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Aakriti Jain

5 BBA(H) B
1311744

BRAND REPORT ON IKEA


Why I chose IKEA?
IKEA has a target market of young people, which was the audience I was addressing.
Being in the third year of college and embarking on the journey of life, there are many
people in the audience who will soon look forward to setting their own houses with
their first earnings. Therefore I felt my audience and me personally can relate to the
brand now and in the near future. IKEAs offerings are differentiated in terms of
customer involvement in the product which I found especially unique to share with
the class. IKEA plans to enter India in two years which is why I thought it was
important to make my class aware of what this brand is all about. Globally, it is one of
the most sought out and famous brands and has positioned itself very uniquely
compared to its competitors. The company has also been very successful in its
business and the founder became a billionaire with his company which has a modest
start.
Why I like IKEA?
IKEA has differentiated itself in terms of convenience and simplicity with affordable
prices. Being a student in the present and stepping into the working world I believe
this is an attractive brand for a young person like me who would soon set up my own
house and look for cheap yet good quality and stylish furniture. The idea of creativity
and involvement in assembling the product myself also greatly appeals to me, as I
have been a person who enjoys do-it-yourself projects. It makes me proud and I have
a story to tell about how I assembled my furniture as I design my house. There is also
a personal touch when the customer itself assembles the furniture. Having been to the
store I really enjoyed the experience as I got a taste of Sweden and the staff was very
helpful.
Brief History
Ingvar Kamprad from Smland in southern Sweden founded IKEA in 1943. The name
IKEA is formed from the founder's initials (I.K.) plus the first letters of Elmtaryd (E)
and Agunnaryd (A), the farm and village where he grew up.
He began with sales of pens, wallets, jewelry, and nylon stockings with the goal of
meeting customer needs with products at reduced prices in 1926 and five years later

Aakriti Jain
5 BBA(H) B
1311744
introduced furniture. In 1950 the first furniture showroom opened in lmhult,
Sweden. They began designing furniture for flat packs and self-assembly. And the
first store opens in Sweden and is the largest furniture display in Scandinavia.
In 1960s they began expanding outside of Sweden with a store in Norway and
opened a self-serve warehouse. In 1980s & 1990s the first store opened in the USA
in Philadelphia. And children's IKEA was launched as IKEA feels that kids are the
most important people in the world. In 2000s IKEA e-commerce and its own food
label covering about 30 percent of the 150 products in its food range were launched.
Brand Positioning
The Brand Mantra is To create a better everyday life for the many people. Its
positioned itself on the main grounds of Cost Leadership (30-50% lower than
competitors), shopping experience as displays every product it sells in room-like
settings so customers dont need a decorator to help them imagine how to put the
pieces together and Swedish designs that are functional and simple.
Point of Parity

Category points of parity in Home Furnishings. It sells furniture and other


home products.

Offers high quality and low price like Walmart and Costco.

Advertise to the same market

Point of Difference

Image and functional related consideration in terms of brand associations

Leveraging secondary associations (country of origin)

Product offerings

Restaurant

Child care while shopping