IKEA's Marketing Strategy

TEACHERS COMMENTS: You picked a terrific company to analyze and hit all the necessary points. Great work!!

GRADE: 200/200 A

IKEA

MGMT220-1003B-03: Introduction to International Business

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IKEA

IKEA is a famous Swedish furniture company with retailers worldwide. They specialize in inexpensive but modern Scandinavian furniture designs. IKEA first opened in 1943 in Agunnaryd, Sweden. It now has 123,000 employees in 25 countries and/or territories and generates annual sales totaling more than 21 billion Euros (IKEA, 2010). IKEA's main focus areas are on children and the environment. With IKEA, children are the most extraordinary thing in the entire world. They have activities that focus on helping children achieve their goals by supporting their development and learning. The environment is important, and the keeping prices low, does not come at the cost of the environment. The stores are measured on their environment responsibility and they always consider their impact on the environment.

English: Ikea store in Älmhult, Sweden. Deutsch: ...

IKEA in Israel near Netanya. Note the Hebrew sign....

Ikea

Mission Statement

IKEA's mission statement is "to develop a better every day life for every one" (IKEA, 2010).

Product Strategy

The most fitting marketing considerations would be advertising, customer buying, and distribution. This would make IKEA a convenience product. Advertising should make the customers knowledgeable of what is at each location at what price, making the distribution to each location essential. Advertising is one of the most important parts in the product strategy, since customers won't purchase thing they have not heard of before.

Value has always remained important with IKEA when developing furniture (IKEA, 2010). When purchasing furniture, it can become a deal breaker. If a company that was selling high value furniture lowers the value, a customer will start looking for a product elsewhere that is of better value for the same price. That is why IKEA has always been...