Competitor Analysis
 Competitive Advantage:  Differentiation- Concept of Fashionable & Stylish furniture not currently present in India  High level of customization  Cost Leadership  85% Unorganized Sector

Major Players

Major Players

Major Players .

Major Players .

Major Players .

Furniture Retail chains .

Furniture Retail chains .

based on the below parameters:  Based on geography:  Urban Population  Based on income stream:  Upper Middle Class (open to experimentation)  Based on lifestyle:  People who shift houses frequently  People who are in transferable jobs .Segmentation In India. IKEA should segment it’s customers.

Target Group After proper segmentation is done.newly married/about to get married  Couples who are expecting a child  Youngsters who love to design their room and crave for individuality IKEA could also deliver its products to:  Colleges/Hostels  Start Ups . customers can be targeted as below:  People running their own business  Professionals employed in the IT industry  Young Couples.

Positioning  IKEA should position itself on:  Fashion and Style  Furniture for the youth  Designer/Contemporary Brand  Customized/ Unique Furniture  Initial Positioning can focus on Affordable Price. but only for a short period of time .

4P Analysis Product Trends come and go. functional home furnishing products at prices so low that as many people as possible will be able to afford them  The IKEA range includes products for every part of the home  IKEA products have the label "Design and Quality. but combining a low price with good design and function never goes out of style Profile:  IKEA caters to the need of people having limited budgets and limited space in their homes  The IKEA product range meets these needs by offering a wide range of well-designed. IKEA of Sweden“ .

often coordinated in style  Then large volumes are purchased to push prices down even further Most IKEA products are also designed to be transported in flat packs and assembled at the customer's home. Instead they use design to secure the lowest possible price  IKEA designers design every IKEA product starting with a functional need and a price  Then they use their vast knowledge of innovative. the IKEA Concept uses design to ensure that IKEA products can be purchased and enjoyed by as many people as possible . IKEA designers work in exactly the opposite way. low-cost manufacturing processes to create functional products. This lowers the price by minimizing transportation and storage costs In this way.4P Analysis Product Design: While most retailers use design to justify a higher price.

the IKEA product range needs extremely low price levels IKEA designers do their part to keep prices low by using production capabilities from other areas in unique and previously unimagined ways :  like having a shirt factory produce furniture upholstery  or using leftover materials from the production of one product to create an entirely new one ."to create a better everyday life for the many people". As the IKEA Concept aims to serve "the many people".4P Analysis Price Low Price Strategy Low price is a prerequisite for the IKEA Concept to realize the IKEA vision .

the company would survey the competition to establish a benchmark and then set its own price point 30% to 50% lower than those of its rivals IKEA’s Price Matrix . a product developer would set the product’s target retail price using what the company referred to as “the matrix”  The matrix consisted of three basic price ranges and four basic styles  Within each price range.4P Analysis Price  After deciding product priority .

a price matrix for kitchen tables. product managers could readily identify market opportunities .4P Analysis Price • There was a separate matrix for each product type IKEA sold—that is. the matrix was used to identify gaps in the company’s product lineup • By plotting the company’s current product offerings on the grid and looking for empty spaces. and so on • In addition to being used to set retail prices. a price matrix for sofas.

4P Analysis Place  Metro cities. Ahmadabad. Mumbai.Hyderabad. Pune. Kolkata. Bangalore  Tier two cites. Jaipur .Delhi NCR. Surat. Chennai.

IKEA will promote itself as a fashionable brand for homes  Media Channels covered will be: TVC/Print/Digital  Pull strategy will be executed so that the customers themselves pull out the product from the shop .4P Analysis Promotion  In India.

since its an international brand • IKEA should therefore sell fashion and style Rational Benefits Actually Selling .Marketing Strategy Emotional Benefits • Furniture for your house • New Designs • Makes the house look trendy and fashionable • Peps up self esteem.

Marketing Strategy Brand Personality  Trendy  Stylish  Contemporary  Young  Experimental .

Marketing Strategy Branding Idea Consumer Desire Wants home interior to be stylish & unique Brand Offering Customized furniture in a wide variety of designs IDEA Fashionable Homes .

Femina. India Today Home  Tie ups with fashion magazines.Vogue. Cosmopolitan.TOI/HT TVC  Star Movies  HBO  Sony – Byah Humari Bahu Ka/ Bade ache lagte hain Colors – Balika Vadhu/Big Boss  Travel and Living  MTV & Channel V DIGITAL  YouTube  Twitter  Facebook  Blogs .Marketing Strategy Media Plan PRINT Put up on Bus Stops and Metro Station  Magazines. GQ  Newspaper Supplements.Living etc.

Distribution Channel for IKEA in India Supplier (1 or more than factory) Distribution Centre (Warehouse) Store Customer .


. IKEA does practice the economies of scale with a network of 1300 suppliers in 53 countries • IKEA supports its low prices by having customers self-serve. deliver. • IKEA also gains a point-of-difference through its product offerings. and assemble the products themselves.Pod • A contemporary design with affordable prices • With this differential branding position.

space–efficient and scalable furniture and accessories at very low price points” .Value proposition of IKEA • “Young. first time or price-sensitive buyers who want stylish.

we do a little. and together we save a lot.IKEA MANTRA • Ikea mantra that says. "You do a little." .


“Innovation in the industry” Traditional furniture. modular kitchens and furniture made of recycled wood are also gaining popularity in Indian market Traditional furniture making a comeback Modular Kitchens emerging as new growth segments Recycled wood a new source of raw material .

Innovation continued… MDF a substitute for conventional wood and plywood .

Why will IKEA succeed in India? • 1. In the coming years too. a reliable brand name. to an IKEA food store to the linen section to home accessories to kitchenware to decorative items.IKEA’s pre fabricated furniture and goods represent modern Indian lifestyles More and more working Indians living in suburban metros want shopping hubs that offer quick service. to household items to stationery. light furniture.IKEA is a familiar brand name amongst urban Indians IKEA along with Starbucks and Walmart.IKEA’s CSR operations in India IKEA supports UNICEF’s water and sanitation program and funds initiatives in the carpet and cotton regions in the country. IKEA plans to spend in areas of women empowerment. IKEA has it all 2. has been made familiar to Indians because they keep appearing in the media due to their constantly changing plans of entering the Indian marketplace • •  4. pre fabricated. wide options under one roof and quick delivery 3. education. IKEA offers Everything under one roof From its trademark foldable. health awareness and industry-based programs that aims to benefit about a 100 million women and children .


Channels • Direct Channels .


contemporary design furniture.Salience • Product Category Do it Yourself concept • Needs satisfied Low cost. easy to carry in boxes in customer’s car .

indicating its reliability Durability .The paint is purchased repeatedly.No handing down through generations Serviceability – Do-it-yourself concept Service effectiveness.Performance • . reducing 2-3% year on year for each product. . contemporary designs Reliability . efficiency. empathy – Minimal. with the DIY concept. Primary characteristics – Furniture Secondary Features – Easy to assemble. Style and Design – Contemporary Price – Low.

blue and yellow buildings about 5000 sq ft in space • Brand personality and values – Low cost. Stores located in urban areas. isolated from other stores. cost conscious. newer contemporary design. creative.Imagery • User Profile – Fun. remodeling the house. for people who work hands-on . • Purchase and usage situations – Need to replace old paint. contemporary designs. don’t mind DIY.

delivery. Display Setting in stores. Product trial. likeable • Consideration: Customers do recommend Vivid after use.Judgment • Quality: Comparatively good quality at the given price. staff service. • Superiority: In store Experience. Display Setting • Credibility: trustworthy. .

sophisticated. • Social store experience.unique designs. involvement PRIVATE AND ENDURING • Security.BRAND FEELINGS Responses and reactions of customers EXPERIENTIAL AND IMMEDIATE • Warmth.unrivalled reputation. DIY techniques • Excitement. best among alternatives . high emotional quotient • Fun.home paint.low cost but high in creativity and innovation • Self respect.

repeat purchase very common.Resonance • Level of identification. The average customer makes 3. favorite possession • Sense of community.5 store visits per year • INTENSITY: • Attitudinal attachment.part of customer’s . high lifetime value • Active engagement. social pack and IKEA inseperable. relationship with the brand • ACTIVITY: • Behavioral loyalty.affiliation among IKEA users .

appeals to both head and heart • Richness. time and resources spent on it • No shortcuts – half a decade.high involvement product.high amount of depth .IMPLICATIONS • Customers own brands. feel ownership of goods. Scandinavian perspective • Duality.