This presentation is created by Renil Shah from LDCE Ahmedabad during Marketing Internship under the guidance of Prof. Sameer Mathur (IIM Lucknow).

1. In past, buying a furniture used to be
mundane…

2. And Then
Happened...
Design Your Own Life….!!!!

3. A little bit about IKEA’s history…..
 Started by a 17-year old
Swede Ingvar Kamprad in
1943.
 Started out by selling pens
and Christmas cards out of
his family’s farm.
 As of now, IKEA has
approximately 392 stores in
48 countries; with sales of
$35 billion.
 Ikea received 783 million
store visits last year and 2.1
billion visits to Ikea.com .

4. The Ikea’s vision :
"To create a better everyday life for many people.”
The Ikea's mission :
“To offer a wide range of home furnishing items of good design and functions,
excellent quality and durability, at prices so low that the majority of people
can afford to buy them.”
The Ikea’s value:
"Your partner in better living. We do our part, you do yours. Together we save
money."

5. HOW DID THEY DO IT ?

6.  Their stores are very
attractive.
 The low cost design and
innovation in its products
makes it globally
recognisable.
 Ikea stores have wide variety
of products.

7.  Customers pay for orders, visit the
warehouse, pick up their purchases
in flat boxes.
 They load the items in their car and
assemble the products at home
themselves.
 IKEA is known for its bargain prices.
 Reduces prices of its products by 1
to 3% annually.

8. Savings
IKEA focused much more on
savings as Kamprad said,
“People have very thin wallets.
We should take care of their
interests.”
Stores are located far from city
areas which helps IKEA keep
land costs down and taxes low.
Buys in bulk, controls supply
chain and uses lighter packaging
material.

9. To stay relevant to the market,
the company changes
approximately one-third of its
product line each year.
Kamprad believed it was
easier to remember product
names rather than codes or
numbers. For Example:
HEKTAR lamps, BILLY
bookcases and LACK side
tables.

10. Adaptive Nature
 Stores in China during New
Year.
 Stores are set up in small
spaces to reflect Chinese
apartments.

11. Adaptive Nature
 U.S. consumers thought IKEA
sold only European size
beds. Beds are very
important to U.S. consumers
so IKEA quickly changed its
U.S. showrooms to feature
king size beds.
 After visiting Hispanic
households in California,
IKEA added more sitting,
dining space as well as
brighter colors palettes and
more picture frames on the
showroom walls.

12. What else could it do ?

13. Expansion into developing countries
like India and China

15. Advertising Campaigns through Social media

16. Of IKEA’s Strategy

17.  IKEA’s bargain prices make sure that people from almost all financial levels can
afford to buy furniture.
 Analyzing consumer markets gives them a tremendous chance to blend into the
culture of the local people.
 Their in-store management makes sure that customers gets overall a good
shopping experience.
 IKEA’s method of naming the products instead of giving codes and numbers helps
the customers to easily remember Ikea’s product names.

18. Of IKEA’s Strategy

19.  Travelling far from city may be difficult for some customers so IKEA should try to
build stores near city area.
 Some customer may not like transporting and assembling the furniture all by
themselves so IKEA should also provide other alternative.

20. Do it like IKEA: Summarizing the giant
 We saw how IKEA grew into the largest furniture retailer in the world by analysing
consumer market.
 We also studied how IKEA achieved it and what else could it do to be more
effective.
 We saw pros and cons of its marketing strategy.

21. DISCLAIMER
Created by Renil Shah during a
Marketing Internship under Prof.
Sameer Mathur, IIM Lucknow.