Marketing and Ikea

1.0 IKEA 2.1 INTRODUCTION IKEA is a privately held company that sells home products and was founded in Sweden in 1943 by 17 year old Ingvar Kamprad. The name IKEA actually the initials of his name Ingvar Kamprad, Elmtaryd (the farm he grew up in) and Aqunnarvd (his hometown). 2.2 CORE PRODUCT IKEA is known for their ready-to-assemble and cheap furniture. They have a modern architectural design on various types of appliance and furniture, often associated with a simplified eco-friendly interior design. 2.3 SUPPLEMENTARY SERVICES As an augment to the core product, IKEA has their own Restaurant, Food Market and Småland to help facilitate their Furniture Store and to help enhance their value and appeal. IKEA’s restaurant and food market both serves traditional Swedish food, for example their famous Sweden meatball. After a long day shopping for furniture, customers can head to the Restaurant (usually at the entrance of the store) to grab a bite. They can also purchase Swedish made groceries at their own IKEA Food Market. Småland is a play area that parents can drop off their children at while they go shopping. Småland is usually located at the entrance of the store to make convenience for the parents to drop them off and pick them up. 2.0 TARGET CONSUMER IKEA has a large range of target audience. They want to reach out to everyone who needs new furniture and are willing to assemble it themselves. They especially want to reach out the families with young kids because they have Småland and facilities that is prams friendly At the same time, IKEA is known for being cheap and well known for their furniture, hence it might attract newly-wed couples who are renovating their new home. Lastly by creating a restaurant, IKEA also increased their target audience, this is because youngsters would be willing to travel to IKEA store just to eat their IKEA meatball. 3.0 IKEA’S PRODUCT SERVICE