Nina Beinart, Greg Bodenlos, Ranu Rajkarnikar, Dan Silverman

Building a Global Brand…

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

INTERNATIONAL HISTORY• Founded IKEA in 1943 in

Sweden• First store openings outside

Scandinavian territory in 1973 (SUI) and 1974 (GER)

• First U.S. opening in 1985 (Philadelphia)

• UK and HK openings in 1987

• Opened 27 new stores in 2007 in 7 regions

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

GLOBAL REACH

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

IKEA’S KEYS TO SUCCESS

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

• Democratic Design• Vertical Integration• Strong Brand Image

DEMOCRATIC DESIGN

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

•Offer a wide range of home furnishings of good design and functionality

•Balance of form, functionality, and low price

•The price tag is “designed” first

VERTICAL INTEGRATION

•1,300 suppliers and 27 distribution centers

•Operations cover every step of production

•Enables the group to save cost at each stage

•Delivers high-quality furniture at lower prices than its competitors

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

STRONG BRAND IMAGE•Cost-Consciousness•Sensible Design•Unconventionality•Social/Environmental Awareness

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

THE IKEA EXPERIENCE

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

THE IKEA BRAND MESSAGE

“IKEA has everything you need to live and make a home”

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

CONSISTENCIES AMONG GLOBAL STRATEGY

• Perceived as a value brand, following their “affordable solutions for everyday living” tagline

• Image of being hip and modern, has been called “a one-stop sanctuary for coolness”

• Maintain Swedish influence• Store experience• Highly anticipated store

openingsFRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION

STRATEGY QUESTIONS

DIFFERENCES AMONG GLOBAL STRATEGY

• Advertising through the media– Commercials: “Tidy

Up” campaign (France)• http://www.youtube.co

m/watch?v=MM-Xz7W5SBM

– Winter Sale (USA)• http://www.youtube.co

m/watch?v=eTOVaG36xJE

• Adapting products to national markets

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Used to promote new

campaigns

“Everyday Fabulous at IKEA”

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Campaign promotes IKEA making

everyday things “fabulous”

•This tactic puts their promise into action

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Often used to promote new store

openings

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Very interactive, unusual, and memorable– Geared towards young

hip crowd

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Tailored to different nations

•Europeans often use balconies for storage

•This makes the brand more relevant to its audience

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

NON-TRADITIONAL MARKETING

• PR Stunts and “Guerrilla Marketing”– Japanese value design and cleanliness

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

LOCATION STRATEGY

• Entering markets where suppliers are readily available

• “Supply is the bottleneck”• Focus on China (Asia overall) as an

emerging market

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

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FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS

DISCUSSION QUESTIONS

1. For the future, as IKEA expands further into new markets, will it be more beneficial for the brand to stick to a consistent strategy, or to adapt more to local market needs?

2. What do you think of IKEA’s non-traditional approaches to its marketing strategies? What are the potential risks associated with these bold initiatives within the global market?

3. How will IKEA as a brand appeal to its current customers as they grow older? Would it make sense to extend the brand towards a more upscale product line, or would this alienate its current customers?

FRAMEWORK KEYS TO SUCCESS GLOBAL STRATEGY NON-TRADITIONAL MARKETING LOCATION STRATEGY QUESTIONS