How Ikea does Marketing in Real Life

They Insert Some Tasty Cheap Food at Checkout

Perhaps it is a coincidence that they want to associate food, satisfaction, and (cheap value) right at the checkout purchasing counters? hmmmm. The theory of association

I walked around an IKEA store in Singapore, and this is what I found

They Use Loss-Leaders

Cheap loss-leader, I do believe these clocks are sold at-cost

​Reason is simple, in this day and age its great to be able to brag to friends and coworkers about scoring a good deal, like a $1.90 clock, and it provides a motivation for shoppers to keep visiting IKEA to see what other loss leaders they have, forming some kind of buying-habit.

Lastly, its very likely shoppers will not go to IKEA and just buy a clock, but at least some other impulse purchases

They Make You Feel Like A Kid Again

Serving Ice Creams (for $1), and Hotdogs at near the exit allows you to leave with some feelings of happiness, like visiting a fun-fair carnival. Also if you're hanging around the counters munching on a hot dog, you might just consider purchasing even more flat pack furniture. 

Did you know IKEA revenues from food alone are more than 1.4Billion USD per year? Thats almost similar to some large food companies! It's such a large segment that it has a huge compounded growth element in its business :  Link here

They put you through a "Marketing Funnel"

Marketers know that if you were to just go to a furniture store, or browse a catalog, you might just buy one item you needed and not bother to look at other furniture.

However, if you were planned to enter a specific sales route through a physically constructed "funnel" that brought you around different use-cases, showrooms and styles, while also passing by an IKEA restaurant so you can have a good fill of food, so that you can spend even more time browsing this physical funnel. You'll end up buying much more product than what you came here for.  Have you ever tried exiting an IKEA showroom walk halfway? its nearly impossible and really inconvenient! (only the staff can use the shortcuts)

They Utilise Upsells and Complimentary Products near Checkout

They include some upsells and impulse purchases right near the exit, just in case you're feeling generous and want to be a big spender

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