ikea marketing excellence
TRANSCRIPT
To create a better everyday
Life for the many people
IKEA was foundedby Swedenamed Ingvar Kamprad In 1943
Their aim is manufacturehigh quality furniture ata very low price
“People have very thin wallets. We should take care of theirinterests”-Kamprad
1%-3% reductionannually in price
But How?
Do ityourself (DIY) delivery andassembly
Buys material in bulk Uses solar power
Store at a good distance outside of city
Great number of suppliers
•Furniture comes in boxes
•We have to assemble it ourselves
IKEA understands different socialand cultural factors in different countries
DIY strategy inCountries like US and UK
Delivery service in India and China
Building Customer Relationships
Builds customerloyalty
Post-PurchaseSatisfaction
Advertising Campaigns
Offers and Promotions
What else it can do?
Expand in poorer African and Asian countries
Expand Social media marketing
There is a need to raise the standard ofLiving in these third world countries
Low prices can help them lead a betterlife
PROS
Low costattracts consumers
Products arerememberedby names
Innovate productsaccording tothe need
Unforgettable shopping
experience
Ecofriendly and recyclable products
One stop destination for furniture
CONS
Far away from city
No home DeliveryCan prove costly
Service is limitedto shopping mall
GrowthIKEA faces stiff competitionfrom Amazon, Walmart, Target, Ebay, Costco
Retail stats
What leading magazines have to say?
Business week- “One stop Sanctuary for coolness” - “The quintessential cult brand”
Forbes -How IKEA Delights Its Customers
The Economist- The secret of IKEA's success
Together we save money
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SUMMARY
Background of IKEA Great quality furniture at affordable prices Recognize needs of the people Pros and Cons of its marketing strategy Advertising and Promotions Retail stats and competitors
DISCLAIMERCreated by Suyash Mulay,VIT Vellore, During the marketing Internship under Prof. Sameer Mathur