Marketing Excellence

IKEA
Group Members:
Ch. Usman Ali Bushra Javed Hassan Raza Mahnoor Malik Tehmas Zaki

1. What are some of the things IKEA is doing right to reach consumers in different markets? What else could it be doing? IKEA is a Swedish company registered in the Netherlands that designs and sells ready-toassemble furniture (such as beds, chairs, and desks), appliances, and home accessories. IKEA is founded in Sweden in 1943 by a 17-year-old Ingvar Kamprad and is known globally for its modern architectural designs and its interior design work is often associated with ecofriendly simplicity. IKEAs vision is to create a better everyday life for the many people. IKEA is leader in furniture retail and consists of 300 stores around 38 countries and still expanding. It is successful because it provides unique Value preposition1 to its customers at extremely low price. Value preposition is the core marketing strategy that IKEA is using to get global customers. IKEA is convincing potential consumers by claiming and by practically doing it that IKEAs products and services will add more value than other similar offerings at lowest possible price. IKEAs mission of providing value at lowest possible price predicated on Kamprads statement that People have very thin wallets. We should take care of their interests. IKEA adheres to this policy by reducing prices across its products by 2% to 3% annually. To get its mission IKEA procures its raw materials from multiple companies all over the world and thus it can save a lot of money and charge low price to the customers. Today IKEA works with approximately 1300 suppliers from 53 countries. When IKEA expands in new country, it studies that countrys market and do consumers need analysis and then designs products to cater that countrys needs. When it expanded in China, IKEA gave importance to the local taste in China. They placed plastic placements with Year of the Rooster themes which sold to thousands of people quickly. When IKEA realized US shoppers were vases as drinking glasses because they considered IKEAs regular glasses were too small. So, they customized the size to fit the needs of the US markets.

A marketing statement that summarizes, why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

Some of the great things IKEA does to reach consumers are given below:

IKEAs products are stylist and customized. Wide range of products according to the need of customers. Low priced furniture store provides reassemble furniture and casual furniture. Products available for different sections of the society. Product adaptation according to the need of different market. Diversify product line product depth. Concept of flat packaging which makes it easier to consumers to transport the furniture

IKEA earns a huge amount of revenue because of its low price strategy from consumers around the globe. However, IKEA does not have stores in South Asian markets. South Asia has a huge market for furniture especially in Pakistan. Due to its low price strategy and with its innovative products , IKEA can make its roots in Pakistan with no much completion as there is not much companies exists. Besides, India, Bangladesh can be a profitable market for IKEA.