Marketing Strategy

2. INTRODUCTION
 Founded:1943 in Älmhult, Småland, Sweden
 Headquarters: Leiden, The Netherlands
 Industry: Retail (Specialty)
 Products: self-assembly furniture
 Revenue: $35.7B USD (FY 2015)
 Employees: 134,000 (2015)
 Website: www.ikea.com
2

3. INTRODUCTION
Acronym- I (Ingvar)-Founder’s first name
K (Kamprad)-Founder’s last name
E (Elmtaryd)-Farm where he grew up
A (Agunnaryd)-Home village
Logo - Blue & Yellow;
The colors of Swedish National Flag.
3

4. HISTORY
 1943:
founded in Sweden by Ingvar Kamprad;
 1951:
published the first IKEA furniture catalogue;
 1955-1956:
designed own furniture
tested to use flat packages for shipping;
 2001:
established IKEA Rail

5.  1958: in Sweden
 1963: in Norway
 1969: in Denmark
 1973: in Switzerland
 1974: in Germany
 1975: in Australia
 1976: in Canada
 1981: in France
 1985: in USA
 1987: in UK
 1989: in Italy
 1998: in China
 2000: in Russia
5
265 shopping centers
36 countries

6. 6
History: important designs in the past
1985: Niels Gammelgaard
designed MOMENT Sofa.
1994: KUBIST Storage
Units appeared.

7. MISSION STATEMENT
“The IKEA vision globally is to create a better
everyday life for the many.
At IKEA Tempe we are dedicated to giving to the
local community will being regarded by out
customers and co-workers as a social responsible
company"
7

8. FLAT PACK FURNITURE
 Invented by Gillis Lundgren
 Legs can easily be removed
 Can easily be dismantled and rearranged
MOMENT SOFA
 Launched in US in 1985 by Neil's Gammelgaard
 Went to supermarket trolley factory to make use
of their knowledge about strength and stability.

9. PS ELLAN(A DINING CHAIR)
 Adapt a wood fibre composite ( a cost- effective
Combination of wood chips and plastic resin) for
furnishings.
Boklok Homes
 Introduced in 2005 in UK
 Boklok was a flat pack house made up from timber
Frames and could be either one or two bedroom homes.

10. SHOPPING EXPERIENCE
 IKEA stores usually located outside urban areas isolated from
other shops
 IKEA products were beautifully crafted and appealing
 Building’s were 3,00,000 square feet in size and stock about
7,000 items from kitchen cabinets to candlesticks.
 At the entrance of the store there is a playroom for the children.
 The stores were constructed in a form of circle to allow shoppers
to view all sections of the store.

11.  Furniture was aesthetically arranged as it would look home with accessories
like night lamps, bed sheets, etc.
 Things shoppers never put in their shopping list when displayed in IKEA
stores and priced under 2$ seemed to be worth having.
 Mallen clip one of IKEA’s hottest selling accessories used to hang magazines
in bathroom and cost only 90 pence.
 IKEA had a cafeteria located in the center to give shoppers a breather instead
of winding up their shopping in a hurry.

12. In 1985,store were not spacious
Stores location was not easily accessible
Comparatively high price
Other problem :Sofa-not deep, short curtains, modular
kitchen, beds measured in centimetre
Americans were buying vases to drink as IKEA glasses were
too small
They folded their clothes unlike Europeans who hang their
clothes

13. Bigger store location
Wardrobes with deeper drawers for folded clothes, Bigger
glasses
Prices were slashed
Comfortable sofa
High Quality textiles
Improved services

14. Different in terms of taste and preferences
In 1998,Sold Hong-Kong sized beds which were shorter than standard size beds
Spend most of the time in living room
Stores inaccessible by public transport
Either completely redesign everything or do nothing

15. Charged fee for home delivery
Fee based assembly service
In-store instruction and design advice
Published brochures and catalogues
Operated Website
Hold contest before opening stores
Provided certificates and vouchers

16. Creating and maintaining a curiosity was one the biggest
reason for IKEA growth
Managed to pullout a popular promotional campaign
Free vouchers, Gift coupons, Heavy Discounts for first 100
customers, were some of the Strategies which maintained the
buzz around IKEA not to vanish

17. IKEA needed to adapt its promotional ways according to the region.
Europeans like straight things while US loves witty taglines.
In UK, they Launched ‘Stop being so English’ campaign, which was bold
but brought people to IKEA
In USA, IKEA build furniture based on the sets of popular TV series
theme, Ex: Gilligan island, Brady Bunch

18. This ad campaign redefined IKEA Brand position inside
customer’s heart and mind
For instance : When we sweat here, its for labor and customers
does that its for its savings
Different symbols symbolized a character attached to it
For ex: lone wolf described that customers can wander around
freely, Bat described finding way in the dark, Scale showing
Balance in Quality and price.

19. IKEA’s Brand image became pulled customers as well as
controversies
Causalities occurred during opening of IKEA store opening
in Jeddah and London
Long queue became tough to mange by the employees
Complaints for out of stock and bad after sales service
became frequent
Questions were raised about how long IKEA will maintain to
sustain in this market.