IKEA in Indian Market

This document discusses the strategies that IKEA should adopt to succeed in the Indian market. It explores the need for aligning products with Indian market requirements, targeting middle-income groups, and considering offline physical stores. It also analyzes the competition and environmental factors in the Indian furniture market.

IKEA in Indian Market
Ques.-Ans.
System04104
5/1/2019

Answer-1
The IKEA is a Swedish furniture company and if it has to succeed in India then have
to consider its product strategies. The IKEA products should be aligned with the Indian
market requirements and the need of customer should be well analysed by the IKEA that
what Indian customers want in their homes. The Indian customer demands very different
design and looks in furniture. They are more demanding about wood furniture rather than
other material. However, the issue is very different here, as IKEA needs to promote SKUs in
India. Customers: IKEA can target the middle-income groups as they are dominating in the
Indian market. Apart from this, people generally buy these type of products offline.
Therefore, it will be better for the company to launch its business for offline physical
customers rather than for online customers. The number of competitors is a major threat for
IKEA in India because Indian is a predominant market for furniture. The furniture market is
dominated by Godrej interio, Durian, Raj and Raj, Neelkamal, Zuari, Nesta etc. Apart from
this, an un-organised furniture market is also a problem for IKEA. However, the number of
online stores for furniture is also increasing in India. For example, www.jabong.com, and
www.pepperfry.com are two good examples of online furniture competitors. If we consider
the environmental factors that, we can say that IKEA does not have a brand image in India,
while some other players like Nilkamal and Zuari almost dominating in the market. Apart
from this, the modern Indian families want to split in nuclear families and it leads to the
demand for furniture products for every home. IKEA should consider these all factors while
setting its price in India because a high pricing strategy might not be effective in Indian
Furniture market among a large number of competitors.
Answer-3
IKEA launched its business with the concept of ‘do it yourself’ that helps to attract
Swedish people and some European customers as well. The assembled components were
shipped to the customer house and a guidebook recommends them how they can assemble
and fit the furniture in the home. If we consider India then we found that it has different
market structure and composition. To target the India customer, IKEA should change its
philosophy in terms and also requires offering low-end products in India through physical
stores and e-commerce websites. The IKEA should push the online market for its products
because there are few numbers of players in the market. The IKEA should launch its product

in metropolitan cities where the company can target its potential customers. The analysis of
marketing strategies of competitors also required and then after the IKEA can target those
reason where other market players are not dominating. IKEA should also focus on brand
penetration for metro city customers. The company can organise trade fairs or industrial fairs
and can showcase its product designs and quality to people. This strategy will enhance the
brand image of the company and also helps to attract the visibility of potential customers.