Ikea - Case Study

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Running head: Case Study #1 IKEA Your Name Here Your Teacher Name Here Your School Name Here Abstract The following is a reflection upon the readings about the IKEA Corporation. The customer behavioral segmentation will be the first discussed topic. The differentiation between IKEA’s traditional customers and new American customers will follow. The paper will close out by describing the unique growth opportunity in America that IKEA would go on to capitalize upon. IKEA The IKEA behavioral customer segmentation starts with younger buyers. By focusing on younger buyers, IKEA was able to avoid the hassle of not meeting standards that older affluent customers may be used to. They then targeted buyers who were looking to furnish their first apartments. This was a market that furniture makers previously ignored, and thus gave IKEA an advantage in the furniture market. This advantage would lead to other segmentations as well. IKEA focused on the younger buyers, but they took it a step further and focused on providing quality at affordable prices. They targeted the common working class person who could not afford to buy other expensive name brands of furniture. Their focus was maintaining lower costs than larger furniture retailers. They were also able to focus on things that young shoppers would more than likely use while shopping for furniture. IKEA opened inexpensive eateries in their stores for the shopper that was on the go. This allowed the shopper to grab a bite to eat while exploring the IKEA showroom. IKEA continued to capitalize on its customer segmentation by providing a fully equipped nursery and baby changing stations. This allowed new parents the opportunity to properly attend to their infant needs while shopping. For those parents who had toddlers, there were supervised play areas for their children.

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