Growth Strategies Case Study

Ikea in 2005: Evolution of Global Marketing Strategy

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Abstract:
The case discusses the evolution of Ikea’s global marketing strategy under various P’s 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 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 legendry stories. Analysts wonder if Ikea can maintain its cult following as direct links to Ingvar Kamprad, its founder disappears?

Pedagogical Objectives:

• The case discusses the evolution of Ikea’s global marketing strategy under various P’s of marketing.

Keywords : Ikea; Marketing Strategy; Reverse positioning; non-traditional media; Kamprad; Sweden; Growth Strategies Case Study; Dahlvig; Cost leadership; Innovative packaging; Unusual promotions

Contents : 
Introduction
Background Note
Marketing strategy
Positioning
Looking ahead
Regional distribution of functions
Country wise share of sales and purchase
Regional distribution of sales and purchase