Ikea Marketing Strategy

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IKEA’s Marketing Strategy
IKEA is a privately held, international home products company that designs and sells ready-to-assemble furniture. The company is the world’s largest furniture retailer. It was founded in 1943 by 17-year-old Ingvar Kamprad in Southern Sweden. As of October 2011, IKEA has 326 furniture stores, operates in 38 countries and engages 1,500 suppliers of 12.000 products. In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7 percent increase over 2009 (http://en.wikipedia.org/wiki/IKEA).
In 1995, outside the Milan fair, which is the most prestigious exhibition fair in the world for élite furniture designers, a sign declared: “Il design democratico” [“Democratic Design”]. The sign pointed to a building that
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Body Shop, IKEA, Tetra Pak). They outline the key distinctions between four marketplace orientations, namely sales driven, market driven, customer driven and market driving, on various elements of marketing strategy. They argue that market driving firms, such as IKEA, have a revolutionary marketing strategy, which focuses on how to change the rules of the game within the industry they have been operating. They destroy industry segmentation and replace it with a new set of segments reflecting the new, altered landscape. They have a forward sensing in terms of elaborating how the marketplace can evolve. While market driven firms listen to the voice of the market, market driving firms try to see differently. While market driven firms equalize their prices to perceived value, market driving firms establish new industry price points for the quality or service levels they deliver.
Given the radical new concept, the sales task for market driving firms is not to sell but rather to educate the customer on how to consume their essential value proposition. In this respect, IKEA had to teach customers the benefits of transporting furniture
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