Ingvar Kamprad’s IKEA is a triumphant spin off, that has inspired many. IKEA exemplifies the fact that there is simply no formula to overnight success. In simple words, it requires everyday hard work in order to incorporate success in your life. This marketing case study centers on IKEA’s global marketing strategy and its successful implementation.
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IKEA was founded by Ingvar Kamprad in the year 1943. The founder dwelled upon a business oriented mindset, right since his childhood days. He was clear of developing his career in the field of business. He worked very hard in the initial stages of starting IKEA and began selling furniture. Gradually, a chain of IKEA stores started spreading worldwide and its products gained massive popularity. IKEA’s global marketing approach enabled it to reach the millions of people and turned IKEA into a success story!
1. Global middle class target
The global middle class segment of the society comprises of those people who aim at maximising their satisfaction on purchasing a product or a service, in the most inexpensive way possible. The gist behind IKEA’s global marketing for targeting the middle class segment is that the middle class segment is the largest segment of the society.
Moreover, who doesn’t want a cheap and good quality product in today’s world? IKEA highlights its global marketing strategy by putting more light on low prices offered, along with decent quality standards, which in turn enables them to capture the global middle class target. The strategy adopted by the company primarily focuses on Guerilla Marketing.
For eg. IKEA emphasises on buying the consumer an experience before he buys the furniture. The ‘Place in your room’ catalogue app of IKEA, lets a consumer try the desired products in their homes.
“There are no secrets to success. It is the result of preparation, hard work and learning from failure”- Colin Powell
2. Vision- to create a better everyday life for many people
IKEA aims to create a better everyday life for many people of the world. They work upon this vision by primarily focusing on the ‘affordability factor’ of the people, such that masses are able to maintain a decent standard of living in an optimal way. Their vision isn’t just restricted to creating good quality furniture, rather focuses on the improvisation of quality of life for an average individual. IKEA aims at doing better everyday, in an efficient and cost effective manner.
3. Low prices offered
The basis of IKEA’s global marketing is rendering good quality products at low prices to their customers. It focuses on continuously lowering prices for their customers every year- a 2-3% cut per year. Ikea implements cost effectiveness into their organisation by making a number of trade offs:
- Self service- no sales people cost.
- Manufactures for itself- no third party involvement.
- Providing products in a flat package form, which is a cost effective method for shipment, storage and assembling.
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4. Maintains a wide customer base
IKEA’s global marketing strategy has emerged as an ideal global marketing strategy worldwide. The strategy has enabled the organisation in maintaining a wide customer base. It relies on customer feedback and their average views of a product, inculcating the same in the organisation’s work structure. Moreover, the emphasis on affordability and quality by the organisation, keeps the old customers intact and attracts new ones, leading to widening of the customer base.
You might also be interested in reading A BEGINNER’S GUIDE ON HOW TO ATTRACT NEW CUSTOMERS TO BUSINESS.
5. Customer centric marketing strategy
Customer centric marketing is a strategy that focuses on product development according to the needs of every individual customers. IKEA has adopted a customer centric marketing in its global marketing strategy, which makes the organisation understand a customer’s lifestyle. For this purpose, numerous customer researches are undertaken to develop marketing objectives and inculcate the customer preferences in the organisation’s development.
For example, the Taiwan hot pot dish associated with dinner tables by IKEA emphasised on human interaction and led to a great customer experience at the same time. Click here to know about the BEST TYPES OF SALES STRATEGIES USED TODAY.
The above marketing case study exemplifies a successful and established organisation’s approach to marketing. This sets up an ideal example for established companies to develop their global marketing strategy. We all start from scratch, it’s the hard work and zeal that transforms our work into a success story, similar to Ingrav Kamprad’s IKEA- a global marketing success story. Before you leave, go through A BRIEF GUIDE FOR QUICK MARKETING TRAINING and brush up your professional marketing knowledge.