IKEA’S GLOBAL MARKETING STRATEGY

INTRODUCTION Founded:1943 in Älmhult, Småland, Sweden Headquarters: Leiden, The Netherlands Industry: Retail (Specialty) Products: self-assembly furniture Revenue: $35.7B USD (FY 2015) Employees: 134,000 (2015) Website: www.ikea.com

2

INTRODUCTION Acronym- I (Ingvar)-Founder’s first name K (Kamprad)-Founder’s last name E (Elmtaryd)-Farm where he grew up

A (Agunnaryd)-Home village Logo - Blue & Yellow; The colors of Swedish National Flag.

3

HISTORY 1943: founded in Sweden by Ingvar Kamprad; 1951: published the first IKEA furniture catalogue; 1955-1956: designed own furniture tested to use flat packages for shipping; 2001: established IKEA Rail

HISTORY: FIRST STORE AROUND THE WORLD 1958: in Sweden 1963: in Norway 1969: in Denmark 1973: in Switzerland 1974: in Germany 1975: in Australia 1976: in Canada 1981: in France 1985: in USA 1987: in UK 1989: in Italy 1998: in China 2000: in Russia

5

265 shopping centers

36 countries

6

History: important designs in the past

1985: Niels Gammelgaard designed MOMENT Sofa.

1994: KUBIST Storage Units appeared.

MISSION STATEMENT

“The IKEA vision globally is to create a better everyday life for the many.

At IKEA Tempe we are dedicated to giving to the local community will being regarded by out customers and co-workers as a social responsible company"

7

FLAT PACK FURNITURE Invented by Gillis Lundgren Legs can easily be removed Can easily be dismantled and rearranged

MOMENT SOFA Launched in US in 1985 by Neil's Gammelgaard Went to supermarket trolley factory to make use

of their knowledge about strength and stability.

PS ELLAN(A DINING CHAIR) Adapt a wood fibre composite ( a cost- effective

Combination of wood chips and plastic resin) for

furnishings.

Boklok Homes Introduced in 2005 in UK Boklok was a flat pack house made up from timber Frames and could be either one or two bedroom homes.

SHOPPING EXPERIENCE

IKEA stores usually located outside urban areas isolated from other shops

IKEA products were beautifully crafted and appealing Building’s were 3,00,000 square feet in size and stock

about 7,000 items from kitchen cabinets to candlesticks. At the entrance of the store there is a playroom for the

children. The stores were constructed in a form of circle to allow

shoppers to view all sections of the store.

Furniture was aesthetically arranged as it would look home with accessories like night lamps, bed sheets, etc.

Things shoppers never put in their shopping list when displayed in IKEA stores and priced under 2$ seemed to be worth having.

Mallen clip one of IKEA’s hottest selling accessories used to hang magazines in bathroom and cost only 90 pence.

IKEA had a cafeteria located in the center to give shoppers a breather instead of winding up their shopping in a hurry.

LOCALIZATION IN GLOBAL MARKET:

US SCENARIOIn 1985,store were not spaciousStores location was not easily accessibleComparatively high priceOther problem :Sofa-not deep, short curtains, modular

kitchen, beds measured in centimetreAmericans were buying vases to drink as IKEA glasses were

too smallThey folded their clothes unlike Europeans who hang their

clothes

REMEDY

Bigger store locationWardrobes with deeper drawers for folded clothes, Bigger glasses

Prices were slashedComfortable sofaHigh Quality textilesImproved services

CHINA’S PICTUREDifferent in terms of taste and preferencesIn 1998,Sold Hong-Kong sized beds which were shorter than standard size bedsSpend most of the time in living roomStores inaccessible by public transportEither completely redesign everything or do nothing

REMEDY

Charged fee for home deliveryFee based assembly serviceIn-store instruction and design advicePublished brochures and catalogues Operated WebsiteHold contest before opening storesProvided certificates and vouchers

BUZZ AROUND IKEACreating and maintaining a curiosity was one the biggest reason for IKEA growth

Managed to pullout a popular promotional campaignFree vouchers, Gift coupons, Heavy Discounts for first 100 customers, were some of the Strategies which maintained the buzz around IKEA not to vanish

PROMOTIONAL MANTRASIKEA needed to adapt its promotional ways according to the region.Europeans like straight things while US loves witty taglines.In UK, they Launched ‘Stop being so English’ campaign, which was bold

but brought people to IKEAIn USA, IKEA build furniture based on the sets of popular TV series theme,

Ex: Gilligan island, Brady Bunch

TATTOO MAN: WITTY WAY TO REACH OUT CUSTOMERSThis ad campaign redefined IKEA Brand position inside

customer’s heart and mindFor instance : When we sweat here, its for labor and customers

does that its for its savingsDifferent symbols symbolized a character attached to itFor ex: lone wolf described that customers can wander around

freely, Bat described finding way in the dark, Scale showing Balance in Quality and price.

CONTROVERSIESIKEA’s Brand image became pulled customers as well as

controversiesCausalities occurred during opening of IKEA store opening

in Jeddah and LondonLong queue became tough to mange by the employeesComplaints for out of stock and bad after sales service

became frequentQuestions were raised about how long IKEA will maintain to

sustain in this market.