IKEA Builds Smaller Format Stores-Comes Closer to Customers

PiRuby`s Teaser Campaign in the Edtech Market Using Content Co-creation
Case Code: MKTG453
Case Length: 9 Pages
Period: 1943-2022
Pub Date: 2023
Teaching Note: Available
Price: Rs.300
Organization : Inter IKEA Systems B.V.
Industry :Business & Consumer Services
Countries : United States
Themes: Marketing Strategy, Consumer Behavior,
PiRuby`s Teaser Campaign in the Edtech Market Using Content Co-creation
Abstract Case Intro 1 Case Intro 2 Excerpts


Customer Value Proposition

The customer value proposition at IKEA was to cater to more customers with quality products at affordable prices. Two statements amply certified the value proposition of IKEA to its customers. The first statement was by Kamprad in 1950, which stated “To create a better everyday life for the many people”..


Analysts opined that IKEA’s latest strategy of smaller stores was due to the customers’ changing shopping pattern, of the growth of new cities, and a global phenomenon which leaned toward urban living. They were also of the view that IKEA wanted to keep its business future ready and be in close proximity to the customers’..

The Way Forward

IKEA’s future strategy was to prepare itself for a world where the customer had little time, thinner budgets, and smaller spaces and resided within the city. IKEA planned to abandon its strategy of planning ahead for ten years and to adopt a new approach of planning ahead for three years to be in tune with a rapidly changing society..


Exhibit I: Number of IKEA Stores Worldwide from 2013 to 2020
Exhibit II: Annual Revenue of IKEA Group Worldwide from 2010 to 2020 (in Billion Euros)
Exhibit III: Info on IKEA’s Augmented Reality app – ‘Ikea Place’

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