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The brand IKEA.

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Introduction

THE BRANDING OF IKEA Company background The brand IKEA was founded in 1943 in the small town of Agunnaryd, Sweden, by Ingvar Kamprad. 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. ...read more.

Middle

Brand building blocks; Extrinsic, Intrinsic, Non Distinguished, Distinguished * The Extrinsic (not part of the product itself) this differentiates IKEA from others brands such as MFI and DFS. The brand name which differentiates a product; it is associated with its products; IKEA; 'function and low price'. Other extrinsic attributes are; the price of IKEA's products and packaging etc. Price - prices are low, for good quality products. The catalogue is free of charge, though IKEA charge for home delivery. Competitors - The furniture/carpet retailing industry is today very competitive. IKEA overtook MFI as the leader in this sector in 2002 with 12.1% of the market shares. following MFI is DFS, Homestyle and Carpetright. The difference in brand positioning between IKEA and our competitors is that we have a very well established name which is associated with 'fashionable' products at a low price. Our message is simple, using quirky and fun advertisements. Argos is a growing competitor in that they have more conveniently located outlets, in comparison to IKEA with fewer, out-of town locations. * The Intrinsic features (within the product itself) of our products: We are a global brand and in the UK we have stores in different parts of the country. There is a great availability to our products through our catalogue or our website. IKEA is a large company known for products being easy, functional, strong with the 'Scandinavian light and fresh, yet unpretentious design'. ...read more.

Conclusion

The name is the most important element of the brand because it identifies the whole concept. In IKEA's case the name is not directly associated with our products/services. Such as Rentokil where the name describes the product. IKEA is a simple name which can be easily pronounced in different languages, and each country uses the original name. the target market is also similar in different countries. Our name is rather neutral and very user friendly. It is accessible and not very technical, and it is approachable. The name will last and keep its image, because it is comfortable to use and very efficient. The IKEA logo is easy recognisable, with its blue and yellow colours, 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. ...read more.

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