IKEA Case Study International Ikea cultural Mistakes PDF

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IKea along with many other companies have made mistakes when entering international markets. This paper focuses on IKEA's blunders in different countries and how it offended the customers instead of attracting them....

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IKEA Case Study

Introduction IKEA is a Swedish found multinational company that specializes in designing and selling furniture and appliances. IKEA is well known for its space saving ideas and budget friendly products. Being a multinational company IKEA spends hundreds of thousands of dollars in researching new markets and appealing new customers. Although in most instances they were able to do it successfully, international marketing opportunities come with their own challenges and IKEA failed to communicate their idea properly to their potential customers. We will analyze two instances where IKEA offended their customers instead of impressing them. In year 2012 decision of removing women from a Saudi Arabia ad and in again in 2017 an ad in China that was labeled sexist landed the company in hot waters. We will discuss the situations and strategy behind it. We will further discuss where the mistakes were made while conveying the idea and the alternative solutions. We will also discuss how the company can further prevent such scenarios from happening again. Main Issue: Multinational companies expanding their markets and being aware of the social norms but bringing them out in negative light. This can be a costly mistake for business owners and its associates. Stakeholder and Goals: Business owners, to make revenue in international market without creating controversy Community and customers- to have a service and goods provider who understands the needs and wants of the market.

Analysis: In order to market its products and services in international market IKEA prints catalogues that are edited to fit the taste of targeted audience. The company’s marketing team does an extensive research in other countries to appeal to their potential customers. In 2012, company’s marketing team decided it was a good idea to remove women from their catalogues before they were published in Saudi Arabia. It turned out to be a costly mistake. This decision seemed to be made thinking that editors were being considerate of the cultural boundaries that are placed upon women and girls in Saudi Arabia. However, the move backfired and drew some unwanted attention. Saudi Arabia is a Muslim country where women have limited roles, but they are not prevented from engaging in marketing roles. Marketing team’s goal was to abide by their rules and politely appeal them, but I believe the problem was that their actions drew attention to some issues that are criticized on a political stage. This had an adverse reaction on company’s marketing in the country. Community and customers saw this move as if the company did not see women as an important part of the decision-making process in a household, which was clearly not true. In the second instance, in order to amuse its Chinese customers, IKEA landed in hot water by offending single women. In China like many other Asian countries, women are pressured to get married at early age and have families. It’s the social norm that has been under fire since women are taking on roles that were reserved for men only. Although the assessment of the marketing team was right and the ad did show the reality, customers didn’t really appreciate seeing this on TV since it came off as discriminatory. Alternatives Although the marketing team did have the right idea and their research was on point, they failed to convey their idea properly. One thing that is important to remember is that what kind of audience we are targeting. In both cases, cultures place high value on family. In first case, I believe that instead of

completely removing women in the catalogues, they could have used local models and place them in familiar settings since women are depicted as homemakers and as such are important figures in making family decisions. This way they were not excluded, rather seen important and culturally appropriate. In the second case, IKEA tried to convey the idea that unexpected surprises happen, and their furniture is the solution. It would have been helpful if the parents were being encouraging of the young female rather than criticizing her for her choices. Another alternative could have been an unexpected visit from her highly successful female friends and putting the highly criticized norm on the backseat. Conclusion: When conducting research, it is a good idea to steer clear from the controversial idea. It is right that a business can have its own set of values and models to follow but to bring up challenges in society can withdraw negative effect. Instead of drawing attention to a topic that is not a norm, it is better to avoid it or present it in a way that empowers the idea of the cultural values and how the business understands the community and not judge it.

Sources: Molin, A. (2012, Oct 01). IKEA regrets cutting women from saudi ad. Wall Street Journal (Online) Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquestcom.ezaccess.libraries.psu.edu/docview/1081462319?accountid=13158

Nylander, J. (2012, Oct 01). BRIEF: Women erased from saudi IKEA catalog. McClatchy - Tribune Business News Retrieved from http://ezaccess.libraries.psu.edu/login?url=https://search-proquestcom.ezaccess.libraries.psu.edu/docview/1081472136?accountid=13158

Leonardo BursztynAlessandra L. GonzálezDavid Yanagizawa-Drott (2017) The Effects of Misperceptions of Social Norms on Female Labor Force Participation in Saudi Arabia Retrieved from https://www.povertyactionlab.org/evaluation/effects-misperceptions-social-norms-female-labor-forceparticipation-saudi-arabia

Zillman, C. (October 26, 2017) Women in China Are Really Offended by This Ikea Ad retrieved from https://fortune.com/2017/10/26/ikea-ad-china-women/

LuoJuly, J. July 23, 2018. In China, A New Demand for Feminist Ads retrieved from https://jingdaily.com/china-feminist-ads/...