Marketing Case Study: Overview Of IKEA

Low prices are one of the cornerstones of the IKEA concept which attrack their customers to but their products. This low price strategy is coupled with

Ikea is a Swedish international home products company that designs and sells ready-to-assemble furniture. It was founded in 1947 by 17-year-old Ingvar Kamprad, who currently is one of the richest people in the world. He borrowed some money for his parents and create a small local furniture store, 65 years later Ikea is one of the leading home furnishing companies in the world with its vision to ‘’create a better everyday life for the many people’’ (Kamprad). The company’s 2011 sales jumped 6.9 percent to €24.7 billion and its net profit rose 10.3 percent to €2.97 billion ($3.85 billion) (Local, 2012).

Product : IKEA’s product range is wide in several range. As we can see on the pictures, IKEA sells home furnishing, other house goods such as accessories. IKEA also offers restaurants and food stores. The logo of the brand is also very popular and and recognizable all over the world.

IKEA is rumored to be a very standardized retailer, i.e., a certain set of marketing strategies is used that are the same around the world. This indeed sets IKEA, operating on markets in Europe, US as well as Asia and Australia, apart among international retailers. Often the theoretical conclusions in international

IKEA is a privately held, international home products company that designs and sells ready to assemble furniture such as beds and desks, appliances and home accessories. The company is the world's largest furniture retailer. Founded in 1943 by 17 year old Ingvar Kamprad in Sweden, the company is named as an acronym comprising the initials of the founder's name (Ingvar Kamprad), the farm where he grew up (Elmtaryd), and his home parish. IKEA has 300 home furnishing superstores in 35 Countries and was visited by some 583 million shoppers. IKEA’s low priced elegantly designed merchandise displayed in large warehouse stores, generated sales of $21.2 billion in 2008, up from 4.4 billion in 1994. The fledgling company sold fish,

The company is known for modern designs, in various appliances and furniture, and its interior design work with eco-friendly simplicity. Furthermore, the firm is known for its cost control, operational details, and continuous product development. These corporate attributes allowed IKEA to lower its prices, during a period of expansion.

IKEA’s vision is “to create a better everyday life for the many people” and its business ideas support the vision by “offering a wide range of well-designed, functional home furnishing products at prices so low

The IKEA is unlike from other competitors as it offers a broad range of well designed collection of home furniture at very low prices that stay inexpensive to various customers so many people are able to manage to pay for the IKEA products.

IKEA is one of the most successful manufacturing and retail furniture companies operating in today’s global marketplace. IKEA manufacture from the bottom up, top down furniture that offers environmentally friendly, state of the art designed furniture that is both affordable and attractive to its customers via their online, catalogue and worldwide distribution channels, with a logistics network that are low cost footprints with the enforces on cost efficiencies couple with technology, product design, excellence and customer satisfaction. IKEA was founded by Ingvar Kamprad in a small village in Sweden. Its Scandinavian–style home furniture offer attractive designs at affordable prices. And IKEA is obtainable from 275 stores

The IKEA group sells quality furniture at a low price, to maintain a strong competitor. For that, the company has to try to cut cost without losing quality in the products that it sells.

IKEA aims to deliver all five of its brand attributes including low price, sustainability, form, function, and quality. However, Sykes acknowledged that low price is the first driver in product development. Unlike the most companies’ product development process that starts with consumer trends or competitive whitespace, IKEA starts with a target price point. Doing so keeps IKEA true to their commitment to providing better everyday life for the many people. Sykes said: “True innovation comes when you design quality furniture that’s affordable by

All the products are designed so it would be easy to transport and assemble. Moreover, the company offers the widest product range and positive shopping experience. All of these factors are aligned with what customers want and need and which results in higher sales. Without such extensive customer knowledge and best practices to benefit from that knowledge, IKEA would be unable to outcompete its current competitors. Constantly using innovations to drive costs

IKEA is a globally known home outfitting retailer. It has developed quickly since it was established in 1943. Today it is the world 's biggest furniture retailer, perceived for its Scandinavian style. The greater part of IKEA 's furniture is level pack, prepared to be gathered by the shopper. This permits a lessening in expenses and bundling. IKEA conveys a scope of 9,500 items, including home furniture and embellishments. This wide range is accessible in all IKEA stores and clients can arrange a great part of the range online through IKEA 's site.

In general, it can be said that IKEA’s product range is quite broad and versatile in many different ways. Shopping at IKEA, you may find anything you need for your home under one roof, be it furniture or cutlery, lamps or curtains, pans or toys or even entire rooms, in short anything that helps you to functionally make your home a better place for living. In fact, the range of different styles is probably not too wide, missing over-decorated and premium styles, however the “broad mass”‘s tastes might be satisfied by IKEA’s choice. Another big plus is the typical “IKEA-style”. The products offered there are different and often you are able to distinguish between IKEA-products and other products only by looking at them, which is certainly not a bad thing. What makes IKEA products so special is that even though they are relatively cheap, they do not have this “cheap”

Swedish company IKEA is a mass market producer of cheap and stylish home furnishings that appear to transcend national boundaries. The company was founded in 1943 by Ingvar Kamprada small town handyman from southern Sweden, who devised the company name by combining his initials with the first initials of his farm (Elmtaryd) and the parish (Agunnaryd) where he was raised. Today IKEA’s business mission is clear. In the words of the company founder, “We shall offer a wide range of furnishing items of good design and function, at prices so low that the majority of people can afford to buy them.”