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MARKETING EXCELLENCE : IKEA

IKEA was founded in 1943 by a 17 year old Ingvar Kamprad. It has come a long way from selling pens, cards & seeds to becoming a leader in home furnishing market.HISTORY

HOW DID THEY DO IT ?

WHAT ARE SOME OF THE THINGS IKEA IS DOING RIGHT TO REACH CONSUMERS IN DIFFERENT MARKETS ?

IT OFFERS UNIQUE VALUE PROPOSITION TO CONSUMERS :LEADING EDGE SCANDINAVIAN DESIGN AT EXTREMELY LOW PRICES !!!

THE COMPANY IS ABLE TO OFFER LOW PRICES BECAUSE MOST ITEMS COME BOXED AND REQUIRE THE CUSTOMER TO COMPLETELY ASSEMBLE THEM AT HOME.IT HELPS IN TWO WAYSCHEAPER AND EASIER TRANSPORTATIONEFFICIENT USE OF STORE SHELF SPACE.

WHAT MADE THEM SUCCESSFUL TO ATTRACT CONSUMERS AND ABLE TO DEFEAT COMPETITORS LIKE TARGET & PIER ?

CULTURAL THEIR DOORS & WINDOWS ARE PAINTED BRIGHT YELLOW & BLUE SWEDEN S NATIONAL COLORS.

IT DESIGNED PRODUCTS ACCORDING TO THE LOCAL TASTES OF PEOPLE OF THAT COUNTRY.

THEY ANALYSED CONSUMER BEHAVIOR

IT SOURCES ITS PRODUCTS FROM MULTIPLE COMPANIES WHICH ENSURES LOWEST PRICE POSSIBLE AND THIS SAVINGS ARE PASSED ON TO CONSUMERS

IKEA STORES ARE LOCATED A GOOD DISTANCE FROM MOST CITY CENTERS, WHICH HELPS KEEP LAND COSTS DOWN AND TAXES LOW.

IKEA STORES SAVE ENERGY BY USING LOW -WATTAGE LIGHTBULBS SINCE THEY HAVE UNUSUALLY LONG HOURS OF OPERATIONS; SOME ARE 24-HOURS STORES !!!

OF IKEA S MARKETING STRATEGY

PROS THE STRATEGY IS FOCUSED ON CONSUMER BEHAVIOR DUE TO CUTURAL FACTORS (NATIONALITY)

IT IS UNIQUE IN THE SENSE THAT IT SATISFIED NEEDS & WANTS OF PEOPLE HAVING THIN WALLET.

IT HAS ITS OWN UNIQUE WAY OF HANDLING OPERATION SO AS TO REDUCE COST WHICH REFLECTED IN LOW PRICES OF ITS PRODUCTS.

CONS DIFFICULT FOR IT TO ATTRACT CUSTOMERS INCLINED TOWARDS EXPENSIVE FURNITURE TO SHOW THEIR ROLES & STATUS.

STORES ARE LOCATED AWAY FROM CITIES WHICH CAUSES INCONVENIENCE.

VISION IT IS LARGEST FURNITURE RETAILER IN THE WORLD WITH 300 STORES IN 38 COUNTRIES.AIMS TO EXPAND ITS MARKET TO DEVELOPING COUNTRIES.AIMS TO INNOVATE ITS OPERATIONS TO REDUCE ITS PRODUCT S COST FURTHER.

WE SAW HOW IKEA GREW INTO THE LARGEST FURNITURE RETAILER IN THE WORLD BY ANALYSING CONSUMER BEHAVIOR.

WHAT ARE THE PROS AND CONS OF ITS MARKETING STRATEGY ?

WHAT IS ITS FUTURE VISION ? SUMMARY

CREATED BYANUGRAH NIMAVATBTECH (ELECTRONICS & COMMUNICATION)NIT SURAT

DURING MARKETING INTERNSHIP UNDER THE GUIDANCE OF

PROF. SAMEER MATHURIIM - LUCKNOW

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