1. TEAM
Keyona Abbott
Francisco Alvarez
Kaitlin Bumpus
Jasmine Ruiz

2. Overview Founded in 1943 by Ingvar Kamprad
Focuses on Frugality & Low Cost
Over 226 Stores in 33 Countries
200 IKEA Group Owned, Rest Franchised
28 Stores in U.S.
Älmhult, Sweden
Atlanta, GA

3. Functional Divisions Production Marketing
Long-Term Supplier Relationships
Places Trading Offices Worldwide
Long-Term Contractual Relationships
Marketing
Product Design
Catalogs
Advertising
Public Relations/Sales Promotion

4. SWOT Analysis Strengths Weaknesses Low-Cost Structure Anti-bureaucracy
Do-It-Yourself Approach
Added Amenities
Weaknesses
Service Trade-Offs
Limited Promotional Expenditures
IKEA Catalog

5. SWOT Analysis Opportunities Threats Urban Sprawl
Value-Dominant Buying Logic
Growing Popularity of Swedish Design
Threats
Copycat Competitors
Changing Customer Needs

6. Future U.S. Expansion Advantages Barriers Consumers Cost-Conscious
Melting Pot of Cultures
Barriers
Strong Individualism
Commercials Too Edgy

7. Question 1
Why are the styling and designs of IKEA products so popular? Does IKEA’s blend of style and pricing have appeal to mainstream U.S. consumers?

8. Product Description Positive Negative Cheap Trendy Hard to install
Low-Priced
Bad Quality
Not Unique
Trendy
Sleek
Low-Priced
Good Quality
Unique
Stylish

9. Problems Price Self-Assembly
Do you think that IKEA’s LOW pricing strategy is good or bad for them?
When you shop at IKEA is their self assembly furniture a hassle?
Do you dislike this about IKEA?
Price
Self-Assembly

10. Appeals To… College Students Kids Business Office Young Couples
Do you see IKEA furniture as sheik and trendy?
Business Office
Young Couples
Sophisticated Family

11. Demographics
Gender
Age

12. Demographics
Education
Income

13. Demographics
Race

14. Question 2
How do you account for IKEA’s growth & popularity: value or image?
What can IKEA do to sustain growth after it loses some cachet?
Hoovers Company Capsules and Profiles

15. Image What do you think of when you think about IKEA?
Appeals to Outside Mainstream
Socially and Ethically Responsibility
No plastic bags
Owned by a charity
Long term relationship with suppliers.
Environmentally conscious production and manufacturing process
Value or Image?
Does Value only include money?
Lower prices but one may spend long amount of time assembling. 15

16. Commercials
500 Days of Summer
Dining Room Table
I Don’t Judge

17. Sustainable Growth Expansion into other markets
Use successful business strategy in other ways
Open smaller “mini IKEAs”
Put products into other retail stores.
Food from their café in grocery stores 17

18. Question 3
Speculate on what will happen at IKEA stores as they are tailored to fit local tastes. Is the company’s trade-off of service for low cost sustainable in the long term?

19. U.S. Market
A lot of Americans live very busy lives and convenience and fast pace is very important
Most Americans are willing to pay the extra money for service rather than the do-it-yourself
It’s believed that the low cost do-it-yourself will not be sustainable in the U.S. and other developed countries
Do you think that Ikea will last in the American market?

20. American Invasion Americans did not like IKEAs’ products at first….
The sofas were too hard
Appliances did not match kitchen designs
Everything is do-it-yourself
This cartoon makes fun of the Ikea approach of providing cheaper furniture that is bought not assembled.

21. Advertising
Piax= peace. This is one of the Ikea print advertisements that appeared in the holiday issue. It was done very creative and there were several ads that were done all containing nothing but furniture or people doing everyday normally things featuring their products.

22. Advertising
Holiday Ikea ad.

23. Advertising
Holiday Ikea ad.

24. Fun Facts Cheapest Item is a dog dish for $0.29
There are 48 room settings and three model homes in an IKEA showroom
522 million people worldwide went to an IKEA store last year
In 2006, IKEA stores & distribution centers handled 281,734 tons of waste About 81% was recycled.
Holiday Ikea ad.