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Consumer
-Based
Brand Equity
[CBBE]
Team:
- Jayateerth Mokashi
-Prabhas Harlapur
-Shreenivasa k v
-Sameer T N
-Manjunath

May 29, 2016

IKEA

Why IEKA ?

May 29, 2016

IKEA

IEKA Mission,vision,values

May 29, 2016

IKEA

Kellers Pyramid Overview

Keller's Brand Equity Model is also known as the Customer-Based Brand
Equity (CBBE) Model. Kevin Lane Keller, a marketing professor at the Tuck
School of Business at Dartmouth College, developed the model .
The concept behind the Brand Equity Model is simple: in order to build a
strong brand, you must shape how customers think and feel about your
product.
You have to build the right type of experiences around your brand, so that
customers have specific, positive thoughts, feelings, beliefs, opinions, and
perceptions about it.
When you have strong brand equity, your customers will buy more from you,
they'll recommend you to other people, they're more loyal, and you're less
likely to lose them to competitors.

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IKEA

Equity Pyramid

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IKEA

Consumer Model

May 29, 2016

IKEA

Salience
The salience for IKEA is clearly furniture retailer. Since 2008 IKEA had become the largest furniture retailer in the
world.
Eye catching logo
Global Awareness

Imagery
Originating from Sweden, IKEAs Scandinavian style not only lies in their yellow blue logo but also in their
furniture. The minimalist and simplicity of Scandinavian designs are appreciated by consumers all over the world.
IKEA is targeting the price-oriented consumers, all family sizes with household ranging from small to large house
space, usually young families with children. The concept of IKEA Family has also successfully built a home-loving
image.
IKEA is also famous for their wide range of products. Quoting IKEA:No matter what style you prefer there is
something for everyone.
IKEA is not only known as a place for people to buy furniture, it is also a place where people being fun and
innovative to gain inspiration regarding the design of their homes with the help of the conceptual placement of
the furniture in IKEA store.

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IKEA

Performance
IKEA is the pioneer in furniture retail market. According to our survey, 90% of the
interviewers quote IKEA as the first brand name to recall when it comes to home
furniture.
Affordable solutions for better living IKEA products emphasize on being both
functional and low price. IKEA furniture is an ideal short term house solution for
consumers regarding their low price but does not have long lasting product life.
Regarding this fact IKEA offers a lifetime guarantee for its product. It is almost
impossible to not connect IKEA with DIY (do-it-yourself) which is the heart concept
strategy for the low price warrior on the market.
Our vision is to provide well designed, functional home furnishings at prices so low
that as many people as possible will be able to afford them. On average,one IKEA
store contains 9,500 products that come in different size, shape and designs.

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IKEA

Judgment
IKEA is a dependable brand that offers complete solutions within good prices. Priceoriented products have however lower performance of quality is an unavoidable
correlation. IKEA consumers are conscious aboutthe quality of product despitethe
purchasing price and earn satisfaction fromgetting aGood Deal.
Putting all the advantages of function, affordability and Swedish design in a flatpack is one of the strongest POD of IKEA. The superiority of flat-pack makes IKEA
product an ideal choice for consumers. The flat-pack design is easy to transport for
consumers with ordinary transportation (household automobile, public
transportation).
Customer service in IKEA had built a positive relationship with its clients, urging the
IKEA Family (the IKEA employee) to treat the clients as family, which leads to its
family-friendly brand image.

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IKEA

Feelings
Shopping in IKEA is something more than just buying. The welcoming atmosphere makes
consumers as easy as they are at home. IKEA also provides a restaurant and children
playground to satisfy all consumer needs and allow parents to shop longer. The onedirection layout and showroom display are turning shopping into FUN maze. It is almost
impossible to rush into IKEA for just one item as oneends up spending hours lingering in
this huge furniture playground.
The IKEA Effect is derivedfrom the experience of DIY (Do it yourself) and often the first
word pop-up in our mind when we talk about IKEA. Building something by oneself is always
a satisfying feeling of self accomplishment. According to Psychology Today, it also adds
value to an objects worth. IKEA has positive social approval; because of its high availability,
consumers will receive positive feedback from others whenshopping forIKEA products.
IKEAsuniquestore layout is standardized throughout the store in the
world. The familiar environment and product provide a secure
experience for consumers toward the brand.

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IKEA

Resonanc
e
According to our Lovemarker analysis IKEA is considered as a potentialLovemarker
with high consumer respect but low loyalty. IKEA has a low customer loyalty
possiblydue to their price-orientated strategy the slightest change in price may
drive away a large target segment. IKEA consumer loyalty is based on the criteria of
price and distance. Consumers are likely to choose other brands when there is other
lower price product or having more budgets. As IKEA locations are mainly outside
the city, with the increase price of fuel long distance transport may decrease
consumers motivation to visit its shops.
IKEA has a strong community. The IKEA Hackers & online community bindthe fans
together in the IKEA concept. Strong engagement among the consumers involved in
the IKEA community allows thme to sharetheir IKEA works and experiences.

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IKEA

Conclusio
n
A HIGHLY SALIENT BRAND
A REPUTABLE BRAND
GLOBALLY RECOGNISED
REPEAT CUSTOM
MINTEL STATES: Ikea to be the most popular online furniture store in 2013

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IKEA