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Brand positioning of IKEA

  Brand positioning of IKEA the Swedish furniture company

About IKEA

IKEA is a Swedish ready-to-assemble furniture, home products and kitchen appliances manufacturer company established in the year 1983. The brand is available in 36 countries with a grand total of 296 IKEA stores all over the world. Other then their country of operation they offer their office furniture and home furniture in bulk quantity in every country. In the year 2018 they reported sale of $44.6 billion worth of IKEA goods. 
A typical IKEA store is around 27,871 square meter in size. Recently they are planning to open stores that are sized 1858 which is the average size of the H&M stores. IKEA showcases all the furniture in their showroom. Customers can experience real-time look and comfort of the furniture in a home decoration setting.     
IKEA also have restaurants and food market that accounts for 5% of the IKEA’s total sales. Every store includes a store serving traditional Swedish food and all the stores includes a kids play zone.

   
source: https://en.wikipedia.org/wiki/IKEA

IKEA name meaning:
The name IKEA came from mixing the founders name Ingvar Kamprad, the farm name in which he grew up (Elmtary) and founder’s village (Agunnaryd).

Brand positioning of IKEA

IKEA positioned themselves as affordable home and office furniture brand. IKEA’s vision is to offer cheap and affordable furniture to its target customers as long as they are in the furniture business. Their target customers age is 22 and more and they mostly live in urban areas. IKEA’s target customers include single and married people who have limited income.  
This Swedish furniture brand is able to offer cheap furniture to its customers because of the design of the furniture which allows IKEA to produce a particular product in bulk and distribute them in large quantity. IKEA furniture are also easy to carry from store to home for a customer and its straightforward design allows customers to rearrange the furniture without extra labor cost.
The brand is famous for offering good quality products at a lower price than their competitors. Their furniture is of modern design and owners can update their furniture frequently as its cheap. 
IKEA uses the tagline “The Wonderful Everyday”. By this they give an idea of living our best and most wonderful lives every day. This tagline is very meaningful to its customers as most of the target buyers of IKEA are lower, working and middle class customers who lives in urban areas. They keep very busy schedule with their everyday lives and have a very little time for luxury.  
IKEA also offers full office furniture line for its corporate clients. They are very popular among corporate furniture brands.

Repositioning Strategy for IKEA: 

IKEA can expand their business by offering luxury furniture for that segment of buyers. This may not be compatible with the current IKEA brand name. rather they can start a new brand like “IKEA EXCLUSIVE” to target customers who wants to buy expensive furniture.
Entering into new segmentation can reposition IKEA from their current image. This way they can increase brand value and diversify their portfolio.  

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