other factors like affordable pricing have helped it gain a large customer base. These factors
act to moderate the competitive threat from the other brands. Overall, the level of competitive
rivalry gets to be moderately high.

50
2.9 Global scenario of IKEA
It is the world’s largest furniture retailer with more than 301 stores and 30 franchised units.
The largest market for the company is Germany with 44 stores followed by the United States
with 37 stores. Sales volume of the privately held company is estimated at over $24 Billion
with $3 Billion coming from the US according to recent reports. According to the company
533 million people visited its stores last year. IKEA’s products are exclusive to IKEA and
typically reflect its Swedish heritage with modern architectural design according to (Loeb,
2012). With continued expansion effort underway worldwide, IKEA strive to enforce its USA
expansion support the company’s vision and business model to offer its products on
affordable prices. For a long-term strategic planning IKEA must evaluate in more detailed US
market and build more stores where it can achieve economy of scale (Market analysis and
effects of globalization on IKEA, 2016). IKEA should have clusters of stores within market
or different region of USA enable company to efficiently streamline and manage its
distribution services, training, recruitment initiatives and development marketing efforts.

51
2.9.2 Indian scenario of IKEA
The world’s largest furniture retailer threw open the doors to its maiden Indian store on Aug.
09. IKEA’s 400,000-square feet Hyderabad facility offers its signature do-it-yourself
furniture, besides an assortment of other experiences as usual. The moment marked the
culmination of the six years IKEA has spent securing regulatory approvals and on research,
including visiting over 1,000 Indian homes to understand local needs. The firm sources
products worth over €315 million (Rs. 2,506 cr) annually from India. It has over 50 local
suppliers and “45,000-plus direct co-workers and approximately 400,000 co-workers in our
extended supply chain.” (Pol, 2018)
While the country’s contribution to IKEA’s global sourcing stood at just 3% in 2015, the
company plans to double this figure by 2020 even if only to meet India’s foreign investment
rules. Local sourcing of goods is mandatory for overseas retailers setting up shop in India
(fortune, 2016).
The Indian state of Gujarat has become the latest to ink a memorandum of understanding
(MoU) with Swedish home furnishings chain, IKEA, to have its retail stores. The furniture
retailer is likely to invest around Rs. 3,000 crores in the years to come in Gujarat for its
expansion, media reports claim.
Ahmedabad and Surat are likely to become the first two cities in the state to host IKEA stores
as the furniture retail company has started scouting for suitable real estate there. Before

52
Gujarat, the Sweden-based global furniture retailer inked similar MoUs with Karnataka,
Telangana, Maharashtra, Uttar Pradesh and Haryana as well.
As per there are top 9 competitors of IKEA (i.e.) Walmart, Amazon,
Wayfair, Sears, Tesco, American Woodmark, Pepperfry (India), Private label brands,
Unorganized Competition. Customers use Ikea Place, one of the first apps to use Apple’s
ARK it tech, to place the company’s furniture wherever they envision it in their homes. In
Ikea Place, customers can view 3-D renderings from different angles of over 2,000 products
before reserving the ones they want in the app, which directs to the Ikea site to complete
purchases. Currently, large furniture for living rooms such as sofas, armchairs and storage
units are available to preview in the app, though more products are in the pipeline (joseph,
2017).
The Indian state of Gujarat has become the latest to ink a memorandum of understanding
(MoU) with Swedish home furnishings chain, IKEA, to have its retail stores. The furniture
retailer is likely to invest around Rs. 3,000 crores in the years to come in Gujarat for its
expansion, Before Gujarat, the Sweden-based global furniture retailer inked similar MoUs
with Karnataka, Telangana, Maharashtra, Uttar Pradesh and Haryana as well. As IKEA see a
big market opportunity in Maharashtra. The state will play a very central and a long-term role
for IKEA in India (pol, 2018). IKEA plans to open 25 retail outlets in nine Indian cities by
the year 2025.

53
Challenges for IKEA in India)
1. Returns on investment
IKEA is spending $1.5 billion in India but analysts reckon it is going to be several years
before the company with a presence in 49 countries starts seeing significant returns on that
investment.
The home goods retailer has already spent close to $750 million procuring Indian sites for
four stores, including the massive, new 37,160-square-metre (400,000-square-feet) outlet in
Hyderabad.
IKEA will offer more than 1,000 products under 200 rupees ($2.91) but experts say it faces a
difficult balancing act between setting prices low enough to attract cost-sensitive consumers
but high enough to reel in the status-conscious rich.
2. Local furniture makers
“It needs to get its brand image and product pricing right lest the growing Indian middle-class
steers away from the brand,” Sowmya Adi Raju, an analyst at research firm Euromonitor, told
AFP.
Prising Indians away from local furniture makers that they trust is going to be difficult for
IKEA, according to retail experts.
Indian towns and cities are not short of small, family run shops whose owners will visit your
home and then build furniture from scratch based entirely on your specific furnishing needs.
Patrik Antoni, Ikea’s deputy country manager for India, told AFP in a recent interview that
the
Swedish retailer had visited more than one thousand houses to try to understand exactly what
Indian consumers want.
IKEA will sell products tailored for India’s market, such as kitchen appliances for making
traditional rice cakes, but experts warn that getting consumers to abandon their trusted
woodworker for larger items will be tricky and take time.

54
3. ‘DIY’culture
IKEA revolutionised furniture buying in the West with its wide range of ready-to-assemble
products at affordable prices but many Indians would be forgiven for wondering why they
have to do it themselves.
India’s abundant supply of cheap labour means it is not known for its “DIY” culture. Ikea is
aware that this may put people off so has teamed up with UrbanClap, an online platform that
helps connect handymen with consumers.
But analysts say the absence of UrbanClap in lower tier cities could pose a problem.
4. Walmart & Co.
IKEA is not the only multinational seeking a large share of India’s growing home goods
market, which research firm Forrester currently values at $40 billion.
US retail giant Walmart is betting big on the rise of India’s middle class too. The world’s
largest retailer recently agreed to buy a majority stake in Indian e-tailer Flipkart, which sells a
wide range of home furnishings.
IKEA will have to contend with popular Indian online furniture retailers Pepperfry and Urban
Ladder as well in a fragmented and competitive market which also includes a smattering of
home goods options on Amazon’s local website.
IKEA hopes that its walk-in stores and famed restaurants, selling a mixture of Indian
favourites like biryani and samosas along with vegetarian versions of its famous meatballs,
will give it an edge over its rivals.
5. Finding space for large stores
Land acquisition is rarely straightforward or cheap in India though with buyers regularly
having to jump through bureaucratic hoops and facing long delays.
Finding space big enough for Ikea’s trademark large stores in India’s notoriously congested
cities also poses a challenge. The Hyderabad outlet is comparable in size to a typical Indian

55
shopping mall but sites procured in Mumbai, Bangalore and the capital New Delhi are
reported to be smaller.
IKEA is yet to put a timeframe on when they might open. Afterwards they will look at
opening in Pune, Chennai, Ahmedabad, Surat and Kolkata, according to Antoni.
IKEA has said it is considering opening small stores which will just give a sample of what
they sell. They will contain screens where people can flick through catalogues before
ordering.

56
CHAPTER 3: RESEARCH METHODOLOGY
A research process consists of stages or steps that guide the project from its conception
through the final analysis, recommendations and ultimate actions. The research process
provides a systematic, planned approach to the research project and ensures that all aspects of
the research project are consistent with each other
Research Methodology aims to understand the research methodology establishing a
framework of evaluation and revaluation of primary and secondary research. The techniques
and concepts used during primary research in order to arrive at findings; which are also dealt
with and lead to a logical deduction towards the analysis and results.
ResearchDesign
I propose to first conduct an intensive secondary research to understand the full impact and
implication of the industry, to review and critique the industry norms and reports, on which
certain issues shall be selected, which I feel remain unanswered or liable to change, this shall
be further taken up in the next stage of exploratory research.
The data for this research project would be collected through questionnaire. A structured
questionnaire would be framed as it is less time consuming, generates specific and to the
point information, easier to tabulate and interpret. Moreover, respondents prefer to give
direct answers. Both type of questions i.e. Open ended and closed ended, would be used.
ResearchProcess
The research process has four distinct yet interrelated steps for research analysis It has a
logical and hierarchical ordering:
• Determination of information research problem.
• Development of appropriate research design.
• Execution of research design.

57
• Communication of results. Each step is viewed as a separate process that includes a
combination of task, step and specific procedure. The steps undertake are logical, objective,
systematic, reliable, valid, impersonal and ongoing.
Exploratory Research
The method used for exploratory research were  Primary Data  Secondary data
Primary Data
New data gathered to help solve the problem at hand. As compared to secondary data which
is previously gathered data. An example is information gathered by a questionnaire.
Qualitative or quantitative data that are newly collected in the course of research, consists of
original information that comes from people and includes information gathered from surveys,
focus groups, independent observations and test results. Data gathered by the researcher in
the act of conducting research. This is contrasted to secondary data, which entails the use of
data gathered by someone other than the researcher information that is obtained directly from
First-hand sources by means of surveys, observation or experimentation. Primary data is
basically collected by getting questionnaire filled by the respondents.
Secondary Data
Information that already exists somewhere, having been collected for another purpose.
Sources include census reports, trade publications, and subscription services. There are two
types of secondary data: internal and external secondary data. Information compiled inside or
outside the organization for some purpose other than the current investigation Researching
information, which has already been published? Market information compiled for purposes
other than the current research effort; it can be internal data, such as existing sales-tracking
information, or it can be research conducted by someone else, such as a market research
company or the U.S. government. Secondary source of data used consists of books and
websites. My proposal is to first conduct an intensive secondary research to understand the
full impact and implication of the industry, to review and critique the industry norms and
reports, on which certain issues shall be selected, which I feel remain unanswered or liable to
change, this shall be further taken up in the next stage of exploratory research.

58
Data Collection
Data collection took place with the help of filling of questionnaires. The questionnaire
method has come to the more widely used and economical means of data collection. The
common factor in all varieties of the questionnaire method is this reliance on verbal responses
to questions, written or oral. I found it essential to make sure the questionnaire was easy to
read and understand to all spectrums of people in the sample. It was also important as
researcher to respect the samples time and energy hence the questionnaire was designed in
such a way, that its administration would not exceed 4-5 mins. These questionnaires were
personally administered. The first-hand information was collected by making the people fill
the questionnaires. The primary data collected by directly interacting with the people.
Instrument of Data Collection
The primary data would be collected from:
i. The population of Navi Mumbai
The secondary data would be collected from:
i. Books
ii. Magazines/ Project report
iii. Internet
iv. Articles
Determining the Sample Plan and Sample Size Target Population
It is a description of the characteristics of that group of people from whom a course is
intended. It attempts to describe them as they are rather than as the describer would like them
to be. Also called the audience the audience to be served by our project includes key
demographic information (i.e.; age, sex etc.). The specific population intended as
beneficiaries of a program. The target population is the population I want to make conclude
an ideal situation; the sampling frames to matches the target population. A specific resource
set that is the object or target of investigation. The audience defined in age, background,
ability, and preferences, among other things, for which a given course of instruction is
intended. I have selected the sample trough Simple random Sampling.

59
Sample Size
I have targeted 100 people for the purpose of the research. This involves figuring out how
many samples one need. The numbers of samples you need are affected by the following
factors:
 Project goals
 How you plan to analyse your data
 How variable your data are or are likely to be?
 How precisely you want to measure change or trend
 The number of years over which you want to detect a trend
I have targeted 100 people for the purpose of the research.
Limitations
The limitations faced during the research and after the data collection were
Sample size- the sample size of the study is only 100 which do not give a comprehensive
result. The conclusion of the study may not have resulted to an accurate outcome due to the
sample size being small.
Bound to only Navi Mumbai city - the other limitation of the study is it is limited to only the
main city area and ignores the samples from the smaller parts of the district. The buying
behaviour of an individual varies from place to place.
Questions left blank- certain question have been left blank which does not allow an accurate
analysis.
Biasness- among the 100 respondents few of them were brand loyal towards Ikea.

60
CHAPTER 4: CONCLUSION
 I recommend IKEA in the period of moderate U.S. economy with good financial
position of IKEA support it to use extensive distribution channel.
 IKEA need to take in-depth study of cultural values of the host country before
entering in it. For U.S. market they have to give feelings of young and active look in
their product.
 There are two major subcultures in U.S. market for IKEA those are Black American
and Hispanic. Black Americans are much more concerted on home appliances and
ads, whereas Hispanics are lower income level with larger family and most of them
are consist on younger age.
 In social class, IKEA’s need to cope with value transaction phenomena, which is
taking place at the core market of the company.
 The marketing management has to improve its product’s intrinsic and extrinsic cues
for better make to work information processing.
 IKEA must have to create its symbols such as logo and slogans to make brand
familiar to people and give positive image in the mind of the customers. • Because
home furnishing is high-involvement product in which people make attitude before
purchase, so IKEA need to develop favourable attitude towards their product through
test/trail bases or ads with opinion leaders.
 To make its brand name reputable, IKEA should change attitude from declining sides
by utilizing reveal important characteristics of product and link the product with the
current issue in which customer is presently involved.
 IKEA have to develop a complete process to get to know what customer are expecting
from them and how much they are satisfied with the product. It is feedback process.
This process helps IKEA to improve its services as well as it will become closer to the
customers and understand their behaviour.
 IKEA is not new in India. They have been sourcing for years from India for their
global stores. As such, they do have some familiarity with the country. For IKEA,

61
because of the country’s large population and fragmented furniture market, India has
been for decades on the radar as an attractive market.
 Meanwhile, competition for IKEA in the country has increased as online furniture
start-ups such as Pepperfry and Urban Ladder have become popular in large cities.
The overall furniture market, though, remains largely dominated by unorganized retail
and local vendors.
 IKEA will not be the cheapest in the market as the unorganized sector which avoid
overheads and taxes can be relatively cheaper. Second, DIY has to change to “Do it
for you”. Finally, the bureaucratic and consumer psychology in India needs to be
changed so as to allow the adaptation of newer and emerging trends in the market.
This may take a few years to get the proposition perfect and break even, but success is
assured in the long run.

62
CHAPTER 5: DATA ANALYSIS AND INTERPRETATION
The objectives of the study were to understand the consumer’s buying preferences, the
reach of IKEA and brand awareness of IKEA the Consumers were asked to Tick Mark
the Followings,
Q1. Do you purchase Furniture from IKEA?
o Yes
o No
INTERPRETATION AND REASON
Majority of people (56 %), in Indian towns and cities are not short of small, family run shops
whose owners will visit their home and then build furniture from scratch based entirely on
your specific furnishing needs.
Yes
44%
No
56%
CUSTOMER RESPONSE %

63
Q2 Were you excited about IKEA’s entry in India?
o Yes
o No
Majority of people (68%) said they are excited about Ikea’s entry into India. IKEA’s first
Indian store has seen so much rush in the first week of its opening. The world’s largest
furniture seller’s flagship Indian outlet in the southern city of Hyderabad had received an
average of 28,000 daily visitors since its inauguration in 2018.
Yes
68%
No
32%
CUSTOMER RESPONSE %

64
Q3 What gaps were you hoping the new IKEA store will fulfil?
o Better Quality
o New International Designs
o Wide Product Range
o Affordable Products
o Design- Oriented Products
o Superior Customer Service
Majority of people (68%) said they are excited about Ikea’s entry into India and hope it will
fill the gap in the market with a wide range of affordable, design-oriented products, with
better quality and supreme customer service.
Better Quality
25%
International
Designs
25%
Wide Product
Range
22%
Affordable
Products
14%
Design Oriented
Products
8%
Superior Customer
Service
6%
CUSTOMER RESPONSE %

65
Q4 What type of items do you normally purchase at IKEA?
o Large item furniture (beds, couch, wardrobes, etc)
o Small item furniture (end tables, mirrors)
o Kitchen equipment’s
o Home décor
o Storage
o Others
According to the research majority of people purchase Home décor items, 21% people were
interested in small furniture items like IKEA’s end tables and mirrors, followed by 19%
people purchased Large size furniture’s like Sofa, wardrobe, dining tables, etc. However,
19% of customers purchased Kitchen Equipment’s whereas Storage items were bought by
12% of the buyers. The remaining 5% of people bought Other Equipment’s.
Large item
Furniture
19%
Small Item
Furniture
21%
Kitchen
Equipments
19%
Home decor
25%
Storage
12%
Others
4%
CUSTOMER RESPONSE %

66
Q5 Have you purchased items from IKEA’s website?
o Yes
o No
Majority of people (73%) said they are happy to travel a distance to find the best stuff for
their homes rather than shopping online whereas 73% People felt Online Shopping of
products from Ikea’s site was convenient.
Online shopping does not allow the ability to physically inspect the products and sometimes
Items being on backorder and not finding out until weeks later, which is particularly
problematic. The major problem is not always knowing if a site is a legitimate store and if it's
safe to shop.
Ikea sets up the store along a directed walking path that takes customers in one direction
through nearly its entire inventory (provided you don’t take short-cuts, which are also
available in some places.
Yes
27%
No
73%
CUSTOMER RESPONSE %

67
Q6 What according to you are the key advantages of buying furniture online?
o Good discounts
o Saves time
o Better designs
o More variety/ choices
o More/ easier payment options
Majority of people purchased products online for Good discounts, Saves time and for Easier
Payment option. However, 18% people bought products from IKEA’s site as there are more
Better designs available and remaining 10% believed that there are more variety of products.
Close to a quarter of people shop for furniture online, mostly buying soft furnishings like
bedsheets and curtains, home décor accents like cushions and rugs and art pieces like
paintings, wall arts, etc.
Good Discounts
24%
Saves Time
24%
Better Designs
18%
More variety
10%
Easier Payment
Options
24%
CUSTOMER RESPONSE %

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