Case: IKEA

1
Case IKEA

• Silvia Cernanská - Kati Kilpeläinen - Joonas
  Orkola

2
Given Questions

• What are the elements that characterize IKEAs
  strategic marketing?
• What are the elements of operational marketing
  for IKEA?
• How is selected marketing strategy implemented in
  operational level?

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Strategic Marketing

• Value proposition
• Satisfy ever-changing needs of home decoration
  with practical applications
• Target segment(s)
• Market analysis
• Young couple with modest income
• People who want to maintain fresh look of their
  homes

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Strategic Marketing

• Differentiation from competitors
• Scandinavian way of acting (clean)
• Price range (low)
• Relatively massive range of products
• Profitability
• Saves in production, transportation and
  distribution
• Communication
• Economical solutions

5
Operational marketing

• Product
• A multi-attribute solutions
• Easily modified packages or separate products
  (colors shapes)
• Distribution
• Own concentrated distribution channels
• Product placement supports customers decision
  making

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Operational marketing

• Cost
• Low cost and self assembly
• Communication
• Catalogues and innovative TV-marketing
• Selling
• Solution to ease decision making (personnel and
  equipment)
• Promotion

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Implementing strategy in operations
STRATEGIC MARKETING Analysis oriented process
OPERATIONAL MARKETING Action oriented process
Needs Analysis
Product
Customers who seek new way of home decoration
Colors, shapes, environmental friendliness
Large and various range Of practical
solutions for home decoration
Customers who want to get products without big
economical investments due limited resources or
dynamical wants
Own large shops with unique product placement
Young couple with modest income
Market Segmentation
Distribution
Attractiveness Analysis
Price
Neglected segment with large potential Fewer
frills-Modest price
Low monetary costs for customer and Company /
Requires customer to invest time for assembly
Lots of wood products and light package materials
Competitiveness Analysis
Communication
Scandinavian values
Mainly catalogues and some TV-advertisement
Design activities mainly In Sweden
and hand-picked partners
Choice of Positioning or/and Development Strategy
Marketing Program
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Thank you for your attention!

• Any questions?