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Chapter 3: Brand Resonance and the Brand Value Chain

MUHAMMAD KAMIRUL AZAM BIN SAADON 250938
IKRAM SYAMIM BIN AHMAD MURAD

Salience

The salience for IKEA is clearly furniture retailer. Since 2008 IKEA had become the largest furniture retailer in the world.

Performance

IKEA is the pioneer in furniture retail market. According to our survey, 90% of the interviewers quote IKEA as the first brand name to recall when it comes to home furniture.

“Affordable solutions for better living” IKEA products emphasize on being both functional and low price. IKEA furniture is an ideal short term house solution for consumers regarding their low price but does not have long lasting product life. Regarding this fact IKEA offers a lifetime guarantee for its product. It is almost impossible to not connect IKEA with DIY (do-it-yourself) which is the heart concept strategy for the low price warrior on the market.

“Our vision is to provide well designed, functional home furnishings at prices so low that as many people as possible will be able to afford them”. On average, one IKEA store contains 9,500 products that come in different size, shape and designs.

Imagery

Originating from Sweden, IKEA’s Scandinavian style not only lies in their yellow blue logo but also in their furniture. The minimalist and simplicity of Scandinavian designs are appreciated by consumers all over the world.

IKEA is targeting the price-oriented consumers, all family sizes with household ranging from small to large house space, usually young families with children. The concept of IKEA Family has also successfully built a home-loving image.

IKEA is also famous for their wide range of products. Quoting IKEA: “No matter what style you prefer there is something for everyone”.

IKEA is not only known as a place for people to buy furniture, it is also a place where people being fun and innovative to gain inspiration regarding the design of their homes with the help of the conceptual placement of the furniture in IKEA store.

Judgement

IKEA is a dependable brand that offers complete solutions within good prices. Price-oriented products have however lower performance of quality is an unavoidable correlation. IKEA consumers are conscious about the quality of product despite the purchasing price and earn satisfaction from getting a “Good Deal”.

Putting all the advantages of function, affordability and Swedish design in a flat-pack is one of the strongest POD of IKEA. The superiority of flat-pack makes IKEA product an ideal choice for consumers. The flat-pack design is easy to transport for consumers with ordinary transportation (household automobile, public transportation).

Customer service in IKEA had built a positive relationship with its clients, urging the “IKEA Family” (the IKEA employee) to treat the clients as family, which leads to its family-friendly brand image.

Feelings

Shopping in IKEA is something more than just buying. The welcoming atmosphere makes consumers as easy as they are at home. IKEA also provides a restaurant and children playground to satisfy all consumer needs and allow parents to shop longer. The one-direction layout and showroom display are turning shopping into “FUN” maze. It is almost impossible to rush into IKEA for just one item as one ends up spending hours lingering in this huge furniture playground.

The “IKEA Effect” is derived from the experience of DIY (Do it yourself) and often the first word pop-up in our mind when we talk about IKEA. Building something by oneself is always a satisfying feeling of self accomplishment. According to Psychology Today, it also adds value to an object’s worth. IKEA has positive social approval; because of its high availability, consumers will receive positive feedback from others when shopping for IKEA products.

IKEA’s unique store layout is standardized throughout the store in the world. The familiar environment and product provide a secure experience for consumers toward the brand.

Resonance

According to our Lovemarker analysis IKEA is considered as a potential Lovemarker with high consumer respect but low loyalty. IKEA has a low customer loyalty possibly due to their price-orientated strategy – the slightest change in price may drive away a large target segment. IKEA consumer loyalty is based on the criteria of price and distance. Consumers are likely to choose other brands when there is other lower price product or having more budgets. As IKEA locations are mainly outside the city, with the increase price of fuel long distance transport may decrease consumer’s motivation to visit its shops.

IKEA has a strong community. The IKEA Hackers & online community bind the fans together in the IKEA concept. Strong engagement among the consumers involved in the IKEA community  allows thme to share their IKEA works and experiences.

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FATINI SYAHIRAH BINTI HASARUDIN 250940
MOHD IKHWAN BIN MOHD SHAKRI 250942

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(Liu Xiaoli 243738)
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Nur Khalida binti Khairi Anuar 250654
Nurul Izzati binti Mohd Roslan 250645

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Chapter 3: Brand Resonance and the Brand Value Chain

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Adiba Soraya Tsamara 701354
Nurtalitha Myra Shafa 701355

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