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Consumer Behavior/Observational Study
Celine, Bernie & Sebastian
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Introduction
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Ikea’s Strategies and Tactics
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Ikea’s Strategies Product Strategy
Standardization universally accepted assortment Target Market young people of all ages Do It Yourself self assembly, self serve Localization cultural sensitivity
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Ikea’s Strategies Price Strategy
IKEA offers prices that are 30 to 50 percent lower than fully assembled competing products large-quantity purchasing low-cost logistics store location do-it-yourself
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Ikea’s Strategies Promotion Strategy
IKEA's promotion is centered on the catalog. The catalog is printed in 30 languages and has a worldwide circulation of 208 million copies. IKEA is active in developing social and environmental responsibility programs. The IKEA Way of Preventing Child Labor Environmental Protection Responsible Forest Management
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Ikea’s Strategies Distribution Strategy
Approximately 9,500 IKEA products are manufactured from 1026 suppliers and shipped to the 287 IKEA stores in 26 countries. In exchange for long-term contracts, equipment rental and technical support from IKEA, the suppliers produce exclusively for IKEA at low prices. Consumers of IKEA products are half producers, half consumers, because most products must be assembled.
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Ikea’s Strategies Competitors and Business Internationalization
Unique Position Link with a Local Supplier International Expansion Subsidiary Franchise
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Ikea’s Tactics The Range Matrix
Taste Tendency Price Level Country North European Modern Swedish Chic High Medium Low Super Low
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Ikea’s Tactics The Automatic Selling Philosophy Self-Assembly
Self-Serve iTower Catalog Price Tags Symbols and Signs
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Ikea’s Tactics The Store Layout
IKEA is famous of its labyrinthine store layout. The intention is obvious: to capture the lost customers that doomed to nonsensical purchases. In order to “inspire” the customers, everything in the showroom is carefully arranged based on sales reports and consumer behavioral researches. The layout of the showroom is further divided into “Hot Space”, “Warm Space” and “Cold Space”.
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Ikea’s Tactics The Baits
The Baits refers to those “randomly” (but actually intentionally) placed accessories, such as cushions on the sofa; the super large IKEA shopping bags; the baskets loaded with cheap stuffed toys; and the “Breath-taking Items” (BTI). The basic idea of the mechanism is that once you started buying small things, sooner or later, you will come back to buy bigger and more expensive ones.
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Store Description
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Store Description
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Competitors
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Hola Elegant Exquisite More decoration products Price: middle to high
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Muji Japanese-style Simple Wooden texture Price: middle to high
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Consumer Profile
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Consumer Profile Age: from 25 to 39 Come not alone
The new family Young couple However, some singles can be seen Need Recognition House-moving Purchasing trendy product Younger generation Sensitive in design
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Perception Positive Perception Negative perception Price perception
Sleek Modern Diverse Full of design Convenient to purchase Negative perception Not durable Price perception No consensus
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Information Gathering
Come to ikea in flesh High involvement Make the purchase based on the “experience” of seeing the real products
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Decision Time More time on evaluating Comparison is made
Price is higher Maze-like route Comparison is made Decision not immediately made
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