A deep dive into all about IKEA

Hello,
Let’s see where IKEA started:
1 Ikea was founded in 1943 by Ingvard Kamprad
2
when he was 17.
3
Initially, Ikea sold almost everything including pens,
4
wallets, picture frames, watches and even ladies
stockings.
5
Catalogue - 1951
6
Distribution - county milk vans
7
Expansion:
8
1970s - Germany, Australia, Austria, Canada
9
1980s - USA and UK
1990s - China, UAE, Spain, Poland
2000s - Russia and Japan
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9
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7
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Corporate
Structure
 Vision
1

2 “To create a better everyday

life for the many people”
3

6
Mission
7 “To offer a wide range of well-
8 designed, functional home furnishing
9 products at prices so low that as
many people as possible will be able
to afford them”
 Range
1

5 LOW
6
PRICE
7
FUNCTIONS DESIGNS
8
UNIQUE
PRODUCTS
9
 Ikea store:
1
Design:
Large blue building with yellow accents and
2 very few windows
Layout: Furniture and products are arranged in
3 a way in which they can be arranged by the
customer, followed by other small products and
4
A final large warehouse that has all the
furniture packed in a box with the respective
5 code.
New IKEA has more glass to reduce electricity
6
costs.
“AS-IS” corner - used or minor defective pieces
7 are sold at significant discount.

8 Location:
9 Located outside of cities - land cost and traffic
access
Small store formats - failed (Ottawa, 9300m^2)
Traditionally - 400,000 - 500,000 sq ft
 Ikea store:
Features:
1
1. Timings
2
a. Long opening hours (9 am to 8 pm)
b. Operations - 24/7
3 c. Longest open store - IKEA Croyden (10 am to
12 am)
4
2. Restaurants
a. Serves traditional Swedish foods - mashed
5 potato, meatballs and curry with lingonberry
sauce
6 b. Hot dogs and hot drinks
c. Free refills of coffee, tea and soft drinks
7
3. Grocery Store
8 a. Swedish snacks, meatballs, Salmon, Pre-made
Swedish curry and other delicacies
9 4. Child care
a. Småland - Child care for 3 to 10 years kids
b. includes slides, seesaws, swings, a ball pit and
cartoons
c. caretakers take care for FREE!!
 Ikea Products :
1
Ikea Products names are Swedish in
2
It is based on a special naming system developed by IKEA in
conjunction with Colin Edwards
3

4
Upholstered furniture: Swedish placenames (for example:
Klippan)
5
• Beds, wardrobes, hall furniture: Norwegian place names
• Dining tables and chairs: Finnish place names
6 • Bookcase ranges: Occupations
• Bathroom articles: Scandinavian lakes, rivers and bays
7
• Kitchens: grammatical terms, sometimes also other names
8 • Chairs, desks: men's names
• Materials, curtains: women's names
9 • Garden furniture: Swedish islands
• Carpets: Danish place names
• Lighting: terms from music, Day, Months , chemistry
 Ikea Products :
1

• Bedlinen, bed covers, pillows/cushions: flowers, plants, precious

2
stones
3 • Children's items: mammals, birds, adjectives
• Curtain accessories: mathematical and geometrical terms
4 • Kitchen utensils: foreign words, spices, herbs, fish, mushrooms,
fruits or berries, functional descriptions
5
• Boxes, wall decoration, pictures and frames, clocks: colloquial
expressions, also Swedish place names
6

9
 Catalogue :
1
IKEA publishes an annual catalogue. First published in
2 Swedish in 1951,
published in 55 editions
3 27 languages for 36 countries

5
Loyalty programe:
6
IKEA has launched a loyalty card programme called "IKEA
7 Family."
Family Event
8

9
25%
25%
 Marketing
1 Branding:
Blue and Yellow - reflect the Sweden
2 Flags
Customer-centric approach
3 Flat - pack concept and DIY ethos
Global Consistency with local
4 adaption
Brand Communication:
5
1. Commitment to design, value and clever
6 design
2. Extensive product range for all home
functions
7 3. Functional and appealing home
furnishing
8 4. Value for money
5. Attractive, Practical and easy to use
9 6. Rigorous quality and safety standards
7. All under one roof, Self-service
shopping experience
8. Family-friendly store
9. Emphasis on Swedish culture and ethos
 Marketing
1 Marketing mix

2 1. Product:
a. Offers a wide range of functional, quality-
tested home furnishings designed for
3
everyday use and sold in flat-pack form.
2. Price:
4
a. Maintains affordable prices through
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creative use of materials, efficient
production, and bulk purchasing to ensure
6 good value for money.
3. Place:
a. Operates globally with large stores that
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provide an immersive shopping
experience, complemented by a robust
8 online platform
4. Promotion:
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a. Utilizes catalogs, innovative advertising,
in-store promotions, and strong customer
engagement to showcase products and
brand values.
 Marketing
1 Manufacturing
Developing countries - cut costs
2 Supplier - from 50 countries: 2/3 from Europe
and 1/3 from Asia
3 Sweden is the 4th largest supplier (after
china, Poland and Italy)
4 China supply = 2.5X Sweden

5
Distribution:
Everyday - 10,000 pieces of furniture,
6 manufactured by 1600 suppliers and
transported to 186 Ikea stores
Hallmark of IKEA
7
Large Volumes + Flat Packs = Low-cost
Flat packing - minimize “wasted space” to
8 increase “filling rate”
In future - 40% through Rail in Europe
9
Environmental Performance Sheet - Tracks
the contribute of the fright company to the
environment
 Social and Environment
Initiatives
1
1. Charitable Giving
a. INGKA Foundation - $36 Billion (net worth)
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b. 2004-2005: donated $1.7M to Lund Institute of Technology
3 c. 2005 - $1.5B donated to Gates Foundation
d. UNICEF
4 i. 2004 Tsunami: Donated blue bags
ii. 2006 Pakistan earthquake: 5,00,000 Blankets
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iii. Liberia: Provided furniture for over 100 bridge schools
6 iv. 2008 Sichuan Earthquake: Sold toy alligators to raise funds for
children
7 e. Supports American Forests to restore forests and reduce pollution
2. Social Initiatives
a. IKEA Social Initiative - September 2005- managed by Marianne Barner
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b. Main Partners - UNICEF, Safe the Children
c. Feb 2009 - IKEA became UNICEF’S largest corporate partner - $180 M in
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commitments
d. Contributions:
i. € 1 to UNICEF and Save the Children per soft sold during holidays,
raising € 16.7 M
ii. Provided soft toys to children in cyclone-affected Myanmar
 Social and Environment
Initiatives
1
3. Environmental Impact
1990 - IKEA invited Karl-Henrik Robert
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1992 - Environmental Action Plan
3 Measures taken:
Replaced PVC in various products, phasing out in
4 electric cables.
Minimized formaldehyde use.
5
Produced OGLA chair from 100% post-consumer plastic.
6 Introduced air-inflatable furniture to reduce materials
and transport weight.
7 Reduced chromium use in metal treatment.
Sourced wood from responsibly-managed forests.
Used recyclable and "pure" packaging materials.
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Introduced rental bicycles with trailers in Denmark.
Offered reusable plastics bags
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Recycle bins got CFLs, energy-saving bulbs, and batteries
2001 - Operated cross-border freight trains in Europe.
2008 - Created IKEA GreenTech, a €50 million fund for
green technologies
 IKEA creatives

8 “PROUDLY
9 SECOND”
Campaign
Facts & Figures
Annual Revenue
Thank you!
By,
Shalini
Aadhi Shakti