Ikeas-Global Marketing Strategy - Company Reports - Business Insights International

Ikea: Global Marketing
Report Code: COMP0002 Period: 1998 - 2005 Industry: Furniture Retail Countries: Sweden, US and China Report Length: 22 Pages	Year of Publication: 2006 Price: Electronic Format: Rs. 400 (Approx. 9.3$/ 5.3£ /8.0 €)

…BUILDING THE IKEA BRAND

• The Founder’s Vision

IKEA was known for its contemporary yet affordable furniture, even after twenty years of the exit of Kamprad. Though Kamprad had long ceded day to day involvement in the company’s activities, his vision and thoughts were deeply rooted in IKEA’s culture. Kamprad’s humble beginnings (he was the son of a farmer) had created a unique IKEA culture that was founded on respect for money and an innovative mindset.

Kamprad was known for his frugal habits. He flew economy class, he would take the metro to work, drive a ten-year-old second-hand Volvo and avoid designer suits. This attitude trickled down to the co-workers, who would ensure minimal wastage and cost cutting at every level. As a result, IKEA came up with products that were aesthetically

designed and were still available at affordable prices. This aspect greatly enhanced the brand image of IKEA, which was perceived as a company that believed in social equality…

      • Complete Shopping Experience
      • Localization in Global Markets
      • The IKEA Buzz
      • Promotional Strategies

…THE CONTROVERSIES
… IKEA was also criticized for putting in furniture assembly instructions that could not be understood, and that there were missing components in the kits that caused unnecessary delays and discomfort to the customers. A case in point was that of popular Hollywood actor Russell Crowe who was furious when he could not figure out the instructions for assembling his baby’s cot and attacked the flat-pack furniture pieces with his pocket knife before calling the company for help...

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Ikea: Global Marketing