IKEA was founded in 1943 by Ingvar Kamprad in Sweden. It has grown to become one of the largest furniture retailers in the world with over 650 million annual visitors to its stores globally. IKEA appeals to mass markets by offering affordable, Scandinavian-designed furniture and home accessories. It aims to create "a better everyday life for the many people" through low prices made possible by efficient operations and frequent product replacements. IKEA understands customers and influences their buying decisions using marketing strategies tailored to local cultures and based on the five stages of problem recognition, information search, alternative evaluation, purchase decision, and post-purchase behavior.

1. “To create a better
everyday life for
the many people.”

2. IKEA was founded in 1943 by a 17-year-
old Swede named Ingvar Kampard who
sold pens , Christmas cards , and seeds
out of a shed on his family’s farm. The
name IKEA was derived from
Kamprad’s initials(IK) and the first
letters of the Elmtaryd farm and the
village of Agunnaryd where he grew
up(EA).

3. IKEA inspires remarkable level of devotion from its customers. Each year
more than 650 million visitors walk through its stores all over the world.
Most need to drive 50 miles round trip but happily make the effort to
experience IKEA’s unique value proposition.

4. IKEA’s scandinavian-designed products are well
made and appeal to the masses. To stay
relevant and fashionable , the company
replaces approximately one-third of its product
line each year. Most have Swedish names .

6. Cultural Factors
Many of IKEA’s products are sold uniformly throughout the
world , but the company caters to local regional tastes.
IKEA’s managers visit the local market and products are
made according to the habits and culture of local people.

7. IKEA inspires remarkable levels of interest and devotion
from its customers. Devoted customers motivate other
persons to visit IKEA. Company caters to local and regional
tastes . Prices are kept low so that even students and
families with children can afford their product.

8. Personal Factors
IKEA’s vision is and always has been “to create a better
everyday life for the many people.” A high percentage of its
customers are college students families with children. IKEA
provide a quality product at low price. It continuously seeks
out new ways to run its businesses more efficiently and pass
those cost savings on to the customer.

9. IKEA motivates its
customers by providing
a leading edge design ,
functional home
furnishings at extremely
low prices.

10. How IKEA
understands
customers’
buying
decision
process : The
Five-Stage
Model

11. 1. Problem Recognition
 The buying process starts when the buyer recognizes a problem or
need triggered by internal or external stimuli.
 IKEA identify the circumstances that trigger a particular need and
then develop market strategies.

12. 2.Information Search
 Consumers often search for only
limited information.
IKEA understands what type of
information consumers seek . Mangers
visit local markets and strategies are
made according to the information
collected..
Information
Is provided
Through
advertisement

13. 3. Evaluation Of Alternatives
Consumer evaluates the various alternatives available to satisfy its
needs. The consumers see each product as a bundle of attributes
with varying ability to deliver the benefits.
IKEA provides good quality at low cost which excites the consumers
to buy its product. IKEA persuade buyers to attach more importance
to low cost in which the brand excels.

14. 4.Purchase Decision
A number of factors will determine the manner in which consumers
form evaluations and make choices.
IKEEA understand the factors that provoke a feeling of risk in
consumers and provide information and support to reduce it.

15. 5.Post Purchase Behavior
After the purchase, the consumers might experience dissonance
from hearing favorable things about other brands and will be alert
to information that supports his decision.
IKEA monitor post purchase satisfaction, post purchase actions and
post purchase product uses and disposal.

16. IKEA
introduced
the concept
of
Human
Coupons
to attract
customers at
new
Store in
Richmond,
BC

17. IKEA
IN
INDIA

18.  IKEA is investing Rs. 700 crore
on the Hyderabad store
spread over 400,000 sq. feet.
 IKEA plans to double its
sourcing from India to 600
million euros by 2020.
 The company had plans to
open two to three retail
stores every year.
Ahmedabad, Chennai,
Kolkata, Pune and Surat are
the other cities IKEA is
looking at.

20. Introduction and History
How IKEA influences consumer
behavior
The Buying Decision : Five stage
Model
Human Coupons
IKEA in India

21. Disclaimer
Created by Ritish Gupta, APJ Jalandhar during a
marketing internship by
Prof. Sameer Mathur ,IIM Lucknow