Ikea Case Study
MARKETING MANAGEMENT
CASE STUDY
Synopsis
This case study is to deliberate about IKEA’s marketing strategy in reaching out customers. Also discussing about IKEA’s business idea and IKEA follows a quite traditional pattern of internationalizing and also drives the localization thoughts in different market place to stay competitive. Their vision “To create a better everyday life for the many” and their ultimate business idea “ 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” actually has inspired many shoppers and influence the way people shop.
IKEA’s Background
IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. The company was founded by Ingvar Kamprad when he was 17 year old boy. At that time, IKEA was one–man mail order furniture company. Originally, it sold pens, wallets, pictures frames, watches, and jewellery. Kamprad had a habit of going into wood factories to look at the “off cuts” which mean timber to be thrown away as waste. He made good use of these no value timber an created well and extraordinary priced products. He opened the IKEA store in Sweden in 1958.
Today it is the world 's largest furniture retailer, recognised for its Scandinavian style. The majority of IKEA 's furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin
CASE STUDY
Synopsis
This case study is to deliberate about IKEA’s marketing strategy in reaching out customers. Also discussing about IKEA’s business idea and IKEA follows a quite traditional pattern of internationalizing and also drives the localization thoughts in different market place to stay competitive. Their vision “To create a better everyday life for the many” and their ultimate business idea “ 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” actually has inspired many shoppers and influence the way people shop.
IKEA’s Background
IKEA is an internationally known home furnishing retailer. It has grown rapidly since it was founded in 1943. The company was founded by Ingvar Kamprad when he was 17 year old boy. At that time, IKEA was one–man mail order furniture company. Originally, it sold pens, wallets, pictures frames, watches, and jewellery. Kamprad had a habit of going into wood factories to look at the “off cuts” which mean timber to be thrown away as waste. He made good use of these no value timber an created well and extraordinary priced products. He opened the IKEA store in Sweden in 1958.
Today it is the world 's largest furniture retailer, recognised for its Scandinavian style. The majority of IKEA 's furniture is flat-pack, ready to be assembled by the consumer. This allows a reduction in costs and packaging. IKEA carries a range of 9,500 products, including home furniture and accessories. This wide range is available in all IKEA stores and customers can order much of the range online through IKEA’s website. There are 18 stores in the UK to date, the first of which opened in Warrington in 1987. In July 2009 IKEA opened a store in Dublin
References: 1. The Testament of a Furniture Dealer – A Little IKEA Dictionary by Ingvar Kamprad (founder). Published by Inter IKEA Systems B.V. 2007 2 10. IKEA group corporate site n.d., About the IKEA Group. Cited from (08.05.2009) http://193.108.42.168/?ID=25