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Ikea Brand Audit
IKEA has Swedish roots dating back to the 1920s and focuses on high quality, functional, innovative, and low-priced home furnishings. Over six decades, IKEA has introduced everyday living products beyond just furniture to broaden their brand while sustainability has become an important part of their mission. As of 2013, IKEA had a presence in 40 countries focusing on meeting customer expectations through functional yet affordable products.
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Ikea Brand Audit
- 2. • IKEA hasSwedish roots dating back to the 1920s. • They have focused on high quality, functional, innovative, low priced home furnishings. • Over six decades, they have introduced products for everyday living (not just furniture), broadening their brand’s meaning. • Sustainability has become an important part of their mission. • As of 2013, they have a presence in 40 countries. • Positioning • Key Marketing activities • Opportunities to Enhance • Brand Resonance • Brand Architecture • Brand Hierarchy • Market Channels • Growth Strategy
- 3. • Ingvar Kampradstarts selling matches to his neighbors. • He later begins selling seeds, greeting cards, Christmas tree decorations, pencils, and pens.
- 4. • 1943 -IKEA founded when Kamprad is 17 years old. IKEA stands for “Ingvar Kamprad Elmtaryd Agunnaryd.” • 1948 – Furniture was introduced. It was produced by local manufacturers in the forests near Kamprad’s home. • 1951 – First catalog launched • 1953 – First furniture store opened in Sweden. This demonstrates the function and quality of its low priced products. • 1956 – Furniture for flat packs and self-assembly are started • 1958 – First large IKEA store opens in Sweden
- 5. • 1960 –First IKEA restaurant launched • 1961 – IKEA began conducting product quality testing • IKEA expands into Denmark, Switzerland, Norway, G ermany, Australia, Austria, Cana da, and the Netherlands
- 6. • 1984 –IKEAfamily is launched, IKEA STOCKHOLM range is launched, and the catalog reached 45 million copies in 9 languages • 1985 – IKEA arrives in the US
- 7. • 1990 –First IKEA environmental policy • 1997 – IKEA website launched, Children’s IKEA launched, and IKEA 365 + launched (products for “preparing, cooking, serving, and eating food.”) • 1999 – 2000 – IKEA Foundation begins. Donations to UNICEF for children in developing countries
- 8. • 2001 –IKEA begins running its own rail line • 2006 – IKEA Food is launched
- 9. • The bestproduct doesn’t exist • Focus 100% on meeting customer expectations • A connection is forged from your assembly • Being the customer is a remarkable experience • Pleasantly surprise customers • IKEA’s prices are 30 - 50% below competitors • Target market: age 20 - 35 IKEA vs. the competition:
- 10. • Image andfunctional-related considerations in terms of brand associations. • Leveraging of secondary associations (country of origin) • Product offerings IKEA’s points of difference: • Category points of parity: home furnishings • Correlational points of parity: “High quality AND low price” • A key part of IKEA’s positioning IKEA’s points of parity:
- 11. • “Plant aTree” • 100% renewable energy used in Sweden • Wind energy on the rise • Steam engine used for transportation • 74% of all products are recyclable • No more plastic • Many stores use solar panels on the roofs Environmentally friendly company: Expanding the Line: • Move into other specified field • Consumers one-stop-shop • Introducing new lines of products • – Televisions • – Food • – Beer (in Sweden)
- 12. • Store Inaugurationsenhance the IKEA experience • Associations of their Swedish heritage adds credibility • Products assigned Scandinavian proper names • Consistency in global strategy and company mission and values • Limiting channels of distribution adds value to shopping at IKEA • Innovation on all levels • Revolutionizing product distribution • One-stop-shop • Passing savings onto consumers • Giving consumers products immediately Key Marketing Activities:
- 13. Opportunities to EnhancePositioning: • Increase awareness about social and environmental responsibility as a significant POD for IKEA’s brand and products • Introduce category extension with IKEA electronics • IKEA has such a unique offering that it is very hard for businesses to compete • Continue to build on the idea of improving the everyday life of people everywhere
- 14. 0 100 200 300 400 500 600 700 800 2008 2009 20102011 2012 Number of IKEA Store Visits (Millions) Number of IKEA Store Visits (Millions) • Behavioral Loyalty- • Attitudinal Attachment- Austere Sensible Sustainable Simple Modern Responsible • Sense of Community- IKEA Foundation Unicef WWF Save the Children • Active Engagement- IKEA Share Space IKEA Family IKEA Share Space
- 15. Salience – Readyto make furniture Imagery: Trend setting Cultured Environmentally sound Performance: Price Simple design Easily serviceable Feelings: Excitement Social Approval Judgments: Credibility through pricing Resonance: Community for saving space
- 16. • IKEA hasmanaged their brand vision, boundaries, and positioning well. • IKEA is a branded house – IKEA is the BRAND • IKEA has done a great job improving their brand image by transferring equity between their products and services. Critique: • IKEA’s branded house helps make introducing new sub-brands less difficult as equity is easily transferred across product categories. Architecture:
- 17. Textiles & Rugs Bedroom Kitchen & appliances Living Room IKEA shopping services Children’s IKEA IKEA 365+ IKEA furniture IKEA Food Lighting Coffee & side tables TV + media furniture Storage Sofas & armchairs •Unlike P&G or Kellogg's vast brand portfolios, IKEA keeps everything under the IKEA umbrella.
- 18. • New markets –Expansions into international markets. – Growing internally. – The IKEA brand name is represented in more than 330 stores across 40 countries. – Catalog has 160 million copies annually in over 25 languages • New channels – Didn’t go into other channels of distributions. – In 2000, took their products online.
- 19. • Growth Strategy -Good pace of introduction of IKEA into other markets. - Didn’t expand into new channels so they have more control over their product.