Marketing case study on 'Analyzing Consumer Markets' for IKEA done as a part of Marketing Internship under Prof. Sameer Mathur, IIM Lucknow

2. • Started in 1943 by 17-y.o. Ingvar Kamprad out
of a shed on family farm
• Sold pens, seeds and Christmas cards
Ingvar started his career at the
age of 7, selling matches!

4. • Multinational conglomerate
• Operates 392 stores in 48 countries
• Designs and sells ‘read-to-assemble’ furniture,
kitchen appliances and home accessories

7. FY 2016, IKEA’s total revenue was more than
$37 billion with a brand value of $13.5 billion

8. • IKEA has an interesting story behind the name:
• I : Ingvar
• K: Kamprad
• E: Elmtaryd (Kamprad’s farm)
• A: Agunnaryd (Kamprad’s village)
• IKEA takes cultural factors into account
• Products have Swedish names (easier to
remember)
• Logo and colours reflect the Swedish flag

10. • Designed in winding, one-way interactive
format to engage consumers
• Load items in cars, take home and assemble
• Painted in Swedish national colours
• Seating and dining spaces for families

12. How is IKEA different from competitors?
• Leading edge and innovative designs
• Replaces one-third of product lines annually
• Extremely low prices

13. • Do-it-yourself strategy – consumers
responsible for delivery and assembly
• Low operating costs
• Lighter packaging materials
• Use of solar and wind power for stores
• Stores away from city, reduces taxes and rent

14. Use of flat cardboard
packaging to reduce
costs
Many of IKEA’s stores are
powered by solar panels
IKEA owns wind farms in six
different countries

15. • IKEA specifically caters to a region’s tastes and
culture
• Alter store plans to accommodate more
seating space (California) or small sizes (China)
• Provides shipping and assembling services for
an extra charge
Stocked products with
rooster themes during
Chinese Year of the
Rooster

16. Produces larger wine
glasses for US consumers
King-sized beds with deep
drawers for US market

17. IKEA tailors itself
to Indian
consumers’ needs

18. • IKEA is known for its catchy slogans and
quirky advertisements
• Generates excitement and awareness about
the brand
• Hosts contests with prizes and a lively social
media presence

19. Manager profile as part
of promotional
campaign for a new
store in Sweden
IKEA’s mobile app
with increasing
number of
downloads

20. • We started with learning a bit about the
company, its history, vision, founder and
where the company stands today
• Further focus upon the IKEA’s etymology and
store experiences
• Learning about key PODs and pricing strategy
• Learning about key marketing strategies of the
company as it aims to expand on a global scale

21. Created by Sakansh Mittal, BITS Pilani,
during a Marketing Internship under
Prof. Sameer Mathur, IIM Lucknow