Ikea s strategy for building a strong global brand

He began by selling pens, wallets and watches by going door to door to his customers. Figures for this privately-owned company are a closely guarded secret but analysts estimate it has a market worth of 3bn. In China, however, it faced peculiar problems.

Ikea’s global strategy is a winning formula

The two organizations are working together to address the root causes of child labor in several parts of the world including India and Pakistan. As Gillis Lundgren was struggling to squeeze a table into the boot of his car, he decided to take its legs off.

It sells good quality and durable but affordable home furnishing products. The catalog is available both in print and online. The target market of IKEA is mainly the global middle class.

It has also released an app and is using augmented reality to provide customers with a better experience. The middle class consumers generally look for products that are good in terms of design and quality and come for low prices. IKEA uses a variety of promotional techniques to promote its brand.

Apart from these things, IKEA is working to improve the condition of migrant workers as well as that of social entrepreneurs and children in disadvantaged communities. In most markets, the company uses its product catalogue as a major marketing tool.

Ikea - brand of the many

It was not essential that the furniture or the glasses popular in Sweden were going to be loved in US or UK too. This will mean the first store will take much longer to open than Indians expect and the rollout will be painfully slow.

Its affordably priced but good quality products have grown popular in several countries globally. We are planning to open two new stores a year in the UK until While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term.

Its catalogs are its main medium of marketing communication. Because of the nature of this process, furniture was not seen as a fashion item.

IKEA decided not to react, as it realised Chinese laws were not strong enough to deter such activities. Through its affordably priced and good quality products, the brand has been able to attract the millenial and middle class consumers in large hoards.

With stores in 27 countries its huge volumes, cheap out-of-town sites, and dedication to keeping costs low through self-assembly packs means that unlike some other furniture retailers Ikea has coped with the recession in major markets including the UK and Sweden.

It also assesses some lessons the company learnt in China that might be useful in India, where it plans to open its first store by and 25 stores in 10 to 15 years. A onesize-fits-all approach is a rare reality.

Habitat started to change that in the UK, but in continental Europe Ikea had been revolutionising home lives for many years. It has used social media to attract and engage customers. Ingvar Kamprad founded Ikea in the s, composing the name from his own initials plus those of the places in the Swedish countryside where he grew up.

After that, we learn to love the more unashamedly Scandinavian Ektorp armchair or Tuvull travel rug and smile about the nomenclature while eating meatballs in the cafe. In China, however, most customers use public transportation.

Store design and location: But we know it sometimes happens. Once we regarded furniture as family assets; tables, chairs and beds were handed down from generation to generation.

IKEA Marketing Strategy and practices: A Case study

Its publishes its efforts. Fortunately, as a privately held company with a longterm orientation, IKEA will persevere where more impatient publicly held firms may have given up.

But behind this unwavering toughness there has always been a flair for design and a desire to innovate. Yet prices have been reduced by per cent over the past five years.

Couching tiger tames the dragon

IKEA also adjusted its store location strategy. It learnt how to design its own furniture, bought raw material from suppliers in Poland, and created its own exhibitions. The company initially tried to replicate its existing business model and products in the US.

All has not been so easy for IKEA and it faced several big challenges on the way. IKEA has managed these two factors very well. The venture served as a good platform to test the market, understand local needs, and adapt its strategies accordingly.

But there are challenges ahead.IKEA is a strong brand that understands that growing globally requires sacrifices and innovation from global teams, and they are ready to listen, respect and learn from the local environment. IKEA is striving to drastically improve its brand positioning by means of adopting good communication strategies as presently the brand's operations are mainly in EU countries and have not accomplished to capture the potential market like India, having a large consumer base of billion.

Jun 10,  · Leontyne Green Sykes, CMO of IKEA North America, shared IKEA's brand-building strategies at the Hub Live conference and in a follow-up one-on-one interview I conducted with her.

Brand Inventory Hierarchy & Brand Product Matrix (cont’d) Because there are too many brands under IKEA to present in this chart, four samples were chosen from the “Living Room” category of products to help explain the firm’s brand extension strategy.

Ikea's provincial charm and build-it-yourself ethic mask the power and reach of a profitable global marque, writes John Simmons. Building strong brand equity through unique strategy within today‟s global business environment and IKEA Ikea's strategy IKEA successfully handles all aspects of marketing, sales, employee relations, product development, and supply chain management, creating a vivid5/5(1).

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Ikea s strategy for building a strong global brand
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