Marketing Strategy for Ikea

IKEA currently is one of the most successful and a well-known company in its market, great customer loyalty and create great values to customer are the main factors of IKEA’s success.

In purpose to gain the great customer loyalty, IKEA's idea is based on creating a consistent image to its customers, and also providing well designed home furnishing product at a low cost which can be afforded by normal people. What is common to all of the featured companies is that they have put out a constant and clear message of what their company is about and what the customers can expect from them. The slogans that the companies use are an important part of the message to consumers. IKEA has done a great job on that with its slogan “Love your home.” Pricing is the main reason through which IKEA have gained big market share amongst their competitors. For example, IKEA has fashionable bargains include Klippan sofas for 299 dollars, Billy bookcase for only 79 dollars and lack side tables for 25 dollars. The founder of IKEA Ingvar Kamprad thinks that people have thin wallets, so IKEA’s main strategy is cost cutting and passing savings onto consumers. IKEA has designed their furniture as easily carry, easily install and fashionable. In nowadays, more and more people prefer this kind of cheap and fashionable furniture instead of the luxurious old style ones, especially the young generations. IKEA also can cut down the transportation and storage cost due to the small size of its furniture.

IKEA has also created great value to its customers by focusing on customer’s needs in different regions. For example, it changed the size of the glasses they offering in US market to match customers’ needs of large size glasses. To accurately identify different needs of customers in different regions, IKEA sends their managers to local home to see the living style of local families, and then provide the products that can just fit their needs.