Ikea consumer insight

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What things are for? IKEA sofa

presented by: Lois Lee, Amy Tran


Outline • • • • • • •

Theory of Csikszentmihaly M Background of IKEA and PESTEL analysis Consumer profile Consumer practice Key issues Evaluation of theory Recommendations


Theory: What things are for ? Functional meanings Past experiences e.g. habits

Physical Objects Signs (symbolic)– meanings

Your personalities/ attitudes / feelings Cultural traditions Social influences


Theory Psychological: ‘symbol’ + mediate conflict inside (Fraude) – transitional objects + influenced by culture and environment (Jung)

person Personal Social Cosmic Anthropological: -Metaphors e.g. stars

-Personal traits -Status +Power +Wealth -Integration/differentiation +religions/union makes strength -Roles model: cultural evolution


“Home is the most important place in the world �


Background IKEA • • • • • • • •

Swedish-owned company Specialize in flat pack furniture has 17 out-of-town outlets in the UK Brand Reputation Product Innovations Reasonable price Design & style High market share in UK


PESTEL Analysis SOCIAL • Changing consumers’ behaviors e.g lifestyle • Single living trend

ENVIRONMENTAL • Eco-friendlily: recycle, natural fabric

ECONOMIC • Credit crunch • Price concern when consuming sofa

TECHNOLOGICAL • Internet


What is sofa for? • Definition: Couch/lounge • brainstorming: lounge music…..


Consumer Profile Demographic • 25-34 single adults or new set-up family • 1st time buyers – move out of home • BC1 social-economic groups

Psychological • Desire to relax at home after a tired working day • Independence • Design & style concern


Consumer Practice Purchasing behaviour •Redecorating •Moved house/set up home •Living room furniture is the most frequent purchase Attitude towards purchase • want a new look • want a sofa of your style Desires: warm, relaxed, stylish and modern

Needs: a soft and comfy sofa


Key issues • Lacking communications of meanings of goods - sales promotions • Tone and manner: funny and interesting (life style focused) e.g. • Meaning of brand: Home is a soul and not for sale e.g.


Evaluation Pros • Evoke past experience (feelings, habits, attitudes) • Manifest personal traits and taste • Social proof/differentiation/st atus • Mediate the repressed desire

Cons • The gap of communications • Only works within a limited context


Recommendations Home Sweet Home: The feeling of Relax ‘n’ Independence

Online campaign: Virtual DIY Advertising theme with ‘Relax’ and ‘Independence’ image e.g free and relief


“Does sofa bring any meanings to you?� Remind you some stories !! Some people! Any special memories. Or It is just a sofa. Q&A


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