Case Study for Ikea

1. Discuss the advantages and disadvantages of having the same product range shown in all IKEA catalogues around the world?

Advantages:

The IKEA concept (the consumer as producer i.e., pro-sumer) reflects standardization on a world basis in all parts of the marketing mix

Scale of economies in production and marketing of the products worldwide

Scale of economies in the printing of the catalogue

Disadvantage:

The concept cannot reflect cultural diversity

2. The catalogue is the most important element in IKEAs global marketing planning.

Discuss if there could be some cultural differences in the effectiveness of the catalogue as a marketing tool.

Ans: The IKEA concept is that the catalogue should be used as a pre-shopping tool, an in-store sales aid and an interior decorating guide. When the furniture is bought, the consumer functions as an assembler (pro-sumer) of the furniture. In some cultures, there is no tradition for the consumer to play this active role in decorating the home. Maybe, most would prefer architects to play this role. In such cultures the effectiveness of the catalogue as a marketing tool would be less.

3. Explain some cultural differences which are illustrated by the two different illustrations of the same product (from the Danish and Chinese IKEA catalogue).

Ans: The IKEA illustrations from the catalogue from Europe (Denmark) and China (Shanghai) shows following fundamental differences between Danish and Chinese homes and