Ikea Case Study

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Erica Presbie

BUS403-01 IKEA Case Study

IKEA in the U.S.

IKEA from an American perspective is known as a global brand that shares the cuisine

and décor styles of Scandinavian design with their global markets. The average American

shopper at IKEA is between college-aged students and young families that need affordable

furniture options. IKEA in the U.S. is known for its large store square footage where shoppers

can find everything from large furniture pieces to small decors pieces for their home. Americans

like the maze aspect of the store layout and the experience shopping at IKEA. Americans are

aware that IKEA is not a quick trip due to the maze layout and while this may be a smart

marketing tactic for American, capitalistic consumers, this model may not transcend through

other cultures where shopping is not meant to be a full day experience.

My Own Experience with IKEA

My own experience with IKEA is somewhat limited primarily due to the lack of store

locations near me. The nearest IKEA store to my hometown is an hour away so it was always too

far for my family to lump it in with the other home goods browsing stores; therefore, whenever

we went to IKEA, it was always a planned trip instead of a spontaneous shopping trip. The

occasions my family would go to IKEA it was for a big project like renovating my bedroom and

purchasing all large new pieces of furniture. Going to IKEA was usually a full day event not only

because it was a far drive but also because the store layout was similar to a maze, and we could

eat meals in the store. When I was fourteen, we purchased the matching Malm white set for my

desk, dresser, nightstand, and bookcase. My family chose the set because it was cohesive,
modern, and a fair price. While the furniture isn’t the best quality in my opinion, it has a timeless

modern style and my pieces have stayed with me for over eight years.

IKEA’s Global Positioning Strategy

IKEA positions themselves across countries as a meaningful brand for 64 years which

they say separates themselves from the rest of the market. However, although Ikea has an

integrated branding strategy throughout all the countries, they do business in by implementing

certain strategies like store layouts, store cafeterias, and a cohesive product line the company had

not adapted enough to current social media and digital advertising until working with a corporate

development team. The study also noted how while IKEA has cohesive branding the company

has to overcome the struggles of marketing products in other countries where design may be

different than it is to Scandinavian countries. Spain for example does not see design as big of a

trend as Scandinavian countries do so the company has to develop creative marketing strategies

to appeal to global audiences like creating a Christmas letter campaign to appeal to their family

ties. Even with these issues of targeting consumers in different countries IKEA has done a good

job at keeping their branding similar by maintaining their Scandinavian design and Swedish

product names.

Other Brands Suffering from Consumer Decision

Another brand suffering from consumer decisions is department stores like Sears. What

was once the major department store for appliances and clothing is now a dying store with only a

few locations left. Sears was distanced from the market due to competitors like Target and

Walmart outcompeting the brand and its inability to market itself to younger generations which

is why it’s important for IKEA to focus on its digital marketing strategy.

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