Meatballs with a chance of Sofas

Why IKEA sells food? And what makes IKEA one of the most beloved retail brands

IKEA is a household name known for its affordable furniture and home decor, but did you know that the company also has a thriving food business? According to the company’s founder, Ingvar Kamprad, “Visitors with full stomachs stay longer and buy more”. With this in mind, IKEA started selling food in its stores to keep customers on the premises longer and increase their overall spending. It is almost 70 years since Ingvar Kamprad offered visitors coffee and biscuits at the furniture showroom in Älmhult. IKEA Food has more than 700 million customers annually, making it one of the world’s biggest grocery companies.

Stats don’t lie

Customer is King

IKEA has always prioritized its customers, with the company’s founder, Ingvar Kamprad, believing in offering a high level of service. One way IKEA did this was by offering a complimentary glass of Sensational squash to every visitor. This small gesture was a way for the company to show appreciation for its customers and to create a positive shopping experience. To this day, IKEA continues to prioritize customer satisfaction and offers a wide range of products and services to meet the needs and preferences of its customers.

Embracing new technologies is ingrained in their nature.

The Radar oven was a game-changer for IKEA and attracted customers from all over southern Sweden. The revolutionary technology, which allowed for the quick cooking of chicken, along with the company’s reputation for low prices and high quality, made IKEA a destination for families

Appealing to Human Psychology

Strategies for Growth

Seeing is believing

To address concerns about the quality of their low-priced products, Ingvar established a showroom to allow customers to see the products in person and demonstrate the high quality of the items. This helped to overcome skepticism among consumers.

The invention of flat-pack furniture — Light bulb moment for IKEA

IKEA came up with the idea of flat-pack furniture in 1956 to make distribution by mail order easier and more cost-effective. They removed the legs from a table and this idea became the basis for self-assembly and flat-pack furniture.

Glocalization

IKEA has successfully implemented “glocalization” strategies, adapting its business model to different locations around the world while still maintaining its core values. It sources merchandise from various countries to keep costs down and engages in partnerships and initiatives to stay at the forefront of the industry and lead change. Examples include collaborating with Sonos for its Home Smart initiative and participating in the Big Clean Switch campaign for cheaper green energy.

Understanding the target audience and Customer Loyalty

IKEA has attracted a large millennial customer base due to its focus on transparency, quality, and simplicity in its furniture, as well as fair treatment of its employees. The brand’s decision-making process, reasonably-priced and high-quality products, adaptable design, and self-assembly options contribute to customer loyalty. The enjoyable and stress-free in-store experience also plays a role in attracting and retaining customers.

IKEA Stores: A Destination for Customers to Experience

IKEA’s physical stores continue to be popular destinations for customers who know what they want to buy and go in with the intention to make a purchase. In contrast to other stores that encourage browsing, IKEA’s stores attract decisive shoppers. This has helped the company to remain successful despite competition from online retailers.

IKEA uses various techniques to create a positive shopping experience for customers.

Finally, the food

IKEA is known for its food, particularly its meatballs, which are popular among customers. The idea to add a cafeteria to the store came from the founder, who wanted to make sure that shoppers felt cared for and not hungry while shopping. IKEA’s food options allow customers to take a break, refuel, and continue shopping. The company’s food is cheap, but high quality and adds to the overall experience of shopping at IKEA.

I would like to acknowledge the valuable insights and experiences shared by the individuals who visited IKEA’s store in Hyderabad, which greatly contributed to the content of this article. Additionally, I conducted my own research to supplement their insights and create a comprehensive overview of IKEA’s shopping experience. Thank you to all who contributed to this article.

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