Globalisation Ikea

Topics: Marketing, IKEA, Brand Pages: 5 (1813 words) Published: September 11, 2013
In the globalized market today, companies need to make a shift in focus to target consumers not only in their own local markets but across the globe as well. Due to the different cultures and product choices that consumers have throughout the world, companies need to provide a variety of product choices that appeal to consumers globally and locally. The report will first give a brief summary of the IKEA case study, followed by the strategies used in targeting the global customer segment, followed by the importance of their brand image along with the marketing implications with it, followed by the advantages and disadvantages of adopting a standardized versus an adapted strategy in IKEA’s global strategy, followed by the effectiveness of communications and the similarity of the cultures of the world today. Lastly, a conclusion I will summarize the report. IKEA has established themselves as the world’s biggest home furnishings retail chain. Their Swedish image has proved to be popular with consumers over the world for more than a decade. The success of the business is due to their ability to provide different products at a cost efficient price. They are famous for the flat – pack assembly kit which helps to cut costs as consumers make the purchase and does the assembly themselves at home. A critical part of their strategy in the customer’s involvement in the shopping experience. It relies on customers to choose, collect, transport and assemble which contributes to the low prices. The way how IKEA communicates to their customers is through their product catalogues that they provide for free. As shown in (Schiffman et al. Pg. 619- 620). IKEA has successfully sold its home furnishing products in so many countries around the world through IKEA’s successful Concept & marketing strategy. IKEA’s main medium of communication to the consumers is through IKEA’s own product catalogue, providing more than a 100 million copies all over the world every year, free of charge. IKEA’s catalogues comes in a total of 45 editions in 23 different languages. Inside each IKEA store, there are hundreds of displays in realistic room setting that provide fresh ideas and know how on contemporary interior designs. Each different showroom encourages customers to sit, lie down, open & close drawers, compare styles, comparing prices, and to imagine the possibilities before deciding on their purchases. Consumers are more that welcome to have an interaction with the products in the show room. The idea of self - serving is also an important part of IKEA's approach to customer involvement to keep their prices low. Most of IKEA’s products are also flat-packed, which makes it easier to carry the product home or the option for home delivery when a lot of purchase has been done. Assembly of products is easy at home with simple instructions & construction design. With reference to IKEA’s emphasis on customer involvement to keep prices low, their targeted segment was on the global middle class customer that shared similar buying habits. Even though that customer spending patterns may be similar across most countries, global customer segments still exist for IKEA. For example, in the article by (, IKEA went into different house-holds with different income levels in India to survey what kind of design and function would suit the daily needs and usage of the consumers. This is a good example of how IKEA has localized its products for the different countries and cultures to suit the different needs that may not be applicable globally. Next, the report will discuss on importance of IKEA’s Swedish brand image and its implication for marketing. Firstly, consumer’s perception about the quality of a brand are influenced by a few factors such as the brand image, personality, associations and communication messages. A company invests in branding so as to assist customers in making purchase decisions by providing cues on quality, credibility and...
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