IKEA: Stylish Furnishings at affordable prices Essay Example

homes and superior living standards, accessible to consumers at reduced costs.

Innovation is a priority for IKEA, as demonstrated by their recent opening of a 7,400 square foot store in New York, which is significantly smaller than their usual 200,000 square foot stores. Named the Marketing Outpost, the boutique-style store focuses on highlighting one product at a time and serves as a marketing tool for the company.

IKEA plans to completely refit and transform its store every eight to 12 weeks, which has helped revive consumer interest in furniture retail. The company's dynamic approach has led to increased shopping time for home-related products in areas where new IKEA stores have opened. Research also suggests that consumers are willing to allocate a higher proportion of their income towards these products, as IKEA competes with other disposable income options like buying a new car or going on vacation, not just other furniture retailers.

Even though IKEA does not intentionally rely on demographic and psychographic variables to segment their customer base, their products appear to have a stronger appeal to individuals in their twenties and thirties. To expand their product line and reach other life cycle stages, the company is implementing a strategy of offering products tailored to families with teenagers and those whose children have moved out. While IKEA understands that consumers shop to enhance their lifestyles, the company also recognizes the importance of practicality. Consequently, consumers are more likely to visit retail outlets that are conveniently located and provide an enjoyable shopping experience.

One of the ways IKEA satisfies customers' needs is by situating its stores near highways and providing ample parking, toilets, childcare, and dining options. Additionally,

shoppers can explore a variety of furniture options displayed in actual room setups that blend costly, consequential purchases like sofas and carpets with inexpensive, low-stakes items such as lamps, decorations, and wall art.