3.1 Target Market Segment Geographic: IKEA is represented globally with stores in the United States, Canada, Europe & Australia and Asia. In 2016, the European region accounted for 69% of sales, 18% in North America and 13% in Russia, Asia & Australia (Statista, 2017). Psychographics: Since Ikea’s furniture design starts with “understanding people’s everyday needs”, IKEA’s target segments are more focused on functionality and convenience rather than extravagant and intricate designs (IKEA Yearly Summary FY16, 2016, pg.23). Furthermore, by “offering product range at an affordable price”, IKEA’s targets buyers value cost efficiency (IKEA Yearly Summary FY16, 2016, pg.23). Buyers are also keen at building furniture, since most of their products comes with “disposable quality and complex self-assembly” (Fortune, 2016). IKEA is also committed to give customers inspiration with their limited-edition collections (IKEA Yearly Summary FY16, 2016). This shows that their target customers are very open to innovative designs that maximize space. IKEA also promotes sustainability “producing in a way that is good for people and the planet”, and “continue efforts to enable woman in the workforce and support young talent…” (IKEA Yearly Summary FY16, 2016, pg.22&32). Thus, their customers are generally very environmentally conscious and socially aware about where and how their products are produced. Behavioral: IKEA’s target customers also have specific behavioral traits. Due to IKEA’s main concepts behind its product designs, their target customers are more focused on IKEA’s efficient, convenient and inexpensive furniture with strong brand loyalty for further price reduction. Most first-time furniture buyers will also buy based on occasion. Then eventually replace IKEA furniture when their purchasing power increase over time (Fortune, 2016). Demographic: IKEA’s target demographics are separated into age, income levels and lifecycle status. Its primary customers are modest income families with children; especially new parents with “new sets of needs and expenses at once” (IKEA Yearly Summary FY16, 2016, pg.6). Thus, IKEA target customers’ lifecycles generally begin with young married couples expecting children. Eventually their product designs revolve around the children’s growth and needs coinciding with the parents’ changing lifecycle. However, with its low price and space saving designs, IKEA also targets relatively young, low to middle class individuals living independently or without a permanent residence. Therefore, their target customers also include single, young professionals with or without children. Similarly, they also target potential first-time furniture buyers in variety of different life cycles who prefer inexpensive furniture with minimalistic designs.