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Principles Of Marketing in the UK

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IKEA is a world-renowned furniture company that was founded in Sweden in 1943. The company has been expanding rapidly in recent years, and now has over 400 stores in more than 50 countries. IKEA's UK market share is estimated to be around 2%, making it the fifth largest furniture retailer in the country. IKEA's marketing strategy in the UK market is based on four pillars - accessible design, low prices, sustainability, and convenience. IKEA entered the UK market in 1987, and since then has opened 22 stores across the country. IKEA's success in the UK can be attributed to its unique marketing strategy, which focuses on providing affordable, stylish furniture that appeals to a wide range of consumers. The company offers a wide range of products that are designed to be affordable and functional. In addition, IKEA takes a sustainable approach to business by investing in renewable energy and using recycled materials. Finally, IKEA's convenient shopping experience makes it easy for customers to find what they need and get it delivered quickly.

IKEA offer a wide range of products at low prices: IKEA offers a wide range of products, from furniture to home accessories, at very competitive prices. This is achieved through IKEA's efficient production process and strict cost control measures.


Ikea has been present in the UK market for over 30 years, and during that time, it has built up a strong reputation for providing good quality, affordable furniture. The company has also been innovative in its marketing strategy, using a mix of traditional and digital channels to reach its target audience. In recent years, Ikea's performance in the UK market has been strong, with sales growing by 5% in 2017. This growth is in line with the company's global performance, which saw sales increase by 7% in the same year (Kozánková et al. 2021). Ikea's success in the UK market is due to a number of factors, including its focus on providing value for money, its commitment to environmental sustainability, and its use of technology to enhance the customer experience.


Brand value

The Swedish firm IKEA produces and distributes a wide variety of ready-to-assemble household items, including furnishings, equipment, and decorative accents. Since 1943, it has served the public. The brand's reputation rests on the modernist aesthetic it applies to a wide range of product categories. It also offers a wide range of prices to suit different budgets. IKEA has stores in 38 countries and its website receives around 1.9 billion visits annually.In the UK, IKEA has 21 stores and employs over 12,000 people. The company has a strong presence on social media with over 1 million followers on Twitter and 1.6 million likes on Facebook. IKEA was ranked as the 18th most valuable brand in the world by Forbes in 2015.

The brand values of IKEA are based on its commitment to quality, affordability and sustainability. The company sources its materials from suppliers who share its values. IKEA’s furniture is designed to be assembled by the customer, which reduces packaging and transportation costs (Alaali et al. 2020). This also allows customers to personalize their furniture to suit their own taste and style.

Kapferer’s Brand Identity Prism

Figure 1: Kapferer’s Brand Identity Prism

IKEA’s product range is constantly evolving to meet the changing needs of its customers. In recent years, the company has introduced a number of new product categories such as solar panels and vegan food products. IKEA’s marketing strategy focuses on creating emotional connections with customers through stories and experiences rather than simply selling products.

Target market

Swedish corporation Ikea makes and sells flat-pack furnishings, equipment, and decorative items. Since 2008, it has dominated the global furniture market.

Market segmentation

Ikea uses market segmentation to identify different groups of consumers with distinct needs and wants. The company then designs specific marketing mix strategies for each segment (Burt et al. 2021).For example, Ikea's UK website has separate sections for "Living Room," "Bedroom" and "Home Office" furniture. This allows consumers to quickly find the products they need without having to search through the entire site.


Once a target market has been identified, Ikea develops marketing mix strategies to appeal to that group. For example, the company offers discounts and special deals to students and seniors through its "IKEA Family" loyalty program.


The firm is well-known for the modernist designs that it creates for a wide variety of home appliances and furnishings, as well as for its environmentally responsible business methods (Malmgren et al. 2020). With over 20 locations throughout the United Kingdom, the firm has a significant foothold in that market and enjoys a strong market presence there. Positioning in the market is the primary emphasis of Ikea's marketing strategy in the United Kingdom.

Analysis of new market trends

PESTLE analysis

  • Political: The government's policy on taxation and regulation can have a significant impact on IKEA's business operations and marketing strategy. For example, if the government were to introduce a new tax on imported goods then this would increase the cost of IKEA's products and make them less competitively priced.
  • Economic: The state of the economy can also influence IKEA's marketing strategy. For instance, during periods of economic growth consumers may be more inclined to purchase expensive items such as furniture (Kullnig et al. 2020). However, during periods of recession consumers may be more price conscious and look for bargains which could lead them to choose lower priced alternatives to IKEA products.
  • Social: Changes in social trends can also affect IKEA's marketing strategy. For example, the recent trend for 'urban living' has seen many people downsizing their homes and opting for smaller items of furniture which are easier to transport and store. As a result, IKEA has introduced a new range of smaller furniture items which are specifically designed for city living.
  • Technological: Despite the rise of online shopping, IKEA nevertheless provides catalogues in paper form. Products may be displayed in other ways as well. The convenience of having the internet at fingertips means that more people will be looking at products and services online (Liaqat, 2022). Every company in the modern day needs a functional website. A company like IKEA is not an exception.
  • Legal: Each and every Fortune 500 company faces the risk of legal action. Ikea must comply with several rules and regulations in each nation where it does business. Since these establishments are open to the public, they must comply with all applicable labour regulations.
  • Environmental: More than a billion dollars have been contributed by IKEA to the development of sustainable energies sources in developing countries. The goal of IKEA is to run its shops entirely on green energy. One approach is to invest in alternative energy sources like solar and wind. IKEA also plans to modify the substances they use, such as wood and cotton.

Ansoff’s Grid of IKEA

Figure 2: Ansoff’s Grid of IKEA

Brand extension

IKEA's brand extension strategy in the UK market has been to open smaller format stores in city centres and high footfall locations such as shopping centres. This has helped the company to reach new customers who may not have visited an IKEA store before. The smaller format stores offer a limited range of IKEA products and services but are designed to be convenient for customers who want to make a quick purchase or pick up an item they have ordered online.
IKEA has also expanded its product range in the UK to include items such as food and drink, appliances, and bathroom products. This has helped the company to increase its sales and grow its market share (Fertik, 2019). In 2019, IKEA launched a new advertising campaign in the UK which featured the tagline "Make Room for Life".


Notable competitors include Walmart, Target, and Amazon. Each of these companies has a significant presence in the retail market and offers products similar to those sold by IKEA. Walmart is known for its low prices and vast selection of products. However, Walmart's customer service is often criticized as being poor. Amazon is known for its huge selection of products and competitive prices (Al-Zghool, 2020). However, Amazon does not have physical stores where customers can browse and purchase items in person. By understanding the strengths and weaknesses of their key competitors, IKEA can better position themselves to succeed in the marketplace. For instance, IKEA may want to focus on offering lower prices than Walmart or Target while still providing good customer service like Target does.

Strategy for brand extension for IKEA

Figure 3: Strategy for a brand extension for IKEA


IKEA has been hugely successful in the UK market thanks to its combination of low prices, good quality products and innovative marketing. The company has continued to invest heavily in marketing, particularly online and social media, which has helped it to reach a wider audience and maintain its position as one of the leading retailers in the country. Looking to the future, IKEA is well placed to continue its success in the UK market. The company is continuing to invest in its online presence and is also planning to open new stores in major cities across the country. This will help IKEA to reach even more customers and maintain its strong position in the UK retail market.


Alaali, A., & Vines, J. 2020, May. HOW GLOBAL BRANDS MANAGE THE LOCALISATION OF SPATIAL EXPERIENCES–THE CASES OF STARBUCKS AND IKEA. InProceedings of the Design Society: DESIGN Conference(Vol. 1, pp. 1597-1606). Cambridge University Press.

Al-Zghool, M. 2020. An evaluation of IKEA’s global position and marketing standing.

Burt, S., Dawson, J., Johansson, U., & Hultman, J. 2021. The changing marketing orientation within the business model of an international retailer–IKEA in China over 10 years.The International Review of Retail, Distribution and Consumer Research,31(2), 229-255.

Fertik, M. H. 2019. The Home as an Object: Material Culture in the Age of IKEA.

Hallberg, A., & Rundqvist, F. 2022. Exploring peer-to-peer last-mile delivery: an IKEA case study.

Khan, A., & Shafiq, A. A. 2021. Internationalization Challenges for Retail Firms in Emerging Asian Markets: A Case Study of IKEA.

Kozánková, B., Loimovuori, V., & Voinow, A. 2021. The Pillow Fight Over Sustainability–Case Finlayson x IKEA.LBMG Corporate Brand Management and Reputation-Masters Case Series.

Kullnig, I. 2020. The Image of IKEA’s Online Portals in Times of COVID-19 With Regards to its CSR and Experiential Marketing-Exemplified by IKEA Austria.

Li, Y. Business Insight: Leadership and Human Resource Management Analysis for IKEA.

Liaqat, R. 2022. Digital marketing plan: Case IKEA.

Malmgren, K., & Mötsch Larsson, K. 2020. Reverse Logistics in the Transition towards Circular Economy Case Study of Customer Returns at IKEA.

Martin, O. 2018. Marketing Influences through Strategic Campaigns and Sustainability.

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