Marketing is the heart of a brand. If it doesn’t work properly, then the brand is as good as dead. Companies and brands often look for new ways to attract the attention of the people who can be their potential customers. Creative techniques of marketing are used to obtain the exact attention from the public. Whether, its about launching new product and services or opening a new branch of the brand or just general marketing, brands elevates new ways to market.
Now, in this digital world, where we live in, competition is higher than ever. So brands are being cautious and more creative to involve people and make their brand noticed. There are different types of marketing techniques that brands follow, especially while launching their new branch. It is naturally done to make people aware and attract them. In this article, we will talk about IKEA and how it creates a big buzz while launching its store in Bangalore, which is the biggest store in India. So, without any further ado, let’s get started.
IKEA is a multinational conglomerate that deals with home furnishing products. The headquarters of the company is situated in Delft, Netherlands. It was founded in the year 1943 by Ingvar Kamprad. The Swedish company is famous for designer home decor like kitchen appliances and other furniture that can be assembled on your own. IKEA is considered the world’s most famous and successful company. All the interior design items that IKEA sells are eco-friendly plus the prices of the products are low as well. As of now, IKEA has 467 stores in 63 countries and serves its people with its modernized and ready-to-assemble furniture.
How Does IKEA Promote Their Store Launch in Bangalore?
The Swedish furniture brand has India covered by having two physical stores in Mumbai and Hyderabad. IKEA opened their biggest store in India in Bangalore. The store is said to be covered in 500,000 sq. ft. and it is said that it will be attracting over 7 million visitors every year, with its low pricing and marketing strategy. Now, the brand has done many marketing schemes to make people aware of the launch of its store. IKEA took the help of drones and hosted a show in Karnataka to invite people to visit their newly formed store. The company used over 520 drones that light up the sky. Apart from that, in different landmarks of the city, the brand created a room set-up that consists of modern-looking home products to showcase it in front of the people of the city.
The Marketing Trend With Funny Banters
Now, we have seen brand engaging with each other in funny banters and using sarcastic comments to rile them up. Some of the brands actually did the same thing with IKEA, during the launch of their Bangalore store. They made funny remarks, challenge IKEA, and promote their own brands in a shady way. The trend was started and still is ongoing. The banter was started by Wakefit and many different brands jump into this trend.
Wakefit
Wakefit
Wakefit is a company that is famous for providing mattresses, pillows, mattress covers and bed frames. Apart from that, the company also deals with furniture products for home decor and appliances. It has released few sarcastic advertisements to taunt IKEA. In the marketing campaign, Wakefit in an open letter gives out a snarky welcome and said how tasty Dosas could be found in CTR and the weather is amazing. It also points out many of its supposed flaws like how IKEA is located on the outskirts of the city. Apart from that it also stated that the audience might face traffic issues as well. They challenge the Swedish company by mentioning that they should visit Wakefit if they Are looking for the best furniture. Not only that, but they have also used Swedish on the front page of the newspaper for their print ad to taunt IKEA. The company still hasn’t responded to this banter.
DrinkPrime
DrinkPrime
DrinkPrime, which is a water purification company that provides water Purifiers from Bangalore, also took part in this trend by posting a digital poster on LinkedIn and using the work ‘KEA’. In this post, they asked their audience if they have visited IKEA? After their visit, if they are tired? Did they have water after that? These questions were ended by ‘KEA’. Basically, in the post, they tried to promote their water purifier brand while using IKEA.
CoWrks
CoWrks
CoWrks is a company that provides co-working space design in offices and makes it feel like home. The company built spaces for all kinds of startups and businesses. The company welcomed IKEA in Bengaluru in their own style by posting a digital poster on LinkedIn that says “Collaborative Spaces + Brilliant Interiors = A Brilliant IKEA”
How Does the Trend Help IKEA?
Many brands got involved in this trend and tries to welcome IKEA in Bangalore, mainly they participated in this trend, to promote themselves. However, this trend helped IKEA make its presence known in front of people. As the brands took turns to welcome or snide remarks, many people got aware of the biggest IKEA store in the country and showed interest in checking it out. This way, the companies not only promote themselves but also promoted IKEA. One of IKEA’s loyal customers also gave a reply to Wakefit’s snide remark and called the brand ‘Fakefit’ and wrote an open letter just like the former.
The path to success isn’t easy. One has to work hard, sacrifice comforts and walk on an obstacle-laden path. Some entrepreneurs came from wealthy families. Others have a rags-to-riches tale. Swede Ingvar Kamprad was one with literally no support and later on joined the list of the richest people in the world.
Ingvar is the founder of the furniture company, IKEA. Setting up IKEA and representing his country on the global stage, Ingvar Kamprad’s journey is inspirational and mind-numbing.
As a child, Ingvar lived on a small farm called Elmtaryd in the Swedish province of Smaland. Sweden was facing the wrath of poverty those days; the hardships he was subjected to was a blessing in disguise as he invested all the values gained in these tough times to form IKEA’s ethics. Ingvar began selling matches at six.
At the age of ten, he sold Christmas decorations, pencils, and fish. Despite being dyslexic, Ingvar performed well in academics because of which his father awarded him a small amount of money. With the money, he opened a company named IKEA, an abbreviation for Ingvar Kamprad from Elmtaryd, Agunnaryd.
Ingvar Kamprad—How It All Started?
IKEA Logo
After setting up IKEA, Kamprad used milk trucks to deliver his furniture goods. In 1947, he began selling locally made items of furniture. However, Ingvar faced intense criticism in 1955 as manufacturers protested against Ingvar’s low prices. This was a turning point for the company as it shifted towards flat pack—a piece of furniture or other equipment that is sold in pieces packed flat in a box for easy transport and is assembled by the buyer. This was a change in IKEA’s ideology regarding furniture.
Ingvar targeted the middle-class as IKEA presented affordable and stylish furniture was easy on the pockets. By his new idea, Ingvar could serve all sections of the society, rich or not, simultaneously with a unique brand of furniture equipment.
Flat packaging minimized shipping costs, transportation damages, and increased the store inventory capacity. Ingvar planned and modified IKEA stores to suit customer expectations.
Ingvar Kamprad—Worldwide Phenomenon
Ingvar soon expanded his business into various parts of Sweden. A few years later, IKEA established its presence in Norway, Germany, and then all over Europe. This was the thrust to setting up IKEA globally. Ingvar’s venture was accepted globally and this was attested when IKEA opened up a store in the city of Shanghai; 80,000 people visited the store! IKEA has over 300 stores in 38 countries across the globe.
IKEA opened its first store in Japan in 1974, and in Australia, Canada, and Hong Kong in 1975. Later on, IKEA was launched in countries like the United Kingdom, the United States, Italy, Belgium, and the Dominican Republic in the year 2010.
The Stitching INGKA foundation is named after Ingvar Kamprad. This foundation owns INGKA Holding, the parent company for all IKEA stores. This charitable foundation was named as the wealthiest charity in the world in the year 2006, which was then overtaken by the Bill and Melinda Gates Foundation. Ingvar was the chairman of The Stitching IKEA foundation.
In an instance of charity, IKEA Australia had agreed to match dollar for dollar co-workers’ donations and donated all the sales of the IKEA Blue Bag to help people affected by the 2004 Indian Ocean Tsunami.
Ingvar Kamprad—Becoming the Richest
In 2004, the Swedish business magazine declared Ingvar as one of the world’s wealthiest people. However, this wasn’t an accurate measure since the magazine assumed Ingvar’s wealth equal to IKEA’s valuation at that time. In 2010, Forbes magazine estimated Ingvar’s wealth at 23 billion USD. His ranking decreased substantially from 11th to 162 in the standings due to a lawsuit that prevented his family from access to his funds. In 2015, Ingvar was the eighth richest person in the world according to the Bloomberg Billionaires Index, Ingvar Kamprad net worth is $58.7 billion.
Ingvar was known for simplicity and frugality, and his company had a reputation for community outreach and philanthropy. IKEA has actively supported UNICEF and other important committees of the United Nations.
Ingvar Kamprad—Swedish Furniture Chain
In 1973, IKEA established its first store outside Scandinavia; the shop was set up in Switzerland. The expansion of IKEA cemented Sweden as a producer of top-class furniture. The employees wore jeans, shirts, and jumpers—a down-to-earth image of Swedish people.
Ingvar Kamprad—Leadership Skill
Ingvar had razor-sharp focus towards IKEA’s development. He used to visit IKEA stores till his last breath. Ingvar was a personality one should look up to; he used to travel in economy and treated his employees as ‘co-workers’. He encouraged his employees to dress informally and drove an old Volvo.
Apart from his fascist comments, Ingvar will be remembered as one of the greatest entrepreneurs of the 20th century. His simplicity and dedication depict a clear picture on how a real leader should guide his employees. Starting a company while facing the wrath of poverty, Ingvar has proved that nothing is impossible to achieve. He passed away in 2018, leaving behind a company that changed the face of the furniture industry.
Ingvar Kamprad Elmtaryd Agunnaryd. IKEA is an acronym that stands for “Ingvar Kamprad Elmtaryd Agunnaryd”.
Why is IKEA called IKEA?
IKEA is named after the initials of founder Ingvar Kamprad, Elmtaryd, the farm on which he grew up, and Agunnaryd, the nearby village.
How much is the Ikea company worth?
Founder of Ikea net worth is $58.7 billion.
Ingvar Kamprad—Conclusion
Ingvar Kamprad was the founder of IKEA. He was surrounded by myths every time while he was alive. All the myths were found to be true by the journalists. He was famous and was known for his frugality and hardworking. It all started with selling matches at the age of 7. He realized that he could gain profit buying matches in bulk cheaply. And selling them at low prices individually. By the age of ten, he was selling flower seeds, greeting cards, Christmas decorations, and pencils. By growing its business, the company started to sell Furniture’s and made itself a brand. All in all, nowadays IKEA earns more than 34 billion euro per year. It is the most famous furniture store in the world.
