IKEA

Presented by Persia Brooks, Bozheng Wu (Cahil), Yunhan Zhu (Fred)

Case Study 12.1Crossing cultural boundaries to furnish the globe

1. How has IKEA successfully sold its home furnishing products in so many countries around the world?

Vision – IKEA’s vision statement is ‘To create a better life for many people’

Concept - IKEA’s company mantra or vision is ‘You do your part. We do our part. Together we save money.’

Strategy – To produce good quality products at low cost prices. Ensuring products are sustainable, modern, innovative inspired and wide variety.

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http://www.youtube.com/watch?v=MJ6YL3IekYs

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Communication Strategy

In 2013 IKEA distributed their catalogue to 43 countries, in 62 versions in 30 different languages

It was estimated that over 100 million copies were distributed all free of charge, taking 70% of marketing budget

IKEA’s website is customized for 48 countries in 34 different languages; this alone is a mass communication effort

Do global customer segments exist?

IKEA’s customer segments:

• Consumers who love ideas based around hidden and limited space• Middle/lower class population • All age groups• New home buyers/families• Students• Consumers who love innovative designs• Consumers who love multi functional designs

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2. How important is the role of IKEA’s Swedish brand image?

• Brand image:• “brand” is considered to be a product which has a unique and

consistent character.• “image” is the compound of individuals’ personal experience of the

products.• country of origin is one of plenty factors which influence customers

perceptions of brand image.• IKEA: a high-quality and affordable brand image.

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What are the implications for marketing?

Country-of-origin effect:Known as made-in image, which make some psychological influences.the country of origin decide the first impression of the product.IKEA: popular in Swedish market due to local-made product advantagesPopular in other foreign market due to brand image.

3. To what extent has IKEA practiced a standardized strategy versus an adapted strategy in it’s global marketing?

Standardized strategy is good for IEKA when their early globalization plan

• IKEA  concentrates on developing in other western countries.• Furniture products with High quality and high standard are important

 for customer in developed countries.

An adapted strategy should be practiced for IKEA

•  Nowadays, Marketing in Asian and other developing country is important

for IKEA •  The new standard of products should be update, the customers from

 developing need a suitable and adjustable standard. 

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What are the advantages and disadvantages of this approach?

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Advantages:• cost saving;• effective control on the branch;•Integrating and strengthen the general brand image.

disadvantages:• could not be suitable for Asian marketing and customers in developing countries;•Adjusting the standardized strategy will bring the risks and costs.

4. Some say communications, especially the Internet and television, enable a global culture to be broadcast to all societies.

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Are the cultures of the world becoming more similar or more different? Discuss.

Becoming more similar:• Cultures of world becoming more similar due to mass movements

of people from country to country

• More people are learning about other cultures, which is integrating into multiple-cultures

• Due to the development of technology. Internet, television and mobiles give people the potential to share and learn.

• Multinational corporations accelerate the assimilation of cultures

• Believe it or not, people are influenced by the cultures they are exposed to more than they think.

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Are the cultures of the world becoming more similar or more different? Discuss.

Becoming more different:• Personality cultures have more resources because of the global

cultures are available;• Different cultures beget more subcultures.

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Any Questions?

Thank you

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