1. Consumer Behavior/Observational Study
Celine, Bernie & Sebastian

2. Introduction

3. Ikea’s Strategies and Tactics

4. 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

5. 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

7. 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

10. 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.

11. Ikea’s Strategies Competitors and Business Internationalization
Unique Position
Link with a Local Supplier
International Expansion
Subsidiary
Franchise

12. Ikea’s Tactics The Range Matrix
Taste Tendency
Price Level
Country
North European
Modern
Swedish Chic
High
Medium
Low
Super Low

13. Ikea’s Tactics The Automatic Selling Philosophy Self-Assembly
Self-Serve
iTower
Catalog
Price Tags
Symbols and Signs

16. 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”.

19. 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.

21. Store Description

22. Store Description

28. Competitors

29. Hola
Elegant
Exquisite
More decoration products
Price: middle to high

30. Muji
Japanese-style
Simple
Wooden texture
Price: middle to high

31. Consumer Profile

32. 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

33. Perception Positive Perception Negative perception Price perception
Sleek
Modern
Diverse
Full of design
Convenient to purchase
Negative perception
Not durable
Price perception
No consensus

34. Information Gathering
Come to ikea in flesh
High involvement
Make the purchase based on the “experience” of seeing the real products

35. Decision Time More time on evaluating Comparison is made
Price is higher
Maze-like route
Comparison is made
Decision not immediately made

36. Thank you for listening