1. IKEA – How to go International?

2. Ingvar Kamprad Elmtaryd Aggunaryd
• “If retailers are to succeed in an overseas
market, they must not only master the
traditional skills of the market but also the
cultural and economic traditions of the
host country”
-Ingvar Kamprad,

3. IKEA at a glance..
• Currently the world’s largest furniture
retailer
• Pioneered the flat-pack design furniture at
affordable prices
• Has 1220 suppliers in 55 countries
• Was founded in 1943 by 17-yearo ld Ingvar
Kamprad in Sweden

4. IKEA’S global reach

5. IKEA’S global reach…
Top 5 Sale countries
Germany 16%
USA 11%
France 10%
UK 7%
Italy 7%
Top 5 purchasing countries
China 20%
Poland 18%
Italy 8%
Germany 6%
Sweden 5%

6. Current Performance
0.0 0.0 0.2
1.2
4.4
13.6
17.7
20.7
22.5 22.7
1954 1964 1974 1984 1994 2004 2006 2007 2008 2009
Turnover (in Euro Billions)
1 2 9
52
114
201
237
260
285
301
1954 1964 1974 1984 1994 2004 2006 2007 2008 2009
Stores

7. Sweden
• Business Strategy
• Complete Shopping experience
• Selling Innovation
• Creating a Brand

8. Marketing Mix
• Low Prices
• Price -Material-
Design-Make
Price
• Standardized Products
• Do it Yourself
• Scandinavian Design
• Flat Packaging
• Lifestyle Products
• ‘Love your Home’
• Lounge and See
• Large price tags
• Large stores -out of city
• Middle Class +Students
• Local International
Product
Promotion Place

9. Rest of Europe
• Global Strategy
• Issues faced
– Cultural diversity
• Imposing IKEAN culture
– Environmental issues
• Adaptations

10. Internationalization
Europe
• Marketing Satellite
• Pure Global Strategy
• Country Offices
Rest of the World
• Rationalized Manufacturing
• Mix of Global and Local
• Fully owned Subsidiaries

11. North America
• Initial Shocks
• Sizes, Softness
• Sourcing, Currency movements
• Free Deliveries
• Sales Reps
• Easy Payment Options
• Adaptations

12. Asia
 Problems
 Psychic distance
 Degree of adaptation to retail offer
 Pricing strategy
 Strong domestic competition
 Corruption in government ranks in Russia
 Adaptations
 Understanding local needs
 Creation of supplier relationship
 Store appearance and pricing strategy

13. Thank you
– Group 8
Amitav Pattnaik
Balaji B Ramamurthy
Chetan Goenka
Jemi Varughese
Johnson Chacko