ikeabuildingaglobalbrand-124715604477-phpapp01

Nina Beinart, Greg Bodenlos, Ranu Rajkarnikar, Dan Silverman

Building a Global Brand…

ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS

GLOBAL STRATEGY: CONSISTENCIES & DIFFERENCES

NON-TRADITIONAL MARKETING

LOCATION STRATEGY

QUESTIONS & ANSWERS

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

INTERNATIONAL HISTORY• Founded IKEA in 1943 in

Sweden• First store openings

outside Scandinavian territory in 1973 (SUI) and 1974 (GER)

• First U.S. opening in 1985 (Philadelphia)

• UK and HK openings in 1987

• Opened 27 new stores in 2007 in 7 regionsFRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY

QUESTIONS

GLOBAL REACH


ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS



LOCATION STRATEGY

QUESTIONS & ANSWERS


IKEA’S KEYS TO SUCCESS


• Democratic Design• Vertical Integration• Strong Brand Image

DEMOCRATIC DESIGN


• Offer a wide range of home furnishings of good design and functionality

• Balance of form, functionality, and low price

• The price tag is “designed” first

VERTICAL INTEGRATION

• 1,300 suppliers and 27 distribution centers

• Operations cover every step of production

• Enables the group to save cost at each stage

• Delivers high-quality furniture at lower prices than its competitors


STRONG BRAND IMAGE• Cost-Consciousness• Sensible Design• Unconventionality• Social/Environmental Awareness


THE IKEA EXPERIENCE


THE IKEA BRAND MESSAGE

“IKEA has everything you need to live and make a home”


ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS



LOCATION STRATEGY

QUESTIONS & ANSWERS


CONSISTENCIES AMONG GLOBAL STRATEGY

• Perceived as a value brand, following their “affordable solutions for everyday living” tagline

• Image of being hip and modern, has been called “a one-stop sanctuary for coolness”

• Maintain Swedish influence• Store experience• Highly anticipated store

openingsFRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

DIFFERENCES AMONG GLOBAL STRATEGY

• Advertising through the media– Commercials: “Tidy

Up” campaign (France)• http://www.youtube.co

m/watch?v=MM-Xz7W5SBM

– Winter Sale (USA)• http://www.youtube.co

m/watch?v=eTOVaG36xJE

• Adapting products to national markets


http://www.youtube.com/watch?v=MM-Xz7W5SBM



http://www.youtube.com/watch?v=eTOVaG36xJE



ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS



LOCATION STRATEGY

QUESTIONS & ANSWERS



• PR Stunts and “Guerrilla Marketing”– Used to

promote new campaigns

“Everyday Fabulous at IKEA”



• PR Stunts and “Guerrilla Marketing”– Campaign promotes IKEA making

everyday things “fabulous”

• This tactic puts their promise into action



• PR Stunts and “Guerrilla Marketing”– Often used to promote new store

openings



• PR Stunts and “Guerrilla Marketing”– Very interactive, unusual, and memorable– Geared towards young

hip crowd



• PR Stunts and “Guerrilla Marketing”– Tailored to different nations

• Europeans often use balconies for storage

• This makes the brand more relevant to its audience



• PR Stunts and “Guerrilla Marketing”– Japanese value design and cleanliness


ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS



LOCATION STRATEGY

QUESTIONS & ANSWERS


LOCATION STRATEGY

• Entering markets where suppliers are readily available

• “Supply is the bottleneck”• Focus on China (Asia overall) as an

emerging market


ROADMAP

MACRO FRAMEWORK

KEYS TO SUCCESS



LOCATION STRATEGY

QUESTIONS & ANSWERS


DISCUSSION QUESTIONS

1. For the future, as IKEA expands further into new markets, will it be more beneficial for the brand to stick to a consistent strategy, or to adapt more to local market needs?

2. What do you think of IKEA’s non-traditional approaches to its marketing strategies? What are the potential risks associated with these bold initiatives within the global market?

3. How will IKEA as a brand appeal to its current customers as they grow older? Would it make sense to extend the brand towards a more upscale product line, or would this alienate its current customers?


ikeabuildingaglobalbrand-124715604477-phpapp01

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