Product and Brand Management Ikea Assignment
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Is Ikea a successful global brand? Why has it been successful?
Ikea is a very successful global brand, not because it has 226 stores in Europe, Asia, Australia and the United States with 410 million shoppers a year, not because other global brand like Wal-mart stumbled in Brazil, Germany and Japan but for Ikea’s unique cultural branding that merges the value and fashionable design to ensure the creation of an affordable contemporary household goods (not just the furniture with 5-10% sales in each country with Ikea stores) for the middle-class. This uniqueness of its corporate DNA is the main reason why the Ikea is so successful globally. The frugality of the founder of the Ikea with his desire to create “better life for many”, these two tenets are deeply embedded into Ikea’s corporate DNA. The frugality combining with the obsession with design forming a unique brand that became a global cult brand.
As a global brand Ikea stands for
1) Unique household products with contemporary design, affordable prices that will inspire consumers
2) A gathering place the global tribes that are sensible in cost, design, and green environment. 3) Egalitarianism. The Ikea as a corporation is very flat, the executives performs first-line employees’ job in an “Anti-bureaucracy Week”
4) High Competitive. Constantly dropping the price (2-3% annually) to provide the best values for customers (consumers).
What is the relationship between Ikea’s brand and design?
As described in the Ikea’s corporate DNA, that the Ikea’s stands for “affordable contemporary design household goods”. “If it was’t for Ikea, most people would have n access to affordable contemporary design” stated in a British design magazine. The design, but not just design but a contemporary design with affordable prices. As a known facts good contemporary design of