IKEA has created a global marketing strategy based upon its original business model developed in Sweden over 70 years ago, which focused on offering quality, low price products to the mass population. When entering developed markets, such as the U.S. and western nations, IKEA applies this globalized marketing strategy with very similar products, branding, positioning, and minor customizations made to appeal to consumers in each region.
More recently, IKEA has started entering emerging markets across the world, many of which have distinctly different cultural backgrounds to that of the Swedes. Many of these emerging markets are new and untested to western businesses, and require working closely with foreign governments to enter and legalize …show more content…
In order to remain competitive, IKEA must be willing to localize elements of their global marketing strategy in order to meet the cultural norms and expectations of consumers within emerging nations.
2 U.S. Market Experience
IKEA entered the U.S. market in 1985 in Philadelphia, and spent its first decade within the new market struggling with low sales, not opening a single store between 1993 and 1999. Initially, IKEA’s U.S. business was comparable to that of exporter, shipping the Swedish designed and manufactured products directly into the U.S. and selling them within the stores. After a long period of slumping sales and negative customer feedback, IKEA realized they would need to adapt minor elements of their marketing strategy in order to better serve the tastes and expectations of American consumers.
2.1 Brand …show more content…
retailers. IKEA in the U.S maintains their low prices due to self-service, efficiencies in production achieved by economies of scale, and also by utilizing local sourcing of products.
2.3 Competition
While there are many other retailers and department stores that offer similar furniture, IKEA is unique because it is one of the only retail vendors that encompasses a large array of furnishings, decorations, and consumer services for the entire home within one store. Many American consumers see shopping at IKEA as an experience, and with additional services such as childcare and restaurants within the store it allows for a relaxing shopping experience and retains consumers within the store for a longer period.
This ‘all inclusive’ shopping experience differentiates IKEA from a variety competitors in the U.S., from the DIY home improvement stores like Home Depot & Lowes, to retail stores that carry similar modular furniture such as Target, and even the home retail stores that focus on only furniture and decorations, like Pier 1
More recently, IKEA has started entering emerging markets across the world, many of which have distinctly different cultural backgrounds to that of the Swedes. Many of these emerging markets are new and untested to western businesses, and require working closely with foreign governments to enter and legalize …show more content…
In order to remain competitive, IKEA must be willing to localize elements of their global marketing strategy in order to meet the cultural norms and expectations of consumers within emerging nations.
2 U.S. Market Experience
IKEA entered the U.S. market in 1985 in Philadelphia, and spent its first decade within the new market struggling with low sales, not opening a single store between 1993 and 1999. Initially, IKEA’s U.S. business was comparable to that of exporter, shipping the Swedish designed and manufactured products directly into the U.S. and selling them within the stores. After a long period of slumping sales and negative customer feedback, IKEA realized they would need to adapt minor elements of their marketing strategy in order to better serve the tastes and expectations of American consumers.
2.1 Brand …show more content…
retailers. IKEA in the U.S maintains their low prices due to self-service, efficiencies in production achieved by economies of scale, and also by utilizing local sourcing of products.
2.3 Competition
While there are many other retailers and department stores that offer similar furniture, IKEA is unique because it is one of the only retail vendors that encompasses a large array of furnishings, decorations, and consumer services for the entire home within one store. Many American consumers see shopping at IKEA as an experience, and with additional services such as childcare and restaurants within the store it allows for a relaxing shopping experience and retains consumers within the store for a longer period.
This ‘all inclusive’ shopping experience differentiates IKEA from a variety competitors in the U.S., from the DIY home improvement stores like Home Depot & Lowes, to retail stores that carry similar modular furniture such as Target, and even the home retail stores that focus on only furniture and decorations, like Pier 1