The document discusses IKEA, the life improvement store founded in 1943 in Sweden. It is now one of the largest companies in the world with over 400 stores globally and $36 billion in annual sales. IKEA analyzes consumer markets closely, taking into account personal, social, cultural, financial, and economic factors. It builds strong emotional connections with customers through its advertisements and focuses on affordability. The document also discusses IKEA's strategies of having a large supplier network, store locations, and affordable pricing that allow it to be one of the largest furniture sellers globally despite its do-it-yourself assembly model.

1. THE LIFE IMPROVEMENT STORE

3. Vision – Creating a better life for
the many people
Founded in 1943 by Ingvard
Kamprad
Is one of the largest companies in
the world with 411 stores in 49
countries and 36 billion Euros
worth of goods sold in one year

4. IKEA – AROUND THE WORLD

5. Analyzing the consumer market
Why is IKEA different?
The IKEA concept

6. How???

7. Large no. of
suppliers
Store location

8. Analyzing consumer markets
IKEA did a phenomenal analysis on
the consumer markets by taking
the following things into account-
Personal Factors
Social Factors
Cultural Factors
Financial Factors
Economical situation
Emotional connect with the
customers

9. As portrayed by its advertisements

13. As seen in the TV commercials, IKEA builds a strong
emotional connect and tries to relate to the customers
financial circumstances while being humorous at the same
time.

14. Questions from the case study

15. What are some of the things IKEA
is doing well to reach its
customers? What else could it be
doing?
Located all over the world
Easy access to IKEA stores
Uniform but adaptable products
Affordable pricing
It could also do-
Expand to new markets
Initiate online sales

16. What are the Pros and Cons of IKEA’s strategy?

17. • Wide variety of items
• Customer satisfaction
• Judicious usage of storage space

18. • Reducing transportation cost
• Minimizing operations cost

19. • Layout plan is too complicated for beginners to
navigate
• Risk of ambiguity in understanding the target
market segment – flaw in marketing plan.

20. World’s largest furniture
seller
Operational strategies like DIY etc
Building an MNC
Its Marketing Strategy

21. Disclaimer
• Created by B Gunanidhi Sarma, during a
marketing internship by Prof. Sameer Mathur,
IIM Lucknow.