Wednesday, November 6, 2013

IKEA's Path to Selling 150 Million Meatballs

Hansegard talks about IKEA, the Swedish company, that plans to make $2 billion revenue by selling 150 million meatballs this year. This will attract a lot of consumers to the cafeterias of the IKEA stores located all over the world. The food department was created many years back when the need was felt through an observation of consumers browsing the IKEA stores for long hours.  Meatballs were introduced, which then became an essential part of IKEA menu. The company started with only a few items on the menu to maintain the customers’ interest and keeping in view the inventory and staffing the company could afford. The idea was initially too complex to function, so a Swedish food supplier, Gunnar Dafgård AB, was given the contract of supplying in the meatballs. The prices were affordable, which was an important aspect of IKEA food. IKEA also faced some trouble earlier this year when it found traces of horse meat in the supplied meatballs, which were then returned to the supplier company. This brought some bad name to IKEA; but even then, the demand for IKEA meatballs became no less. Years passed, and it became a rite for the customers to eat meatballs whenever they shopped at any of the IKEA stores. People eat on-site, and also take them home where they can defrost them and make a convenient meal out of them. 

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