IKEA's Global Marketing Strategy


IBS CDC IBS CDC IBS CDC IBS CDC RSS Feed
 
Case Studies in Business Marketing

ICMR HOME | Case Studies Collection

Case Details:

Case Code : MKTG119
Case Length : 19 Pages
Period : 1998 - 2005
Pub Date : 2006
Teaching Note :Not Available
Organization : IKEA
Industry : Furniture Retail
Countries : Sweden, US and China

To download IKEA's Global Marketing Strategy case study (Case Code: MKTG119) click on the button below, and select the case from the list of available cases:



Price:
For delivery in electronic format: Rs. 400;
For delivery through courier (within India): Rs. 400 + Rs. 25 for Shipping & Handling Charges

Marketing Case Studies
Marketing Management Short Case Studies
View Detailed Pricing Info
How To Order This Case
Business Case Studies
Case Studies by Area
Case Studies by Industry
Case Studies by Company



Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

<< Previous

About IKEA

Kamprad established IKEA in 1943 at the age of seventeen. He came up with the name IKEA by combining the first letters of his name (Ingvar Kamprad), followed by the first letters of the farm and village he grew in (Elmtaryd and Agunnaryd). IKEA began in a shed that was just two meters square in size.

Kamprad started his business by buying pens, Christmas cards, matches, cigarette lighters, nylon stockings and other items in bulk. He sold these items to the residents of Smaland at a reasonable price, but still made healthy profits. To save more money, Kamprad would piggyback his packages on the trucks that delivered milk. IKEA soon started making money. In 1945, Kamprad started promoting business through mail order catalogues as conducting individual sales calls became impossible. Furniture was introduced in IKEA's product portfolio in the year 1947. By 1951, the furniture sales had increased so much that Kamprad decided to discontinue all other products and concentrate solely on selling furniture that was classy and low priced at the same time.

In the same year, the first IKEA furniture catalogue was issued and the first IKEA furniture shop was opened in 1953 at Almhult in Sweden. The first IKEA stores was opened at Almhult in 1958. The opening of the showroom was an important milestone in the growth of IKEA as customers could, for the first time, see and touch the furniture before giving an order.

By visiting the showroom, customers could review three dimensions of its products - function, quality and low price - before making their purchases. In 1956, IKEA launched its most successful product - Flat pack furniture. It was invented by accident when an IKEA employee Gillis Lundgren (Lundgren) realized that a bulky wooden table could fit into a car only when its legs were removed. He put this observation to work and thus was born furniture that could be easily dismantled and rearranged with the aid of accessories such as nails and screws. Lundgren subsequently went on to establish the design team at IKEA that created a bookshelf named Billy, and a sofa called Klippan, the two globally best-selling furniture pieces from IKEA.

This technology brought IKEA two distinct advantages: it made furniture easy to carry (for both the buyer and the company), and it also reduced overall costs as buyers could assemble the products at home using instructions provided by the company...

Excerpts >>



Case Studies Links:- Case Studies, Short Case Studies, Simplified Case Studies.

Other Case Studies:- Multimedia Case Studies, Cases in Other Languages.

Business Reports Link:- Business Reports.

Books:- Text Books, Work Books, Case Study Volumes.