#How Does IKEA Keep the Prices Low?

As we all know there are several factors which determine the pricing of a product. We all sometimes wonder how do many manufacturers and retailers keep giving us the low costs which in turn benefit our everyday lives. This week we will analyze the costs and competition factors of the pricing decision.


At IKEA, they are always trying to do things better, simpler, more efficient, and more cost effective. At IKEA all units play an important role in bringing us the everyday low prices that we enjoy.  Here is an example of how IKEA continues to provide low costs.

The above is a piece from the Lack Series at IKEA and it is listed at the price of €5


As it has been stated before IKEA has spread across the globe. This continued growth allows IKEA to stay ahead of its competitors such as Wal-mart, Sears, Target, and Pier 1. When it comes to competition none can real compare to the IKEA brand, which has become globally known. The following link gives a glimpse of IKEA’s competition and how it effects its pricing decision.







#IKEA Getting the Best for you Dollar

This week’s discussion is IKEA’s promotion mix and how do you get the best for your dollar.


First it all begins with advertising. If you don’t know what they have how can you make a purchase. The following is an example of IKEA advertising in Malaysia.


Public Relations

Next IKEA has to ensure that it has good public relations. Public relations is how IKEA’s marketing and communication ensure that it can reach the many people and continue to explain what IKEA has to offer. The following is an example of how IKEA used an agency through public relations in China to promote the opening of its first shopping centre.

Sales Promotion

How does IKEA get you to the point where there purchasing their products has become irresistible?


Personal Selling

Who does IKEA use to ensure that what you are looking for is at their store. What influence do they have on you purchase? This question can be easily answered. IKEA uses its customer relations or customer service to ensure that its customers can find and purchase the products that will fit his or her needs. The customer service can be found on IKEA’s website http://www.ikea.com.


Never Ending Chain

This week’s blog is about IKEA’s continuing chain to ensure that its products are available at all times. As mention before IKEA is one of the largest European furniture sellers and is constantly spreading across the global. This is mainly because of its business concepts and its mission to create a better everyday life for the many people.


IKEA creates partnerships with its suppliers and this is done in two phases, identification and execution. This helps to ensure that business continues to flow as usual. Below is a comment that was stated by one supplier.


The utilities that IKEA provides are place and possession utilities. In IKEA’s distribution they ship some of its products directly to the stores and have built distribution centers, in order to store products to be shipped to stores when orders are placed to maintain continued product availability. The following video shows how IKEA innovations keep its customers happy.

The video comes from a wordpress blog from 2010 by Carlos Ripoll.

The Billy Series


BILLY series

The Billy bookcase manufactured by IKEA has been around for over 30 years. In a world that is constantly changing and becoming more adapted to E-books, IKEA has made the decision to keep producing the Billy bookcase. Being added to the IKEA catalog in 1979, IKEA continues to adapt the Billy Bookcase series in order to satisfy its customers. Some of the recent changes that have been added to the Billy series are in 2011, IKEA added a different design to provide deeper shelves, and in 2014 reinforced shelves and rounded edges were introduced.
 The Billy bookcases come in different sizes and three different colors. The bookcases are package differently than the standard bulk package, they are in what is known as a flat pack. The flat pack makes it easier to handle, more convenient for travel, as IKEA also uses the flat pack system to save on the cost of transporting goods. The flat pack also makes it easier for customers to load and unload their product after purchase. Each bookcase comes with instructions which can be accessed on the IKEA website. If you are in need of book storage space then the Billy series might be the way to go, the price range is form $69 to $544 depending on your needs.



Consumer Behavior

Continuing the IKEA Experience

An IKEA store is a marvelous place.  You walk through halls, hall after hall after hall and so on, surveying with your eyes the different furniture items, accessories and other kinds of decorative. You are filled with curiosity and enthusiasm in search for that great enhancement to your home. In each hall furnitures are usually organized in a layout and structure of a complete set according to a given purpose such as a living room seating corner, a dining hall or a children room. There are many possible sets with different styles of items in a hall associated with a particular part of the house or apartment. As you look at a set and examine more closely the composing items you may start to image in your head how it may look in the target area of your own home. During the tour you may pick up some small items and put them in a bag. As for the larger items chosen you need to write down their details on a paper form to be retrieved later on at a storage hall. Everybody is busy at Ikea. The whole venue resembles somewhat an amusement park, or perhaps more like a beehive. It is a temple for celebrating consumption.

#Marketing Survey

I am conducting a marketing survey for the age group of 30-70.This survey is about your choice of a healthy breakfast cereal. Which ingredients would you prefer in your cereal honey, bran flakes, strawberries, cranberries, blueberries, bananas, or whole-grain wheat flakes? Choose three of the ingredients.

#Marketing with Purpose

Stack of IKEA boxes on a delivery bike being ridden by a man in glasses


For the many people
The IKEA Concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. It is achieved by combining function, quality, design and value – always with sustainability in mind. The IKEA Concept exists in every part of our company, from design, sourcing, packing and distributing through to our business model. Our aim is to help more people live a better life at home.
Bringing the IKEA Concept to life
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.
Reaching more of the many people
Every year new IKEA stores open around the world. Take a look at our interactive map to view all our current locations and get up to date information about future store openings


The IKEA Concept lives and grows. It comes to life in more than 370 IKEA stores around the world, where people touch and try, play and dream. It comes to life in the IKEA catalogue on each page.

It comes to life on phones and computers.
Most importantly, the IKEA Concept comes to life in the homes of millions of people around the world who experience beautiful solutions at incredibly low prices.

In order to continue to create a better everyday life for the many people, IKEA has continued to promote its concepts not only through the manufacturing of its furniture but also through the franchising of its many retail stores. The environmental forces that continue to drive IKEA to be successful in the marketing of its name and product are the competitive, economic, legal and regulatory, and technological and sociocultural.

One of the most effective marketing tools that IKEA uses is its websites. If you visit one of IKEA’s store websites it is packed full of information that not only prepares you for a store visit, but to also make a purchase click here for a store visit. IKEA also continues to meet and exceed it marketing goals by following the IKEA IWAY Standard. IKEA also remains competitive and provides the economic needs for its customers, by building restaurants and play areas for children inside of its stores. The restaurants make it convenient for shoppers to grab a bite to eat in between shopping and the play areas make it easier for customers to shop with children. Another way IKEA also keeps up with the sociocultural force of marketing, is IKEA has adopted the program of going green. Most of its facility roof tops are covered with solar panels, which in turn help IKEA to save energy and cut cost, which in turn benefits the consumer by being able to continue to create  better everyday living for the many people.



#Blog 1 IKEA

I am reviewing the market mix for IKEA furniture, which is one of the largest furniture companies in the world.

The IKEA Origin and Heritage

The values and culture of Inter IKEA Group reflect the entrepreneurial spirit of our founder Ingvar Kamprad. Our values have its roots in the Småland region of Sweden, where Ingvar Kamprad was born and grew up. It is a stony and rather rugged landscape where the inhabitants often were forced to get by on small means and make use of the scarce resources at their disposal. Smålanders have a reputation for being thrifty and innovative with a straightforward, no-nonsense approach to problem-solving in general and to business challenges in particular. This ‘Småland legacy’ is built into the IKEA culture and values, all over the world.

In the practical business world of today this means that IKEA values encourage a constant desire for renewal and a willingness to make changes, as well as a cost-conscious mindset applied in all areas of operations. They also imply a willingness to try solutions other than the conventional ones and daring to be different while maintaining practical connections with the day-to-day activities. Humbleness in approaching our task and simplicity in our way of doing things are also cornerstones in the IKEA culture.

The IKEA spirit is based on a belief that no method is more effective than a good example. We believe that each co-worker is important, that all of us have a responsibility, and that it is by working ‘together’, tillsammans in Swedish, that we really make a difference.

The IKEA values have proven to be viable in an international context and we strongly believe that they are one of the most important factors behind our achievements. By keeping them alive and well-rooted, it will help us continue to turn future challenges into opportunities.

Most things still remain to be done.


The Mission and Vision Statement:

To create a better everyday life for the many people.

IKEA continues to grow and expand due to its approach to everyday life and keeping not only the customers in mind, but also the environment around us. To cut down on the amount of carbon monoxide in the atmosphere, IKEA ships its furniture in what is known as flat packs.product-range02

Democratic design

Good design should be available for the many, not the few. That’s why all IKEA designers design every IKEA product starting with a functional need and a price. Then they use their creativity and knowledge and use low-cost raw materials and manufacturing processes to create functional products. Then large volumes are purchased to push prices down even further.

Most IKEA products are also designed to be transported in flat packs and assembled at the customer’s home. This also lowers the price by minimising transportation and storage costs. By doing all this, the IKEA Concept uses design to make sure that IKEA products can be bought and enjoyed by as many people as possible.


To create a better everyday life for the many people we need to make IKEA products available to more and more people around the world. The franchising business model lets us expand the business of new and existing IKEA retailers, develop franchise operations in new regions and reach more of the many people. Read more about franchising the IKEA way here.

Protect the IKEA Concept

internal threats. For example, we protect the IKEA Concept through legal protection. We also work to ensure that the IKEA Concept stays unique and ahead of competition. And, maybe most importantly, we try to ensure that every one of us working under the IKEA trademarks always live IKEA values. Read more about IKEA values here.


Product for a better everyday life

Low prices with meaning

Low prices are only valuable if they offer good function, quality and design. IKEA product development teams constantly ask themselves – does this product contribute to a better everyday life? Does it have a good, sustainable design? Is the function and quality suited for everyday life? And most crucial – is the price low enough to make this product accessible to many, not just the few?

Maximising production possibilities

The IKEA product development teams travel the world and travel their clever minds to find new solutions that let us keep the good design, function and quality while lowering the price.