Ikea

IKEA

How has IKEA successfully sold its home furnishing products in so many countries around the world? Do global customer segments truly exist?

One of the reasons of IKEA’s success comes from its ability to differentiate its product from competitors in terms of design, perceived risk and cost. IKEA’s unique branding strategies differentiate its product from its competitors. In addition, IKEA’s products are flat-packed self-assembly furniture kits where consumers make purchase choices in the store, picking up the product and bringing it home to assemble. These lower the consumer’s perceived risk. Subsequently, IKEA needs to deliver the correct message to the selected target audience. Base on IKEA’s demographic focus, IKEA focuses mainly on the middle-income sector and on the average, the consumers’ age is about forty two years old, visiting IKEA at least four times a year. Results have also shown that, globally, most consumers share the same taste in furnishing. It shows that the global customer segments truly exist. (Howard, 2004)

In addition, IKEA marketing strategies focuses on the cognitive and emotional model of consumer decision making. IKEA allows consumers to be involved in the decision making process. The shopping experience provided by IKEA’s stores allows consumers to experience the different settings and products first hand. Even after purchasing the product, consumers are involved in transporting and assembling the product, which lower the cost and could provide the consumers a sense of satisfaction at the end of the day. Thus, fulfilling the consumers’ needs (purchasing of a bookshelf for example) and enriching their life (experience at the store to assembling the bookshelf at home). Next, IKEA’s store concept creates the mood or feelings when consumers are at the particular settings. This may consumers to purchase more than what they intended to buy in the first place. For example, a consumer intended to purchase a computer desk and heads to...