The case study examines IKEA's core strategy, which includes reducing product prices by 1-3% annually while requiring customers to handle shopping, shipping, and assembly. Although IKEA benefits from product uniformity for easier transportation and storage, it faces challenges in Asian markets where consumers prefer more accessible assembly options. To enhance its market reach, IKEA is advised to innovate by developing eco-friendly products, expanding into Asian and African markets, and leveraging advertising and social media campaigns.

1. A CASE STUDY OF

3. CORE STRATEGY
• IT REDUCES THE PRICES OF ITS PRODUCTS BY 1-3
PERCENT ANNUALY
• CUSTOMER IS REQIRED TO DO ALL THE SHOPPING
SHIPPING AND ASSEMBLY.
•FLOOR PLAN IN THEIR OUTLETS IS DESIGNED SUCH
THAT CONSUMERS EXPERIENCE THE ENTIRE STORE.
• UNIFORMITY IN PRODUCTS.
HENCE THIS STRATEGY MAKES TRANSPORTATION AND STORAGE EASIER
AND CHEAPER FOR THE STORE, REDUCING ITS COSTS

4. THIS STRATEGY HAS ITS

5. THE PROS

8. THE CONS

9. ASIAN MARKETS PREFER
TO PAY AHIGHER PRICE FOR
ASSEMBLY SO ‘’DO IT YOURSELF’
IS OFTEN
NOT PREFERED
IKEA NEEDS TO INNOVATE INSTEAD
OF MAINTAING UNIFORMITY IN ITS
PRODUCTS.

11. SO WHAT IS IKEA DOING
WELL TO REACH OUT ITS
CONSUMERS
IN DIFFERENT MARKETS?

12. SRAWBERRY
VANILLA
BUTTERSCOTCH
CHOCOLATE
YES , IKEA IS PROVIDING VARIETY TO VARIOUS
CONSUMER TASTES AND PREFERENCES

13. THE COMPANY
CATERS TO LOCAL
AND
REGIONAL TASTES
AROUND
THE GLOBE

15. WHAT
ELSE COULD
IT BE
DOING?

16. 1) DEVELOP
ECO- FRIENDLY
AND
RECYCABLE
PRODUCTS.

17. 2) EXPANDING
INTO THE
MARKETS
OF
ASIA AND
AFRICA

18. 3) ADVERTISING CAMPAIGNS

19. 4) AND REACHING OUT THROUGH
SOCIAL MEDIA CAMPAIGNS

21. CREATED BY RAGHAV MEHRA DURING
A MARKETING INTERNSHIP UNDER
PROF. SAMEER MATHUR, IIM LUCKNOW.