Things about IKEA you probably don't know.

2. •1943 – Ingvar Kamprad
founds IKEA at the age of
17
•The name IKEA is formed
from the founder's initials
(I.K.) plus the first letters of
Elmtaryd (E) and
Agunnaryd (A), the farm
and village where he grew
up.
COMPANY HISTORY

3. IKEA has evolved into the
largest furniture retailer in
the world,
with approximately 350
stores in 43 countries and
revenues topping $36billion,
in 2013.

5. A play on the infamous
Absolut ad campaign,
IKEA actually placed
furniture and created a
3D billboard mocking
the set up of a New York
apartment on this
billboard in Soho.
AD CAMPAIGNS:

6. This cart on wheels served
as a mobile showroom, full
of IKEA furniture, with
transparent windows and
literally strolled through the
streets of Chicago.

7. Environmental
Awareness
 Charging for plastic bags
 IKEA Soft Toy Campaign
 IKEA and WWF

8. IKEA began to
flat pack
furniture to cut
costs and ship
easier

9. Ikea has recently designed
assembly instructions that
use pictures instead of
words which eliminates
having to print different sets
in different languages

10. Strengths
• Strong brand recognition
• Various operations
• Established
• wide variety of items
• Product differentiation
S

11. Weaknesses
• Recalls on IKEA products
• Few outlets worldwide
• DIY might not be appealing
to other consumers
• Dependency on Europe
W

12. OpportunitieS
• Online retail shopping
• Expansion
• Increasing influence of
social media
• International presence
O

13. Threats
• Competition
• Increases in steel prices
• Emergence of highly-
competitive, alternative
furniture shops.
T

14. IKEA’S
COMPETITORS
U.S. Competitor: Euromarket
Design, Crate and Barrel
France Competitor: Conforama
China Competitor: Qingdao
BOFA Furniture Company
Limited

15. What influences consumer Behaviour?

16. Different Cultures Different Values
CULTURAL FACTORS

17. Cultural Perspectives on IKEA
THE UNITED STATES
CHINA
FRANCE

18. IKEA in France
IKEA: a fashion brand
A unique experience
Convenient services
Ikea in United States
• 34 current IKEA locations
• Adding additional 3 locations
soon
• Original IKEA in
Philadelphia in 1985
• On Fortune 100 Best
Companies to Work For

19. IKEA in China
• 4 Stores
• CONSUMERS
• Price
• Services
• Materials
• COMPETITIORS
• B&Q
• Home Depot
• Illinois

20. CONCLUSION
• Since IEKA’S target customers are the middle class, they
should extend their retail services to Emerging Market
Economies where middle class population is rapidly
increasing.
• IEKA should increase sourcing its supply from emerging
markets, which are characterized by low cost labour to sustain
its competitive advantage.

21. DISCLAIMER
Created by Shanthan Reddy,
NIT Surat, during a marketing
internship by Prof. Sameer
Mathur, IIM Lucknow.