Ikea Case study

Topics: Marketing, Social media marketing, IKEA Pages: 3 (973 words) Published: October 6, 2014
Ikea Case Study- Marketing issues and future recommendations

Subsequent to my study of Ikea’s case, below is a brief description of the marketing issues that I have observed and my recommendations for future. 1. Ikea has this brand image of low cost modern furniture. Though this brand perception is great for value conscious modern families, this perception might not be helping Ikea in gaining greater traction with the high income people. Ikea has still not been able to come out completely of its image as a European brand. Infact some of the challenges that it faced initially while entering American market is a testimony to that. Initially when it entered American market, the Sales were relatively low because the furniture and its dimensions were more appropriate for European customers. Later when it started designing and dimensioning furniture and other accessories per American tastes, the Sales shot up. Therefore it is important for Ikea to continue to design its furniture and accessories keeping in view local cultures to be able to effectively meet their needs. Secondly Ikea’s business model is different from traditional furniture places. One is expected to pick up these large flat modular furniture boxes at the store, drive them home, unbox them and then assemble the pieces. Now this can be psychologically burdensome for a lot of customers who are not good with assembling and with the tools. This could potentially discourage quite a segment of potential customers. Recommendations: Understand the local demographics and culture more closely to be able to more effectively design the marketing campaigns. Low cost sometimes can create this image of low quality products. And so I would also recommend to Ikea to incorporate strict quality control mechanism with its suppliers to make sure the quality of its products doesn’t go down. I would recommend Ikea to highlight in its marketing campaigns both -value as well as quality of Ikea’s products. Secondly, for the...
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