Ikea Brand

IKEA has created a global shuffling focused on commencement prices and contemporary designs. In 2009, Interbrand ranked IKEA 28th on its disposition of the top 100 global brands ( 35 in 2008 indicating 10% amplify in brand value over just year). IKEAs success is attributed to its bulky experience in the furniture retail foodstuff, its product differentiation and damage leadership. The brand Ikea has become iconic in consumers minds. CEO, Anders Dahlvig, states the cognizance of our brand is much(prenominal) bigger than the size of our company (Kling, K &038 Goteman, I. 2003). IKEA is growing aggressively some the world and at each of the full treatmenthop openings there atomic number 18 nut standardized promotions. For example, at an Atlanta store opening (2005), the company offered a $4,000 deliver certificate for the first person in line. (The man who won the fence camped outside the store in the boiling heat of summer for 7 days. ) The recent IKEA facebook campaig n shows how they are leveraging the power of social media networks to deplumate target customers.To promote the opening of its new store in Malmo, Sweden, they created a facebook profile for their store manager and the team past uploaded IKEA showroom images into the store album. People were encouraged to tag items in the photos with their name to win it for unblock As the word about the campaign spread (through participants profiles, word of honor pay links and other forms of word of mouth), the photos were tagged in seconds and brand awareness grew rapidly.Not only did the Malmo IKEA store became popular in just fewer weeks, the story was picked up throughout the world by various news channels 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 perceive as a value brand following their affordable solutions for commonplace li ving tagline. Ikea focuses on lowest price segmentation. The company can do this because they have 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 great quality 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 becharm materials and least costly suppliers. With a network of 1,300 suppliers in 53 countries, Ikea works overtime to find the right manufacturer for the right product. Simplicity, a doctrine of Swedish design, helps keep costs down. For e. g. the 50 cents Trofe mug comes only in blue and white, the least expensive pigments ). (Carpel, K. , 2005) The company focuses on cost control, akin to Wal- Marts practice of squeezing suppliers and Toyotas elimination of waste and errors in manufacturing. IKEA is highly rivalrous at this front while constantly dropping the price (2-3% annually) to entrust the best values for customers. The suppliers and designers have to customize some Ikea products to make them parcel out better in local markets.For e. g. Julie Desrosiers, the bedroom-line manager at Ikea of Sweden, visited peoples houses in the U. S. and europium to peek into their closets, learning that Americans prefer to store most of their clothes folded, and Italians like to hang. The result was a wardrobe that features deeper drawers for U. S. customers. (Carpell, K. 2005) Majority of products at IKEA are designed 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 positioning and how it impacts their brand image and branding strategies. As IKEA is expanding rapidly about the globe, it faces a number of challenges in terms of varied cultural, demographic and market specific needs. The one-design-suits- all global expansion strategy might not be suited 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 splay 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 Global Cult Brand, Business Week, pp. 96-101. Retrieved from http//www. businessweek. com/magazine/content/05_46/b3959001. htm Lee, S. (2007). IKEA A mark Experience Is More Important Than Customer-Centricity. Retrieved from http//www. customerthink. com/article/ikea_branded_experience_important