Ikea advertising strategies

Advertising Strategies of IKEA

Presented by:1. Anu Damodaran2. Abhinav Gupta3. Sakshi Sharma4. Iccha Gandhi

MBA G, Amity University, Dubai

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OUR APPROACH TO THE ADVERTISING PROJECT - IKEA

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ABOUT IKEA

IKEA - founder’s initials (I.K.) plus the first letters of Elmtaryd DÉCOR and Agunnaryd (A), the farm and village where he grew up

1950s - proper furniture retail store1960s - first IKEA restaurant opens2000s - expands to new markets of Russia and Japan2006 - launches its own food label covering about 30 percent of the 150 products in its food range

Over six decades, IKEA went from the woods of southern Sweden to being a major retail experience in 44 countries around the world

http://www.youtube.com/watch?v=fRnegv5-cc8

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Vision statement “To create a better everyday life for the many people.”

Mission statement “To offer a wide range of well designed, functional home furnishing

products at prices so low that as many people as possible will be able to afford them.”

Business idea “To offer a wide range of well designed, functional home furnishing

products at prices so low that as many people as possible will be able to afford them.”

ABOUT IKEA

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Designing great products in terms of:

Convenience

Functionality

Price

Quality

Clever solutions

Great value to the customers

VALUE PROPOSITION

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1. Products - Design, variety and range of furniture

Outdoor Children Kitchen Office Mirrors Beds and mattresses Chairs Storage Decoration Lighting Sofas and armchairs Tables Textiles and rugs TV and media

4 Ps OF IKEAs MARKETING

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2. Pricing - Low

3. Place - Outskirts of large cities, large stores

4. Promotion*

CUSTOMER SEGMENTS

Women Youth Children Family Fashionable people People who love modern and innovative stuff Low Income families

4 Ps OF IKEAs MARKETING

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Pottery Barn JC-Penny Ashly Furniture Raymour and Flanigan John Lewis Argos B&Q Next Home Depot Pier1

THE ONE (in UAE)

IKEAs COMPETITORS

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Advertising partners:

Forsman & Bodenfors BDDH Ogilvy & Mather

CREATIVE POSITIONING STATEMENT

“HI DESIGN+LO PRICE our endless possibilities”

PROMOTION - ADVERTISING STRATEGY OF IKEA

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Media tactics

Public relations tactics

Direct mail tactics

Sales promotion tactics

In store displays

Store layout

WOM

http://www.youtube.com/watch?v=uaxtLru4-Vw

PROMOTIONAL MIX

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Increase website traffic by 10 percent in 12 months

Increase foot traffic in-store by 5 percent in 12 months

Increase awareness of sustainability/philanthropy efforts in the target market by one million people in 12 months

Increase sales by 10 percent 12 months

Increase sales of returning customers by 15 percent in 12 months

Increase the percentage of customers in the target demographic who associate IKEA with low priced, customizable furniture and environmental sustainability by 10 percent in 12 months

INTEGRATED MARKETING COMMUNICATIONS OBJECTIVES

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Social (UNICEF)

Environmental (Sustainability)

Economic (Low Price, value employees)

ROLE OF IKEAs ADVERTISING

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Digital communication

Social media

Improve the content

Increase customer interaction with the page

Micro blogging

Adjust all the above to local language, humor, taste and preferences

CONCLUSION

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