What makes it the cult brand that it is today ?

An inside look :

Brand ProfileSwedish lifestyle brand Multinational company World’s largest furniture retailer “Cult” brand , part of popular culture

IKEA’s Brand Personalities 1. Fun!!!

Fun PR campaigns , like “ambassador of kul(fun)” at IKEA Atlanta

Quirky product line up “Carnival atmosphere” at IKEA stores

2. Simple Uncluttered designs

Very simple constructs All products come in “easy to

assemble” forms

3.Cool IKEA has managed to become an important part of popular culture

4. User Friendly 4.1. Product experience : Elegant Simple Classy

4.2. IKEA Store experience “IKEA has essentially changed the way people shop for furniture”Box like structure One way format Customers can pick up products in a

warehouse after going through the store

Target consumer groups : 1.Millennials : By making the consumers associate IKEA with “fun and cool” , “sophisticated and classy “ .

IKEA achieves this by using wacky and quirky advertisements and campaigns

2. Working families IKEA Family card scheme “Trust” , “reassurance”“Loyalty” are core values

IKEA Smaland Children’s play area and creche Boon for working class single mothers

and fathers Enforces connections of IKEA with fun

in kids through building good memories

IKEA in-store restaurants CheapElegant ambience Opens before store timings Also consists of a food supermarket ,

inexpensive

Simple and accessible product catalogues and names

Cheap , affordable products and services

IKEA keeps selling prices low by 1.Cutting packaging costs 2. Sourcing parts and products from all over the world

3. Reducing land taxes and expenses by opening stores at a good distance away from city hubs

4. By saving Energy

IKEA tries to stay relevant to consumers who are conscious of their carbon footprint

IKEA saves energy by using low wattage light bulbs

IKEA recycles old products

IKEA has established a global network of loyal consumers by acknowledging the fact that different groups of consumers have different needs and wants

Customization is key

Post purchase actions Returned and damaged products are kept for sale in the “as-is” or the bargain corner at the end of the IKEA store Eco-friendly Cheap

SUMMARY :IKEA is a swedish , multinational lifestyle company that has acquired a cult status

It has established a link between its brand and values like fun , cool , simple , classy and user friendly in the minds of the users using a combination of product line , simple and uncluttered design and brilliant ad campaigns

Its target user groups are millennials and working families , and it appeals to them using strategies like creating a loyalty based family card scheme , operating restaurants , creches and using quirky ad campaigns

It has been very successful due to its ability to cut costs and provide inexpensive products to consumers and its ability to customize its products based on user ethnicity

It has established an eco friendly image

DISCLAIMER Created by NITIN. N , IIT Madras during a

Marketing internship under Prof Sameer

Mathur , IIM Lucknow

Image sources :

Flickr , Wikipedia , google images , adsoftheworld

Video source :

Youtube