Target Strategy: MUJI vs. IKEA

The targeting strategy of these furniture retailers of contemporary lifestyle design is complex, as they offer not just one product but furniture of different styles, price range, function, versatility and appeal to different age groups. We observe their marketing and the consumption of their products are separated by Swedish and Japanese stereotypes, but their target strategy approaches completely differ.

Targeting Strategy in Europe

muji-logo

Demographic


all ages, clear emphasis on values more than demographics

Income


low to middle-high class

Education


all, usually the eco-conscious

Family status


small to medium sized families, catered for families in households with small to middle house space

Gender


Unisex, no strong genderization in products: bland, mostly white or beige and never bright

Unisex products and furniture at MUJI Paris

Unisex products and furniture at MUJI Paris

Target location


  •  To target Urbanites, mostly metropolitan or areas with high human traffic such as major train stations and popular shopping locations close to these stations. Eg. MUJI in Cologne (Germany) inner-city near main train station, MUJI To-Go at Gare Saint Lazare and Chatelet flagship store (Paris)
MUJI-to-go at Gare Saint Lazare, Paris, France

MUJI-to-go at Gare Saint Lazare, Paris, France

Values of target market


self-conscious, expressionist, Japanese intrigued, anti-branding, alternative seekers, quality-conscious, compatibility and sensitivity with the earth

Lifestyle


  • MUJI shoppers are conscious decision makers and are likely to be loyal as they do not change their lifestyle choices often. MUJIers admire that MUJI chooses their materials responsibly, stay clear to the minimalist attitude and that they are conscious of the environment. MUJI appeals as such to ethical, simplistic, minimalist yet practical shoppers that yet desire for furniture that enhances their lives and are willing to pay more for a lifestyle choice and for the environment.
  • Style: MUJIers have a determined style, and prefer to obtain neutral products to complement their existing home design, allowing them room for individuality. MUJI products in return have such tangible simplistic designs that people would notice them. MUJI is also well-known for Iconic and space-saving designs such as their wall-mounted CD Player.
MUJI CD Player, wall-mounted

MUJI’s one of many iconic models: wall-mounted CD Player

Targeting messages


  • Unlike IKEA, MUJI does not apply aggressive or grandiose marketing to reach its customers but instead, focuses strong on creating the best products to fulfil and benefit customers’ lives, thus focuses strongly on single items.
  • The four symbols in MUJI stand for “no-brand quality goods.” To target their market, some of their messages are “In love with no frills”, “From another viewpoint”, “Simple, Functional and Affordable” and “Lower priced for a reason”. This can be attributed to a cost leadership strategy: removing frills to provide affordable prices.The strong “I am” expression of MUJI is thus evolving as an appealing youth brand, the more it emerges in metropolitan areas.
  • Sustainability message: Importantly, MUJI’s success image of being originally sustainable before reaching international fame, is popularized by word-of-mouth and propagated along with the anti-brand movement, also the reverse-movement of over-consumption and a way to bring symbolic, unique meanings back into ordinary life.

Emotion Branding


  •  MUJI communicates their messages through their products, feelings of peace, calmness and a bond to nature. It has integrated itself into lifestyle so well that its branding has become ‘so neutral it must be MUJI’, unlike its original goal to be unrecognizable. Ironically, this desire to eliminate self-expressive benefits actually has evolved to provide self-expressive benefits.
  • MUJI’s many different targeting strategies such as “MUJI Yourself” targets self-expressionists and allows them personalization of their MUJI Items.
MUJI – Yourself at Flagship Store Paris

MUJI – Yourself at Flagship Store Paris

  • MUJI’s simplicity has evolved to become so unique and beautiful in itself, that customers are thrilled to declare they are MUJI fans. The most unbranded furniture made with sustainable materials in neutral colors is now easily mistaken as a MUJI product.
  • While MUJI has yet to become a brand religion, as it enters the furniture market, it is emerging rapidly to become a beloved brand and a strong furniture competitor for IKEA.

ikea-logo-1024x365

Demographic


 All ages, clear emphasis on price more than demographics

Income


low to middle high

Education


all levels

Family status


all families sizes with household ranging from small to large house space, usually young families with children.

Gender


Mixture of Male, Female, Unisex, specific styles: strong and neutral colors

Genderized and unisex furniture from IKEA

Genderized and unisex furniture from IKEA

Target location


  • To target all groups, mostly in the outskirts of cities next to highways to keep costs low, where their warehouses are easily accessible via personal transport or at least by railway trains. Eg. IKEA in France, Sweden and Germany. Only very recently, did they open in the inner-city, the first being in Hamburg, Germany.
City IKEA at Hamburg, Germany

City IKEA at Hamburg, Germany

Values of target market


Nordic life, modernist Swedish image, value-for-budget seeking, conformist, collectivism, often non-expressionist, price conscious

Lifestyle


  • IKEA shoppers are price-conscious but ambitious to Do-It-Yourself (DIY). They are less likely to be loyal due to the choice for IKEA being only based on price. IKEAers are practical, and often visit IKEA to find everything in one location without considering the effects of over-consumption. They are pleasure seekers who want to be aspired with Nordic design and exotic styles without hurting their budget.
  • Style: Aiming at first-timers building a home, IKEAers are usually not future-oriented and purchase the furniture for start-up for ‘new beginnings’, usually in a specific style, color or design. IKEA products in return are so well-known that there exist homes that just look like the catalogue. IKEA is also well-known for their long-running designs such as their POÄNG rocking chair.
IKEA's one best selling iconic model : POÄNG

IKEA’s one of many iconic models: POÄNG rocking chair

Targeting messages


  • Unlike MUJI, IKEA uses with great success its colorful and thick catalogues around Europe and the US to market ‘dreams’ with a focus on many furniture pieces complementing together to form a complete home in specific styles.
  • To target their market, some of their messages are “Everything under one roof”, “No matter which style you prefer, there is something for everyone”, “Great design accessible to everyone”. IKEA’s main goal is low prices reaching everyone.
  • Sustainability message: Since 2013, IKEA has been aiming to be more sustainable with the launch of its ‘People & Planet Positive’ Strategy, using organic cotton, reducing carbon footprints and renewable energy. Opposite to MUJI, IKEA changed its image towards sustainability after becoming a global brand. By now, IKEA has become so integrated in standard metropolitan life, that most shoppers expect an IKEA shop nearby and purchase more for DIY delight than spiritual desire.

Emotion Branding


  • IKEA as a brand and not particularly just its products, communicates happiness, self-fulfillment, and shopper’s relief. Many have grown to love IKEA as it is a dependable brand that offers complete solutions within good prices.
  • As more IKEAers build their own furniture, its brand has infiltrated business terminology to form ‘The IKEA Effect,’ what is known to be the over-affection formed for a product after putting labor into it. The craze for DIY has also stirred a community of IKEA Hackers, with a website dedicated to customizing otherwise standard IKEA designs by breaking down its form to create better solutions.
Example of an IKEA Hack Project

Example of an IKEA Hack Project

  • Moreover, IKEAs foresight to adapt to different cultural needs and expectations has touched all customers globally. The traditional catalogue is adapted according to country. Now there are ‘3D IKEA Catalogues’, rooms re-created completely from paper into real life, allowing shoppers to take pictures there and be transposed onto a personalized IKEA catalogue – a successful way to create emotional connection. Creating the ‘IKEA Family’ Concept has also created strong image that IKEA is family-oriented and cares for the family.
  • Now, IKEA is the first word that comes to mind when DIY is mentioned, and brings delight to most when its name is mentioned. It has thus surpassed its boundaries as a brand but also become a brand religion that has left plenty of ‘Lovemarks’ on its consumers.

by Charlotte Ho (Hsin Tyng), 2014


MUJI sources:

  1. Aaker, D. “Muji: The No-Brand Brand”. From Marketing News (Dec 2009). Online, accessed: 10th Oct. 2014. URL: https://www.prophet.com/downloads/articles/Muji_Aaker.pdf
  2. Glader, P. 2014.  “Muji Executive Kei Suzuki On Future Growth Of Japan’s ‘No Brand’ Retailer”. Online, accessed: 25th Oct. 2014. URL: http://www.forbes.com/sites/berlinschoolofcreativeleadership/2014/08/05/interview-muji-executive-kei-suzuki-on-future-growth-of-japans-no-brand-retailer/
  3. Muji Europe Holdings Pty. Ltd. 2014. “Muji’s Philosophy of ‘No Brand Quality Goods’”. About MUJI. Online, accessed: 24th Oct. 2014. URL: http://www.muji.eu/pages/about.asp?PT=29
  4. Tan, Ying W. 2009 “Muji: On Strategic Marketing”. Online, accessed: 25th Oct. 2014. URL: http://yingweitan.wordpress.com/2009/07/23/muji-on-strategic-marketing/
  5. MUJI Images: Self-sourced.

IKEA sources:

  1. Brautlecht, N. 2014. “Ikea Goes Urban With First High Street Store in Hamburg”. Online, accessed: 26th Oct. 2014. URL: http://www.bloomberg.com/news/2014-06-29/ikea-goes-urban-with-first-city-store-in-hamburg-s-altona.html
  2. Inter Ikea Systems. 2014. “People and Planet”. This is IKEA. Online, accessed: 25th Oct. 2014. URL: http://www.ikea.com/ms/en_US/this-is-ikea/people-and-planet/index.html
  3. Inter Ikea Systems. 2014. “The Big 25 Iconic IKEA Products”. Online, accessed: 28th Oct. 2014. URL: http://www.ikea.com/ms/en_GB/img/site_images/about_ikea/PDF/25%20iconic%20products_DOSSIER_OK.pdf
  4. IKEAHackers.net. 2014. “IKEA Hackers – Clever Ideas and Hacks for your IKEA”. Online, accessed: 20th Oct. 2014. URL: http://www.ikeahackers.net/
  5. Norton, Michael I.; Mochon, Daniel; Ariely, Dan. 2011. “The IKEA effect: When labor leads to love”. Journal of Consumer Psychology 22 (3): 453–460.
  6. West, D.: Ford, J. and Ibrahim, E. 2010. Strategic Marketing: Creating Competitive Advantage (2nd Edn.). p. 381.
  7. IKEA Images: from above mentioned sources

Brand Positioning : Perceptual Mapping


PERCEPTUAL MAPPING

According to the quantitative survey that we have conducted, the main components consumers take into consideration when looking for home furnitures to buy, are the quality, the price and the style/design.

As a consequence, we rely on these criteria to create a perceptual mapping.

We also asked people to score these criteria regarding each proposed brands.

 Capture d’écran 2014-11-05 à 10.33.19Source: Survey conducted on 19 respondents online between the 21st and 27th of October 2014

POSITIONING

We studied the brand identity and the brand image of both IKEA and MUJI.

MUJIKEA Positioning 1

We can now analyse the positioning of these two brands.

muji-logo

MUJI has adopted the “no brand strategy.”

This brand’s products are perceived by consumers as being basic, functional and affordable.

Regarding the perceptual mapping and the brand image table, MUJI is seen as having affordable and good quality products to offer. MUJI’s products are also perceived as being very basic and minimalistic.

As a conclusion, we can say that MUJI’s identity is consistent with its image when observing the mappings and the brand image table (we have posted earlier).

ikea-logo-1024x365

IKEA’s brand identity is based on its well designed, fun and functional products as well as on its cheap price and its fair quality.

However regarding the map, even if it is perceived as being cheap, it is also seen as low quality.

As a consequence, its image doesn’t totally match with its identity.

 Noémie Julienne (2014)


Sources for Survey:

  1. https://www.surveymonkey.com/results/SM-BXFRP6BL/
  2. https://fr.surveymonkey.com/results/SM-7QGZ8ZBL/

Distribution : MUJI v.s IKEA

1

2

3
45
67

summary

HU KUANJU

Sources :

Ryohin Keikaku Co., Ltd. Annual Report 2014 (March 1, 2013 – February 28, 2014) http://franchisor.ikea.com/FranchisingtheIKEAway/Pages/All-IKEA-stores.asp

IKEA Group Yearly Summary FY13

IKEA helps customers find their way with indoor Google Maps https://static.googleusercontent.com/media/maps.google.com/zhTW//help/maps/indoormaps/assets/casestudies/ikea-cs-20120622.pdf

http://djhuppatz.blogspot.fr/2011/05/ikea-vs-muji.htm

 

Story: Ikea RGB billboard

ikea 1

The Swedish retailer has always been trying to make the best of small spaces. However, limited space demand smart and creative solutions that the brand had been constantly applying in its furniture.

In order to promote space optimization, Ikea and german ad agency Thjnk came up with a billboard concept that could literally turn a 9 square meters of ad space into 27 square meter: The RGB Billboard.

The board is equiped with 3 lightbulbs (red, green and blue) and 3 different headlines using the previous 3 colors superimposed on each other. At night, each lightbulb woul reveal a different message. On the first one we can read “Do it like this billboard“, followed by “Make good use of your space” and “with small spaces solutions from Ikea“.

A clever ad that perfectly endorse Ikea’s space saving message.

“When you have little space you need to come up with clever solutions. That is not only true for interior decoration, but for advertising space too”

ikea 3

ikea 2

Anthony


http://www.adweek.com/adfreak/ikeas-amazing-rgb-billboard-one-coolest-ads-it-has-ever-made-155959

 

MUJI VS IKEA’s positioning : An analysis of the brand’s identity

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Capture d’écran 2014-10-13 à 22.18.33

Figure 1: Positioning of furniture retailers on the market

Noémie Julienne (2014)

The Anatomy of Brand Positioning (Jobbe)

Jobbe Brand Positioning

Now we have two commercials from both brands that perfectly illustrate their differentiation.

TV Advert

MUJI focuses on one product depicting minimalism, nature and zen.

TV Advert

IKEA depicts a large range of products focusing on their day to day utility for the family.

HU KuanJu & Noémie JULIENNE (2014)

Sources:

  1. http://inter.ikea.com/en/about-us/business-in-brief/
  2. http://www.ikea.com/ms/fr_FR/this-is-ikea/democratic-design/index.html
  3. http://www.metronieuws.nl/world/metro-talks-to-ikea-ceo-mikael-ohlsson-values-matter/SrZlbw!DxV0vJfR0RIIs/
  4. http://www.muji.com
  5. http://ryohin-keikaku.jp/eng/
  6. http://www.forbes.com/sites/berlinschoolofcreativeleadership/2014/08/05/interview-muji-executive-kei-suzuki-on-future-growth-of-japans-no-brand-retailer/

A look into MUJI and IKEA’s background

The blog is a brand audit focused on 2 international furniture retailers: MUJI and IKEA. Thereby, let’s take a closer look at what they are about and who they are.

MUJI

muji-logo

MUJI, in Japanese 無印良品 « Mujirushi Ryohin » meaning “Good quality with no label”, is a retail company born in Japan in the early 80s, that sells furniture and consumer goods. It offers a sober and minimalism alternative to current consumption form that favors brands and labels.

The brand with no brand propose a large range of home furniture distinguished by their design minimalism, emphasis on recycling to avoid waste and their no label policy. The range of products goes from pencils, beds and knives to a clothing line. Recently, Muji engaged in architectural project building Muji Houses. All of Muji’s products respect the same strict concept:

  1. A clean and functional design that eliminate all superfluous decoration and packaging.
  2. Basic and sober colors that can fit in any environment
  3. A good price quality value
  4. Completes ranges that answer every aspect of daily life

Those principles regulate and shape a unique identity and a strong consistency among the different products offered by MUJI.

The value of a Muji product lies within the product itself, not in the name of its designer.

Today, Muji possesses shops and point of sales in many cities all over the world: London, Paris, Hong Kong, Singapore, Taipei, New York, Milan…etc.

IKEA

ikea-logo-1024x365

IKEA is a Swedish company, created in the 40’s by Ingvar Kamprad, that designs and sells flat-pack furnitures and appliances. As of January 2008, Ikea is the largest furniture retailer in the world. The Ikea name is an acronym that consists of the initials Ingvar Kamprad, (IK) with the first letters from the names of the farm and village where he grew up
- Elmtaryd and Agunnaryd (EA).

The company is known for its modern architectural design that combines shape, function, quality and value – always with sustainability in mind. The concept goes beyond design, as it is present in every aspect of the company, from sourcing, packing and distributing to their business model. Thereby, the firm pays strong attention to continuous product development, operational details and cost control. Those corporate attributes allowed the Swedish brand to lower its prices by an average of two to three percent over the period of 2000-2010, during a period of global expansion.

As of September 2014, IKEA owns and operates 351 stores in 43 countries.

The company uses approximately 1% of the Earth’s wood supply, making it one of the largest users of wood in the retail sector.

“Our aim is to help more people live a better life at home.” 

Anthony LAU (2014)


Sources:

  1. http://www.muji.com/
  2. http://japanpropertycentral.com/2014/05/mujis-latest-home-designed-for-narrow-urban-spaces/
  3. http://www.ikea.com/ms/en_US/this-is-ikea/the-ikea-concept/index.html http://inter.ikea.com/governance/organisation/ http://inter.ikea.com/en/about-us/responsibility/ http://franchisor.ikea.com/Theikeaconcept/Pages/The-IKEA-product-range.aspx
  4. http://www.ikea.com/ms/en_US/pdf/sustainability_report/sustainability_report_2013.pdf