IKEA was founded by Ingvar Kamprad more than 70 years ago, initially as a mail order business which subsequently has grown to 400 stores in close to 50 countries.IKEA is known for offering a broad range of furniture and home products at affordable prices.Since its inception in Sweden, IKEA has tried to remain true to the value of creating "a better everyday life for the many people".

Product development is core to IKEA's success.The Democratic Design Centre is the foundation of this process. The Centre is located at the IKEA of Sweden headquarters and it employs 1,500 people.Through its creative design process, IKEA gathers consumer insights with research and product ideas are developed by a creative team including designers and craftsmen who take an idea and create product prototypes for testing.Each year, 1,500-2,000 new products are developed internally and additional new products are created through collaboration with suppliers and other design experts.

Each product follows an approach to product development called Democratic Design.There are 5 dimensions of Democratic Design:Form, Function, Quality, Sustainability, and Affordability.These are the factors by which new product concepts are evaluated as they move along the development process.

The IKEA's history books are full of interesting stories about how product ideas were conceived and the end product produced.Take for example, the creation of the PS Pendant Lamp.The designer was challenged with creating "a unique object that could defeat the darkness in homes across the planet, bringing light and hope to the many".The designer was inspired to create a lighting fixture that looked like an object in space.Certainly this product met the form and function criteria, but could it be manufactured in a way that would maintain its quality and be offered at a reasonable price?IKEA works closely with its supply chain to manage these elements of Democratic Design.In the case of the PS Pendant, IKEA worked with suppliers to decrease the number of parts and improve packaging, which decreased costs.

IKEA provides an excellent example of a product development process that encourages innovate new ideas, while focusing on principles that stay true to the corporate values.Ultimately, this process helps IKEA deliver a pipeline of new and products that meet the customer need for quality products at a reasonable price.

a- Which growth strategy does IKEA focus on?Explain your answer.

b- Looking at the adoption curve, which group of consumers is most likely to purchase IKEA products?

c- Create a target market profile for an IKEA's customer using geographic, demographic, psychographic, and behavioral descriptors.