IKEA is a Swedish multinational company founded in 1943, specializing in ready-to-assemble furniture and home accessories with a vision to improve everyday life for everyday people. The company targets college students and families, offering efficient designs, cost-saving strategies, and a unique DIY shopping experience, although some consumers find the assembly and location of stores inconvenient. As of December 2016, IKEA operates 392 stores across 48 countries, generating revenues of €29.93 billion and employing 183,000 people.

2. IKEA
 IKEA is a Swedish multinational group of
companies that designs and sells ready-to-assemble
furniture (such as beds, chairs and desks),
appliances and home accessories.
 Founded in Sweden in 1943 by then-17-year-
old Ingvar Kamprad,now a billionaire.
 Headquartered at Nelfit,Netherlands.

3. Company’s Vision
• “To create a better everyday life
for the many people”
• People have very thin wallets. We
should take care of them.

4. Unique Value Proposition
• Leading-edge design and functional
home furnishings at extremely low
prices.

5. What Influences Consumer
Behavior???
CULTURAL FACTORS
SOCIAL FACTORS
PERSONAL FACTORS
REFERENCE GROUPS
FAMILY
ROLES,STATUS
AGE PERSONALITY

6. What IKEA did very well
• Identified its consumer market
which consists of college
students and families with
children.

7. Simple Efficient Designs
• Introduced simple and efficient
designs for consumers which can be
easily assembled.

8. Initiatives
• Introduced IKEA family card scheme
for working families.
• Ikea in-store restaurants gives
relatively inexpensive food.

9. Product Design
• Designed product according to
regional and cultural tastes.

10. Showrooms
• Showrooms size as well as design vary
according to region.

11. Efficiency
• IKEA runs its business more
efficiently and passes the cost
savings to its customers.

12. Cost Saving Measures
• The company employs a large number of
cost saving strategies such as
Buying in bulk
Use of solar panels
Stores located at a good distance
from city centers thereby reducing
land costs.

13. • DO IT YOURSELF
• Consumers themselves do the
shopping, shipping and assembly.
• This strategy makes storage and
transportation easier and
cheaper for the store.

14. Pros of IKEA’s strategy
• Using common names for its products
such as Hektor, Billy makes the
people remember its product easily.

15. • Do it yourself concept has proved to
save costs for both IKEA and the
consumer itself.

16. • Quirky marketing fun campaigns like
“Ambassador of Kul”and ads helped
to create a good brand image.

17. Cons of IKEA’s strategy
• People are lazy. They do not want to do
assembling and shipping themselves.
• Stores are located at a far location.

18. • Since so many products are displayed
in the store the consumer might get
confused and end up going to a
different store.

19. IKEA as of today
• As of December 2016, IKEA owns and
operates 392 stores in 48 countries.
• Total Revenue:29.93 billion euros.
• Total type of products sold:12000
• No. of employees:1,83,000

20. • Introduction to IKEA and its history.
• The company’s vision.
• What Ikea did very well.
• Pros of IKEA’s strategy.
• Cons of IKEA’s strategy.
• IKEA as of today.

21. Disclaimer
• Created by Vishal Gupta, IIT-BHU during a
marketing internship by Prof. Sameer Mathur,
IIM LUCKNOW.