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The document discusses IKEA, including why it has been successful, how it influences consumer behavior, and what differentiates it from competition. IKEA has been successful due to affordable prices from low-cost operations and flat packaging, easy assembly, global design, large store network, and good customer experience. It influences consumers through product trend identification, creative advertising, and store amenities. It differentiates through lower prices, brand image, cost efficiency, and marketing.

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Lolla Abhijith
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40 views4 pages

Group 12

The document discusses IKEA, including why it has been successful, how it influences consumer behavior, and what differentiates it from competition. IKEA has been successful due to affordable prices from low-cost operations and flat packaging, easy assembly, global design, large store network, and good customer experience. It influences consumers through product trend identification, creative advertising, and store amenities. It differentiates through lower prices, brand image, cost efficiency, and marketing.

Uploaded by

Lolla Abhijith
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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IKEA

● Team:

- Aaryan Raj | 2021002


- Abhijit Lolla | 2021003
- Ayush Pathak | 2021014
- Rohan H M | 2021038
- Sakshi Jain | 2021041
- Shubhang Prabhu Dharwatkar | 2021052
• Why IKEA has been
so successful?

● Affordable prices due to low-cost structure in their operations and flat


packaging
● Easy to transport and assemble by customers
● Neutral design which pleases customers across the globe
● Large network of stores
● Impressive store layout and catalogue layout
● Treating its customers as family by providing the best customer
experience with services like children’s play area, restaurant inside the
store et cetera

2
• How IKEA influences
consumer behaviour?

IKEA uses various social marketing tactics and situational factors to influence
consumer behaviour.

Apart from the traditional marketing factors like the 4 Ps, they also tap into
social factors.

● The Product Strategy Council of IKEA identifies consumer trends all over
the world
● Category creation in newer markets through creative advertising.
● Giving special attention to consumer convenience by providing amenities
such as play area, cafes, child care, bank, and parking facilities to promote
ease of shopping
● Presence of other stores facilitating shopping of main furniture goods i.e
stationary.

3
• What differentiates
IKEA from its
competition?
● Lower Prices: Lower prices are the leading source of competitive
advantage for IKEA. Lower prices, however, do not mean that the
company offers low-quality products.
● Brand image: IKEA has maintained a customer-friendly brand image
which is also a key source of competitive advantage for the brand. Apart
from being a customer-friendly and ethical brand, IKEA is also known as
an innovative business.
● Cost efficiency: Cost efficiency is also a key source of competitive
advantage for IKEA. Despite its low-cost pricing strategy, the company
has a highly profitable business model. However, it does not mean that
the company sources low-quality raw materials. The quality of its
products is still good.
● Marketing: IKEA’s marketing strategy is also a source of competitive
advantage for the brand of home furnishing products which has
established itself as a consumer-friendly brand that sells products at
affordable prices. 4

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