Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

The case discusses the evolution of IKEA''s global marketing strategy under the various P''s (product, price, promotion,place, packaging, positioning and people) of marketing. IKEA, the largest and the most famous furniture retailer in the world, has a reputation for low prices and fresh, innovative design. Its products epitomise strong design, logistical efficiency, and constant cost-cutting. It does not bring a new design to the market unless it is affordable. To cut transportation costs, IKEA knocks down furniture into disassembled parts, which can be packed and shipped in flat cardboard. IKEA practices a form of ''gentle coercion'' to keep customers as long as possible in its stores. Apart from its cheap but stylish inventory, IKEA stores reverse positioning strategy, satisfied customers and referrals are the key to its success. IKEA has a quirky, irreverent approach to marketing with strong emphasis on using non-traditional media for promotions. To maintain the buzz, IKEA creates legendary stories. Analysts wonder if IKEA can maintain its cult following as direct links to Ingvar Kamprad, its founder, disappears?
Location:
Industry:
Size:
USD17.7 billion
Other setting(s):
2000-2005

About

Abstract

The case discusses the evolution of IKEA''s global marketing strategy under the various P''s (product, price, promotion,place, packaging, positioning and people) of marketing. IKEA, the largest and the most famous furniture retailer in the world, has a reputation for low prices and fresh, innovative design. Its products epitomise strong design, logistical efficiency, and constant cost-cutting. It does not bring a new design to the market unless it is affordable. To cut transportation costs, IKEA knocks down furniture into disassembled parts, which can be packed and shipped in flat cardboard. IKEA practices a form of ''gentle coercion'' to keep customers as long as possible in its stores. Apart from its cheap but stylish inventory, IKEA stores reverse positioning strategy, satisfied customers and referrals are the key to its success. IKEA has a quirky, irreverent approach to marketing with strong emphasis on using non-traditional media for promotions. To maintain the buzz, IKEA creates legendary stories. Analysts wonder if IKEA can maintain its cult following as direct links to Ingvar Kamprad, its founder, disappears?

Settings

Location:
Industry:
Size:
USD17.7 billion
Other setting(s):
2000-2005

Related