IKEA, founded in 1943 by Ingvar Kamprad, has grown into a global retail giant with over 301 stores in 41 countries, focusing on affordability through innovative cost-reduction strategies. The store design encourages consumers to explore all products while requiring them to transport and assemble their purchases, promoting major consumer involvement. While this approach allows for a broad product exposure and affordability, it can be time-consuming and might not meet the needs of customers with specific preferences.

2. IKEAINGVAR
KAMPARD
ELMTARYD
AGUNNARYD

3. FOUNDED IN 1943 BY A 17-YEAR-OLD
SWEDEN
SOLD PENS, CHRISTMAS CARDS AND SEEDS
OUT OF A SHED ON HIS FAMILY’S FARM.

4. TODAY A GLOBAL GIANT
OPERATES IN 41 COUNTRIES WITH MORE THAN 301 STORES

5. HE BELIEVES
“ PEOPLE HAVE VERY THIN
WALLETS. WE SHOULD TAKE
CARE OF THEIR INTERESTS”
THUS IKEA CONTINUOUSLY
SEEKS OUT NEW WAYS TO
REDUCE COSTS.

6. IKEA’S MARKETPLACE DESIGN TAKES CUSTOMERS THROUGH THE WHOLE COMPLEX, EXPOSING
THEM TO ALL OF IKEA’S PRODUCTS AND CUSTOMERS WILLING DO SO.

9. MAKES
CUSTOMERS
TRANSPORT AND
ASSEMBLE THE
PRODUCTS
THEMSELVES.

10. LOCATES ITS HUGE STORES
AWAY FROM THE CITIES.

11. SAVES ON ELECTRICITY THROUGH SOLAR PANNELS, LOW-WATTAGE LIGHT BULBS,
GLASS STRUCTURES FOR MORE LIGHT AND ENERGY FROM ITS OWN WIND FARMS

13. LEADING-EDGE DESIGN
LOW COST
CONTINUOUS INNOVATION
QUIRKY MARKETING CAMPAIGNS
MAJOR CONSUMER INVOLVEMENT

14. IKEA RESPECTS CULTURES
IKEA UNDERSTANDS THAT BEING ACCEPTED BY THE
CULTURE IS IMPORTANT IF THE COMPANY WANTS ITS
PRODUCTS TO BE ACCEPTED BY THE CONSUMERS.

15. CATERS LOCAL AND
REGIONAL TASTES
IKEA TAKES CARE OF
PREFERENCES AND
COMFORTS OF VARIOUS
MARKETS AND SERVES
CUSTOMIZED PRODUCTS.

16. EXAMPLE
IKEA STORES IN CHINA
STOCK SPECIFIC
PRODUCTS ON EVERY
CHINESE NEW YEAR
SUCH AS PLASTIC
PLACEMATS WITH
ROOSTER THEME.

17. IKEA HAS ESSENTIALLY CHANGED THE WAY PEOPLE SHOP FOR
FURNITURE. DISCUSS THE PROS AND CONS OF THE STRATEGY??

18. PROS
THE LAYOUT RESULTS IN CUSTOMERS SEEING EVERYTHING AVAILABLE, THUS THEY
MIGHT END UP BUYING THINGS THEY DIDN’T THOUGHT OF.
MAJOR CONSUMER INVOLVEMENT.
AFFORDABLE TO EVERYONE.

19. CONS
TIME CONSUMING.
CONSUMERS WITH A FIRM IDEA OF A PRODUCT IN MIND MIGHT END
NOT FINDING SUCH A PRODUCT AND RETURN EMPTY HANDED OR WITH
A DIFFERENT PRODUCT AND THEN REGRET THE BUY.

20. SUMMARY

21. DISCLAIMER
CREATED BY CHAITANYA MAHALE, IIT BOMBAY, DURING A
MARKETING INTERNSHIP BY PROF. SAMEER MATHUR, IIM
LUCKNOW