Ikea Case Study

2106 Words9 Pages
MBAA 514:
Marketing Case Study of the IKEA Company

September 12, 2011
Embry-Riddle Aeronautical University- Worldwide Executive Summary IKEA (2011) has found a wide market in the discount furniture industry. The mission is simple- provide furniture to help everyone decorate as they like (IKEA, 2011). The company always strives to lower costs and pass savings to consumers (IKEA, 2011). It provides exceptional products which enabled the company to increase sales through the recession (Manners, 2009). However, IKEA’s advertising is limited to regional store locations and personal recommendations (Peter & Donnelly, 2009). This level of advertising leaves consumers oblivious to IKEA’s brand. This analysis recommends that IKEA
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Marketing Chief, Bill Agee, some of the largest segments of shoppers are young families and individuals who are just starting to live on their own (Manners, 2009). IKEA (2011) strives to offer quality furniture at exceptionally reasonable prices for these consumers. IKEA (2011) customers must also be willing to assemble their furniture as most of the products come unassembled in order to lower prices and ease transportation.
The furniture industry has a high level of competition, specifically for discount retailers. Many discount furniture retailers offer similar products and pricing as IKEA. Additionally, there are several options for consumers to acquire free furniture. IKEA has made great strides to reduce costs and pass these savings to its customers. However, the dwindling economy may force many potential customers to delay furniture purchases or make due with less expensive, used furniture.
Goals, Mission and Vision. The IKEA (2011) vision is to “create a better everyday life for the many people.” It attempts this by providing desirable furniture at prices that are affordable for most consumers (IKEA, 2011). IKEA (2011) is constantly striving to improve their efficiency and continually lower prices in accordance with their mission.
Financial Condition. Despite the recession IKEA (2011) managed to increase sales 7.7%, to 23.1 billion EURO. IKEA’s (2011) mission to keep prices low gave it the ability to

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