Globalisation Ikea
In the globalized market today, companies need to make a shift in focus to target consumers not only in their own local markets but across the globe as well. Due to the different cultures and product choices that consumers have throughout the world, companies need to provide a variety of product choices that appeal to consumers globally and locally.
The report will first give a brief summary of the IKEA case study, followed by the strategies used in targeting the global customer segment, followed by the importance of their brand image along with the marketing implications with it, followed by the advantages and disadvantages of adopting a standardized versus an adapted strategy in IKEA’s global strategy, followed by the effectiveness of communications and the similarity of the cultures of the world today. Lastly, a conclusion I will summarize the report.
IKEA has established themselves as the world’s biggest home furnishings retail chain. Their Swedish image has proved to be popular with consumers over the world for more than a decade. The success of the business is due to their ability to provide different products at a cost efficient price. They are famous for the flat – pack assembly kit which helps to cut costs as consumers make the purchase and does the assembly themselves at home. A critical part of their strategy in the customer’s involvement in the shopping experience. It relies on customers to choose, collect, transport and assemble which contributes to the low prices. The way how IKEA communicates to their customers is through their product catalogues that they provide for free. As shown in (Schiffman et al. Pg. 619- 620).
IKEA has successfully sold its home furnishing products in so many countries around the world through IKEA’s successful Concept & marketing strategy. IKEA’s main medium of communication to the consumers is through IKEA’s own product catalogue, providing more than a 100 million copies all over the world every year, free of charge.
The report will first give a brief summary of the IKEA case study, followed by the strategies used in targeting the global customer segment, followed by the importance of their brand image along with the marketing implications with it, followed by the advantages and disadvantages of adopting a standardized versus an adapted strategy in IKEA’s global strategy, followed by the effectiveness of communications and the similarity of the cultures of the world today. Lastly, a conclusion I will summarize the report.
IKEA has established themselves as the world’s biggest home furnishings retail chain. Their Swedish image has proved to be popular with consumers over the world for more than a decade. The success of the business is due to their ability to provide different products at a cost efficient price. They are famous for the flat – pack assembly kit which helps to cut costs as consumers make the purchase and does the assembly themselves at home. A critical part of their strategy in the customer’s involvement in the shopping experience. It relies on customers to choose, collect, transport and assemble which contributes to the low prices. The way how IKEA communicates to their customers is through their product catalogues that they provide for free. As shown in (Schiffman et al. Pg. 619- 620).
IKEA has successfully sold its home furnishing products in so many countries around the world through IKEA’s successful Concept & marketing strategy. IKEA’s main medium of communication to the consumers is through IKEA’s own product catalogue, providing more than a 100 million copies all over the world every year, free of charge.