1. IKEA’s marketing problems
By Goi & Sai

2. • IKEA is a privately held
international home
furnishings retailer.
• It is a Dutch-registered
company, with offices in
Netherlands, Sweden and
Belgium.
• As of August 2010, there
are IKEA stores in more
IKEA was founded in 1943 by
than 38 countries, with 280 Ingvar Kamprad in Sweden
stores in 26 countries
belonging to the IKEA
Group. All IKEA stores are
operated under franchise
from Inter IKEA Systems
B.V

3. IKEA’s Vision and Business Idea
 IKEA’s vision is "To create a better everyday life for
the many people.”
 IKEA’s idea is "To offer a wide range of well
designed, functional home furnishing products at
prices so low that as many people as possible will
be able to afford them.”

4. The IKEA Marketing Mix
 IKEA has a long tradition in marketing communication
focusing primarily on printed media which has proven its
values and success to the company over the years.
Other media now being used to an increasing degree
include TV, radio, and internet based communication.

5.  the IKEA catalogue is the main marketing tool.
 It is produced in 38 different editions, in 17 languages for
28 countries. 110 million catalogues were circulated last
year -
 the,

7. Ikea apologises for service failure on Apple devices | PR & public relations news | PRWeek 22/ 05/ 12 4:29 PM
"We sincerely apologise to any
Ikea apologises for service failure on Apple devices
customers who have Matthew Chapman, marketingmagazine.co.uk, Thursday, 01 March 2012, 11:02am, Be the first to comment
experienced technical Ikea has been forced to issue an apology to irate customers after orders
made using Apple devices failed to process without any notification.
difficulties when shopping
online using an iPad, iPhone or
iTouch device”
"We always make every effort
Ikea: Happy Inside campaign by Mother
to ensure that our customers The retailer's helpline has been flooded by complaints after online transactions made through iPad, iPod Touch and
iPhone devices appeared to be carried out successfully, but were not.
have an easy online shopping Customers have been calling the helpline after not receiving a delivery date for their order, only to be told that
orders had never been processed.
experience and as soon we Operators have subsequently told such customers that they have to order again on a different device or buy the
product in-store.
became aware of this issue, we Ikea has now put notifications on its ecommerce site to inform customers of the problem with ordering via Apple
devices, when they add products to their trolley and check out.
have been and will continue to Julie Knowles, Ikea UK ecommerce customer services manager, said: "We sincerely apologise to any customers
who have experienced technical difficulties when shopping online using an iPad, iPhone or iTouch device.
work towards a resolution." http:/ / www.prweek.com / uk/ news/ 1119933/ Ikea- apologises- service- failure- Apple- devices/ ?DCMP= ILC- SEARCH Page 1 of 2

8. Ikea on the Japanese Market
 During Ikea’s expansion on the international market Japan
was the first country in Asia that Ikea considered to enter in
1970’s.
 The differences between culture, lifestyle, and behavior made
Ikea face the failure.
 In 1974, when IKEA entered Japan, it was not just selling
products, but also philosophy: this is how things are done in
Sweden.
 Pulled out in 1986
 IKEA re-entered Japanese Market in 2001

9. How did IKEA avoid the mistake?
Product
First round Second round
Offer all the available IKEA adapted
product lines as other Japanese living
markets condition – big family
live together in a small
house

10. How did IKEA avoid the mistake?
Place
First round Second round
IKEA thought the Japanese Japanese people are more
Consumers used to shop at attracted to mega stores,
small stores, so they have IKEA introduced a mega
their store built small to store with 10,000 product
adapt to the local life style lines supported by 2,200 car
parking spaces, a child-care
area and one of the Tokyo’s
largest restaurants.

11. How did IKEA avoid the mistake?
Packaging
First round Second round
Introducing the flat-packs Adapt to customers' tastes
and DIY concept but and habits by providing
Japanese customers were home delivery and
not ready and wiling to do assembly for an extra
so charge.

12. How did IKEA avoid the mistake?
Promotion
First round Second round
Standardization of Finding out that Japanese
showrooms’ format and homes are mostly small,
display regardless of IKEA comprised 70 mini-
Japanese real life housing showrooms on the second
conditions. floor of the store with the
same size of typical
Japanese room.

13. Future Challenges for the IKEA
Group
• The complexity of the logistics system will
increase.
• It will be more difficult to respond to national
needs and cultural sensitivity issues.
• Franchisees may demand more control over
operations.
• With all these challenges emerging, it will be
very difficult to maintain a global
organizational structure. The best approach to
meet these challenges is to find the proper
balance between country level autonomy and

14. Reference
 Chapman, M. (2012). Ikea apologies for service failure on
Apple devices. Retrieved May 20, 2012, from
http://www.prweek.com/uk/news/1119933/Ikea-apologises-
service-failure-Apple-devices/?DCMP=ILC-SEARCH
 Inter IKEA Systems B. V. (2012). IKEA. Retrieved May, 20,
2012, from http://www.ikea.com/gb/en/
 Chopra, R. (2009). IKEA Case Study. Retrieved May, 20,
2012, from http://www.slideshare.net/riddhimachopra/ikea-
case-study
 Capell, K. (2006). Ikea’s New Plan for Japan. Retrieved May,
20, 2012, from
http://www.businessweek.com/globalbiz/content/apr2006/gb20
060426_821825.htm