Analysing Consumer Markets

Review Report: Marketing Excellence-IKEA

•Established in 1943•Eventually, the company grew into a retail titan in home furnishing.•Is referred worldwide as the “quintessential cult brand”

Typically SwedishOver the years a unique IKEA culture and set of values have developed from the roots in Sweden.

Providing a pattern for Success• IKEA ensure long-term success and keep the IKEA Concept successful over time in an ever-changing world.•By offering proven methods and solutions to IKEA retailers worldwide and enabling the long-term fulfilment of business idea.

Excellence in analyzingConsumer behavior

•Decision heuristics•Framing•Mental accounting

Lifetime experienceat

The IKEA stores

Epitomize in Marketing Analytics•The company reduces the prices across its products annually.•It sources its products from multiple companies all over the world.•It excel in reducing the land cost and the keep the taxes low.•All the items are boxed and requires customers to assemble them at home to keep low prices.

BLUE & YELLOW:You probably recognisethe most important visualelements of the IKEAConcept: the IKEA logoand the IKEA word mark.

A culture of hearts:The IKEA culture is hard to describe but easy to embrace. It’s a culture of enthusiasm, togetherness and willpower.The IKEA culture believes to humbly unite in work to create a better everyday life for the many people.

IKEA Catalogue

An invitation for the whole year

IKEA’s print Ads:

The right advertising!

IKEA’s Commercial Ad Video:

Simple and Sober Homepage

Stats:

Stats:

Stats:

IKEA has evolved as the largest furniture retailer in the world.

IKEA’s

Marketing Strategy(Things i t i s doing r ight to

reach consumers in d ifferent markets . )

One stop for

‘COOLNESS’

IKEA’s outlets throughout the world

(Increasing International Visibility)

Items come boxed & require

own assembling by the customer, hence

easy transportation of the items

Stores located outside the

Hustle-bustleof the city !!

Affordable

Pricing

Adaptability&

UniformityIn the product range

Too many suppliersto

Get the “Best Price”

Things to improve:

Need to work upon

Global MarketingStrategy

Scope of Expansion in-

China, Africa and other countries

Using more

‘Eco-friendly’Products

Use of Social Media

to

Reach more consumers

Product Customization

= Boost in Sales !!

Expand the product line,Create high end products !!

A brief review-

Always ahead of its

Competitors

Innovation&

UniquenessIn the product line.

Perfect blend of-

Low cost +

High value

Democratic Packaging !!!

Cons:

Uniformity = rigidity + boredom

In products

The 50 mile road trip

Visiting an IKEA store costs a lot of time and money.

Poor Customer Service

Self packaging

Troublesome for consumers

Concluding remarks:IKEA’s marketing strategy excel in analysing the consumer markets and that’s the reason how it has grown so strong in its market share and building its brand. Thus the company has evolved into the largest furniture retailer.

Recapitulation:• Largest furniture retailer in the world.• A Swedish based country• Believes to create a better everyday life for many consumers• Most of the stores are located at a good distance from the city centres.• The main strategy is to create low prices for almost all its products.• It cuts down prices annually• Today, it has more than 300 stores in 38 counties and is still rising and growing.

Sources:•IKEA’s websites: http://www.ikea.com/•Images from istockphotos.com•http://www.bloomberg.com/bw/stories/2005-11-13/ikea•http://www.theguardian.com/lifeandstyle/2008/feb/04/shopping.retail•Use of Google images•Reference text from the book – Marketing Management by Philip Kotler, a south Asian perspective.•IKEA’s commercial video downloaded from YouTube.

Sameer MathurIIM Lucknow

Marketing Professor 2013-Present

McGillMarketing Professor 2009-2013

Carnegie MellonPh.D. and M.S. (Marketing) 2003 - 2009

Made By - Shoham TeberiwalUndergraduate student at IIT BombaySummer Intern under Prof. Sameer Mathur

Thank you !!