Brand Management of Ikea: A Comprehensive Analysis

Topic: Brand Management, A Brand Analysis of Ikea

Executive Summary
This assignment aims at exploring the several aspects related to the brand management of Ikea,
the Swedish multinational furniture brand. Ikea is one of the largest brands in the world with
operating capital running into tens of billions. Ikea’s customer service and product quality is
something that set examples within the market and thereby help in developing a strong sense of
trust in the customers. The various factors that come into play in the promotion and the
sustenance of a brand in the market has been discussed in the following sections with close
reference to the context of Ikea. Some loopholes within Ikea’s organizational structure have also
been identified and certain solutions have been suggested in the recommendations section.

Table of Contents
Introduction......................................................................................................................................4
Brand Inventory...............................................................................................................................4
Brand Identity..................................................................................................................................5
Brand Positioning............................................................................................................................5
Brand Elements................................................................................................................................6
Brand Communications...................................................................................................................6
Brand Architecture...........................................................................................................................7
Brand Exploratory...........................................................................................................................8
Brand Salience...............................................................................................................................11
Brand Imagery...............................................................................................................................12
Brand Performance(190)...............................................................................................................13
Figure 5: Brand performance: Ikea................................................................................................14
Brand Feeling(190)........................................................................................................................14
Brand Judgement...........................................................................................................................14
Brand Resonance...........................................................................................................................15
Recommendations..........................................................................................................................15
Conclusion.....................................................................................................................................15
References......................................................................................................................................17

Introduction
IKEA is a Swedish multinational corporation that is primarily known for manufacturing
furniture. However, when Ingvar Kamprad founded the organization, it used to manufacture
pens, wallets, jewelry and other everyday utility products. It was only five years later that Ikea
started selling furniture. The name Ikea was derived from the initials of Ingvar Kamprad and that
of the farm and village where he grew up respectively, Elmtaryd and Agunnaryd. Ikea is not only
known for its modernist and avant-garde designs of its furniture but also for the eco-friendly
methods it uses in manufacturing. The brand also engages in constant product development
which helps in reducing prices of the products over the years and also deliver better service to
customers (Khamis, 2016). Ikea was motivated by the idea that good products be made available
to buyers across all classes. The prevalent notion was that only rich people could afford to have
good furniture in their home but when Ikea emerged, it resolved to change that (Lewis, 2005).
Therefore, it can be inferred that apart from earning profits Ikea has a deeper commitment to the
market. It is needless to mention that this approach towards has been instrumental in promoting
Ikea as a brand internationally.
Brand Inventory
Ikea has one of the most advanced approaches towards inventory and supply chain management.
They integrate inventory management with their production processes so that they can get the
maximum efficiency out of their inventories. For example, they manufacture products in parts
which can be reassembled easily by the customer himself/herself. This not only helps in the
keeping of stocks but also substantially reduces transportation prices. Ikea also sees to it that it
maintains sustainable relationships with its suppliers so that it can get a steady flow of required
products. The communications and relationship management teams negotiate prices with
suppliers and also verify the quality of products (Grønholdtet al. 2015).
The stores are designed keeping in mind that it can house a large number of products that shall
appeal to the tastes of a wide range of customers. A warehouse is attached to the main showroom
floor where the products are stored which the customers shall choose from the showroom. And
since customers themselves can touch and choose the products they like, they can exercise full