IKEA INVADES AMERICA

A CASE STUDY AS A PART OF MARKETING MANAGEMENT I

Group 2
Akash Jain
Akshat Modi
Amit Kumar Singh
Amit Pandey
Anirban Sinha

FACTORS ACCOUNTING FOR IKEAS SUCCESS

One-stop Shop Experience
In-house Restaurants, play
rooms
Large open spaces

Establish
Retail Price

Select
Manufactur
er

Determine
the
material to
be used

Mix and match between

products possible
Ease of Logistics

Superior
Shopping
Environmen
t

Uncomplicat
ed Design

Low Prices

Strong
Purchasing
Power

Design
Process

Flat Packaging helps in

decreasing cost
Decreased cost from
suppliers

Global network of suppliers

ensures lowest cost
possible
1300 suppliers in 53
countries

COMPETITIVE ADVANTAGE
Large
Warehouse
Showroom
in Suburban
centres

Strength of
Brand Name

Economics
of Scale:
Standardizat
ion

Competiti
ve
Advantag
es

Economics
of Scope:
Restaurants
and other
facilities

Economic
Design:
Logistics

Network of
Supply:
1300
suppliers in
53 countries

Distinctiven
ess of
Design
Diversity in
Assortment

POSITIONING STRATEGIES USED BY IKEA

Low Cost
leadershi
p
Strategy
Product
Strategy
Promotio
n
Strategie
s

Unique value chain

innovations
Wide range of products
Diversify Product line and
depth
High Profile advertisement
Campaign
70% marketing budget on
Catalogues
Online advertisement

PERCEPTUAL MAP

SEGMENTATION FOR IKEA

SEGMENTATION FOR METABICAL

Demography

Geography
urban and rural people

Psychography

Behavior

:
Choose drugs to lose their weight
Choose herbal to lose their weight

Like sport
Loyal to brand

Value oriented

Health treatment oriented

Price sensitive

Choose drugs based on advice

Check their healthy if there is only
damage

17 until 70 years old

education level : less than high
school, high school, some
collage, collage
income level : $25,000 $80,000+

Behavior
Choose drugs to lose their
weight
Like sport
Loyal to brand
Value oriented
Health treatment oriented
Choose drugs based on
advice

Demography
25 until 65 years
old
Collage
$25,000 ++

People who want to look like a

movie star
People who want to be healthier
People who want to wear the skinny
jeans
People who want to lose weight with
easy way
People that fine in the way they are
People with BMIs score :
overweight (2530), obese (30-40), severely obese
(over 40)

Psychography
People who want
to be healthier
People with BMI
score of 25-30

THANK YOU