IKEA – A Brand Report

Brand Inventory

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.

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 freedom in choosing what they want. Moreover, there are staff dedicated solely to logistical and inventory management. Their responsibility is to organize the products and arrange for their deliveries.

Brand Identity

The first thing that shall come to one’s mind when regarding Ikea would be the logo. Ikea has one of the most distinctive logos with blue letters and the yellow background which appear in large fonts on every Ikea store. However, apart from having a commonly identifiable logo there are also several characteristics that customers have come to attribute to Ikea. In the world furniture market Ikea is one of the few brands that is dedicated to the idea of environmental sustainability and efficient space management. Not only do they minimize deforestation (Gorman, 2013) but also provide innovative solutions to furnishing small spaces in convenient ways.

Ikea can also be identified through the affordable range of prices that it offers to its customers. The public image of Ikea is therefore of a progressive organization that cares for both its customers and the planet. In the official website of Ikea one can find that “the IKEA Concept comes to life in many ways: Through our worldwide stores, in the IKEA catalog, via the web and apps, and most importantly in millions of homes around the world.” Therefore, the focus on the customer’s point of view is evident. The organization assigns a lot of relevance to the fact that the spirit and vision of Ikea lives on in millions of homes around the world.

Positioning is indeed important for a brand to sustain itself in the market. It has to differentiate itself from other competitors in terms of the product or services that it provides so that it is preferred by the customers. There are many factors that place Ikea in a unique position in the market. I believe that the most important factor that demarcates Ikea is its focus on design. Ikea’s designs of furniture are inimitable and they are specifically designed keeping space maximization in mind. This makes Ikea the preferred furniture brand over others. Customers would be willing to pay a higher price for the products because they know that both on the basis of aesthetics and utility, Ikea would be offering the best value (Zenteset al. 2017).

Ikea also has a very efficient customer support division that ensures hassle free delivery and after sales service for the customers. A communicative customer support department is essential for maintaining a good relationship with customers. Merely sales should not be the target of the organization rather after sales service should also be prioritized so that old customers return to Ikea for buying more products.

Brand Positioning

There are several elements within a brand that are specific to its image or mode of operation that distinguishes it from other brands manufacturing related products. These elements take the form of innovations on existing products, better designs, durability, consumer support et cetera that would constitute and thereby form some intrinsic aspects of the brand without which there would be serious questions over its identity. It is the unique elements within the band that let customers associate certain images, ideas and concepts with it. The brand image would from one of the most primary form of the brand elements. When one sees the logo of Ikea one instantly associates certain ideas with it which thereby form other relevant aspects of the brand (Cichoszet al. 2017). The idea of Ikea cannot be in fact separated from the product designs, providing freedom to customers in choosing the product of their liking, environmental sustainability and efficient customer support.

Therefore, these aspects of Ikea that the brand has come to develop in its course of operation and that were instrumental in its rise as a multinational organization has become elemental in constituting the brand’s image in the public mind.

Communication is an integral part of the Ikea brand vision as it helps in transmitting the ideas of the organization onto the customers. Ikea has a dedicated programme to reach out to a large number of customers both through online and offline measures. The special features of the brand from the key points of the marking programme and they are the major points of attraction of the customers. However, Ikea’s approach towards production and subsequently marketing is need based where the needs of the customers take precedence over stringent marketing strategies ruthlessly aimed at extracting profits (Edvardsson and Enquist, 2011).

The customer service department of the organization is well receptive to the needs and queries of the customers and also open to the suggestions that they might be willing to offer. There are online modes of communication available to the customers as well. Suggestions can be dropped in the mailbox which are instantly picked up by the respondents (Fernandes and Moreira, 2017).

Ikea also develops an annual catalog which is circulated both online and offline and provides information regarding their products and their corresponding prices. Besides, as a multinational corporation, it also aims to establish local channels through its branches scattered all across the globe through which it can also seek employees apart from attracting new customers (Weijoet al. 2017).

Brand Elements

Brand architecture mainly refers to the structure of brands inside a hierarchical element. It is the manner by which the brands inside the portfolio of a business concern are identified with, and separated from, each other. The overall brand architecture followed in the Ikea furniture is the ‘Masterbrand’ style. In this kind of style of brand architecture, the parent company has a single family trademark. However, each product line make use and develops its own distinct kind of brand identity. Ikea has its own identity and a brand logo, but each of the products made and sold by it has its own kind of different identity and name (Network 9, 2018). Each of the products carry distinct Swedish names. The different products have their own sub branded trademarks in order to make them distinctly identifiable to the customers. Brand architecture is mainly required for the ranks in order to build definite identity of each of their products in the eyes and minds of the customers. Brand architecture helps in defining the brand, its products and its overall specialties. It is a much different structure from organizational structure.  

Brand exploratory can be referred to as a distinct kind of research which is conducted on the consumers in order to know their perceptions regarding the products. It consists of different kind of questions which helps the company or other kind of researchers to know about the experience through which the consumers have gone through while using the products. It is an essential data which helps in the overall improvements of the business organization concerned. They can collect various kind of important data and make calculation in order to develop new kind of strategies and tactics to satisfy the consumers. It would help them to gain competitive advantage in the market. Further, there shall be a wholesome growth in the consumer base of the company. From the graph above, it can be well understood that the consumer satisfaction is at a relatively high level as compared to that of the other concerns or rivals of the company (Rivera and Curras-Perez, 2016). Ikea is at the highest position holding a knot of 75% of the market, while the companies such as Walmart, pretty lagging behind with a crashing loss of it position, hold on the market and growth confined at 43%.

While many of the people have good views about Ikea, only a less number of individuals have despising and gloomy views about the company. People had good sleeping experience by using the various kind of modern designed, cozy and space economic mattress and sleeping apparatus. They had a good experience using the products and these views have been reflected in the review that was conducted on them by a team of researchers.

Brand Communications

However, it can be said that every company lacks somewhere in meeting to every kind of the needs of their customers. Among these, the primary reasons for the cause of these were poor communications between the various kinds of managerial bodies and departments in the Ikea company. Some of the information provided by the company on their leaflets and web pages seemed to be pretty much misleading and led to bittering of the overall consumer experience. A research was conducted to know about how many people were not satisfied with the products or overall conduct of the company. In those research, the consumers of various countries have informed about their diverse feeling regarding the use of the products. A total of around 60,000 people have reported huge kind of mismanagement in the company. Poor communication and misleading information being the highlighted ones (Miski, 2018). 

Figure 3: Graph showing the overall level of satisfaction and dysfunction of Ikea products on a global level

(Source: Miski, 2018)

The graphs above point out facts that 50% of the customers were heavily satisfied out of the total amount of customers globally While 15% felt the products to be very good/ excellent. This was a part of the same survey that was run on the different consumers who have used Ikea products on a global level. It reflects 2%of the total global consumers were dissatisfied by using the products or availing the services of the company (Miski, 2018). These also include the buying experience, the conduct of the company and other factors.

Ikea can be said to be having a high level of brand salience. The company is one of the biggest companies in the furniture industry and has been building bond with millions of consumer by providing them with space economic, durable and modern design furniture which look good, aesthetic and have different kind of utilities. Thus the consumers prefer the brand more and notice and consider the brand while they take any kind of buying decision (Hinterhuber and Liozu, 2017). Since few years, there has been a sharp rise in consumer satisfaction level and the overall brand popularity of the company. 

Brand imagery refers to the aesthetic aspect of the brand’s messaging and other modes of communication with its customers. Brand imagery can be thought of as certain original or even artistic touches to the products that would convey a very singular message to the consumers. This shall result in the consumers being able to connect to the products on different levels. Ikea is very definitive about its brand imagery and this is one of the most distinguishing feature of Ikea compared to other manufacturers. The appealing designs, with mobility and the entire experience of procuring one from a store and lastly, efficient customer service show a holistic approach towards customer service. Therefore, it is very likely that consumers shall be pleased with the service standards and remain faithful to the brand in the future.

Brand Architecture

Development of brand imagery can also be regarded as a move towards the adoption of a more sustainable business practice. While products are perishable, ideas and emotions are timeless. If a product can impart an idea or an emotion to a customer, then the idea shall outlast the commodity. Thereby, the consumer starts sharing a loyal bond with the brand. This not only helps a brand grow across space but also across time (Wood, 2015).

Ikea can be seen to be performing pretty well in the last few years. The overall performance of the company had been falling at a sharp rate till the financial year of 2009-2010. However, with a major change in the strategy and functional area of the company, it has been able to rejuvenate its performance and has been able to get back the hold on its market shares and profit margins.

The concept of brand feeling usually arises in the context of emotional branding (Eragula and Seth, 2016). The term emotional branding refers to the practices of certain brands where it tries to communicate with the consumers on levels that go beyond the tradition consumer/producer relationship. Certain brands like Coca-Cola, McDonalds can be related to by people in various ways. Consumers develop emotions for these brands. It can well be observed that this aspect of the brand cannot be fully rationalized as emotions fall under a domain that cannot be categorized under quantifiable terms (Joshi and Nema, 2015).

It is evident from Ikea’s mode of operation aims at engaging with customers on different emotional levels. Its designs combine scientific rationale with aesthetic discretion in order to provide the best possible experience to the consumers. It’s presence in the world market as a multinational brand testifies the fact that a lot of consumers connect with it in various ways. The reviews reveal that they comfort they get from Ikea products cannot be compared to any other competitor in the market.

Ikea’s overwhelming presence in the market indicates a strong sense of reliance that the consumers have towards the brand. It is a brand that they can trust. They deliver what they promise. With moderate pricing and good quality, it offers a deal that few consumers can reject. Therefore, Ikea receives the priority over other brands when a consumer is thinking of buying a furniture (Rodrigues and Rodrigues, 2017) is a subjective experience for the consumer and a deeply personal one as well.

The consumers have a high level of brand resonance towards the brand. Many of the people have got good experience using the space friendly furnitures and the modern design furnitures. These have led to rise in the overall level of emotional attachment with the brand. (Schramm-Klein et al. 2015).

Ikea’s structure as an organization is indeed remarkable as it provides the best possible purchasing experience to the customer. The Ikea experience is quite unique one can say. It provides the full freedom of choice to the consumer and at the same time it ensures the consumers that the products will live up to the promise it delivers. Therefore, it results in the development of a strong bond with the customer. From the perspective of social responsibility as well, Ikea has been an ardent proponent of progressive social and environmental values (Lobello, 2013). However, there is certain obscurantism associated with the internal organizational framework that various European ministers have accused of being specifically modelled for evasion of taxes. However, Ikea has responded to these claims with its figures which it had paid as taxes but what it could have done was to make its dealings and internal map of relationships more transparent. This would have indeed furthered the cause of Ikea as a trustworthy brand and helped it gain more consumers in the global network. 

Conclusion

The above assignment quite aptly illustrates the various nuances relating to the brand of Ikea which is a leading furniture manufacturer in the world market. The various aspects related to the brand management of Ikea has been discussed and it can be understood that a brand that seeks to engage with customers in complex ways that cannot be always rationally defined or articulated in concrete terms. By transcending the conventional buyer and seller relationship it develops a timeless bonding with the customer (Jamwal and Soodan, 2014). Developing such a transcendental aspect to the brand is a crucial aspect of brand management. There are various ways and methodologies of looking at a brand and the management has to utilize various perspectives in order to develop a holistic approach towards brand management. 

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