This case study is about a multinational company which sells ready to assemble furniture and home accessories. According to the economics records as at 2008 this is the world largest furniture retailer. (Forbes, 2013)
This report describes about the main strategies which IKEA use to approach to different markets with different consumers and with them IKEA has evolved into the largest furniture retailer in the world with approximately 300 stores in 38 countries and revenues topping $21.5 billion in 2009. Its top countries in terms of sales include Germany, 16 percent; United States, 11 percent; France, 10 percent; United Kingdom, 7 percent; and Italy, 7 percent. (Business week, 2005)
According to the final decision IKEA has made a different way of shop for furniture with the time develops and it has reach to the expectations of its customers according to their expectations.
Finally, in the conclusion of the report shows the final view of the researcher about the finding regarding to the IKEA strategies throughout the research and final judgment which make about the given case.
This slide was prepared by me, for my term paper presentation on IKEA's operations management.
Slide comprises of a brief company overview with its mission & vision, global outlet locations, product lines, key aspects of operation functions, swot and conclusion.
All information were collected from secondary sources.
The project analyses the importance of branding for Ikea and can help us to find out about IKEA's SWOT analysis and the STP process for Ikea. It also gives information on Ikea's Vision and Mission and Ikea's Marketing Mix, Ikea's Pestle Analysis, Ikea's Five Forces Model, Ikea's History and Ikea's Products and Services.
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. It has been the world's largest furniture retailer since at least 2008.
This report express you the service marketing strategies used by the IKEA, the furniture franchiser to be success. This covers the scope of the business, strategies used by them and final conclusion about their strategies. I suggest you to read about the entrepreneur's life story as it is an inspirational story to all others who have big dreams with their lives.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
Integrated Marketing Campaign Proposal - Synchrony Financial Business Leaders...Ashley Peterson
This IMC proposal was developed for IMC 636 - Campaigns (Capstone) at West Virginia University.
This integrated marketing campaign proposal was developed to increase awareness of the Business Leadership Program and strengthen the Synchrony Financial employer brand in the minds of today’s Millennials. The “Every Team, Every Office, Every Community” campaign lets current participants tell their own story to make sure that Millennial job seekers see the BLP brand promise in action and stand prepared with an answer to “What’s next for me?”.
The Corp2College agency brand was developed for the purposes of this course.
This case study is about a multinational company which sells ready to assemble furniture and home accessories. According to the economics records as at 2008 this is the world largest furniture retailer. (Forbes, 2013)
This report describes about the main strategies which IKEA use to approach to different markets with different consumers and with them IKEA has evolved into the largest furniture retailer in the world with approximately 300 stores in 38 countries and revenues topping $21.5 billion in 2009. Its top countries in terms of sales include Germany, 16 percent; United States, 11 percent; France, 10 percent; United Kingdom, 7 percent; and Italy, 7 percent. (Business week, 2005)
According to the final decision IKEA has made a different way of shop for furniture with the time develops and it has reach to the expectations of its customers according to their expectations.
Finally, in the conclusion of the report shows the final view of the researcher about the finding regarding to the IKEA strategies throughout the research and final judgment which make about the given case.
This slide was prepared by me, for my term paper presentation on IKEA's operations management.
Slide comprises of a brief company overview with its mission & vision, global outlet locations, product lines, key aspects of operation functions, swot and conclusion.
All information were collected from secondary sources.
The project analyses the importance of branding for Ikea and can help us to find out about IKEA's SWOT analysis and the STP process for Ikea. It also gives information on Ikea's Vision and Mission and Ikea's Marketing Mix, Ikea's Pestle Analysis, Ikea's Five Forces Model, Ikea's History and Ikea's Products and Services.
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. It has been the world's largest furniture retailer since at least 2008.
This report express you the service marketing strategies used by the IKEA, the furniture franchiser to be success. This covers the scope of the business, strategies used by them and final conclusion about their strategies. I suggest you to read about the entrepreneur's life story as it is an inspirational story to all others who have big dreams with their lives.
Comparison of Marketing Mix of IKEA in Four CountriesFatima Arshad
Report Contains Marketing Mix of IKEA. In this report there is comparison of 4Ps of IKEA in Four Countries i.e Sweden, UK, China and India.
This report is result of the efforts of four people.
Integrated Marketing Campaign Proposal - Synchrony Financial Business Leaders...Ashley Peterson
This IMC proposal was developed for IMC 636 - Campaigns (Capstone) at West Virginia University.
This integrated marketing campaign proposal was developed to increase awareness of the Business Leadership Program and strengthen the Synchrony Financial employer brand in the minds of today’s Millennials. The “Every Team, Every Office, Every Community” campaign lets current participants tell their own story to make sure that Millennial job seekers see the BLP brand promise in action and stand prepared with an answer to “What’s next for me?”.
The Corp2College agency brand was developed for the purposes of this course.
This paper discusses IKEA’s corporate and business level strategy and how these strategies are best supported by operations strategies of IKEA. It also discusses how IKEA differentiated itself from its competitors. Paper highlights various operational trade-offs done by company. Paper, on later stage focuses on how supply network contributed to achieving company’s objectives and strategies.
Ikea, building a sustainable supply chain Radu Acalfoaie
IKEA strategy is to control and coordinate the value chain from raw material, production and range development to distribution in the stores. Their vertical integration including the backward integration of the manufacturing arm Sweedwood and extension of their activities from furniture factories to control raw materials, saw mills, board suppliers and other component factories.
They have used life cycle analysis of products through the supply chain to determine purchasing, manufacturing and consumer strategies.
That makes the supply chain management one of the most important functions in the company and a triple-bottom-line approach has increased economic profit while reducing social and environmental loses.
IKEA triple-bottom-line approach consists from:
• Economy/profit
• Ecology/planet
• Equity/people
1 Assessment 2 Case Study Assignment Spec.docxhoney725342
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
1 Assessment 2 Case Study Assignment Spec.docxmercysuttle
1
Assessment 2
Case Study
Assignment Specifics:
Read the case study and answer all four questions
This is an individual piece of work
Weighting: 40% towards final grade
Please use the Harvard Referencing System for referencing requirements
Total wordage: 4000 words
IKEA: A Long March to the Far East
From its humble beginning as a small general retail store in a village situated
in the south of Sweden, IKEA has grown into the world’s largest furniture
retailer with 279 stores in 36 countries today. The name IKEA is formed from
the founder's initials I. K. (Ingvar Kamprad) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up. Specializing in
furniture and home decoration, IKEA has an annual turnover of 19.8 billion
euros (source: IKEA, www.ikea.com, accessed 25/03/2012). The IKEA
catalogue is printed in 52 editions with 25 languages, with a global distribution
in excess of 160 million copies.
IKEA’s success has been nothing short of a global phenomenon. Edvardsson
and Edquist (2002) have accounted for the company’s rise to global success
following the timeline of three development phases. In phase one, IKEA’s
core concepts were formed as a result of adapting to the market
circumstances. The important moments during this period were publishing the
first IKEA catalogue in 1951, opening the first furniture showroom in Älmhult in
1953, introducing flat packages in 1956 and finding the key to low cost
production in Poland in the early 1960s. Phase two is characterized by the
company’s initial internationalization expansion when it reached out to its
Scandinavian neighbours in the 1960s. Since the 1970s, the company began
to expand farther into other European countries, Australia and Canada. In
1985, IKEA arrived at the world’s largest consumer market—the United States
where first experienced North America as a market very different from those
in Europe. Armed with its international experience in Europe and North
America, IKEA took the company into the third phase of its development by
embarking on a major expansion into the Far East, in particular Japan and
China.
http://www.ikea.com/
http://www.ikea.com/
2
IKEA sees the Far Asia as an emerging market still in its infant stage. Its
number of retail outlets in Malaysia, Singapore, Taiwan, Beijing, Shanghai
and Hong Kong are very small and comprises a mere 3% of the company’s
total sales. These stores were expected to be more successful in the near
future. IKEA’s imminent strategic expansion into this region exemplified its
ambitions to dominate this emerging market.
IKEA’s entry into Mainland China started in 1998 when it opened its first store
in Shanghai, followed by Beijing in 1999. IKEA took its time to get to know the
Chinese customers. This prudent approach to market entry took IKEA the
following 5 years before it opened its first full-scale standard IKE ...
Q1: What was the source of IKEA’s Competetive advantage at that time?
Q.2 IKEA’s expansion into Europe
Q.3 IKEA’s strategy prior to its missteps in North America.
Q4. IKEA’s strategy towards its suppliers
IKEA Case study. An insight about IKEA establishment, history, success factors, product strategy, product pricing, store layout, services, SWOT analysis
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Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
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What might I learn?
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Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
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2. History
Brand Inventory
Founded in 1943 by Ingvar Kamprad from Småland in southern Sweden.
The name IKEA is formed from the founder's initials (I.K.) plus the first
letters of Elmtaryd (E) and Agunnaryd (A), the farm and village where he
grew up.
Began with sales of pens, wallets, jewelry, and nylon stockings with the
goal of meeting customer needs with products at reduced prices. Five
years later introduced furniture.
3. Brand Inventory
History (cont’d)
1950’s
First furniture showroom opened in Älmhult, Sweden allowing IKEA to
demonstrate the function and quality of its low-price products.
Began designing furniture for flat packs and self-assembly. Idea came when
a worker removed table legs so it would fit in a car and avoid damage during
transit.
First store opens in Sweden and is the largest furniture display in
Scandinavia.
1960’s
Began expanding outside of Sweden with a store in Norway
Opened a self-serve warehouse, which was an important
part of the IKEA concept
4. Brand Inventory
History (cont’d)
1980’s & 1990’s
First store opened in the USA in Philadelphia.
Children's IKEA was launched as IKEA feels that “kids are the most
important people in the world”
2000’s
IKEA e-commerce was launched
IKEA launched its own food label covering about 30 percent of the 150
products in its food range.
6. Brand Inventory
Brand Elements
Single brand element is the simple and bold typeface logo
Simplicity is reflective of the products sold at IKEA -- simple in design
but visually appealing
Colors are the same yellow and blue national colors of Sweden, the
birthplace of the founder
Is a registered trademark which means unauthorized use is subject to
legal action
Consists of simple geometric shapes and text, and does not meet the
threshold of originality needed for copyright protection
Flag of Sweden
7. Brand Inventory
Brand Architecture
All IKEA products sold at the IKEA store and online are named with a
single word to make the names easier to remember.
Children's items named after mammals, birds, adjectives
Example: DUKTIG is a line of children's toys and means “good, well-behaved”
Kitchen utensils named after foreign words, spices, herbs, fish,
mushrooms, fruits or berries, functional descriptions
Example: SKÄRPT is a line of kitchen knives and means “sharp or
clever”
8. Brand Inventory
Brand Architecture (cont’d)
Expanded product line to include:
Flat-Pack Houses: “BoKlok”
Created to help first time buyers in
Sweden in 1996
Sold in the Nordic countries and the UK
Functional, High-Quality homes built
inexpensively
Virtual Mobile Phone Company
Launched “Family Mobile” in the UK in 2008
Teamed with T-Mobile
IKEA Flat-Pack Houses
9. Brand Inventory
Description of Attributes
IKEA wants to be viewed as:
Affordable
“Do-It-Yourself”
Having Well-Designed, Functional Products
Innovative
Entire Family-Friendly
11. Brand Inventory
Hierarchy & Brand Product Matrix
IKEA products are organized into categories based upon function and are
further divided into many different series, each with its own unique name.
For example, under just the Living Room Category there are about 36
series or individual brands listed on the U.S. Website.
Each series name applies to only one product category, while the IKEA
name is applied across all of the different product categories. The IKEA
name, therefore, functions as the family brand as well as the company
brand, and the two levels collapse to one.
12. Brand Inventory
Hierarchy & Brand Product Matrix (cont’d)
Because there are too many brands under IKEA to present in this chart, four samples were
chosen from the “Living Room” category of products to help explain the firm’s brand extension
strategy.
Each brand line contains similar products to provide variations of one product type to
customers rather than extending the brand name across a variety of product categories.
Instead of consolidating products from different categories into a small number
of family brands, IKEA utilizes many different individual brands, each of
which is restricted to products within one category.
13. Brand Inventory
Market Share
Market Share in 4 largest markets by sales
First in Germany with 23%
Eleventh in US furniture market (not including housewares) with 3%
First in France 26 stores with 16.3% vs Conforama 180 stores with 14%
Second in UK with 6.1% vs Argos with 6.4%
Market share in new emerging markets
First in fast growing China market with 43% of housewares market
14. Brand Inventory
Profitability
Privately held company – complete financial statements are not published.
With the economic downturn in 2008 – 2009, discretionary incomes were
negatively affected thereby potentially threatening IKEA sales as furniture
is a discretionary product and is their key product.
Recorded revenues of €21.5M ($29.1M) during fiscal year ending August
2009, an increase of 1.4% over 2008.
For 2010, forecast is that profit will remain steady.
15. Pricing
Brand Inventory
IKEA pricing strategy is to maintain good quality and design while keeping
cost as low as possible.
10 keys to IKEA’s low pricing
1. Recycling 6. In-house design
2. AS-IS 7. Economies of scale
3. Waste Reduction 8. Transportation
4. Automatic Selling 9. Strategic Placement
5. Thriftiness 10. Minimal Packaging
18. Brand Inventory
Supporting Marketing
The IKEA brand builds on a relationship with the consumer.
The vision, business idea and market positioning statement provide a
framework for all IKEA marketing communication worldwide.
IKEA marketing communication utilizes key principles to build the
relationship with the customer and give an understanding of how they
meet customers needs.
23. Brand Exploratory
Brand Associations
Brand Exploratory Questionnaire
Group 4 conducted a Survey Monkey poll with over 100 respondents in order to gauge
IKEA’s brand equity and core associations in the mind of the average consumer.
FREE ASSOCIATION: When asked to answer on core brand associations,
respondents associated IKEA with the following:
Cheap; Bachelor Pad; Dorm and Apartment Furniture
Visual appeal and unique, modern design
Challenging assembly
At times, questionable quality and service
PRODUCT ASSOCIATIONS: Respondents indicated that the brand is:
Strongly associated with furniture, house ware, and storage
Moderately associated with kitchen accessories and décor
Weakly associated with food service
24. Brand Exploratory
Awareness & Favorability
Brand Exploratory Questionnaire
IKEA Brand Awareness: 99%
Favorability:
66% of those surveyed held a positive
perception of the brand, with 11%
negative and 23% neutral/not sure
78% would recommend IKEA to others
59% identified IKEA’s service and
product quality as consistent
Buying Habits: 49% of those
surveyed shopped at IKEA 1-3
times per year
25. Brand Exploratory
Brand Dimensions by Rating
Brand Exploratory Questionnaire
Brand Dimensions
Quality: Average (40%)
Pricing: Low (50%)
Convenience: Average (32%)
Selection: High (76%)
Service: Average (34%)
Results indicate that most respondents
perceive that IKEA offers a wide
selection of products at a low price.
There were mixed results for product
quality, convenience, and service
indicate areas of opportunity for
improvement.
26. Brand Exploratory
Sources of Brand Equity
Cult like following of customers
Common customer experience globally
Modern and stylish home furnishings
Self assembly = quality goods for lower cost
Shared global middle class buying habits
Middle class market growth opportunities*
Fun but frugal internal corporate culture
27. Brand Exploratory
Possible Threats to Brand Equity
Changes in the internal corporate culture due to aging of leader & many
employees
Aging of middle class target market customers in largest markets – Europe
and to a lesser extent in the United States & Canada
Lack of convenient urban store locations
Growth and competition could lead to the loss of its high design and low
cost image
28. Brand Exploratory
Customer Based Brand Equity Pyramid
Relationships – Intense Loyalty
Membership in the IKEA global cult(ure)
Responses – Positive Reaction
Desire for the unique and attractive
yet affordable quality IKEA lifestyle
Meaning – POP & POD
Bigger stores with a wider variety of
stylish & easy to transport DIY home
furnishings
Identity – Deep & Broad Awareness
Quality environmentally - sensitive &
simple but modern furnishings
29. Brand Exploratory
Problem: Perception vs. Market Reality
Increasing price (Target), style (Pottery Barn), and convenient location
(Wal-Mart) competition
Little or no growth in primary EU & US markets
Shut out of emerging markets middle class in countries such as India
Less homogeneity among consumers in some of its aging global middle
class markets
Loss of cult status with 18-44 year target market
30. Brand Exploratory
The Customer
According to our research, about 50% of consumers go to IKEA 1-3 times
per year
Dorm furniture: college students
Kid’s rooms: parents/children
Babies-Teens
Teenagers
Starter furniture
Bachelor pads: young men 18-25
31. Brand Exploratory
The Customer - Profile
Fun
Modern
Funky
Good design
Flat packaging – unassembled – good for DIY
Suburbs & large cities
32. Brand Exploratory
The Customer - Buying Behavior
Shops for a Bargain
Prefer Inexpensive / cheap
Likes that mixes well with investment pieces
Plan day around visit to store
Allow time for longer shopping experience
Expect minimal customer service
33. Brand Exploratory
Depth & Breadth of Brand Awareness
The Numbers
99% surveyed are familiar with the IKEA brand
65% surveyed have a The positive Numbers
opinion of the brand
80% recommend to friends
The Ingredients
Brand Name: simple, easy to pronounce, different
Visual Elements: distinctive form, colors
Slogan: affordable solutions for better
Logo: rectangle with yellow oval
34. Brand Exploratory
Perceptual Map
Top 10 Brick &
Mortar
Assembled
Furniture
Personal
Customer
Service
Multiple
Brands
Selection
Investment
Pieces
Web
Orders
1 IKEA
2 Office Depot
3 Target
4 Ashley Furniture
5 Rooms to Go
6 Wal-Mart
7 La-Z-Boy
8 JCPenney
9 Haverty’s
10 Ethan Allen
Shows the brand and its main competitors along
the most important brand attributes
36. Positioning
Suggested Positioning Statement
“IKEA is a leading international retailer of a wide
assortment of well-designed, economical, and practical
home furnishings to fit any style or budget.”
The above positioning statement incorporates the original
IKEA business idea which has successfully positioned the
brand as a leader in value-priced, practical design.
Additional verbiage identifies an international customer
focus driven by localized style and taste.
Brand Mantra
“To create a better everyday life for the many people”
This message is the essence of the IKEA brand and does not
need to be further refined.
37. Recommendations
Expensive e-commerce Shipping
Promote a Temporary Discount on Shipping Rates
Free shipping for items under $100
Sign up for loyalty program and get free shipping
Measuring Effectiveness
If the promotion is successful, it will generate additional online sales.
Current online shipping rates:
38. Recommendations
Complex Product Names
Change Product Names to Fit the Market
Take from Globalization to Localization
Easier to remember
Easier to start buzz about product
Measure Effectiveness of Recommendation using Conjoint Analysis
Do you like ‘DUGTIG’ as the name for this product?
Do you like ‘TEA TIME’ as the name for this product?
39. Recommendations
Perception of Brand – Cheap vs. Value
Our brand exploratory survey indicated that a large portion of respondents
associate the IKEA brand with cheap “starter” furniture for young people.
These associations are not favorable to a brand built around the idea of quality
design at a low price.
In this case, inexpensive works against the brand, signifying product quality
issues rather than everyday value pricing.
IKEA’s diverse and expensive product line features products appropriate for all
ages but consumers are failing to perceive the value because of the brand’s
youthful design and product durability issues.
Recommendations
Use Brand-Based and Marketing Based comparative methods to isolate negative
brand associations and perceived quality gaps.
Enhance segmentation efforts to design marketing programs that
appeal to broader demographics.
40. References
IKEA Brand Audit
10 Keys to IKEAS’s low prices. Retrieved from IKEA Fans: <http://www.ikeafans.com/ikea/ikea-why-ikea/10-keys-to-ikeas-low-
prices.html>.
(2006, Oct. 18). Retrieved from Wikimedia Commons: <http://commons.wikimedia.org/wiki/File:Ikea_logo.svg>.
"Best Global Brands 2009 Rankings." Interbrand 2010: n. pag. Web. 17 Jul 2010. <http://www.interbrand.com/best_global_
brands.aspx>.
Capell, Kerry with Ariane Sains in Stockholm, Cristina Lindblad in New York, Ann Therese Palmer in Chicago, Jason Bush in
Moscow, Dexter Roberts in Beijing, and Kenji Hall in Tokyo. “IKEA: How the Swedish Retailer became a global cult brand.”
BusinessWeek, (Cover story, 14 November 2005).
“DUKTIG.” IKEA. July 25, 2010. <http://www.ikea.com/us/en/catalog/products/00130148>.
“IKEA Business Model.” Inter IKEA Systems B.V. Ashford Open Learning Limited, 2000.
IKEAS’s Global Marketing Strategy. Retrieved from IBS Center for Management Research. <http://www.icmrindia.org/casestudies/
catalogue/marketing/IKEA%27s%20Global%20Marketing%20Strategy.htm>.
"IKEA forecasts 'flat' profits for 2010." The Local 22 Feb 10: n. pag. Web. 20 Jul 2010. <http://www.thelocal.se/
25140/20100222/>.
Leong, Vanessa. IKEA’s Growth Strategy in America. N.p., n.d. Web. 28 Jul 2010. <http://www.vanessaleong.com/
Academic_writing_marketing.pdf>.
“Mail Online.” Associated Newspapers Ltd. 2007. July 25, 2010. http://img.dailymail.co.uk/i/pix/2007/
10_01/ikea_468x283.jpg.
Mangla, Ismat Sarah. "An IKEA Field Guide." Money 37.8 (2008): 136-137. Academic Search Complete.
EBSCO. Web. 23 July 2010.
41. IKEA Brand Audit
References (cont’d)
Schramm, Theodore, et at.“IKEA Brand Exploratory Questionnaire.” www.surveymonkey.com. 27 July 2010.
<http://www.surveymonkey.com/s/3N7S2GQ>.
Sorge, Jacob. "Slide Share." IKEA Presentation. N.p., 12/14/2009. Web. 28 Jul 2010. <http://www.slideshare.net/jayayayay/ikea-presentation-
3042507>.
"Student Info." IKEA. Inter IKEA Systems B.V. , 2010. Web. 19 Jul 2010. <http://www.ikea.com/ms/en_GB/about_ikea/press_room/
student_info.html>.
"SWOT Analysis." IKEA Group SWOT Analysis (2010): 1-9. Business Source Complete. EBSCO. Web. 18 July 2010.
<http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=48577541&site=ehost-live>.
The IKEA Way - History. (n.d.). Retrieved from IKEA.com: <http://www.ikea.com/ms/en_GB/about_ikea/the_ikea_way/history/
index.html>.
"Top Online Furniture Stores - 2009 Guides." OurOnlineStores.com . OurOnlineStores , 2009 . Web. 26 Jul 2010.
<http://www.ouronlinestores.com/furniture-stores.html>.
Uggla, Henrik. “The corporate brand association base: A conceptual model for the creation of inclusive brand architecture.” European
Journal of Marketing (Vol. 40 No. 7/8, 2006): 785-802
Editor's Notes
Relationships - Many IKEA shoppers readily admit to having a ‘cult like’ devotion to IKEA home furnishings.
Responses - Middle class shoppers embrace the IKEA concept of simple but stylish quality home furnishings.
Meaning - Everything for the home in a single unique shopping environment.
Identity - Home furnishings with quality and style at affordable prices for middle class 18-44 year olds target market.
* IKEA also leverages its brand image for quality by using other brands quality reputations as allies in some areas such as large appliances to signal unobservable product quality. “The IKEA corporate brand leverage the Whirlpool brand in order to make the inherent qualities of their kitchen appliances more transparent.” (Uggla, 2006, 789)
Low cost competition from other middle class retailers like Target and Pottery Barn in the US or Tesco and ASDA in the UK that have many and more convenient locations could lead to a decrease in sales.
Recession, slow housing growth and aging populations in its primary markets.
India is a source for IKEA products but not as a market for IKEA retail stores because of Indian government’s 51% Foreign ownership cap which IKEA will not accede to.
Declines in sales to 18 to 44 year old target market in some urban markets could lead to the loss of IKEA’s cult status with some customers.