Ikea

Case Study

Ikea is a beloved brand for just-out-of-college, younger upstarts who are looking for a good looking, and lower price piece of furniture. And now Ikea is launching a new brand of higher end furniture. This new brand will be in competition with brands like CB2 and Crate and Barrel, but at a lower cost. Who is our new consumer and what are they looking for in their new higher end furniture?

Audience - Who is the Furnishista?: The Furnishista is a style-conscious woman, age 28-35. We chose this demographic because 28 is the average age women gets married and starts purchasing furniture from Ikea’s competitors CB2 and Crate and Barrel. 53% of millennials with bachelor degrees are married and this life changing event is correlated with a renewed interest in furniture purchases. This group is more likely to have a higher income, and can afford new, higher priced furniture. A Furnishista is bringing with her the stylish pieces of furniture she’s acquired through the years but wants to freshen up her new home with new furnishings. Studies found that when women are at this stage in life, they find higher end furniture stores like CB2 and Crate and barrel too expensive to fill their new home with furniture. Their budget only allows for a few statement pieces to place in each room, to bring all the other pieces together. Studies also show that millennials like a more eclectic, mix and match style to suit their needs.  

Insight: Your home is your true outlet of self-expression. Your home is who you are, where you’ve been and who you want to be.

The Opportunity/Tension: She’s ready to buy furniture for her new home but when she goes to buy, research has shown she only can buy a “statement piece” for each room.

Strategy: Don’t just get a statement piece of furniture, get a statement home. Ikea’s new line will allow her to have her cake and eat it too! Since Ikea’s line is lower priced than its competitors, she’s able to afford more than just her “statement pieces” and is now able to buy her full “statement home” that she’s always wanted.