no copyright i have only for learning.

1. By :-
Ketan Thakur

2. HISTORY :
• Founded in 1943, in Sweden, by a man named Ingvar Kamprad
• Initially offered items such as pens, wallets, picture frames, jewelry,
etc.
• In 1947, furniture was added to their product selection, followed by
personally designed pieces in 1955

3. GENERAL INFORMATION:
• Defined as a “lifestyle” furniture store
• Known for selling disassembled furniture
• Operates 253 stores, in 35 countries (with the majority being in Europe,
the U.S., Asia, Canada, & Australia)
• 70% of IKEA’s annual marketing budget is consumed by their catalogue

4. • fiscal year 2004-05, the company generated revenues of
US$ 17.9 billion, a 15% increase over the previous fiscal
year.
• In fiscal year 2010, it sold $23.1 billion worth of goods, a 7.7
% increase over 2009.
• The IKEA website contains about 12,000 products and is the
closest representation of the entire IKEA range.

5. BUILDING IKEA
• Kamprad's humble beginnings had created a unique IKEA
culture that was founded on respect for money and an
innovative mindset.
• He flew economy class, he would take the metro to work,
drive a ten-year-old second-hand Volvo and avoid designer
suits.

6. • This attitude trickled down to the co-workers, who would
ensure minimal wastage and cost cutting at every level.
• As a result, IKEA came up with products that were
aesthetically designed and were still available at affordable
prices.
• This aspect greatly enhanced the brand image of IKEA, which
was perceived as a company that believed in social equality

7. THE FOUNDER’S VISION
Vision – “To create better everyday life for many people”
Faster
Better
Cheaper

8. PRODUCT LINES
• IKEA offers 21 different product lines:
-Bathroom, Beds, & Mattresses -Clothes Storage
-Bookcases & Storage -Decoration
-Chairs & Tables -For the Pets
-Children’s IKEA -Lighting
-Textiles -Kitchen
-Cookware -Work Area
-Sofas & Armchairs -TV & Media Solutions
-Floors -Furniture Care
-Tableware -etc.

9. COMPLETE SHOPPING EXPERIENCE -
• IKEA stores were usually located outside urban areas,
isolated from other shops. This was done intentionally so that
IKEA could create a complete shopping experience for
customers.
• IKEA products were beautifully crafted and appealing.
• The blue-and-yellow buildings was generally 300,000 square
feet in size and each store stocked about 7,000 items, from
kitchen cabinets to candlesticks.

10. • IKEA targeted middle class customers worldwide.
• IKEA made shopping easy for customers. For
example, right at the entrance of the store,
customers could drop their kids at the playroom
which had many types of safe play equipment, and
then shop on their own in a leisurely manner.

11. CONTROVERSY :
• IKEA was criticized for traffic jams and overcrowding at its outlets,
particularly at store openings which brought in frenzied crowds.
• In September 2004, three people were crushed to death and
sixteen were seriously injured in a stampede that broke out at
IKEA's store opening in Jeddah, Saudi Arabia.
• More than 8,000 people had gathered near the store for the
US$150 gift vouchers, some of them having camped overnight.

12. RECOMMENDATIONS:
• Maintain superior quality & image
• Research countries thoroughly before entry
• Expand the number of products offered in catalogues
• Offer extra incentives to customers who shop from the
catalogues

13. Q3:- IKEA customer seemed to have a “love hate” relationship with the
company. Analyze the reasons for the same and also discuss what
approach the company Needs to take to curb customer resentment ?
 IKEA have improved the amount of items presented for sale. Demographic
changes such as the aged population, an upsurge in female workers and a
failure in home meal planning mean that UK retailers are similarly
concentrating on added-value products and services.

One of the biggest concerns was whether IKEA would be able to retain the
 company's cultural values with its rapid growth and increasing graphic
spread.
 The company over came this with good management, a strong work force
and very strong company values. But perhaps the biggest concern was
how the company would fair without Ingvar Kamprad.
 Kamprad responded to this concern by saying "The IKEA ideology is not
the work of one man but the sum of many impulses from all the IKEA
leadership. Its supporting framework is massive.

14.  ANOTHER KEY FACTOR IN THE FURNITURE BUSINESS WOULD
BE TO ACQUIRE THE ABILITY TO PURCHASE LOW-PRICED
MATERIALS AND TO CHECK IF THERE ARE LESS EXPENSIVE
QUALITY ALTERNATIVE MATERIALS AVAILABLE.
DEVELOPING LONG-TERM RELATIONSHIPS WITH SUPPLIERS
IS ANOTHER FACTOR THAT WOULD INCREASE THE
PROBABILITY OF BEING SUCCESSFUL IN THE FURNITURE
INDUSTRY.
DESPITE THESE SIMILARITIES, IKEA REALIZED THAT TO
STRENGTHEN ITS PRESENCE IN THE GLOBAL MARKET, IT
WAS NECESSARY TO LOCALIZE.
COMPLETE SHOPPING EXPERIENCE

15. Thank you