Created in 1943 by Ingvar Kamprad

Turn over : 21,5 billion €uros (+1,4% in 2008)

16,3% market share in France

Staff : 128.000 persons

267 stores in 25 countries

Visitors in stores: 590 millions

561 millions/year visitors on the website Ikea.fr

Economical factors

Graphs

PESTELIKEA

Better purchasing power of emerging countries

Pricing different according to the country

Low price strategy in general

Economical factors

Technological & Legal

Technological factors

Creation and innovation of new productsBetter stock management

Legal factors

Strengthening of international importation regulation

Norms

Environmental & Social

Environmental factors

Create products with a minimum of impact on the environment IWAYPartnerships with many environmental organisations

Social factors

Decent work condition to its suppliersIWAYPartneships with many social organisations

Structure & OrganisationIKEA

In charge of the development of the assortment of IKEA (10000 products)

IKEA has 43 offices of purchase distributed in 33 countries

Suppliers distribute in 55 countries

Structure and organization IKEA

The industrial group of IKEA is specialized in the production of furniture and wooden components

32 factories in 9 countries

Swedwood is specialized first and foremost in the sectors where IKEA has difficulties

The IKEA’s Group is supported by 9 departments

Structure and organizationSwedwood

Decentralization

To have economies of scale

To maintain low prices

The watchword at IKEA

But certain fields of expertise keys are centralized (IKEA IT, IKEA Food Services…)

Almost 300 stores in more than 35 countries

Standardised approach

« IKEA offers a wide range of well-designed, functional home furnishing products at prices so low that as many

people as possible can afford them »

The concept ?

IKEA corporate web page

To keep the prices low and attractive

To create one single image everywhere

The target group ? « Many people »

6 marketing aspectsOF IKEA STRATEGY

(1) PRODUCT RANGE

Supposed to be the same everywhere

10 000 ItemsVery small adaptations

The Swedish product names are also used in store and in the catalogue

(2) THE STORE

Store format standardised with 3 different sizes

Two levels

Same layout everywhere :signage, displays, design and

colors

Goal the same shopping experience

(3) CATALOGUE

70% of the annual marketing budget

17 languages

22 countries

Standardised layout

(4) PRICES

To deliver high value at low price

The price is relative and compared to the marketing in each country.

Results ? Different prices on the same product in different countries

(5) IKEA Family

Loyalty program including a magazine, special assortement of products in store

The content is different between countries and the most of this promotion doesn’t exist

(6) ADVERTISINGResponsability of the local store manager

Copenhague, Danemark

The strategic work with the press differs between countries

New York, USA

Advertising

IKEA Family

The catalogue

The Store

Products and products range

Standardised approach to the

world

Local

Global

Prices

(1)

(2)

(3)

(4)

(5)

(6)

High-level of standardisation with some adjustments

Standardised approach to the world

Adaptation or Standardisation ?CHINA EXAMPLE

CHINA IKEA“IKEA” is a well-known brand. Chinese buy less when they visit. They visit more often than everywhere : 33 per cent come every month. The food has been changed : a wok, and a lid added with a special set of teacups. New specific model of sets and special balcony because many Chinese live in flats. The image of IKEA is not low prices, in China it is the opposite : western retailer and the store is for higher-middle class. Chinese IKEA store are sourced in China to reduce costs. Store are close to midtown. Home delivery service is common in China and often used. Chinese standards. Focused on culture-specific aspects.

CHINA IKEA

Comparing IKEA China to IKEA elsewhere ?

Websites from all over the world

France

Italy

Switzerland

Websites from all over the world

China USA

Establishment

There are limits to how far a business can go in standardisation

High level of strandardisation is possible on markets similar to the

domestic. With different conditions, standardised

concepts must be changed in order to be attractive.

IN CONCLUSION ?

IKEA Concept is a standardised one but the strategies and the marketing

activities to realise the standardised concept may have to be adjusted to local

marketing conditions.