Marketing Management Case Study: IKEA's Global Strategy, MKT460-AA

This case study analyzes IKEA's marketing strategies, focusing on its adaptability to cultural differences across various markets, such as the use of rooster mats in China and larger drinking glasses in the US. It examines IKEA's business model, which emphasizes affordable, well-designed products and its polycentric approach to product marketing. The study highlights the pros and cons of IKEA's expansion, particularly in Asia and India, considering factors like product display, self-assembly, and customer concerns about product quality. It also assesses IKEA's approach to international marketing, including its handling of cultural sensitivities in the Middle East, and its decision to remove images of women from a catalog in Saudi Arabia. The document provides a comprehensive overview of IKEA's global marketing strategies and challenges.

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Danielle Powell
Dr. Sabrina Terrany
MKT460-AA: Marketing Management
October 9, 2022
IKEA Case
1. IKEA considers cultural differences while marketing to customers in various markets. For
instance, IKEA would sell more rooster mats in China or create larger drinking glasses for the
US market because the original drinking glass was too tiny. IKEA has reached this position
through its innovative product range and by selling a unique value proposition to the customer.
Customers were drawn to the product because of its excellent design and low price. IKEA's
business model depends on IKEA's ability to offer a good-quality range at low prices. Their
strategy of opening their centers near most of the city centers helped them to reduce the cost of
transportation. IKEA uses a polycentric approach to product marketing, which helps build
customer loyalty in the local market. At the same time, IKEA can make more efforts to reach
countries, especially developing countries, where it can tap more markets because of its low-
price range. IKEA might also consider things like outdoor lighting, lawn ornaments, and
mailboxes for home exterior design.
- Located all over the world (increasing international visibility).
- Easy access to IKEA (stores located a good distance from city centers; customers generally
travel 50 miles round trip).
- Affordable pricing and looking after people's interests.
- Provide uniform products but also customize products based on customer preferences
(adaptability).

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- Items come boxed and require self-assembly by the customer, hence easy transportation of the
items.
2. If a company is looking to expand, especially in Asia and India, it can have many pros,
like its display approach, where every item is displayed in a way that customers have a view of
each and every item. Sometimes, it happens that a customer has come to buy a different item but
ends up buying some other item because of its large display. It’s easy to transport as everything
is ready and assembled, which reduces the transportation cost. while. There are some cons also,
like when it comes to assembling items on your own, it becomes difficult for some people, and
ultimately in chaos, they leave without buying anything. People who shop at low prices are
sometimes concerned about the quality of the products, so they prefer less IKEA.
Pros:
- One of the numerous reasons IKEA has an advantage over its rivals is the company's capacity
to offer goods at inexpensive pricing. The fact that the multinational furniture retailer can keep
its prices low is due to a multitude of factors, including economies of scale and the application of
technology across a range of operational processes.
- Another one of IKEA's competitive advantages is the company's extensive product variety.
IKEA has a collection of 12,000 different products, and the company adds about 2,000 new
products a year to update its selection. The company is also increasing its presence in the
hospitality and food service industries.
- Another one of IKEA's competitive advantages is the company's extensive product variety.
IKEA has a collection of 12,000 different products, and the company adds about 2,000 new
products a year to update its selection. The company is also increasing its presence in the
hospitality and food service industries.

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Cons:
- There is little indication that the significant transportation and raw material restrictions IKEA
is still dealing with, which are driving up prices, will alter anytime soon. Many other businesses
are experiencing the same issue. Disruptions are expected to continue far until 2022.
- IKEA concentrates its operations, as opposed to a large market slice: the individuals with
higher incomes, which IKEA did not target so intensively until relatively recently. maintaining
the rapid rate of expansion that the company has experienced up to this point.
3. IKEA acted appropriately, and I believe. International companies have discovered that
the Middle East is a difficult region in which to market their products and services. There are
many different social views and levels of religious adherence in the area, which contributes to
this to some extent. While Saudi Arabia, for instance, is renowned for its conservative
interpretation of Islam, the United Arab Emirates (UAE), a neighboring country, has co-ed
public beaches as well as a range of nightclubs that offer alcoholic beverages.
One further issue that complicates matters is the way in which state and religion are
linked in Arabic society. The faces of any people who feature in Saudi Arabian companies'
public advertisements are often obscured because it is against Islam's teachings to depict human
figures. This is because Islam forbids the showcasing of human beings. Before deciding to
remove images of women from a catalog that was scheduled to be released in Saudi Arabia,
IKEA had the easy option of speaking with a human rights expert.