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IKEA Company’s Marketing Strategy Case Study

Success factors

The success of IKEA is attributed to the strict self-service policy. In this context, the concept of flat packages is effective and reduces labor, storage and transportation costs. IKEA allows customers to customize products in a bid to optimize client satisfaction.

The introduction of low-priced furniture and discount prices is hailed as the leading factor in making the company a success story. Apparently, IKEA’s idea of targeting a market segment that is price-conscious is vital in attracting customers. Sufficient production capacity allows IKEA to meet the current market demand, as well as, reduce the unnecessary costs.

IKEA’s product strategy is to establish priorities that consider the current market and consumer trends. In this context, IKEA utilizes a product or price matrix to determine a commodity’s retail price.

IKEA’s value proposition

IKEA is overly optimistic in its growth plans for the United States market. Apparently, the majority of IKEA’s competitors in the United States are the world’s largest furniture retailers. In this regard, competitors such as Wal-Mart, Office Depot and Costco are known for aggressive market approach.

The huge retail footprint from the American competitors is a barrier for IKEA. Since the American competitors deal with price-sensitive customers, product margins are relatively low. In addition, the industrial environment for furniture products in America is subject to harsh economic conditions.

In order to attract customers and improve on the value proposition, IKEA should intensify market research. In this context, IKEA’s ability to identify market elements of the target audience is vital in aligning products and services. In addition, the importance of launching high-profile advertising strategy in improving value proposition is critical.

However, precision and clarity are vital in ensuring that advertisements capture the attention of the target audience. It is advisable for IKEA to test a value proposition as a way of promoting continuous improvement. Moreover, it is important to use facts and figures when determining the value proposition for both customers and the enterprise.

Product strategy

Compared to other leading retailers such as Wal-Mart and Office Depot, IKEA’s product range does not meet the expectations of the target market. In this regard, it is important for IKEA to change its product strategy. IKEA can change product strategy by responding to customer preferences.

In addition, IKEA can improve products through reengineering or technological advancement to maintain the relevance of the brand. IKEA can keep track of the product’s life-cycle to determine when to discontinue or replace the same items. However, it is critical for IKEA to expand the product line-up by developing new item models and prices.

IKEA’s mini-outlets

IKEA should introduce mini-outlets across the United States. The strategy is important for business expansion and customer service. The strategy will improve IKEA’s strategy to serve customers located in various parts of the country. Moreover, customers will experience the brand and compare the same with other competitors.

IKEA can evaluate competitiveness by establishing smaller and satellite stores across the country. In addition, IKEA can improve customer service by reducing storage costs. Consequently, the strategy ensures that customers do not incur transportation costs.

IKEA in ten years

IKEA’s value proposition will improve in the future as the company expands the market territories. The company’s adaptability in large markets especially in the United States and developing countries will be vital for the improved value proposition. In this regard, IKEA’s product line-up will enlarge to address diverse customer preferences.

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Atkins, I. (2019, December 30). IKEA Company's Marketing Strategy [Blog post]. Retrieved from

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Atkins, Itzel. "IKEA Company's Marketing Strategy." IvyPanda, 30 Dec. 2019,

1. Itzel Atkins. "IKEA Company's Marketing Strategy." IvyPanda (blog), December 30, 2019.


Atkins, Itzel. "IKEA Company's Marketing Strategy." IvyPanda (blog), December 30, 2019.


Atkins, Itzel. 2019. "IKEA Company's Marketing Strategy." IvyPanda (blog), December 30, 2019.


Atkins, I. (2019) 'IKEA Company's Marketing Strategy'. IvyPanda, 30 December.

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