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Customer-Based Brand Equity Pyramid




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            IKEA is an international brand with a significant brand awareness. IKEA is the world’s largest retailer from Sweden, furniture ranging from ready-to-assemble furniture, home appliances at a reasonable price. Since 2008, IKEA is standing in a top position as the largest furniture retailer globally.


            IKEA is a leader in the furniture retail market. They focus on offering both affordable and functional products. IKEA does not provide superior quality, however, aims to maintain a good quality, Swedish design, lifetime guarantee, easy functionality, high customer involvement and low-cost pricing. IKEA’s products are suitable for a short-term housing as their products do not promise long term to the price. Moreover, they pursuit DIY(Do-It-Yourself) strategy for its low pricing. To keep up with this strategy, IKEA provides a lifetime guarantee for their products. And each IKEA store consists of on average 9,500 products in various sizes, designs, shapes and prices.


            IKEA is originating from Sweden. Their logo and various products are yellow and blue that reflects the flag of Sweden. Moreover, their products are widely favored globally as it displays the Scandinavian designs that show simplicity and minimalism. Despite IKEA’s furniture, through the placement of furniture in stores, it gives consumers creative ideas to make their place more innovative and meaningful. And customers apply it to their own taste and make a family-friendly and home loving-image.


            IKEA is a credible brand selling decent products at a reasonable price. Their quality may not be superior, but customers buy the products at a low price with the satisfaction of getting a good deal. Despite its functionality and affordability, their points-of-difference of packaging the product in a flat-pack well attracts consumers. Flat-pack is compactable and transportable; therefore, it is the optimal choice for consumers. Moreover, their IKEA Family idea which is taking care of the clients as a family gives family-friendly brand image. This is also done by offering exceptional customer service by creating a positive relationship with their customers.


            IKEA is more than a furniture store. The atmosphere of the store is welcoming for the whole age group. IKEA has restaurants for a family to have a meal with and it also has a playground for children to make parents spend more time on shopping. Furthermore, the one direction of the showrooms gives a unique and entertaining experience for shoppers. Due to this maze looking showroom, it is impossible to buy one product and go. Next is “IKEA Effect.” When asking people about what comes up to their mind what they think about IKEA, a large percentage of people say Do-It-Yourself. Making furniture with own effort gives a feeling of satisfaction as well as self-accomplishment. Lastly, due to the high availability of stores and products, IKEA brings positive social approval.   


In terms of brand loyalty, IKEA customers have relatively low brand loyalty. Low brand loyalty is mostly driven by the fact of price-oriented strategy and distance of the stores. IKEA should be cautious not to change the prices as it may wave away many target customers. Also, most of the IKEA stores are located outside the city to accommodate a huge size of the store. This is one of the disadvantages as it is time consuming for customers to get to the store which may reduce customer’s motivation to visit. However, IKEA has a strong community and engagement in online by sharing IKEA experience.


Brand Positioning

Offering exclusive experience

            People go to IKEA to buy not only the products but also to buy the IKEA experience. Due to the IKEA’s exceptional displays of showrooms from artificial kitchens to bedrooms, it makes customers hard to pass by without picking up a product. IKEA’s showroom arrows guide the way through different showrooms every corner with a new and exhilarating experience. IKEA became successful not entirely for their products but the extensive brand experience that they give to their customers, which will make them to remember better and to return shortly after.



            IKEA’s points-of-parity is that they offer home furnishing and house building products. Moreover, it is affordable to satisfy the needs of large target segments.


            IKEA’s points-of-difference is firstly the customer-oriented strategy. No matter what, they put their customer first with superior customer service. Second is their flat pack, enabling customer to easily carry the products even by transportation. Next is the showroom, that are designed with creativity. It allows customers to look at the showroom and design their own room innovatively. Furthermore, unlike other furniture retailers, IKEA offers a lifetime guarantee to all of their customers. Finally, due to the restaurants and playgrounds, it welcomes families not only to shop and go but to stay longer period.

Brand Mantra

IKEA’s brand mantra is “To create a better everyday life for the many people.” They aim to offer a variety of different products as low price as possible to reach their customer range. Moreover, IKEA is striving to improve the living standards for all people with their products and customer service.

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