In this write-up, we will talk about an internationally known home furnishing brand, which is IKEA, the largest furniture retailer in the world. We will know what IKEA is. What does "IKEA" mean? What is the vision of IKEA? What are the IKEA marketing strategies? So get ready to read a complete analysis of all these things for Ikea case study writing.
What Is IKEA?
IKEA is a Swedish-founded, Dutch headquartered multinational conglomerate that designs and sells ready -to- assemble furniture, kitchen appliances, and home accessories, among other goods and home services. The company was started in Sweden in 1943 by 17 years old Ingvar Kamprad. IKEA has been the world’s largest furniture retailer since 2008. It is the biggest furniture company in the world, with over 400 stores worldwide.
What Does IKEA Mean?
IKEA is an acronym of Ingvar Kamprad (founder’s name), Elmtaryd (the farm where the founder grew up), and Agunnaryd (the founder’s hometown). Rather than pronouncing it “eye- key–ah”, as most of us do, we should be saying “ee-kay-uh.”
The Vision of IKEA
IKEA’s vision statement is to ”Create a better everyday life for many people.” The mission of IKEA as a business is “to offer a wide range of well designed, functional home furnishing products at a price so low that as many people as possible will be able to afford them.” Their vision goes beyond home furnishing. They want to create a better life every day for all the people impacted by their business. IKEA loves these words because they capture the essence of its brand.
Marketing Strategy of IKEA
IKEA’s market positioning statement is “Your partner in better living. We do our part, you do yours. Together we save money.”
Product Marketing
IKEA understands the needs of its customers and target audience. Products offered by IKEA cover a wide range of outdoor furniture, baby and children’s products, eating, bathroom stage, desks, mirrors, beds, chairs, clothing storage, décor, and safety products. IKEA offers over 12,000 products in over 50 countries. IKEA keeps changing with the dynamic environment.
Price Marketing
Why did IKEA become so popular on a global scale? One of the reasons is that price strategy is deeply related to consumer behavior. IKEA uses new materials and innovations to continuously reduce costs. It focuses on cost control and efficient operational details, which is the main reason a large population is attracted to it.
Promotion Strategy
Integrating several channels of marketing communication such as print and media advertising, sales promotions, public relations, and direct marketing IKEA continuously tries to promote its products and tries to catch the audience's attention.
Place and Distribution Strategy
IKEA has a global distribution network. IKEA has over 30 + distribution centers and has business operations in more than 60 countries. Over 13,000 products are sold at more than 400 IKEA stores. Products are transferred from suppliers to IKEA stores directly. This reduces various types of costs, such as handling costs, taxes, and transport costs.
As a world-famous international company, IKEA is like fresh air in new target markets. There are so many reasons that make IKEA so popular. Follow the concepts and strategies mentioned in this IKEA Case study, to create analytical projects on other leading global companies.