Transcript
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.
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