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Ikeabuildingaglobalbrand 124715604477-phpapp01
1. Building a Global Brand…
Nina Beinart, Greg Bodenlos, Ranu Rajkarnikar, Dan Silverman
2. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
3. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
4.
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6. INTERNATIONAL HISTORY
• Founded IKEA in 1943 in
Sweden
• First store openings outside
Scandinavian territory in 1973
(SUI) and 1974 (GER)
• First U.S. opening in 1985
(Philadelphia)
• UK and HK openings in 1987
• Opened 27 new stores in 2007
in 7 regions
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
7. GLOBAL REACH
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
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11. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
12. IKEA’S KEYS TO SUCCESS
• Democratic Design
• Vertical Integration
• Strong Brand Image
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
13. DEMOCRATIC DESIGN
• Offer a wide range of
home furnishings of good
design and functionality
• Balance of form,
functionality, and low
price
• The price tag is
“designed” first
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
14. VERTICAL INTEGRATION
• 1,300 suppliers and 27 distribution
centers
• Operations cover every step of
production
• Enables the group to save cost at
each stage
• Delivers high-quality furniture at
lower prices than its competitors
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
17. THE IKEA BRAND MESSAGE
“IKEA has everything
you need to live and
make a home”
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
18. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
19. CONSISTENCIES AMONG GLOBAL
STRATEGY
• Perceived as a value brand,
following their “affordable
solutions for everyday living”
tagline
• Image of being hip and modern,
has been called “a one-stop
sanctuary for coolness”
• Maintain Swedish influence
• Store experience
• Highly anticipated store openings
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
20. DIFFERENCES AMONG GLOBAL
STRATEGY
• Advertising through the media
– Commercials: “Tidy Up”
campaign (France)
• http://www.youtube.com/watch?v=MM-Xz7W5SBM
– Winter Sale (USA)
• http://www.youtube.com/watch?v=eTOVaG36xJE
• Adapting products to national
markets
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
21. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
22. NON-TRADITIONAL MARKETING
• PR Stunts and
“Guerrilla
Marketing”
– Used to promote
new campaigns
“Everyday Fabulous at
IKEA”
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
23. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Campaign promotes IKEA making everyday things
“fabulous”
•This tactic puts
their promise into
action
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
24. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Often used to promote new store openings
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
25. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Very interactive, unusual, and memorable
– Geared towards young
hip crowd
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
26. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Tailored to different nations
•Europeans often
use balconies for
storage
•This makes the
brand more
relevant to its
audience
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
27. NON-TRADITIONAL MARKETING
• PR Stunts and “Guerrilla Marketing”
– Japanese value design and cleanliness
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
28. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
29. LOCATION STRATEGY
• Entering markets where suppliers are readily
available
• “Supply is the bottleneck”
• Focus on China (Asia overall) as an emerging market
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
30. ROADMAP
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
31. DISCUSSION QUESTIONS
1. For the future, as IKEA expands further into new markets, will it
be more beneficial for the brand to stick to a consistent
strategy, or to adapt more to local market needs?
2. What do you think of IKEA’s non-traditional approaches to its
marketing strategies? What are the potential risks associated
with these bold initiatives within the global market?
3. How will IKEA as a brand appeal to its current customers as
they grow older? Would it make sense to extend the brand
towards a more upscale product line, or would this alienate its
current customers?
FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS
Editor's Notes
Founded by Ingvar Kamprad
Lars Engman, a product developer at IKEA, learned the hard way that furniture needs to do more than just look good after his 6-year-old daughter and her pals destroyed his expensive Italian-made sofa. Wanted to design a couch that was hard-wearing and kid-friendly without compromising on design. In 1980, the Klippan sofa was born. Today, at $249, it remains one of IKEA’s top-selling items with 1.5M sold since 1998.
For the Klippan sofa, there are five suppliers for the frames in Europe, plus three in the U.S. and two in China. By centralizing everything from the production of the fabric to the stitching of the covers to just four core suppliers in China and Europe, IKEA has been able to lower the retail price of the covers by 20% since 2004.
The emotional response to IKEA is unparalleled. The promise of store vouchers for the first 50 shoppers drew thousands to an IKEA store in the Saudi Arabian city of Jeddah, where two people died and 16 were injured. A February opening in London attracted up to 6,000 before police were called in. At a time when consumers face so many choices for everything they can buy, IKEA provides a one-stop sanctuary for coolness. It is a trusted safe-zone that people can enter and immediately be part of a like-minded cost/design/environmentally-sensitive global tribe. IKEA REPRESENTS A LIFESTYLE OF PRACTICALITY AND FUN.
Comedian, Mark Malkoff, lived in the Paramas, NY store for five days during 2008. Malkoff documented his adventures and posted webisodes of his time at IKEA. MarkLivesInIkea.com received more than 15M hits and home-related IKEA blog coverage rose 356%. Coverage highlights included the AP, Today, Good Morning America and CNN. Sales at the Paramus store were up 5.5%, while traffic to the IKEA Web site was up 6.8% for the month. Note that Malkoff was chosen because IKEA knew he could handle media relations. His previous project was to visit all 171 New York City Starbucks locations.
Bus stop in NYC
Mitts on subway rail
Brooklyn store opening – will you remember the opening date?
