IKEA

IKEA

• 1.
  “To create abetter everyday life for the many people.”
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  IKEA was foundedin 1943 by a 17-year- old Swede named Ingvar Kampard who sold pens , Christmas cards , and seeds out of a shed on his family’s farm. The name IKEA was derived from Kamprad’s initials(IK) and the first letters of the Elmtaryd farm and the village of Agunnaryd where he grew up(EA).
• 3.
  IKEA inspires remarkablelevel of devotion from its customers. Each year more than 650 million visitors walk through its stores all over the world. Most need to drive 50 miles round trip but happily make the effort to experience IKEA’s unique value proposition.
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  IKEA’s scandinavian-designed productsare well made and appeal to the masses. To stay relevant and fashionable , the company replaces approximately one-third of its product line each year. Most have Swedish names .
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  Cultural Factors Many ofIKEA’s products are sold uniformly throughout the world , but the company caters to local regional tastes. IKEA’s managers visit the local market and products are made according to the habits and culture of local people.
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  IKEA inspires remarkablelevels of interest and devotion from its customers. Devoted customers motivate other persons to visit IKEA. Company caters to local and regional tastes . Prices are kept low so that even students and families with children can afford their product.
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  Personal Factors IKEA’s visionis and always has been “to create a better everyday life for the many people.” A high percentage of its customers are college students families with children. IKEA provide a quality product at low price. It continuously seeks out new ways to run its businesses more efficiently and pass those cost savings on to the customer.
• 9.
  IKEA motivates its customersby providing a leading edge design , functional home furnishings at extremely low prices.
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  How IKEA understands customers’ buying decision process :The Five-Stage Model
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  1. Problem Recognition The buying process starts when the buyer recognizes a problem or need triggered by internal or external stimuli.  IKEA identify the circumstances that trigger a particular need and then develop market strategies.
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  2.Information Search  Consumersoften search for only limited information. IKEA understands what type of information consumers seek . Mangers visit local markets and strategies are made according to the information collected.. Information Is provided Through advertisement
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  3. Evaluation OfAlternatives Consumer evaluates the various alternatives available to satisfy its needs. The consumers see each product as a bundle of attributes with varying ability to deliver the benefits. IKEA provides good quality at low cost which excites the consumers to buy its product. IKEA persuade buyers to attach more importance to low cost in which the brand excels.
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  4.Purchase Decision A numberof factors will determine the manner in which consumers form evaluations and make choices. IKEEA understand the factors that provoke a feeling of risk in consumers and provide information and support to reduce it.
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  5.Post Purchase Behavior Afterthe purchase, the consumers might experience dissonance from hearing favorable things about other brands and will be alert to information that supports his decision. IKEA monitor post purchase satisfaction, post purchase actions and post purchase product uses and disposal.
• 16.
  IKEA introduced the concept of Human Coupons to attract customersat new Store in Richmond, BC
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  IKEA IN INDIA
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   IKEA isinvesting Rs. 700 crore on the Hyderabad store spread over 400,000 sq. feet.  IKEA plans to double its sourcing from India to 600 million euros by 2020.  The company had plans to open two to three retail stores every year. Ahmedabad, Chennai, Kolkata, Pune and Surat are the other cities IKEA is looking at.
• 20.
  Introduction and History HowIKEA influences consumer behavior The Buying Decision : Five stage Model Human Coupons IKEA in India
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  Disclaimer Created by RitishGupta, APJ Jalandhar during a marketing internship by Prof. Sameer Mathur ,IIM Lucknow