Ikea - DRIP Model for IKEA. PDF

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DRIP Model for IKEA....

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Evaluate the strategies used by IKEA to establish itself as an international business.

DRIP MODEL Differentiat e

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Porters Generic Strategies - “Cost Leadership & Differentiation Strategy” - the company focuses on producing high-quality products with competitive price compared to most of the firms in the industry. The way they lay out their stores is another way in which they differentiate. They display their products in prototype rooms which are miscellaneous and stylish. It provides various choices and suggestions for customers to decorate their rooms. They reinforce their brand message by launching a series of campaigns. They regularly visit people’s homes and a produce a quarterly “Life at Home” report. They use this data to have a more intimate insight into consumer habits which can then be translated into stories that inform everything that IKEA does. The IKEA approach to storytelling, quality, and cost serves as the foundation for which they build their marketing tactics. Its message of ease, value, and maximizing your space is clear in everything they do. When you see and IKEA kitchen you know it’s an IKEA kitchen. IKEA make people aware of its brand by its carefully thought out marketing tactics. They are well known for clean advertising with a few bold colours (blue, yellow, and orange, which are the brand’s colours) and images showing immaculate homes with modern, clean decor. They have made use of social media platforms such as Facebook, Twitter, Instagram and Pinterest. They post promotions, discounts, unique giveaways, events, and news; and they also use it as a platform to share their content. They’re responsive to their followers, and they’re quick to address any customer complaints. The use of social media is ceiling more and more important when it comes to establishing a business as an international business. It makes consumers easier to reach. According to Statista it is estimated that the amount of social network users will be around 2.77 billion by 2019. I believe one of the things that has led to IKEA’s success as an international business is something that psychologists have coined the ‘IKEA effect’. It is a cognitive bias that causes people to assign greater value to goods that they have created on their own either partially or from scratch. From the moment that you step into an IKEA store you have been put into the position where you have to work to get what you want and the work doesn’t stop when you’ve found what you want and pay for it. When you take it home you now have to put in work to make it. Psychologist suggest that when people have created something themselves they tend to be more attached to it. They basically say that the labour leads to love. This message of simplicity, love for the things you have (from IKEA of course) is echoed

throughout all of IKEA’s organisation. From their ads to their products design, to the way how the store is set out and even to the experience that they offer in store. Task Rabbit – Acquisition...