How Ikea was invented

Charlie Berens

10 Nov 202004:00

Summary

TLDRA team brainstorming session starts off in chaos as they try to revamp their business model after a bad quarter. Initially dismissing superficial suggestions, they arrive at a quirky solution: turning their store into a DIY furniture experience with small, easy-to-pack products. The journey through the store is envisioned as a maze of showrooms, leading customers through different sections to discover new products. To keep men entertained, they plan to serve meatballs. Finally, they settle on a Swedish theme and name their concept 'IKEA.' The team's excitement builds, despite dismissing Todd throughout, only for him to inadvertently inspire the final idea.

Takeaways

😟 The team is struggling with financial performance and urgently needs to make changes.
💡 There's a push to cut costs and spend less money in the upcoming quarter.
✂️ A key suggestion is to eliminate a manufacturing line and allow customers to assemble their own furniture.
🛠️ DIY assembly is proposed, where customers would only be given an allen wrench to put together all the furniture.
📦 Smaller packaging and big warehouses are seen as a solution for more efficient storage and shipping.
🛋️ A showroom-style store layout is suggested, where customers walk through different themed rooms to find products.
🌽 The idea of a 'corn maze' concept store is pitched, where customers walk through product sections as if navigating a maze.
🍴 A plan to attract men to the store is to offer meatballs in the cafeteria, ensuring they spend money while their partners shop.
🇸🇪 Branding the store with a Swedish theme is suggested to make it feel foreign and trendy, even renaming everyday items with Swedish-sounding names.
🔠 The final name proposed is 'IKEA,' which the team agrees on after a brainstorming session, giving the concept a unique identity.

Q & A

What problem is being discussed at the beginning of the script?
-The team is addressing the fact that they were crushed last quarter and need to come up with new ideas to turn things around.
What suggestion is made regarding spending?
-The team suggests that they are spending too much money and propose that they should spend less money, possibly by cutting out a whole manufacturing line.
What is the innovative idea proposed for furniture manufacturing?
-The team suggests eliminating manufacturing altogether and allowing customers to assemble their own furniture, making it a DIY process. This would allow them to pack the furniture in smaller boxes, saving space and costs.
How do they plan to make the DIY furniture assembly more cost-effective?
-They propose providing customers with just one tool, an allen wrench, which can assemble all the furniture.
What is the idea for the layout of the store?
-The idea is to create a showroom where customers can see all the products before picking them up. They liken the experience to a maze, where customers have to pass through different sections to find what they want.
How do they plan to attract women to the store?
-They believe women will be drawn to the store because they enjoy shopping, though this statement is criticized as possibly being sexist.
How do they plan to attract men to the store?
-The idea to attract men is by offering meatballs in the cafeteria, assuming men would spend money there while waiting for their partners to shop.
What other food items do they consider offering in the cafeteria?
-They consider adding cinnamon rolls, hot dogs, pizza, soft-serve ice cream, and mashed potatoes to the menu.
What marketing strategy do they propose to make the concept appealing?
-They suggest branding everything as Swedish, using Swedish names for the products to make them seem foreign and exotic, which they believe will appeal to customers.
What name does the team finally settle on for the company?
-The team, prompted by Todd, decides on the name 'IKEA' for the company.

Outlines

00:00

🤔 Brainstorming Session Begins with Urgency

The team faces pressure after a disappointing last quarter and urgently needs new ideas. One member, Todd, suggests a focus group but is quickly dismissed, as the team believes they need bigger changes. The overarching theme is that the company is overspending, and a solution is needed to cut costs.

💰 Drastic Cost-Cutting Proposal

A team member suggests a visual representation of the company’s spending, showing how they can cut down on costs dramatically. The idea of eliminating an entire manufacturing line is floated, which is seen as a radical yet brilliant solution. This leads to the proposal that the company will no longer manufacture furniture but allow customers to build it themselves, embracing a DIY model.

🛠️ DIY Furniture and Minimalist Tools

The team explores the DIY concept, where customers assemble their own furniture using only an Allen wrench. This minimalist approach allows for smaller packaging, enabling more compact boxes and the ability to store items in a large warehouse. They plan for a showy yet efficient shopping experience that reflects this concept.

🛍️ Showroom and Maze-Like Shopping Experience

The idea of a showroom-style store layout is discussed, leading to a comparison with a corn maze. One team member suggests transforming the store into a product maze, where customers pass through various themed rooms (kitchen, bedroom, etc.) before reaching the items they want. This immersive shopping experience is intended to engage customers as they navigate through different product displays.

🍴 Targeting Men with Meatballs

In an attempt to appeal to male shoppers, the team comes up with the idea of selling meatballs in the cafeteria. The premise is that while women shop, men will enjoy the food and spend more money. The team brainstorms additional food items like cinnamon rolls, hot dogs, and pizza, but they ultimately land on Swedish cuisine as the central theme for the store's restaurant offerings.

🌍 Swedish Branding and Unique Product Names

To differentiate their store, the team decides to market the store as Swedish, capitalizing on the fact that many customers don’t know much about Sweden. They will use Swedish names for all products, such as calling a cup a 'flu boo,' to create an exotic and appealing shopping experience. This strategy taps into the appeal of foreign branding, making the store feel unique and intriguing.

🌱 Plants, Minimal Assembly, and Final Touches

The store will also sell plants, such as ficuses and ferns, although none of them will be real. These plants will be the only items that come pre-assembled, adding a humorous touch to the otherwise DIY-heavy shopping experience. The team acknowledges that all that remains is to come up with a fitting name for the store.

🔤 Naming the Store: IKEA is Born

After being dismissed throughout the meeting, Todd, who had been relatively quiet, suggests the name 'IKEA'—a suggestion that surprises the entire team. Everyone agrees it’s the perfect name, and the meeting ends with a celebratory tone as they head out for martinis. The team leader, in a humorous twist, compliments Todd for his unexpected contribution.

Mindmap

Keywords

💡Focus group

A focus group is a research method used to gather feedback from a group of people on a product or idea. In the video, Todd suggests using a focus group, but it's dismissed as not a 'real' idea, highlighting the urgency and need for more innovative approaches to solve the company's problems.

💡Spending less money

Spending less money is the core problem the team is trying to address in the script. They explore the idea of reducing costs by cutting a manufacturing line and letting customers assemble the furniture themselves, which introduces the DIY concept.

💡DIY (Do It Yourself)

DIY refers to the concept where customers assemble products themselves, saving the company on manufacturing costs. The team embraces this as a solution, imagining that customers will be drawn to the challenge and the potential for lower prices.

💡Allen wrench

The Allen wrench is a small tool used to assemble furniture in the DIY model. The team jokes that customers will 'hate it' but that it will save the company money. This symbolizes the company's focus on minimalism and cost efficiency, even if it's slightly inconvenient for customers.

💡Showroom

The showroom concept is introduced as a way for customers to visualize products before buying them. Instead of a traditional store setup, the showroom is designed to let customers walk through and experience different rooms before purchasing anything. It connects to the idea of creating a unique shopping experience.

💡Corn maze

The corn maze is a metaphor used to suggest a creative and immersive shopping experience. One of the characters suggests that the store layout could resemble a maze of products, where customers walk through different sections (like kitchen, bedroom) to fully engage with the offerings.

💡Meatballs

Meatballs are suggested as a way to attract men to the store while their partners shop. This reflects a humorous stereotype, but also highlights the idea of offering something unexpected (food) to enhance the shopping experience and increase sales in non-traditional ways.

💡Swedish branding

The idea of branding the company as Swedish is introduced as a clever marketing tactic. The team jokes that people don’t know much about Sweden, making it easier to brand everyday products with Swedish names, which adds an element of exoticism and uniqueness to the brand's identity.

💡Flat-pack furniture

Although not explicitly mentioned, the concept of flat-pack furniture is implied when they discuss packing furniture into 'little boxes.' This is central to the idea of DIY assembly, where customers take home compact, easily transportable boxes that they assemble themselves.

💡Todd

Todd is a character in the script who is frequently interrupted or dismissed by others, yet he inadvertently comes up with the name 'IKEA' at the end. His role is a humorous take on the underappreciated team member who ultimately has a breakthrough moment. It also highlights the collaborative, yet chaotic, nature of brainstorming sessions.

Highlights

The team acknowledges they were crushed in the last quarter and need to change strategies.

One team member suggests focusing on spending less money, and they explore cutting out a manufacturing line to save costs.

A new idea is introduced: DIY furniture assembly to cut manufacturing costs and provide a unique customer experience.

The team suggests selling the idea of providing only one Allen wrench for furniture assembly, and people may dislike it, but the company loves the savings.

They discuss how packing smaller boxes for DIY assembly will allow for a larger warehouse and increased efficiency.

The idea of a showroom where customers walk through different rooms and setups (like a corn maze) is proposed.

They agree on setting up a product-based showroom experience where customers must pass through various themed sections to reach the items they want.

The team explores marketing ideas and potential target customers, focusing on how women may enjoy shopping through the maze-like store.

A humorous, yet strategic idea to attract men involves offering meatballs in the store’s cafeteria.

Expanding the cafeteria offerings beyond meatballs to include cinnamon rolls, hot dogs, pizza, and soft-serve ice cream is suggested.

The team dismisses the idea of fries as too mainstream and decides to emphasize the store's uniqueness by branding everything as Swedish.

They suggest giving all products Swedish names to enhance the store’s exotic and foreign appeal, making common items seem more interesting.

The only pre-assembled items would be plants, like ficuses and ferns, further enhancing the DIY experience.

The brainstorming session concludes with a humorous back-and-forth, leading to the accidental naming of the store 'IKEA'.

The group celebrates the final idea and decision-making, confident that their innovative approach will succeed.