Ikea Brand

IKEA has created a global blur focused on lower-ranking hurts and contemporary designs. In 2009, Interbrand ranked IKEA 28th on its list of the chair 100 global brands ( 35 in 2008 indicating 10% increase in brand value over just year). IKEAs success is attributed to its vast friendship in the furniture retail market, its product differentiation and cost leadership. The brand Ikea has become iconic in consumers minds. CEO, Anders Dahlvig, states the awareness of our brand is much big than the size of our company (Kling, K & Goteman, I. 2003). IKEA is growing aggressively somewhat the serviceman and at each of the store openings there are wacky promotions. For example, at an Atlanta store opening (2005), the company offered a $4,000 gift security department for the first person in line. (The man who won the contest camped orthogonal the store in the boiling heat of summer for seven days. ) The new-fashioned IKEA facebook campaign shows how they are leveraging the power of s ocial media net performances to attract aspire customers.To promote the opening of its new store in Malmo, Sweden, they created a facebook indite for their store manager and the team then uploaded IKEA showroom images into the store album. mint were encouraged to tag items in the photos with their name to win it for free As the word ab divulge the campaign spread (through participants profiles, news feed associate and other forms of word of mouth), the photos were tagged in seconds and brand awareness grew rapidly. non only did the Malmo IKEA store became popular in just few weeks, the narrative was picked up throughout the world by various news take and online blogs. IKEAs competitors include Kmart and Target Corp. in the US, Fly in France, japan Nitori Co. in Japan. They differentiate themselves from their competitors on the basis of Price IKEA is perceived as a value brand following their affordable solutions for everyday musical accompaniment tagline. Ikea focuses on lowe st price segmentation. The company can do this because they surrender one of the lowest operating margins in the industry, 10%.As compared to its competitors, IKEA stands out as a cost leader providing affordable products with good character and design. To achieve that goal, the companys 12 full-time designers at Almhult, Sweden, along with 80 freelancers, work hand in hand with in-house production teams to identify the appropriate materials and least(prenominal) costly suppliers. With a network of 1,300 suppliers in 53 countries, Ikea works extra time to find the right manufacturer for the right product. Simplicity, a tenet of Swedish design, helps keep costs down. For e. g. the 50 cents Trofe mug comes only in puritanic and white, the least expensive pigments ). (Carpel, K. , 2005) The company focuses on cost control, similar to Wal- Marts perpetrate of squeezing suppliers and Toyotas elimination of waste and errors in manufacturing. IKEA is highly Competitive at this front w hile constantly dropping the price (2-3% annually) to provide the stovepipe values for customers. The suppliers and designers have to customize some Ikea products to make them sell bust in local markets.For e. g. Julie Desrosiers, the bedroom-line manager at Ikea of Sweden, visited peoples houses in the U. S. and Europe to glitter into their closets, learning that Americans prefer to store most of their clothes folded, and Italians like to hang. The burden was a wardrobe that features deeper drawers for U. S. customers. (Carpell, K. 2005) Majority of products at IKEA are knowing for flat-pack distribution so that they can be easily stored and then transported in the average car.They are easy to self-assemble by the customer. IKEAs brand view and how it impacts their brand image and branding strategies. As IKEA is expanding rapidly around the globe, it faces a number of challenges in terms of varied cultural, demographic and market peculiar(prenominal) needs. The one-design-s uits-all global expansion strategy might not be conform to for the culturally diverse markets, yet the brand is perceived in a similar way by the customers around the globe exhibiting low price as the core brand value.As IKEA expands globally, the branding strategies revolve around providing value (quality and design) to the customers at affordable prices. References Capell, K. ( November 14, 2005). Ikea, How the Swedish Retailer Became a planetary Cult Brand, Business Week, pp. 96-101. Retrieved from http//www. businessweek. com/magazine/content/05_46/b3959001. htm Lee, S. (2007). IKEA A Branded intimacy Is More Important Than Customer-Centricity. Retrieved from http//www. customerthink. com/article/ikea_branded_experience_important