•1943 – Ingvar Kamprad

founds IKEA at the age of

17

•The name IKEA is formed

from the founder's initials

(I.K.) plus the first letters of

Elmtaryd (E) and

Agunnaryd (A), the farm

and village where he grew

up.

COMPANY HISTORY

IKEA has evolved into the

largest furniture retailer in

the world,

with approximately 350

stores in 43 countries and

revenues topping $36billion,

in 2013.

A play on the infamous

Absolut ad campaign,

IKEA actually placed

furniture and created a

3D billboard mocking

the set up of a New York

apartment on this

billboard in Soho.

AD CAMPAIGNS:

This cart on wheels served

as a mobile showroom, full

of IKEA furniture, with

transparent windows and

literally strolled through the

streets of Chicago.

Environmental Awareness

Charging for plastic bags

IKEA Soft Toy Campaign

IKEA and WWF

IKEA began to

flat pack

furniture to cut

costs and ship

easier

Ikea has recently designed

assembly instructions that

use pictures instead of

words which eliminates

having to print different sets

in different languages

Strengths• Strong brand recognition

• Various operations• Established• wide variety of items• Product differentiation

S

Weaknesses• Recalls on IKEA products

• Few outlets worldwide

• DIY might not be appealing

to other consumers

• Dependency on Europe

W

OpportunitieS• Online retail shopping

• Expansion

• Increasing influence of

social media

• International presence

O

Threats• Competition

• Increases in steel prices

• Emergence of highly-

competitive, alternative

furniture shops.

T

IKEA’S COMPETITORS

U.S. Competitor: Euromarket

Design, Crate and Barrel

France Competitor: Conforama

China Competitor: Qingdao

BOFA Furniture Company

Limited

What influences consumer Behaviour?

Different Cultures Different Values

CULTURAL FACTORS

Cultural Perspectives on IKEA

THE UNITED STATES

CHINA

FRANCE

IKEA in France

IKEA: a fashion brand

A unique experience

Convenient services

Ikea in United States

• 34 current IKEA locations

• Adding additional 3 locations soon

• Original IKEA in Philadelphia in 1985

• On Fortune 100 Best Companies to Work For

IKEA in China

• 4 Stores

• CONSUMERS

• Price

• Services

• Materials

• COMPETITIORS

• B&Q

• Home Depot

• Illinois

CONCLUSION

• Since IEKA’S target customers are the middle class, they

should extend their retail services to Emerging Market

Economies where middle class population is rapidly

increasing.

• IEKA should increase sourcing its supply from emerging

markets, which are characterized by low cost labour to sustain

its competitive advantage.

DISCLAIMER

Created by Shanthan Reddy,

NIT Surat, during a marketing

internship by Prof. Sameer

Mathur, IIM Lucknow.