HOW

ALTEREDTHE WORLD OF FURNITURE

FOUNDED BY : INGVAR KAMPRAD

1943

“one-stop sanctuary for COOLNESS”

“the QUINTESSENTIAL cult brand.”

THE PROBLEM THAT IKEA SOLVEDLEADING EDGE KNOCK DOWN FURNITURE

LOW PRICE

EASY TRANSPORT

BEST CUSTOMER EXPERIENCE

VISIONTO CREATE A BETTER

EVERYDAY LIFE FOR THE MANY PEOPLE

“PEOPLE HAVE VERY THIN WALLETS. WE SHOULD TAKE CARE ABOT THEIR

INTERESTS”

MIND BOGGLING STATS771

MILLION800 MN.CUBIC FT.$37BILLION5.94 LACSQ.

FEET

ANNUAL VISITORS IN IKEA STORES, 2015

PRODUCT IS SOLD ANNUALLY

REVENUE OF IKEA WHICH IS GREATER THAN GDP OF

SERBIAAREA OF THE IKEA STORE AT

STOCKHOLM

GENERAL STUDY ON CUSTOMER RELATIONS

CULTURAL FACTORS

SOCIAL FACTORS

PERSONAL FACTORS

AGE, STATUS

PERSONALITY, SELF-CONCEPT

ROLES, STATUS

FAMILY

REFERENCE GROUPS

REASONS WHY IKEA

IS GENIUS

AT MARKETING!!!

IKEA SERVES LOCAL TASTES

ALL AROUND THE WORLD

ANNUAL PRICE DECREMENT OF

2% T0 3%

EXCELLENT CUSTOMER EXPERIENCE

DEMOGRAPHIC CONSIDERATION

SOCIABILITY AND CHARITY

IKEA FUNDS PROJECTS RELATED TO

CHILDREN WELFARE, EDUCATION AND ENVIRONMENTAL IMPROVEMENT

IKEA ADVERTISEMENT CAMPAIGNS

IT’S HARD TO BELIEVE BUT…..

Some ad campaigns:• Start

something new

• Wonderful life

• Happy inside

• The joy of storage

• Kitchen music

What are some of the things IKEA is doing right toreach consumers in different markets?

LEADING EDGE LOW COST FLAT PACK FURNITURE

COMPANY CATERS TO LOCAL TASTES

CUSTOMER FRIENDLY STORES

• ONE WAY FORMAT• LOW AND CHARMING

LIGHTING• CHILD CARE• CAFETERIA, FOOD

ZONES• BEAUTIFUL VIEWS

OUTSIDE

WHAT ELSE IKEA SHOULD BE DOING TO REACH CUSTOMERS IN DIFFERENT MARKETS

Improved store location

Expansion in eastern countries

Website upgradation

IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy

PROSPECTS

VARIETY

LOCAL TASTES

CATERED

LOW TRANSPORT

COST

BEAUTIFULLY DESIGNED STORES

CONSEQUENCES:

LONG TRAVEL DISTANCES FOR

STORESDELAYED

COMMUNICATION DUE TO MANY CUSTOMERS

CONSEQUENCES CONTD…

HORRIBLE DELIVERY DELAYS

SOMETIMES, MONOTONUOS

ASSEMBLY

SUMMARY:• BEST REASON TO GIVE ABOUT MARKETING

EXCELLENCE OF IKEA IS IT CATERS LOCAL TASTE AT LOW COST ALL AROUND THE WORLD.

• IKEA IS WELLKNOWN FOR HOLISTIC MARKETING.• IKEA SHOULD ALSO EXPAND ITS MARKET IN

EASTERN COUNTRIES LIKE INDIA.

Prof. Sameer MathurRidham patoliya

Created by Ridham Patoliya(NIT, Jaipur) during an internship with

Prof. Sameer Mathur (IIM, Lucknow)Duration: 13 June, 2016 – 10 July, 2016