ANALYZING CONSUMER MARKETS

One stop for “Coolness”

Let’s begin our

journey..

o Founded by 17 year old Swede named Ingvar Kamprad.

o Currently a retail titan in home furnishings and a global cultural phenomenon.

o Each year more than 650 million visitors walk through its stores.

Swedish Environment

• Scandinavian-designed products.

• Most products have Swedish names.

• Reason why font of this presentation is in Blue and Yellow!

Current Statisticso Approximately 350 stores in 43 countries.o Revenues topped $36 billion in 2013.o Majority sales come from Europe.o Currently an $11 billion brand.

What ikea is doing right!

Designed in a winding.

One way format featuring different inspirational room settings.

Customers grab a shopping cart and have an experience that stays in their minds!

Inside the Store

Customers pay for orders, visit the warehouse, pick up their purchases in flat boxes.

They load the items in their car

and assemble the products at home themselves. Known for their bargain

prices. Reduces prices across its products by 1-3% annually.

SAVINGS Stores located far from city centers. Buys in bulk, controls supply chain and

uses lighter packaging material. Uses solar cells, low-wattage light bulbs

and uses its own wind mills in 6 countries.

ADAPTIVE NATURE

o Best feature- Analyzing Consumer Markets and adapting to it!

o Stores in China stock specific stock during New Year.

o Stores set up in small spaces to reflect Chinese apartments accurately.

• Stores in US built according to US styles which was different from the European stores.

• Visiting Hispanic households enabled them to build more dining space and hang more picture frames on the walls.

What ikea could do

better

ECO-FRIENDLY PRODUCTS

Expansion into Africa china and India

Increased use of social media

PROS

• IKEA’s bargain prices make sure that people from almost all financial levels can afford to buy furniture.

• Analyzing consumer markets gives them a tremendous chance to blend into the culture of the local people.

• Their in-store management makes sure that the people get a lifetime experience.

CONS

• Travelling far from city is difficult.

• People not used to transporting and assembling the furniture all by themselves.

• Social media advertising might not be enough to extend reach in some countries.

SUMMARY• Retail titan in home

furnishing.• Has a Swedish background.• Conducts and extensive

study of Consumer Markets.• Accordingly shapes its own

stores and products.• Currents an $11 billion

brand.• Looking forward to

expanding in more countries.

DISCLAIMER

Created by Mihir Parikh, IIT Bombay, during a marketing internship by Prof. Sameer Mathur, IIM Lucknow.