IKEA Segmentation, Targeting and Positioning: Targeting Cost-Conscious Customers

IKEA Segmentation, Targeting and PositioningIKEA segmentation, targeting and positioning involves a set of consequent marketing decisions that constitute the core of company’s marketing strategy.  Segmentation refers to dividing population into groups on the basis of their common traits and characteristics. Targeting involves choosing specific groups identified as a result of segmentation as consumers for the brand.

Positioning implies the selection of the marketing mix the most attractive to the target customer segment. There are various types of positioning such as mono-segment, multi-segment, standby, anticipatory, imitative, adaptive, defensive and stop-gap types of positioning.  IKEA uses mono-segment type of positioning and accordingly, makes an appeal to the needs and wants of single customer segment that are cost-conscious and prefers to get value for money.

The following illustrates IKEA segmentation, targeting and positioning:

Type of segmentation Segmentation criteria IKEA target customer segment


Region Europe,   Americas, Asia & Australia, Russia
Density Urban


Age 22 and older
Gender Males & Females
Life-cycle stage Bachelor Stage young, single people not living at home

Newly Married Couples young, no children

Full Nest I youngest child under six

Full Nest II youngest child six or over

Full Nest III older married couples with dependent children

Empty Nest I older married couples, no children living with them

Empty Nest II older married couples, retired, no children living at home

Solitary Survivor I in labour force

Solitary Survivor II retired

Occupation Students, employees, professionals
Behavioral Degree of loyalty ‘Hard core loyals’

‘Soft core loyals’


Benefits sought Cost effectiveness
Personality Easygoing and determined
User status non-users, potential users, first-time users and regular users
Psychographic Social class Lower class, working class and middle class
Lifestyle[1] Resigned




IKEA segmentation, targeting and positioning

IKEA Group Report contains a full analysis of IKEA segmentation, targeting and positioning and IKEA marketing strategy in general. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis and McKinsey 7S Model on IKEA. Moreover, the report contains analyses of IKEA leadership, organizational structure and organizational culture. The report also comprises discussions of IKEA business strategy and addresses issues of corporate social responsibility.

IKEA Group Report

[1]According to Cross Cultural Consumer Characterization by Young & Rubican