With 433 stores in 53 different countries, IKEA is one of the largest retail companies in the entire world. With a market value of $20 billion, Forbes hailed this Swedish retail manufacturer as one of the most valuable brands of 2020.
But how did this simple furniture store achieve phenomenal success? Well, it has something to do with their brilliant marketing schemes.
From making use of strategic floor layouts to capitalizing on virtual reality technology, IKEA is a pro in modern-day marketing. If you want to know the secret behind this well-renowned brand, here are five ingenious marketing tactics straight out of IKEA’s playbook.
It knows how to tap into the psychology of its consumers.
Through its strategic store layout, IKEA encourages customers to spend more money than they initially planned to. If you try to look at the company’s floor plan, you will notice that it takes customers on a “guided path,” so they end up exploring the entire warehouse. Through this strategy, customers discover more products in IKEA’s inventory, increasing in-store sales. The directed pathway puts customers in a passive mentality, which makes them more susceptible to external influence. IKEA’s ability to influence the subconscious of anyone who steps into their warehouse is one of the main reasons this Swedish brand is one of the superpowers in the retail industry.
It cashes in on the latest advances in technology.
IKEA capitalizes on advanced technologies to market its products effectively. In 2017, the retail manufacturer launched an augmented reality application that allows users to try out IKEA items in real-time through their mobile devices. The app, which is called IKEA Place, provides 3D graphics and true-to-scale dimensions, allowing customers to visualize the products of IKEA with full precision. The AR app contains an online selection of more than 2,000 furniture pieces, which includes lounge chairs, couches, dining tables, stools, and storage compartments. By using advanced marketing solutions, IKEA made shopping more convenient and exciting for its customers. Indeed, if you want to be a successful enterprise, you have to know how to cash in on the advances in the modern world.
It creates meaningful and memorable campaigns.
Experiential campaigns are one of the most powerful methods to market your brand, and this is something IKEA is impressively good at. The company knows that for customers to see the value of their products, they have to experience it first-hand. Data shows that 65% of people who attend experiential events develop greater understanding and appreciation of brands. With this in mind, IKEA always tries to create groundbreaking and immersive campaigns for its target market. The company is popular for hosting annual sleepovers in their warehouse stores, providing customers with the chance to test out all their home offers for free. From their bedding items to their dining sets, IKEA allows people to discover the excellent quality of their products without employing aggressive marketing methods. Through l experiential marketing, the company can shape its brand image, strengthen its credibility, and reinforce customer loyalty all at the same time.
It extends its products to satisfy consumers’ palette.
The thing about IKEA is it is nothing short of creativity. This retail company always comes up with ways to reinvent itself. One of the smartest marketing innovations of IKEA is incorporating an affordable restaurant into their warehouse. People don’t just swing by IKEA to look at their cut-rate furniture anymore; they also get a load of its cheap food. That is a great way to boost sales and increase foot traffic in their warehouse stores. Because nothing is more enticing than the whiff of delicious food, IKEA doesn’t just sell ordinary food; they offer authentic Swedish-style meals such as braised pork shank, shrimp sandwich, meatball entrée, and salmon fillet. Whether people want to shop for low-cost furniture or affordable food, IKEA is now their go-to spot. That’s why integrating a food court is such a brilliant marketing move by IKEA.
It veers away from traditional sales methods.
IKEA does not utilize aggressive marketing strategies to increase their sales. In most Asian countries, sales representatives follow customers around the store, promoting different products, and coaxing them to make a purchase. However, IKEA does not believe that this is a useful marketing tool for retail businesses. The company employs a Scandinavian-inspired method where salespeople only approach customers when they ask for advice or assistance. The brand believes that consumers should enjoy their shopping experience without interruption, which is why people take pleasure in IKEA because of the amount of freedom they get when exploring their aisles.
From a simple furniture store to a multi-billion-dollar enterprise, IKEA is arguably one of the most renowned companies in the entire world, all thanks to its brilliant marketing tactics. If you want to find similar success as IKEA, following these marketing methods of this retail company will surely help you gain ground.