Brand Compatibility Assessment

For innovation initiatives that will come to life under the umbrella of a recognized corporate structure and brand, having a misfit between the new initiative and the existing brand can be a big problem. This tool encourages you to have a discussion to check the level of alignment of the new solution with the current brand essence.

Focus on the Current Brand and Solution Portfolio

First, focus on the existing brand and the solution portfolio and look for answers to the following questions:

• Whose needs are we aiming to solve and why? (Target Audience & Need)
• What are the functional and emotional benefits that we offer to meet the target need well and that make us preferable for the target audience? (Differentiating Functional & Emotional Benefits)
• What are our core organizational competencies that enable us to deliver this solution portfolio? (Core Corporate Competencies)

For instance, IKEA's target audience is middle-income people living in large cities. Particularly in geographies like the US, the focus is on those who are newly employed or recently married, seeking affordable and personalized home décor solutions for their compact urban dwellings. In order to meet these needs effectively, IKEA provides budget-friendly, minimalist, and functional home décor options that can seamlessly complement each other and be combined as necessary.

A key advantage of IKEA's offerings is the convenience of finding everything needed for a home in one place. The catalogs and display installations in its stores, featuring variously sized home spaces designed with IKEA products, serve as inspirational resources for customers looking to create their own home designs. Research indicates that customers perceive an additional emotional benefit from IKEA's commitment to environmentally conscious design and manufacturing.

The core competency enabling IKEA to deliver these benefits lies in its minimalist design proficiency. This expertise empowers IKEA to devise solutions that are not only affordable and aesthetically pleasing but also environmentally sustainable, easily transportable in a disassembled state, and user-friendly for an extended period at home. Furthermore, IKEA's extensive network of suppliers spanning over fifty countries, coupled with its adept logistics capabilities, allows the company to deliver products to customers at a low cost through its expansive stores. These elements contribute significantly to IKEA's strategic corporate competencies.