Ikea (G)

Export Marketing
Case Study 3 – IKEA
Submitted by:
Afaq Zaim
Farrukh Maqsood
Ali Amanat
Hafiz Sameel
Q1) Discuss the advantages and disadvantages of having the same product range shown in
all Ikea catalogues around the world.
Ans1) By keeping the same product range in all catalogues around the world, Ikea sets a level of
standardization. This will result in giving them an advantage of greater economies of scale. As
all the products they sell worldwide are the same, they can purchase their raw materials in bulk
which can help the company save thousands of dollars. Moreover, keeping the same products for
all countries shows they do not discriminate towards any country and treat all countries equally
e.g. they do not produce better quality products for one country and low-quality products for
another.
Furthermore, the way their furniture is displayed in the catalogues varies from country to country
taking into consideration the cultural differences. It can help people from different countries in
utilizing the product more appropriately and give ideas on how to decorate the surrounding.
A disadvantage of showcasing the same products in all catalogues worldwide could be that not
all people from different countries have the same taste. For example, people in Europe may
appreciate a simple contemporary piece of furniture but someone from Pakistan might prefer
something more traditional. Cultural differences play an important role here and marketer’s need
to be sure of what kind of products are seen more culturally acceptable and then alter their
offerings accordingly. Another thing Ikea fails to consider while issuing the same catalogue is
the purchasing power people from different countries have. For example, a simple lamp that they
sell for $25 dollars in America might be seen as expensive in Pakistan, and this could be a reason
as to why they failed to capture the Pakistani market.
Q2) 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 2) The Ikea catalogue is one of the world's most widely distributed books, up there with the
Bible and Harry Potter. But its content varies hugely according to which countries the editions are
aimed at, thanks to the heavy use of Photoshop.
The Swedish furniture giant has this year, for example, removed female models from family scenes
in an Israeli version of its catalogue, and has done so in the past for Saudi Arabia, too.
Martin Enthed, an Ikea marketing executive wrote for the CGSociety: 'A kitchen in the US will
look very different to a kitchen in Japan, for example, or in Germany.
'So, you need lots of different layouts in order to localize the kitchen area in brochures.'
In this year's US catalogue, for example, the kitchen is manipulated to look much larger than the
one in the Chinese equivalent but both use the same model in the same pose.
But Sam Sokol, an Orthodox reporter for IBA News, said: '[The catalogue] is part of the growing
trend of purging the images of women from ultra-Orthodox publications and is presented by its
proponents as being consistent with religious tradition.
A spokesperson for Ikea in Israel told MailOnline in response: 'The Ikea catalogue distributed in
Israel looks the same as the Ikea catalogue in all other markets around the world, containing
images of women, men and children. IKEA, at times, has offended a lot of people especially those
who are not comfortable with catalogues having pictures of women. For which it had to say that:
'We realize that people are upset about this and that the publication does not live up to what Ikea
stands for and we apologize for this. We will make sure that future publications will reflect what
Ikea stands for and at the same time show respect for the Haredi community.'
Previous editions have also had all their female models removed to better appeal to male-
dominated cultures, as came to light in Saudi Arabia in 2011 and 2012.Ikea later apologized in this
instance, stating on its website: 'We regret the current situation. We should have reacted and
realized that excluding women from the Saudi Arabian version of the catalogue is in conflict with
the Ikea Group values.'
Also, when showing big kitchens in catalogues distributed in countries with small kitchens, might
convey the “This isn’t for me” message. The same message can be conveyed by using language
that is not understood by the audience or use of signs that might be considered offensive.
IKEA marketing strategy makes the brand one of the most recognizable in the world. Yes, the
furniture is nice and relatively cheap. But anyone who’s ever shopped there has never left
without an IKEA catalogue. What makes the brand so recognizable is its knack for multicultural
global marketing. IKEA marketing specialists are experts in devising a universal message which
corresponds across cultures.
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.
Q3) Explain some cultural differences which are illustrated by the two different illustrations
of the same product (from the Danish and Chinese Ikea catalogues).
Ans 3) The IKEA illustrations from the catalogue from Europe (Denmark) and China
(Shanghai) show the following fundamental differences between Danish and Chinese homes
and families:
 The Chinese illustration reflects the Chinese one-child policy (two children are shown
in the Danish illustration)
 The apartment in the Danish illustration seems to be larger, whereas the Chinese
illustration shows a smaller room, indicating a smaller apartment, which is normal in
many parts of Asia.

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What advantages and disadvantages does IKEA face by keeping the same product range in all catalogues worldwide?

How does IKEA tailor its catalogues to different cultures?

Export Marketing

Case Study 3 – IKEA

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