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The IKEA History

In 1943, Ingvar Kamprad who was born and raised in Stockholm, Sweden, founded IKEA from cash gift received from his father. He decided to name the store IKEA. The letters I and K were derived from his initials, and the letters E and A were derived from the place where he was raised. The store sold a variety of items such as wallets, picture frames, watches, and jewelry. Basically, the store was established to provide whatever needs are requested by customers. Ikea Expansion Kamprad established a client base through phone calls done to individual customers.

To expand IKEA’s client base, Kamprad decided to advertise through the local newspaper and also to send out indices to customers of products sold by the store. Two years later, the store decided to extend its reach and add to its value by adding furniture to its product line. In 1951, IKEA saw the opportunity for advancement and focused singly on selling furniture. After four years of selling furniture made by local craftsmen, IKEA shifted to producing their own line of furniture for their customers.

This was also brought about by tough competition. The goal of IKEA was to produce their own line of furniture that would become popular to their customers, while at the same time offer less expensive goods. In 1956, IKEA thought of a brilliant idea that would redefine their image as a furniture seller. Kamprad conceptualized flat packages. Flat packages were disassembled furniture sold to costumers. This style of packaging lessens the cost that customers were asked to pay, therefore causing expansion of their client base. IKEA Opens Branches

For the succeeding years, IKEA became a big store employing over one hundred employees and opening branches all over Sweden and overseas. Stores were opened in Norway, Switzerland, Germany, Denmark, Australia, Canada, Austria, The Netherlands, France, Belgium, and the list goes on. Innovation and creativity brought IKEA to where it is now, to the forefront of the furniture industry. The TORE, MTP Bookcase, OGLA chair, and the particleboard are just some of the examples of IKEA-born products that gained competitive advantage for the store.

The IKEA Marketing Strategy The marketing strategies of IKEA are based on the store’s mission which is to become the leading company which provides goods and services that enhances the lives of people. IKEA conceptualizes and manufactures goods and products that are designed to be functional, while at the same time boasts of tasteful designs and are offered at low prices. IKEA markets itself as a store established for the people, such that they are open to being the people’s partners for a better life.

The positioning statement of IKEA opens up a partnership with its customers in order to arrive at the desired results perceived by their customers and by the store by doing their part in the process. This results to a cost-effective system of providing for the needs of the customers. IKEA is committed to producing goods that the people need through well-designed, cost-effective, and functional furniture. The line of furniture of the store boasts to provide what the people need such that it appeals to almost everyone who need home furnishings.

The cost-effectiveness of their products lies on their designs that are modern and functional instead of classy and expensive lines. However, although IKEA provides less expensive furniture, they still believe that they would not sell furniture at cheap prices if they did not offer functional and appealing goods. They do not compensate the quality of their designs, so the company cuts back on labor by producing flat packages. The marketing strategies of IKEA are solely based on the concerns and demands of their customers.Moreover, they vary depending on culture, as marketing strategies are modified differently for each country.


IKEA. (2008a). “Timeline. ” Retrieved May 11, 2008, from Inter IKEA Systems B. V. Website: http://www. ikea. com/ms/en_GB/about_ikea/timeline/full_story. html IKEA. (2008b). “IKEA Marketing Strategy. ” Retrieved May 11, 2008, from Inter IKEA Systems B. V. Website: http://www. ikea. com/ms/en_GB/about_ikea/press_room/student_info. html

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