Ikea: Staying Current
Ikea is known for its affordable, clean design, DIY furniture. Some of you may have assembled Ikea
furniture for yourself or a friend. In 2019 Ikea had global retail sales of $45 billion and is one of the
largest global retailers with stores in 53 countries. The large store in Houston is located near I10 and
Loop 610. Shoppers wind their way through rooms and rooms of furniture, household items, and don’t
forget the café with Swedish meatballs, yummy cinnamon rolls and more. Like all retailers, Ikea must
evolve its business model to stay current. So, in recent years, it has experimented with smaller stores in
‘city center’ locations in Manhattan, Los Angeles and Chicago. These small stores feature design stations
where the shopper can use advanced computer technology (including 3D imaging) to build and visualize
how Ikea furnishings will fit. In Japan, Ikea opened a convenience store that combines space for typical
convenience store items, like beer and ice cream, with other spaces that feature bedroom furnishings
and housewares. Ikea is seeking to fit within the new urban landscape while remaining committed to
affordable home furnishings. More recently, Ikea sought to adapt to the COVID-19 pandemic by
focusing on ways that artificial intelligence can be used to enrich the at-home shopping experience. The
following is a list of short articles about the adaptations made by Ikea to stay relevant and grow its
business.
Read these articles and use the information from them to answer the two questions which
follow.
• Meatballs and DIY bookcases: The psychology behind Idea’s iconic success by Catherine Clifford,
CNBC, published Oct 5 2019, https://www.cnbc.com/2019/10/05/psychology-behind-ikeashuge-success.html (accessed 6/13/2020).
This article contains a video that I strongly encourage
you to watch. It includes information not found in the article.
• Will Ikea import its c-store concept into the US? by Matthew Stern, Retailwire, published June
12, 2020, https://retailwire.com/discussion/will-ikea-import-its-c-store-concept-into-the-u-s/
(accessed 6/13/2020)
• Ikea’s new digital strategy engages users where they are: At home by Evan Nicole Brown, Fast
Company, published Apr 3, 2020, https://www.fastcompany.com/90485649/ikeas-new-digitalstrategy-engages-users-where-they-are-at-home (accessed 6/13/2020)
After reading these articles, answer the following questions.
1. As explained in your textbook, the marketing concept means that an n organization directs its
efforts at satisfying customers at a profit. How does Ikea implement the marketing concept and
work to deliver superior customer value? See your textbook for details on the marketing
concept, customer value and the interplay between the two principles. Your answer should
apply both the marketing concept and customer value. Use specific examples from the articles
in your answer.
2. What is the marketing strategy implemented by Ikea? Discuss both the target market and the
related marketing mix. Provide specific examples from the articles in your answer. (50 p
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