Quiz 3

Submitted by:
Mubashir Hassan Khan

Uw-17-mgt-bba-046

Submitted to:
Sir Ahmed Ali

Subject:
International Marketing

Department:
MANAGEMENT SCIENCES

“Goals that are not WRITTEN are not goals, they are
wishes that will never happen. WRITE it down”
Case study Summary Ikea (Connecting with Customers)

IKEA is one of the biggest furniture companies in the world founded by a

carpenter named Ingvar Kamprad who was 17-year-old, in Sweden in

1943.

IKEA is a globally renowned furniture retailer that sells ready-to-

assemble furniture, kitchenware and home accessories.

The company started with selling pens, wallets, jewellery with the

concept of meeting consumers demands at the most affordable prices.

After five years into the business, IKEA brought in the furniture. Since

then furniture has been the mainstream for the business.

IKEA furniture is now a well-known multinational brand.

They follow Price-leadership model. Low prices are the main concern

stone of the IKEA vision, business idea and concept.

In the world of IKEA furnishings, the products are named after Swedish

towns like Aneboda, Akurum and Anordna. But the costumers worry less
about the names and care more about how much they cost.

Ikea furniture is a beacon for bargain hunters. Its whole business model
evolves around selling their product at the lowest price possible. IKEA
business model revolves around their vision which is – offering a very
wide range of well-designed, functional home furnishing products at so
low prices that as many people as possible will be able to afford them.
Anybody can make a high-quality product for a high price, or a poor-
quality product for a low price.

IKEA follows a different approach, they have developed methods that

are both cost-efficient and innovative.Before designing the product they
decide the price tag. Their designers begin with designing of the product
after keeping the price

 Ikea is the third-largest wood consumer on the planet. Being the

leading furniture company it should not be shocking.
 IKEA is claimed to print more copies of its annual catalogue each
year than the bible.
 IKEA has very good food sales. Being known for its furniture has a
very good taste when it comes to their restaurant. This can be a
great contribution to their revenue as they have an approximate
sale of 2 billion annually.
 As in 2014, they have 716 million visitors to their store. This is a
very huge number.
 The first IKEA restaurant was launched in 1956 to feed its
customers that would feel hungry after spending the whole day
shopping.