IKEA
Company Profile, Competitors,
Marketing Strategies
Group 5 | Agustin D, Alfaro,
Barroa, Dela Torre, Sison
Company Profile
IKEA, home furnishings retailer that was the
world’s largest seller of furniture in the early
21st century, operating more than 300 stores
around the world.
Ingvar Kamprad founded IKEA in 1943 at the
age of 17, selling goods like pens and wallets.
IKEA is named after the initials of founder:
Ingvar Kamprad
Elmtaryd, the farm he grew up on and;
Agunnaryd, the nearby village
Hardship bred a tough, resourceful people
who were expert at making the most of a little,
qualities that have always been at the heart of
IKEA.
The IKEA vision
“To create a better everyday life for the many
people.” This vision goes beyond home furnishing.
We want to have a positive impact on the world –
from the communities where we source our raw
materials to the way our products help our
customers live a more sustainable life at home.
By sharing what we do, and speaking up for what
we believe in, we can be part of positive change in
society.
The IKEA mission
"To offer a wide range of well-designed, functional
home furnishing products at prices so low that as
many people as possible will be able to afford
them."
The IKEA catalog
Because Älmhult, the town where IKEA was
founded, is in a rather remote area of Sweden, it
was difficult to reach potential customers in the
bigger cities. Due to this, the IKEA catalog was
born in 1951, and Ingvar had already decided
IKEA should sell good furniture at low prices.
The First IKEA showroom
The prices in the first IKEA catalog were so low
that people were initially skeptical about the
quality of the products, so Ingvar decided to
convert an old workshop in Älmhult into a
showroom where people could look at and try
products before ordering.
The development of the IKEA logo over the years:
Products
Furniture
Kitchen & appliances
Kitchenware & tableware
Storage & organization
Textiles
Bathroom products
Beds & mattresses
Outdoor products
Lighting
Decoration
Baby & children needs
Pots & plants
Laundry & cleaning
Home improvement
Home electronics
Working from home
Smart home
Summer
Rugs, mats & flooring
Holiday Season
Competitors
Wayfair is an online store for home goods that was
started in 2002 in Boston, Massachusetts. It has an
enormous inventory of more than fourteen million
items and is used by over twenty-five million people in
the USA, UK, and Canada. As a result, it is one of the
biggest e-commerce sites worldwide.
Competitors
Walmart is a strong competitor to IKEA, providing a
wide range of budget-friendly furniture, home
decorations, and other housewares. Unlike IKEA,
which is known for its contemporary designs,
Walmart offers more classical styles at more
affordable prices.
Marketing Strategies
IKEA's Target Audience
The organization serves the
functional needs of:
Bachelors
Students
Newly married couples
Single people not living at
home
etc. (16-34 year old adults)
Marketing Strategies
PRODUCT POSITIONING
Adaptive Positioning Mono-Segment positioning
It believes in periodically repositioning It appeals to the needs and wants of a
products and services to adapt to single customer segment that is cost-
changes in customer preferences. Its conscious and prefers value for money.
Swedish furniture chain considers the
dynamic nature of customer preferences.
For instance, its latest products reflect
increasing minimalism on the global
scale.
Marketing Strategies
A CREATIVE, CONSISTENT,
BRAND THEME
From the Swedish national colors on its
buildings to rich meatballs in its store
cafeterias, Ikea's marketing strategy reflects
its cultural heritage proudly. It infuses all
elements of their identity with a sense of
self-assuredness that maintains their
identity in the market of stiff competition.
Marketing Strategies
EMPHASIZING AFFORDABILITY AND
SUSTAINABILITY
Understanding that a simple tiered strategy
won't encourage repeat business, Ikea
extends customization, flexibility, and mix-
and-match furniture modules. It effectively
combines the elements of affordability and
sustainability in its marketing strategy to
ensure success.
While the furniture options don't pledge a lifelong guarantee, the
products are built to last. Even its reusable shopping bags reflect
its commitment to sustainability.
Marketing Strategies
SPONSORSHIP AND
INFLUENCERS
IKEA-sponsored comedic series
Easy to Assemble. Its innovative
content marketing was way
different from a furniture product
demo. Incorporating sponsored
digital marketing campaigns and
social media influencers have
boosted the Ikea marketing
strategy.
Marketing Strategies
EXCEPTIONAL IN-STORE
EXPERIENCE
products
Ikea brilliantly displays
employing the best lighting systems
to generate more sales. It
strategically arranges best-matched
items in mock rooms to encourage
impulse purchases and inspire decor.
The company also extends excellent
customer service to provide a
memorable experience and incite
customers to come back for more.
References
https://www.myikeabedroom.com/ikea-vs-walmart/
https://businessmodelanalyst.com/ikea-competitors-alternatives/
https://homeofcozy.com/brand-comparisons/wayfair-vs-ikea/
https://bstrategyhub.com/ikea-competitors-alternatives/
https://www.ikea.com/ph/en/cat/products-products/
https://businessmodelanalyst.com/ikea-mission-and-vision-statement/
https://www.ikea.com/gb/en/this-is-ikea/about-us/the-ikea-vision-and-values-pub9aa779d0
https://www.ikea.com/ph/en/this-is-ikea/about-us/
https://www.ikea.com/ph/en/this-is-ikea/about-us/ikea-heritage-pubad29a981
https://www.simplilearn.com/tutorials/marketing-case-studies-tutorial/ikea-marketing-strategy-case-
study
