IKEA is a cult brand known for its furniture and home goods. [1] It was founded in 1943 in Sweden with a vision of creating better lives for many people through well-designed, low-cost furniture and goods. [2] IKEA uses a 5-step customer buying process model and aims to understand customer needs through market research and campaigns. [3] Stores are designed according to local culture and tastes. Customers do the assembly themselves, keeping costs low and prices accessible to many. While IKEA has been successful expanding globally using this strategy, there may be cons like customers preferring assembly support in some markets like India.

1. The quintessential cult brand
IKEA

2. What's the
history?
The story began in 1943
by Ingvar Kamprad in
Elmtaryd farm in the
village of Agunnaryd.
IKEA

3. Vision of IKEA:
“To create a better everyday life for
many people”
Mission of IKEA:
“To offer a wide range of well­designed
furniture at a low price”

4. The buying decision process:
Five step model
1) Problem recognition
2) Information search
3) Evaluation of alternatives
4) Purchase decision
5) Post purchase behavior

5.
1)What will infuence the
customer to
buy the product??
Quality
Price

6. 2) Are the customers
getting the best
information about the
brand??
Campaigns like 'Ambassadors of khul
&
Facebook publicity

7. 3) How does the customer
make the final value
decision??
1)Needs
2)Benefits
3)Additional benefits like
price

8. 4) How is the product perceived
by
the customers??

9. 5) Are the buyers satisfied
by
the product??

10.
What influences customer
Behavior?

11. 1) Culture factors
Stores were designed with the yellow
and blue,color
of the flag of Sweden

12. 2) Social factors
Showrooms in each country also vary acc,
to the social needs of people.
(California) (China)

13. 3) Personal factors like lifestyle
Cupboards in European U.S.A

14. What is the reason
behind
IKEA'S

15. Leading edge design and home
furniture at extremely low price
But HOW??

16. 1) Having the customers do all the
Shopping, shipping and assembly...

17. 2) Low operational cost.

18. Q1) What are some of the things IKEA is
doing well to reach customers in different
markets?What else could it be doing?
1) Reduce the cost of it's designs to some extent to suit wider
range of customers i.e redesign their products.
2) Can employ interior designers for suggestions and
assembling .

19. Q2) IKEA has essentially changed the way
people shop for furniture.Discuss the pros
and cons of this strategy specially in plans
to expand in places like India and Asia?
Cons:
Won't prefer to travel to the
outskirts of city.
Pros:
1)Value culture
2)Consider customer taste
3)Innovative and trendy

20. * “A stop sanctuary for coolness”
* Products are well made and appeal to the masses
* Designs are effecient and waste are kept minimal
* Caters to local and regional taste
* Quirky marketing campaigns
* Majority of sales comes from Europe

21. Disclaimer
The presentation is made by Sonali Rawat
from J.S.S Noida under marketing
internship by Prof.Sameer Mathur.
Sonali Rawat Sameer Mathur