IKEA's marketing plan for India targets the rapidly growing middle class, projected to increase from 31.4 million households to 113.8 million by 2026, amid an unorganized $8 billion furniture market. Key strategies include innovations like 'IKEA Live Design' for customized furniture and the 'Hire-a-Carpenter' initiative to attract consumers and provide employment. The plan also addresses competitive challenges from local carpenters and established players by leveraging brand appeal and addressing consumer preferences for foreign brands.

1. MARKETING PLAN
By Kripa Pattabiraman

2. IKEA IN INDIA

3. Why India?
SectorSector
Target
Market
Target
Market
Market
Potential
Market
Potential
Furniture market is worth $8 billion. So far, it’s
unorganized with no national players
Furniture market is worth $8 billion. So far, it’s
unorganized with no national players
Middle class households – Ikea’s ideal target market
-Booming: 31.4 million today, 53.3 million by 2016,
113.8 million by 2026 (NCAER report)
Middle class households – Ikea’s ideal target market
-Booming: 31.4 million today, 53.3 million by 2016,
113.8 million by 2026 (NCAER report)
- Consumer spending to go up from $977 billion to
$3.6 trillion by 2020
- Average household disposable income: to go from
$2169 today to $6037 by 2025
- Consumer spending to go up from $977 billion to
$3.6 trillion by 2020
- Average household disposable income: to go from
$2169 today to $6037 by 2025
AttitudeAttitude Indian consumers love foreign brandsIndian consumers love foreign brands

4. CONSUMERS

5. Segments & Personas
The Autodidact
• 25 – 32 years old
• Middle class, modest upbringing
• Independent, self-reliant, social
• Problem-solver, constant learner
• Love spontaneity as well as
planning
• On the constant lookout for new
experiences and activities
• Jack of all trades
• Seek value for money
• Phoebe, Monica, James
Franco, Joseph Gordon-Levitt
The Upper-class Experimenter
• 30 – 45 years old
• Rich, posh upbringing
• Proud, successful, consider
themselves different from others
• Like doing things that set them
apart
• Go on weekend getaways and
international holidays
• Spend generously it if means it is
unique and will add to their
personality and character
• Ross, Rachel, George Clooney,
Anne Hathaway

6. COMPETITION

7. Organized & Unorganized
HomeTown
• Belongs to Future Group – a
strong conglomerate with a
presence in multiple FMCG
sectors.
• They know their markets better
and have more power over their
distribution channels.
Local Carpenters
• Popular with the locals as they
customize furniture as per the
customer’s taste and preferences.
• They also come to the customer’s
house and work on-site, thus
reducing the hassle of visiting
multiple stores, buy what they
want, and then wait endlessly for
it to be delivered.

8. P.E.S.T. ANALYSIS

9. Political Factors
- Ruling and opposition political parties have different stands on FDI
- If opposition comes to power, it might disallow FDI citing job loss
for local businesses, especially carpenters
- Ruling and opposition political parties have different stands on FDI
- If opposition comes to power, it might disallow FDI citing job loss
for local businesses, especially carpenters
Social Impact Innovation: Hire-A-Carpenter
-Carpenters get full-time jobs and a steady source of income
-Ikea gets employees with relevant skills sets
-Ikea also eliminates local competition popular with consumers
Social Impact Innovation: Hire-A-Carpenter
-Carpenters get full-time jobs and a steady source of income
-Ikea gets employees with relevant skills sets
-Ikea also eliminates local competition popular with consumers

10. Economic Factors
- High taxes, inflation and slow economy reduce disposable income
- Indians consumers price sensitive and seek value for money
- High taxes, inflation and slow economy reduce disposable income
- Indians consumers price sensitive and seek value for money
Emotion and Product Identity innovation: Ikea Live Design
-Customers provide dimensions of living space, furniture specifications
and budget, come to the store on the day of their appointment
-Ikea builds a mock-up of their living space in front of their eyes
-Consumers feel special, know for sure what they’re getting
-Service can be offered with deep discounts and bundling to add to
consumer’s value for money perception
Emotion and Product Identity innovation: Ikea Live Design
-Customers provide dimensions of living space, furniture specifications
and budget, come to the store on the day of their appointment
-Ikea builds a mock-up of their living space in front of their eyes
-Consumers feel special, know for sure what they’re getting
-Service can be offered with deep discounts and bundling to add to
consumer’s value for money perception

11. Social Factors
- Sizes of homes make it difficult for people to visualize and buy more
than one piece of furniture
- Buying any type of furniture without knowing if it fits is a
cumbersome commitment
- Sizes of homes make it difficult for people to visualize and buy more
than one piece of furniture
- Buying any type of furniture without knowing if it fits is a
cumbersome commitment
Aesthetics & Ergonomics innovation: Ikea Flat Displays
-Tie-up with builders, furnish sample flats
-Offer discounts if customers buy a flat on that property
Aesthetics & Ergonomics innovation: Ikea Flat Displays
-Tie-up with builders, furnish sample flats
-Offer discounts if customers buy a flat on that property

12. Technological Factors
- Bad infrastructure makes traveling a nightmare
- Coupled with the fact that the number of internet users is on the
rise, it is safe to say that online shopping is only going to increase
- Bad infrastructure makes traveling a nightmare
- Coupled with the fact that the number of internet users is on the
rise, it is safe to say that online shopping is only going to increase
Emotion and Product Identity innovation: Ikea Live Design
-Same process as before
-Offer online 3-D modeling as an alternative to live mock-up
-Once design is finalized, offer free delivery and installation
Emotion and Product Identity innovation: Ikea Live Design
-Same process as before
-Offer online 3-D modeling as an alternative to live mock-up
-Once design is finalized, offer free delivery and installation

13. MARKETING MIX

14. Product
The usual range
of furniture
The usual range
of furniture
Ikea Live DesignIkea Live Design
N/AN/A
Upper class: Exclusive, by appointmentUpper class: Exclusive, by appointment
Lower class: Not a target segment for nowLower class: Not a target segment for now
Middle class: Mass, self-serviceMiddle class: Mass, self-service

15. Place
Online storeOnline store
Offline storesOffline stores
- A store in every key city at a central location
- Options: Buy and carry, or buy and get it
delivered
- A store in every key city at a central location
- Options: Buy and carry, or buy and get it
delivered
- Online shopping
- Options: Buy and get it delivered, buy and
pick up, or order and pay cash on delivery
- Online shopping
- Options: Buy and get it delivered, buy and
pick up, or order and pay cash on delivery
OthersOthers
- Ikea Flat Displays: Sales representative at
under-construction properties to go with
the sample flat furniture
- Options: Buy and get it delivered
- Ikea Flat Displays: Sales representative at
under-construction properties to go with
the sample flat furniture
- Options: Buy and get it delivered

16. Price
The usual range
of furniture
The usual range
of furniture
Ikea Live DesignIkea Live Design
- High-end, will vary according to square feet
- Will have to pay a booking/appointment fee
- Bundling discounts exclusive to this service
- High-end, will vary according to square feet
- Will have to pay a booking/appointment fee
- Bundling discounts exclusive to this service
- Will match international pricing
- Once local production and sourcing begins,
prices will be reduced
- Will match international pricing
- Once local production and sourcing begins,
prices will be reduced

17. Promotion
- Extend existing loyalty program- Extend existing loyalty program
- Send out seasonal catalog like in other
markets
- Include special early bird discounts
- Send out seasonal catalog like in other
markets
- Include special early bird discounts

18. - Festive season sales- Festive season sales
- Offer monthly discounts like in
other markets
- Include exclusive previews to
new season range only for
subscribers
- Offer monthly discounts like in
other markets
- Include exclusive previews to
new season range only for
subscribers

19. MARKETING COMMUNICATION

20. Spokesperson
IMRAN KHAN: ACTOR
Young | Modern | Cool | Fresh | Different
IMRAN KHAN: ACTOR
Young | Modern | Cool | Fresh | Different

21. Mock TVC
Television commercial aired in two parts. It will feature Imran, his wife, and a
few cast members from Imran’s film, Delhi Belly (was a major hit).
Part 2:
Conclusion
Part 2:
Conclusion
Part 1:
Teaser
Part 1:
Teaser
- Imran and Avantika at their new house.
- Avantika wants to meet her designer there the
next morning to plan the interiors.
- Imran backs out saying, he is shooting all night.
- Imran and his friends go to Ikea.
- Imran and Avantika at their new house.
- Avantika wants to meet her designer there the
next morning to plan the interiors.
- Imran backs out saying, he is shooting all night.
- Imran and his friends go to Ikea.
- Imran and his friends get furniture from Ikea
and take it to his new house.
- They unpack, furnish the house, and get done
late at night.
- Avantika arrives in the morning and is taken by
surprise.
- Imran and his friends get furniture from Ikea
and take it to his new house.
- They unpack, furnish the house, and get done
late at night.
- Avantika arrives in the morning and is taken by
surprise.

22. Sources
Images
•Ikea Logo: http://www.heart.co.uk/solent/win/ikea-bedroom-vouchers
•Indian flag:
http://www.thasariya.com/indian-flag-hd-wallpaper-images-pictures-photos-color-animatio
•4 Ps: http://magneticmarketingsolutions.com/wp-content/uploads/2009/09/4ps.jpg
•Ikea Family: http://
www.ikea.com/ms/en_US/img/local_store_info/portland/familygirl_250x250.jpg
•Ikea catalogue: http://
i-cdn.apartmenttherapy.com/uimages/chicago/cover080109.jpg

23. 6. Monthly discounts:
http://www.ikea.com/ms/en_AA/about_ikea/rent/index.html
7. Sale: http://www.everlastinghardwoods.com/images/C/sale-items.jpg
8. Imran Khan: http://www.imdb.com/name/nm1405359/?ref_=sr_1
9. Imran suit: http://www.mensxp.com/2012/x51/profile/34-
Imran__Khan.html
10. TV: http://olimex.files.wordpress.com/2012/05/watch-live-tv-online.png
11. Consumers: http://money.usnews.com/money/business-
economy/slideshows/17-ways-consumers-are-changing
12. Competition: http://anniejenningspr.com/jenningswire/wp-
content/uploads/2012/10/bigstock-Competition-concept-5232812.jpg
13. PEST: http://www.translation-project-management.com/translation-
project-management/project-analysis

24. ThankYou.