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The IKEA brand is the sum total of the emotional and rational values that consumers associate with the
IKEA trademark and the reputation of our company. The brand image is the result of over 50 years work
by IKEA co-workers at all levels all over the world.
Marketing communication :
The overall task of IKEA marketing communication is to build the IKEA brand and inspire people to come
to the stores. The IKEA concept builds on a relationship with the consumer. Nine key messages are used
within the IKEA marketing communication to build this relationship. These are
• The IKEA concept is based on the market positioning statement. "We do our part" focuses on their
commitment to product design, consumer value and clever solutions. By using inexpensive materials in a
novel way and minimising production, distribution and retail costs, their customers benefit from low
prices.
• The IKEA product range is developed to be extensive to have something that appeals to everyone and
to cover all functions in the home. The products are modern not trendy so they are practical enough for
everyday use.
• IKEA is the home furnishing specialist- IKEA products are functional and appealing; they enable people
to improve their home life through practical solutions to everyday problems.
• Low price is not appealing unless it represents good value for money. This is where IKEA is able to
make a real difference. IKEA is committed to having a good relationship with our suppliers and so we are
able to purchase good quaility, economically produced designs that are bought in bulk to keep costs
down. By making all their furniture flat packed they cut down on transportation and assembly costs.
• Function - IKEA products are based on a functional approach to design. IKEA design means products
that are attractive, practical and easy to use. They don't have unnecessary features, they give genuine
solutions for specific home furnishing needs
and are made of the most suitable materials for their purpose.
• The right quality- IKEA products are subjected to rigorous tests to make sure that they meet national
and international safety standards.
• Convenient shopping- The IKEA store offers "everything under one roof", most of it available for
immediate take-away. IKEA offers service where they need it, but allows customers to make most of the
decisions themselves. This means that they need to make it easy to choose the right products by
displaying them correctly, describing them accurately and having a simple returns policy.
• A day out for the whole family- IKEA aim to look after thier customers by planning for their needs. Not
only do they provide inspiration and ideas, but they also encourage people to touch, feel and use the
products on display to see how they would fit into their own home. They have new products arriving all
the time, seasonal themes, play areas for children, special events and a great value family restaurant.
• Swedish IKEA, - The key IKEA messages all have their roots in the Swedish origin of IKEA. Swedish
furniture is light and fresh yet unpretentious. The warm welcoming Swedish style has become a model
of simplicity, practicality, and informality that is now world renown.
IKEA is a world famous brand of affordable home furnishing products. As of August 31,
2016, the brand had 340 stores operating across 28 countries. Apart from its affordable
products, the brand is also known for great quality and matchless designs. When it
comes to design and quality, IKEA is known for its passion and for managing low prices
while providing products that are unequalled in beauty. So, IKEA has brought a great
match of quality and prices for its customers. Everybody wants to have a beautiful home
and decorate it to the best of his capability. However, to afford designer furniture and
great looking home furnishing products is not possible for all.
In this sense IKEA is no less than a boon for the middle class customers who are
looking for affordable products that are good in quality. The product range of IKEA is
equally vast. It sells more than 9500 products from its stores which are designed to
provide a matchless shopping experience. IKDEA mainly targets the middle class.
However, it has used unique and innovative methods to market its brand and to grow its
market presence and customer base. Here is an analysis of the marketing mix of IKEA
that analyses the four P’s in its marketing mix – Product, Place, Price and Promotion.
5.1 PRODUCT
A lot of IKEA furniture is designed to be “Do ItYourself” DIY rather than be
pre-assembled by the consumers. This will allow consumer to get the product
at a lower cost and use of packaging. This is also a practice point for many of
the chain in the Asian countries where public transportation is being utilized in
everyday’s life. However, the flat-pack distribution channel allows the
consumers for an easier access of public transportation from the store to their
homes for the assembly of their purchase. IKEA Group had also identified the
product by a single name. Most names are Swedish in origin. Giving an
example, a product named “DUKTIG”, meaning good and well behaved is a
direct translation to the kids toy, “EFFEKTIV” which means efficient and
“SKARPT” being translate into sharp or clever.
5.2 PRICING
The imperative of an individual product Pricing serves as an essential feature
of the marketing mix. The products are usually charged according to the
balance of affordability by consumers for them to make their purchases and
by determining the amount of sales achieved by IKEA will obtain a profitability
target to their ultimate objective. Theoretically, there are a set of strategies
concerning pricing has been adopted by IKEA: The Long-Term Aspiration of
IKEA An analysis has been conducted by IKEA on how the company positions
per se in the marketing place with three proposals and determining how the
‘furniture-giant’ is being properly financed.
PUBLICITY
EVENTS SPONSORSHIP
IKEA can provide sponsorship for the events functions.
Example: dinner and dance, wedding functions and also the fashion shows.
IKEA provides the furniture (e.g. seats, tables and the stage table) CONDUCT
SURVEYS Retention in Customers uprising : Customer surveys being done
periodically allows an organization to obtain customers feedback with their
point of view towards the company which would tremendously improve the
customer retention. Performance feedback: Customers are the best ‘judiciary’
function of an individual product and services offered by the company. A
customer suggestion can help the company to make any adjustments on their
products and services accordingly.
Coordinating with designers across the world and testing their ideas so as to
provide the growing home furnishing needs is one of the biggest advantages that
Ikea has over other players in the markets.
IKEA has garnered respect in eyes of the community it serves and for the
employees who work for them which has created positive word of mouth and has
helped the company in increasing the share of wallet of the customers.
Long-term strategic partnership across the supply chain has helped the company
in manufacturing and delivering the items on time.
IKEA home furnishing solutions in the developed nations are stars whereas in the
developing nations it is the question mark due the low awareness level and
inclination of customers towards local players.
They had partnered with 1002+ suppliers in 51 countries who help them in
maintaining the quality of home furnishing /Kitchenware & appliances in its 380
stores worldwide.
Brand equity in the Marketing strategy of IKEA –
Its various popular advertising campaigns like “Home is the most important place
in the world” or its “unboring” and various others TV campaigns helped the
company in creating top of mind awareness.
Many national & international players are giving head-on competition to IKEA.
Companies like practicer, TepeHome, Kelebak, EnglishHome, Fabfurnish.com
and much more are dealing in online and Offline mode while IKEA has only
franchised stores which mean low infrastructure cost and high visibility.
Home furnishing industry is facing intense competition from Local outlets &
online e-commercestart-ups. The only driving force is the novelty in the style &
design factor which is shaping the industry demand side.
IKEA have functional & design leadership in the furnishing /Kitchenware &
appliances segment in most of the markets it is in.
Customers of IKEA are the working class people who are looking for value for
money home furnishing solutions. These are majorly in the age group of 20-50
years. These are the consumers who have an inclination towards the stylish &
modern home furnishing solutions.
Agunnaryd,sweden)in 1943 has thrived well and grown into a successful ,global network
spanning over 36 countries with its 265 shopping centares,hosting 410 million shoppers a
year. IKEA with its retailing concept sells a lifestyle and make contemporary design on
affordable luxury to the global middle class consumers around the world enjoy its good
Ikea’s sales are growing approximately 15%yearly and maintain operating margins of 10%
which are among the best in home furnishing. IKEA maintains these profits even while it
competitiveness, relation cost cutting frugality and design culture. IKEA is well known for
its” cut pries” and it goes deeper when it wants to hit rivals in certain segments. It helps that
frugality is deeply untrained in the corporate Dna as the obsession with design. The cost
obsession fuses with the design culture. Design is accepted if they can be made affordable.
Ikea 12 full time designers along with so freelances work hand in hand with its production
teams to identify the appropriate materials and least costly supplies. With a network of
1300 suppliers in 53 countries Ikea works overtime to find the right manufacture for the
right product. Simplicity, a tenet of Swedish design, helps keep cost down. They look to find
IKEA will need to source twice as much maternal as today in 2010, if sales keep growing at
their historical average. They can’t increase by more than 20 stores a year because supply is
the bottle week. Since Russia is a source of timber, IKEA aims to turn it into a major supplier
of furnished products, thus, IKEA would be able to overcome the supply contain
(bottleweek) and envisage on keeping the pace of sales growth intact. Adding to the
challenge, the suppliers and designers have to customize some IKEA product to make them
sell better in local markets. Line manager unit’s people’s houses in the U.S and Europe to
peek into their closets. The American market poses special challenge for IKEA because of the
huge differences inside U.S Americans what more comfortable sofas, higher quantity
textiles, more spacious entertainment units, now U.Smanagers are paying more attention to
the tiniest details.
IKEA has stumbles before. Foray into Japan 30years ago was a disaster. Japanese wants high
quality and great material and not low price and particleboard. If IKEA would have realised
this market needs, it would have averted disaster. Adoptability to market needs is just as
important as culture, cost obsession and competiveness. IKEA does not, currently have
conspicuous competitors.
Store visit to any IKEA will provide with an enthralling experience the world over-spacious
slow. Rooms, sheer number of items,” gentle coercion “fully accessorized displays,
offices, factories, steel furniture ‘and target affluent and lower income groups. Because
competition may increase and ikea is also seeing more competition than ever,for instance,in
Japan nations has a lock on low cost furniture. The great challenge of IKEA as it become
larger and more diverse is how to keep the core founding values alive. IKEA is still run
manager who were trained by kamprad himself and personal devoted to the founder.Asthe
direct link with Kampar disapper,the culture may start to fade. IKEA they fore should plans
for successive, succeeding leadership reviewed mission, vision and goals. Product
densification, novel marketing strategies market penetration and well planned short kea