Every day, more than 1 million customers visit IKEA stores worldwide to buy everything from beds and baskets to bookcases and bathmats. The Swedish-based retailer has grown to more than 225 stores worldwide with annual sales of $18 billion by offering 7,000 home furnishings that are well designed, functional, and affordably priced. Its customers like the contemporary look of IKEA’s products—and they don’t mind assembling their purchases to save money.

1. Is IKEA’s targeting strategy concentrated or undifferentiated? Explain your answer.
2. Which of the variables for segmenting consumer markets is IKEA using, and why are these variables appropriate?
3. What combination of techniques might IKEA apply when preparing sales forecasts for North America?