A Case Study on the Swedish Furniture retailing firm and its marketing excellence.

1. MARKETING EXCELLENCE :

2. Introduction
• Swedish Home furnishings company founded
by Ingvar Kamprad in 1943
• Sells Ready to Assemble furniture, kitchen
appliances, Home accessories.
• Almost 400 stores in 48 countries
• Pioneers of the revolutionary in-flat packing
design

3. What lies in the Name - IKEA
I - Ingvar
K - Kamprad
E - Elmtaryd
A - Agunnaryd

4. Vision
“To create a better everyday life for the many
people. We make this possible by offering a
wide range of well-designed, functional home-
furnishing products at prices so low that as
many people as possible will be able to afford
them.”

5. 4 step strategy to introduce a product–
Step 1
Establish a Retail
Price

6. 4 step strategy to introduce a product–
Step 2
Select
Manufacturer

7. 4 step strategy to introduce a product–
Step 3
Deciding materials
to be used for
manufacture

8. 4 step strategy to introduce a product–
Step 4
Design Phase

9. Distinct Key
Features

10. • “Do it Yourself” (DIY) nature of the Ready to
assemble (R2A) products sold
• Use of Beonic’s Traffic insight visitor flow system
• Long open hours

11. • Eco friendly , recycle based , functional and
minimalistic approach to customers and
products
• Names for Products instead of numeric Codes

12. IKEA Marketing Mix
• IKEA Product Range
• The Store
• The IKEA Catalogue
• Advertising, PR and other forms of
communication

13. Question 1
What are some of the things IKEA
is doing well to reach consumers
in different markets? What else
could it be doing ?

14. The things IKEA is doing well
• Offered leading edge design and functional
home furnishings at low costs
• Updated the products regularly to stay in
demand

15. • Addresses customer diverse needs based on
regional factors, deviating from the traditional
Scandinavian principles
• Engages customers at many levels, online and
offline

16. What else it could do ?
• Engage more foreign employees to
understand various regional demographics
and purchase patterns
• Gain more cooperation from local suppliers
from new potential market zones
• Expand the online publicity further.

17. Question 2
IKEA has essentially changed the way people
shop for furniture . Discuss the Pros and Cons
of this strategy , especially as the company
plans to continue to expand in places like Asia
and India .

18. • Powerful Brand Image;
symbol of innovation,
authenticity and affordability
• Popularity can be utilised to
expand markets and endorse
social initiatives
• People get accustomed to the
useful DIY nature
• Post purchase satisfaction due
to the “life system” and
“democratic designs “
approach results in increase
of customers
• The number of customers, physically
entering furniture stores is diminishing
due to online shopping So, consequent
reduced customers
•Less life of the products due to pure
nature
•Reduction in customer sample space in
Asia because of resentment to DIY culture
•Reduction on customer sample space
due to inhibitions on product variants
•Competition from conventional furniture
giants

19. Summary
• IKEA implements a 4 step strategy to
introduce a new product
• IKEA begs to differ from other furniture giants
due to its simple and unconventional methods
• IKEA’s marketing strategy is straightforward
• There is still scope for improvement on the
current strategy

20. Bibliogrpahy
• Page 198-199, Marketing Management by Philip Kotler and Kevin Lane
Keller (15th edition)
• https://nippaku.wordpress.com/2015/09/21/living-in-japan-pros-and-
cons/
• http://www.craigsewell.co.uk/bim-projects-role-of-manufacturer/
• http://www.ikea.com/
• https://sweden.se/society/energy-use-in-sweden/
• https://www.slideshare.net/vikassonwane/ikea-marketing-strategy-
presentaion
• http://www.rydeparramattadrafting.com.au/builders-plans/
• https://www.slideshare.net/riddhimachopra/ikea-case-study
• https://www.google.co.in/search?tbm=isch&q=thankyou+ikea&ei=O9hKW
e_WFIHxvgS1hIbgAg&emsg=NCSR&noj=1#imgrc=dGfNiAg3VZ_lRM:
• https://www.slideshare.net/OsamaAlbarrak/ikea-strategic-case-study

21. A Presentation by SANDRA S KURIAN ( Mar
Athanasius College of
Engineering,
Kothamangalam, Kerala )
during the internship
under Prof. SAMEER MATHUR ,IIM Lucknow.