brand discussion - ikea

8/2/2019 Brand Discussion - IKEA

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Presented By: Julia Hazleen RostamMatric No: 112007962

Date: 4th April 2012



Company Overview IKEA’s Vision, Business Idea and Market

Positioning Statement Product Positioning IKEA Catalogue Product Strategy Promotion Strategy

Products Sold by IKEA IKEA’s Concept Summary

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IKEA is a private limited company owned by afoundation controlled by the Kamprad family. INGKA Holding B.V. is the parent of all IKEA group

companies. IKEA is an international home products company

that designs and sells ready-to-assemble furniture. World’s largest furniture seller. Founded in 1943 by 17-year-old Ingvar Kamprad in

Sweden. Company is named as acronym comprising the

initials of the founder’s name (Ingvar Kamprad), thefarm where he grew up (Elmtaryd) and his homeparish (Agunnaryd, in Smaland, South Sweden).

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Started off by selling everything from pens andwallets to watches and nylon stockings by goingdoor to door and selling directly to his customers.

By 1945, the first advertisements for IKEA beganshowing up in local newspapers.

Only in1951, Ingvar began to focus only onfurniture and discontinued all other products fromthe IKEA product range.

The first IKEA furniture catalogue was publishedthat same year and 2 years later, in response tocompetition, the first furniture showroom opened

in the village of Älmhult. This same competition caused other furniture

stores and manufacturers to put pressure onsuppliers to boycott IKEA which led to the criticaldecision to design their own furniture beginning in

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In 2008, IKEA boasts 285 stores in 36countries, with an additional 26 stores to beopened in 2009 and is the world's largestfurniture manufacturer.

IKEA is the world’s most successful mass-market retailer

Sells Scandinavian-style home furnishings

and other house goods IKEA's stores feature playrooms for children

and Swedish cuisine restaurants.

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The IKEA vision, business idea and marketpositioning statement provide a framework for allIKEA marketing communication worldwide.

The IKEA vision is “To create a better everyday life

for the many people”. The IKEA business idea is “To offer a wide range of

well designed, functional home furnishing productsat prices so low that as many people as possible

will be able to afford them”. The IKEA market positioning statement is “Your

partner in better living. We do our part, you doyours. Together we save money”.

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Cultural strategy (use of Swedish flag & style) The company designs its own furniture, which

is made by about 1,500 suppliers in morethan 50 countries

The suppliers and designers work tocustomize some IKEA products to make themsell better in local markets.

By developing stylish retail outlets Spending huge amount on advertisement

(e.g.: IKEA catalogue)

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The IKEA catalogue is the main marketing tool witharound 70% of the annual marketing budget beingspent on this alone.

It is produced in 38 different editions, in 17

languages for 28 countries. 110 million catalogues were circulated last year

with 13 million of these being available in the UK.

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IKEA offers a wide range of well-designed, functionalhome furnishing products at prices so low that as manypeople as possible will be able to afford them.

IKEA continuously find ways to develop methods thatare both cost effective and innovative to continueselling goods at low prices while at the same timemaintaining the quality of their goods.

Design its own furniture to adapt to customer’s needs.

Low priced furniture store that provides reassemble

furniture and casual furniture. Most of IKEA’s products are stylish and trendy.

Comes in flat packaging which makes it easier forcustomer’s to transport the goods.

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High profile advertisement campaigns (spendinghuge amount of money to print their catalogs)

Billboard , TV and Radio advertisements

Upon entry to IKEA store, shoppers are guided

properly Only one entry point and one exit point in the store

which requires customers to pass through all theirproducts available in store

Online shopping Provides home delivery services

Provides after sales services to the customers

Online advertisements

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Its signature feature is the flat packedproduct that customers assemble at home,thus reducing transportation costs.

Country specific management style Standardized retailer selection Is based on the market positioning statement.

"We do our part" focuses on IKEA’s commitment to product design, consumer

value and clever solutions. Maintain low prices by using inexpensive

materials in a novel way and minimisingproduction, distribution and retail costs.

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The IKEA product range is developed to beextensive enough to have something thatappeals to everyone and to cover all functionsin the home.

The products are modern and are practicalenough for everyday use.

Low price while promising good value for

money.

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Functional Design Approach

◦ IKEA design means products that are attractive, practicaland easy to use.

◦ They don't have unnecessary features, they give genuine

solutions for specific home furnishing needs and aremade of the most suitable materials for their purpose.◦ The quality of a product must be appropriate for the

intended use. For example there is no need for an expensive back panel on

a bookcase if a less expensive alternative does a good a jobas long as the bookshelf is used for the purpose it wasintended for.

◦ IKEA products are subjected to rigorous tests to makesure that they meet national and international safetystandards.

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Convenient Shopping

◦ The IKEA store offers "everything under one roof", mostof it available for immediate take-away. IKEA offersservice where you need it, but allows customers to make

most of the decisions themselves. Stores are giving consumers a look at what model homes

could look like with their products. This lets the consumer look and see how they can fit these

ideas into their own home. They do not stop there though as many rooms are also

designed in a way to let your imagination grow by showingwhat can be done in such a limited space.

This means that we need to make it easy to choose the rightproducts by displaying them correctly, describing themaccurately and having a simple returns policy.

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Convenient Shopping (continued)

They have no salesman who is going to try andpressure you to buy something.

Self service type atmosphere, but you're not alone.

Staffs are there to help you and answer questions, butnot to pressure you into a sale.

IKEA has got this method down quite good and theway they are growing this concept seems to be doing

the job for them. It's refreshing to be able to walk around the store

without having everyone hounding you to buy a certainproduct

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A day out for the whole family

◦ IKEA aim to look after our customers by planningfor their needs.

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IKEA not only provides inspiration and ideas, butthey also encourage people to touch, feel and usethe products on display to see how they would fitinto their own home.

◦ IKEA have new products arriving all the time,seasonal themes, play areas for children, specialevents and a great value family restaurant.

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IKEA is a private limited company founded in1943 by Ingvar Kamprad in Sweden.

IKEA is the world’s largest home furnishingproducts seller that designs and sells ready-

to-assemble good quality products ataffordable price to many people.

IKEA offers convenient shopping with“everything under one roof” and model

homes for customers to visualize how theirhomes would look like with IKEA products.

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Low cost Ludicrous commercials Social and ethical responsibility Unique brand identity (blue-and-yellow

buildings) Fair quality Voucher promotions Large inventory & parking space Impulsive shopping experience Family experience

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brand discussion - ikea

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