The Branding of IKEA Essay -- Business Management Studies Essays Paper

The Branding of IKEA Company background The first catalogue was introduced in 1951 and with this the founder saw his chance to expand his business on a larger scale, and this was the year he decided to completely focus on low-price furniture, as from the beginning IKEA sold mainly matches, watches, Christmas decorations, picture frames and jewellery. In 1956 the company came up with the concept of 'flat-pack' self-assembly furniture. The first international IKEA store was introduced in Norway in 1963, and was soon followed by the opening of stores in Denmark, Germany, Australia, Canada, and Austria. In 1987 the first IKEA opened in the UK, and in 2001 the company had 143 stores in 22 countries. Today we are the leading furniture retailer in the UK with a 12.1% before MFI and DFS. Our Brand - an introduction The brand name is associated with feelings, attitudes or different meanings, and in our minds it is connected with a certain image. All inspired by the logo, design or colour. Branding is a way to differentiate one company, its service or product, from competitors. But also to provide it with a personality which is both appealing and unique to their potential customers. It is a multifaceted, disciplined and multilayered process. IKEA is seen as friendly, quirky, trendy, social, young, independent, witty and relaxed. Usually the personality of a brand is described as a person, with its different characteristics. The importance of branding In the past decade companies are starting to see their brand assets, and with this branding has taken on a greater significance. So today brands are more than just marketing slogans and logos. All businesses are building their brands through certain actions and in their actual presence they find a 'position' in the mind of consumer and prospects. This is based on experience and exposure of the brand in the competitive marketplace. There are certain advantages to take into account in a Brand Strategy; Financial Advantages, Strategic Advantages and Management Advantages. The financial advantages may be higher sales, and for the companies with more market shares; higher margins. IKEA is one of the leaders in its market place, and therefore many other brands in that particular sector may be 'hitchhiker' brands following us and other leaders (such as MFI and DFS). Strategic Advantages... ...ours, and the name written across in bold letters. It is very much a trademark and this same logo has been used from a very early stage. Conclusion I hope this will help you understand the importance of branding within IKEA. Our company has been a worldwide success for so many years, and this has already created an image in most peoples minds, they associate the name IKEA and the logo with purchase or from one of the award winning advertising campaigns which have been run throughout the world. It is incredibly important to build brand awareness when introducing a new product onto the market, and our company has already achieved this, but there is still the need to maintain customer and market. Bibliography * Mintel (2002) * Internet * San Juan de la Pena website * Rieboviz, Rik * De Chernatony, Leslie (2001) From Brand Vision to Brand Evaluation, Butterworth-Heinemann * Brassington, Frances, Pettitt, Stephen (2000) Principles of Marketing, Prentice Hall * Butterfield, Leslie (1999) Excellence in Advertising, 2nd edition, Butterworth-Heinemann * Nilson, Torsten H (1998) Competitive Branding, John Wiley & Sons Ltd.