IKEA is a global furniture retailer founded in Sweden in 1943. It sells ready-to-assemble furniture and home goods. IKEA has become the largest furniture retailer, with $37.8 billion in sales in 2016 across 392 stores in 48 countries. IKEA's vision is to offer a better everyday life for many customers through unique, low-cost products. It pursues differentiation with thousands of products and replacing a third annually, giving items unique names. IKEA also uses flat packaging, DIY assembly, and full-store experiences to reduce costs and encourage purchases. The company tailors its offerings and stores to local cultures and demographics. Extensive print catalogues and promotional campaigns have built brand loyalty while lowering marketing

1. Analyzing Consumer Markets

2. Trivia- Details, details,
details……
▪ Founded In 1943 by Ingvar Kamprad a 17 year old in Almhunt, Sweden
▪ It sells ready-to-assemble furniture, accessories and home appliances.

3. The Rise And Rise Of
IKEA
▪ Ikea has become a retail titan in home furnishings.
▪ It is the largest furnish retailers currently.
▪ In fiscal year 2016 it sold a $37.8 billion worth of goods.
▪ As of December 16 it has 392 stores spread out over 48 countries.

4. Ikea For You…..
The Company’s Vision is
to create- A BETTER
EVERYDAY LIFE FOR
THE MANY PEOPLE.

5. Questions
Addressed
1.What are the product
offerings, segmentation
and positioning strategy of
the company to fulfill its
vision?
2. What are some of the
things IKEA is doing well to
reach consumers in
different markets?

6. Ikea-for the customers, of the
customers, by the customers

7. 1. Product Differentiation
2. Cost leadership
Ikea has been able to generate remarkable levels
of interests and devotion from its customers.
It does it through:-

8. Product
Differentiation
▪ IKEA boasts of over 12000
products foraying into all of
the possible furniture
category.
▪ To keep its content fresh it
replaces about 1/3rd of its
furniture every year
providing the user a new
array of options in each turn
of the year.
.
The Billy Bookcase

9. Each product is
recognized by its unique
name.
ex: The Billy bookcase,
Hektar lamps, Lack side
table
LACK side table
HEKTAR lamp

10. Cost Leadership
IKEA reduces prices across all its products annually.
It is able to achieve it through:-
▪ Flat packaging
▪ DIY(Do it Yourself)
▪ Higher customer involvement in every step of the buying
process and hence intervening in the whole Buying Decision
Model.
All of the above factors allow IKEA to reduce cost for its offerings.

11. IKEA is famous for its DIY concept of
selling furniture where the users
themselves have to transport, assemble
furniture reducing costs.

12. IKEA in DIFFERENT
markets
IKEA has always tried to
offer and created new ones
depending upon the tastes
of its customers be it the its
rooster theme placemats for
Chinese customers or a
larger dining table for its
Hispanic loyalists.

13. They have altered
their store policies,
products according to
the customer in every
possible segment be it
through geography,
culture, age.

14. THE IKEA
STORE
▪ The IKEA store is a world in itself.
▪ It is designed in a manner that the
customer is enticed to buy.
▪ IKEA store has its own food catalogue
serving Swedish as well a local delight.
▪ People come to the store and are able to
spend a full day in it and hence often
enticed to buy.

16. Advertisements
▪ IKEA has been very unique in its
advertisements and promotion
campaigning which includes:-
1. Prizes, promotional vouchers to
the Ikea store.
2. A recent example of a
campaign ‘AMBASSADOR OF
KUL’ where customers had to
live in an IKEA store for three
days to win prizes.
3. Has massive online presence.

18. Nearly 70% of its
marketing revenue
goes in the print media
in creation of its
phenomenon
catalogue.

19. Pro’s-
1.Created a cult of a following of its customers who are loyal and a great
influence on the buying decisions of the rest of the public
2. A ready assortments of successful and innovative products which are
ready to pounce upon the new markets.
Con’s-
1.A huge investment is required for the whole IKEA process to work.
2. With IKEA targeting the emerging markets the potential customers
here are entirely different than IKEA has dealt with before and hence
their strategy may not work here.
Ikea has essentially changed the way people shop for furniture.
The pros and cons of this strategy are:-

20. Summary
▪ Trivia
▪ The Rise and Rise of Ikea
▪ Ikea For You
▪ The Customer
▪ Advertisement
▪ Pro’s and Con’s Of Marketing Strategy

21. Disclaimer
Created by Mayank DeepakThar of JIIT
Noida, during a marketing internship
Under Prof. Sameer Mathur,
IIM Lucknow.