our endless possibilities· 2 0 1 2 I N T E G R A T E D M A R K E T I N G P L A N ·

D E V E L O P E D B Y | J U L I E L O N G

our executive summary

our is our state of being and our being is filled with endless possibilities.

Our customers expect our highly designed products at our low prices. This expectation is the

foundation for our integrated marketing plan that focuses on: customer, communication, cost

and convenience. The creative strategy introduces the target audience to the possibility of

“HI Design + LO Price Our Endless Possibilites.” This strategy will be coordinated and

integrated so that the customer can experiences a clearly defined message across all points of

engagement. The objective of this positioning is to increase brand awareness and the number

of repeat customers.

Our communication function is always improving. The objective is to enhance our reach

with the target audience by communicating in real-time on platforms such as: Facebook,

Pinterest, Twitter and Foursquare.

Our cost is low, but with an integrated campaign special price promotions would be introduced

during the course of the year to deepen engagement with the target audience.

Our convenience sets us apart from the competition. This ease of product purchases will

be showcased in media promotions during peak shopping times such as Black Friday.

Our product lines bring design, function and value to our target audience and 2012 is the year

to showcase all of our endless possibilites in an integrated marketing plan.

our story

our target

our analysis

our objectives

our strategies

our creative

our media

our pr & publicity

our direct marketing

our sales promotion

our evaluations

our conclusion

our table of contents03-06

07-08

09-10

11-12

13-14

15-18

19-24

25-26

27-28

29-30

31-32

33-34

IKEA FOUNDER INGVAR KAMPRAD

our storyWITH VERY LITTLE STARTUP CAPITAL, INGVAR KAMPRAD,

IN 1943, FOUNDED A FURNITURE STORE LATER TO BE NAMED

IKEA. HIS FORMULA FOR SUCCESS PROVIDES CUSTOMERS

ENDLESS POSSIBILTIES BASED ON PRICE, QUALITY, AND

SWEDISH DESIGN.

OUR IKEA

3

The mission statement for IKEA is, “To create a better everyday life for the many.” (Ikea.com, 2011) With 37 U.S. flagship stores and 300 stores in 38 countries his formula is still winning over the masses. (Ikea.com, 2011)

Today, his winning formula continues to provide customers more than a flat packaged, do-it-yourself furniture kit. By purchasing IKEA furniture, a customer can put together a well-designed sustainable product that will enhance their lifestyle.

Ikea is headquartered in Sweden and many of the business principles can be traced back to Swedish culture. Thrift is one of those principles and it has helped IKEA to become the world’s largest furniture retailers, with $31 billion in sales in 2007. (Mangla, 2008) The acronym IKEA is derived from the initials of the founder and the farm and the village where he spent his youth (Elmtaryd, Agunnaryd). (Scully, 2004)

Ikea manufactures about 10,960 products. (Ikea.com, 2011) Some of the categories include: kitchen, lighting, bedroom, storage, workspace, dining, food, textiles and rugs. The brand positioning on each product states “design and quality, IKEA of Sweden.” (Ikea, 2011) One of the best selling products is the POANG Chair, and it has become a staple of college dorm rooms and middle American living rooms. This chair with its sleek lines, durability and choice of color options is the calling card of an IKEA shopper. POANG chairs have become part of the, “The Ikea Phenomenon,” which is an exhibit showcasing the best 50 years of IKEA furniture at the Vienna Furniture Museum. (Carnick, 2010)

Competitors such as Target and K-Mart partner with celebrities to endorse home style collections. This partnership brings high-end items to style conscious shoppers. Target recently partnered with designer Missoni and the masses flocked to the stores. (Target.com, 2011) IKEA, on the other hand, uses their county of origin to set their product lines apart. To the American consumer products from Sweden have a unique appeal.

The yearly catalog does a great job to bring the attention from the competition back to IKEA. This publication is a poweful direct marketing tool and customers wait in anticipation each year to receive the latest catalog. Showcased inside the customer can see all of the new promotions and products available to purchase in the new year.

POANG ARMCHAIR U.S.A PRICE $69.99

OUR IKEA

4

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

Ikea manufactures about 10,960 products

our products

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

In addition to offering a printed catalog, an app can be downloaded on the IKEA website for Android and iPhone users.

On a national platform, the company has created a pull strategy campaign developed by Ogilvy & Mather to position IKEA as the, “The Life Improvement Store.” (Musco, 2010) This integrated marketing approach can be seen in the “Made By,” tagline used across various customer touch points including: TV, print, social media, micro sites and billboards. (Musco, 2011)

IKEA uses their website to engage with customers who can’t drive to a local store. This ecommerce platform showcases the unique product lines IKEA offers along with additional product promotions. A customer can also sign up on the website to receive emails promotions. (Ikea.com, 2011)

Ikea uses social media platforms such as Facebook and Twitter. The U.S. Facebook page has reached 375,101 “likes.” (Facebook.com, 2011) This platform for engagement allows IKEA to post promotions in real-time to customers. IKEA does have a Twitter handle called @ikealiving with 6,039 followers. (Twitter.com, 2011)

To reach local customers, IKEA uses commercials featuring the IKEA kitchen line. These commercials can be seen on home improvement channels such as HGTV. The company is currently offering a sales promotion incentive of 20% off the purchase of a custom kitchen.

A microsite can be found on the website for customers to come to plan their next kitchen. This interactive tool takes care of all the planning, measuring and headache of the process.

IKEA offers very diversified product lines and by owning the distribution process it insures that prices remain low. “The low price is literally built into the production and the flat packs facilitate a rational distribution, self-service and immediate take-away.” (Ikea.com, 2011)

By offering distribution as part of the in-store experience allows the customer to purchase, buy and take-away all items in one visit. The store layout is specifically designed to send customers on a calculated journey. Paco Underhill, a retail marketing expert who consulted with IKEA said, “they want you to look at everything.” (Mangla, 2008)

The customer experience is unique to the company and the journey presents itself right from the entry point with a babysitting service and café. “The design of an Ikea store is organized in the shape of a circle, so that customers can see everything in the entire place by moving in only one direction.” (Burgess, 2008)

OUR IKEA

5

HEMNES DRESSER U.S.A PRICE $279.99

OUR IKEA

6

IKEA is not only about providing great design and customer experiences, but sustainable solutions too. IKEA is a very green conscious company. The brand has two main focus areas, which include children and the environment. At IKEA, “children are the most important people in the world.” (Ikea.com, 2011) As for the environment, IKEA believes, “low prices, but not at any price.” (Ikea.com, 2011)

All of these business ideals have come together along with the Kamprad formula to make IKEA a store and a community of like minded individuals who believe in design, but not at a high price.

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

to create a better everyday life for the many

our mission

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

HEMNES BED U.S.A PRICE $499.99

LACK TV STAND U.S.A PRICE $49.99

GREGOR CHAIR U.S.A PRICE $99.99

our target

THE CITY OF BROTHERLY LOVE, PHILADELPHIA IS HOME TO

MANY THINGS INCLUDING INDEPENDENCE HALL, THE LIBERTY

BELL, AND THE WORLD FAMOUS CHEESE STEAK SANDWICH.

OUR TARGET AUDIENCE HAILS FROM THIS NORTHERN CITY.

OUR IKEA

7

LAURA IS THE TARGET IKEA CUSTOMER BECAUSE

SHE DEMANDS HIGH DESIGN AT A LOW PRICE.

TARGET AUDIENCE LAURA

OUR IKEA

8

The target IKEA customer, named Laura, can be found shopping at the Penn’s landing location in Philadelphia when she is in need of design minded furniture solutions at an affordable price. Laura is a graduate student and a repeat purchaser who is in between the ages of 25-35 years old. She is armed with discretionary income to spend and her catalog always in hand. Laura is on a mission to customize her living space, room by room. At IKEA, she can always find items to make her room have a little more pizzazz. If she is looking for a quick bite to eat before shopping, you can find her in the café having Swedish meatballs with lingonberry sauce and a slice of chocolate overload cake.

When she isn’t studying at the University of Pennsylvania, Laura works as a student intern for the University of Pennsylvania Hospital as dental assistant. In her free time, Laura likes to hang out with her friends and family. Family is very important to her and she grew up in a liberal Catholic household in a suburb outside of Philadelphia called Drexel Hill. One of her goals for next year will be to train and complete the Philadelphia Marathon.

In terms of technology, Laura is an early adopter. She always has her iPhone and iPad with her when shopping. Her shopping habits and style could be quantified as sophisticated and chic on a budget. She is highly engaged and always looking for trends. One of her favorite sites online is Pinterest, which is a virtual pinboard to collect and bookmark things that interest her. She has an entire pinboard dedicated to IKEA and her pins become favorites for other Pinterest users.

Laura can also be found shopping at other retail stores such as: Ann Taylor, Gap, Piperlime, Forever 21, Banana Republic, H&M, Target, and Whole Foods.

When she is looking to grab a bite to eat you can find Laura at trendy restaurant spots like: Cosi, Panera, Au Bon Pain and Starbucks.

Laura is the target IKEA customer because she is a trendsetter who is conscious of price without sacrificing design. Since she is savvy on the internet, she can be found blogging and pinning for other design minded individuals on social media platforms such as Design Sponge.

This demographic of a young aspiring professional who likes what she sees from the company and is telling others about the Ikea story.

our analysis

THE TARGET AUDIENCE IS LOOKING FOR OUR NEXT BIG IDEA.

PERFORMING AN ANALYSIS WILL HELP IKEA TO REVEAL

STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS.

OUR IKEA

9

TOP FIVE SWOT FINDINGS:

STRENGTHS:Swedish design, stylish choice, and low price

WEAKNESSES:Concentration on self-service and not customer focused

OPPORTUNITIES:Growth of E-commerce business, Ikea.com, as a tool to sell products onlineIncrease brand awareness outside current markets

THREATS:Competitors like Target are trying to duplicate the IKEA formula and steal market share

OUR IKEA

10

our objectives

OUR IKEA

11

2012 IS THE YEAR TO FOCUS ON OUR OPPORTUNITIES FOR

THE FUTURE. WITH INCREASED COMPETITION TRYING TO

STEAL MARKET SHARE, OUR MARKETING FOCUS SHOULD BE

ON THE INTEGRATION OF A STRONG CREATIVE CAMPAIGN

IN ORDER TO LEVERAGE THE SWOT ANALYSIS FINDINGS.

1

2

3

4

5

Increase customer brand awareness in the US by 5-10% in 2012.

Increase by 8% the number of repeat customers by improving the customer experience.

OUR IKEA

12

Increase sales by 3% over the one-year campaign through price reductions.

Increase web penetration for IKEA.com and social media platforms by 25% in 2012.

MARKETING OBJECTIVES:

Increase the reach of electronic communications by at least 1million households in 2012.

our strategies

A STRATEGY IS AN ACTION PLAN TO REALIZE OBJECTIVES.

STRONG STRATEGIES MEAN THAT ANYTHING IS POSSIBLE.

OUR IKEA

13

OUR IKEA

14

Introduce an integrated marketing campaign in order to increase brand awareness by 5-10%. By using television promotions along with an aggressive interactive/social media campaign will help to increase awareness that IKEA is more than a furniture store selling price conscious design solutions. Instead, IKEA sells “HI Design + Lo Price,” lifestyle solutions. By shopping at IKEA, each customer will be able to elevate and create a high-end look that is unique to them.

IKEA has a very unique customer experience, which allows the customer to purchase, buy and take-away all items in one visit. In order to increase by 8% the number of repeat customers each year, sales promotion tactics will be utilized. A customer loyalty incentive program will act as a catalyst in continuing to bring customers back to both the store and the website.

The creative campaign, “HI Design + LO Price,” will be a key driver in achieving the objective of a 3% sales increase. One the target audience starts purchasing items from this campaign, price reductions could be introduced. This price reduction could be advertised across social media platforms, email campaigns, and public relations placement in local newspapers.

Ikea.com is currently an interactive platform for customers to look and build lifestyle solutions that represent future in-store purchases. The platform isn’t currently designed to be a one-stop online purchase and ship platform. The business needs to work out a distribution model similar to Amazon or Overstock in order to become a fully operational e-commerce site. Once distribution is established, the company will be able to market to customers across multiple touch points including social media, which will in turn, increase web penetration by 25%.

2012 will be the year to broaden the current reach of consumer electronic communications. Working with a content management system and offering sales promotions will help to increase the database of customer information. By having a clean spam free distribution list will allow new HTML email promotions to be created based on customer buying preferences.

MARKETING STRATEGIES:

1

2

3

4

5

our creativeIKEA OFFERS CUSTOMERS A UNIQUE APPROACH TO

BUILDING A LIFESTYLE AROUND PRODUCTS THAT FOCUS

ON FUNCTION, PRICE, AND AESTHETICS. THIS CUSTOMER

IS LOOKING FOR WAYS TO ENHANCE PERSONAL DESIGN

SENSIBILITIES BY BUYING PRODUCTS THAT COMPLEMENT

THEIR INDIVIDUAL STYLE WITHOUT BREAKING THE BANK.

RATIONAL BENEFITS EMOTIONAL SIGNFICANCE

• AFFORDABLE PRICE

• DIVERSIFIED PRODUCT SELECTION

• FOCUS ON FUNCTION/DESIGN

• ITEMS IN STOCK= “CASH & CARRY”

• HOME FURNISHING SPECIALIST

• CONVENIENCE OF SHOPPING

• SUSTAINABLE/ENVIRONMENTAL PRODUCT SOLUTIONS

• QUALITY OF ITEMS OFFERED

• PRESENTATION/PRICE OF ITEMS

• ABILITY TO TOUCH, FEEL AND MEASURE ALL PRODUCTS

• ENVISIONING PURCHASES AS PART OF LIFESTYLE

• IMMEDIATE PURCHASE GRATIFICATION

• OFFERING DESIGN TO THE MASSES

• ENGAGING STORE WITH CAFE, BABYSITTING SERVICES, SHOWROOMS, AND WAREHOUSE

• FEELING PRIDE WHEN BUYING FROM AN ECO-CONSCIOUS COMPANY

• BEING ABLE TO SHOP IN-STORE

IKEA ADVERTISING STRATEGY

OUR IKEA

15

HI DESIGN+LO PRICE our endless possibilities

High design is about creating a look that appears to be expensive. IKEA offers product selections on a budget, but when balanced and tailored those schemes can give off a much more expensive look.

“HI Design,” is a representation and an appreciation of the finer things. By shortening to “HI,” instead of “HIGH” will create a unique marketing approach for IKEA in the minds of the target audience. In order for the positioning statement to appear visually balanced, the traditional spelling of “low” will be adjusted to “lo.” IKEA is a trend setter and these buzz words will only help to differentiate and segment the company from other retailers.

The positioning statement also encorporates the idea of “our endless possibilities,” which can be further segmented in the following ways: living spaces, kitchen spaces, desk spaces,bathroom spaces, and outdoor spaces.

CREATIVE POSITIONING STATEMENT:

OUR IKEA

16

CREATIVE STATEMENT RATIONALE:

HI DESIGN+LO PRICE our endless living spaces

HI DESIGN+LO PRICE our endless kitchen spaces

CREATIVE BRIEF

WHY ARE WE ADVERTISING?Increase customer brand awareness by offering personalized integrated marketing communications focusing on “HI Design + Lo Price, our endless possibilities.” These ideas will be segmented by an individual’s design taste and sensibilities.

WHOM ARE WE TALKING TO?The city of brotherly love, Philadelphia is home to many things including Independence Hall, The Liberty Bell, and the world famous cheese steak sandwich. The target IKEA customer, named Laura, can be found shopping at the Penn’s landing location in Philadelphia when she is in need of design minded furniture solutions at an affordable price.

Laura is a graduate student and a repeat purchaser who is in between the ages of 25-35 years old. Armed with discretionary income to spend and her catalog in hand, Laura is on a mission to customize her living space, room by room. At IKEA she can always find items to make her room have a little more pizzazz.

WHAT DO THEY CURRENTLY THINK?IKEA offers affordable design solutions with a focus on: price, function, and quality for the masses

WHAT WOULD WE LIKE THEM TO THINK?IKEA offers products that can be tailored and manipulated to create a unique living space that isn’t out of the box.

WHAT IS THE SINGLE MOST PERSUASIVE IDEA WE CAN CONVEY?HI Design and Lo Price offers customers a do-it-yourself, approach to create a custom solution that doesn’t look off the rack.

WHY SHOULD THEY BELIEVE IT?The IKEA name has a strong reputation for being the industry leader. The company offers a diversified product selection, which gives an edge over other competitors in the do-it-yourself furniture market.

ARE THERE ANY CREATIVE GUIDELINES?• Micro-site• Social Media (Facebook, Foursquare, Youtube, Twitter, Tumblr, Pinterest)• Web Banners• Customized HTML email templates using CRM technology

OUR IKEA

17

CREATIVE EXECUTION EXAMPLE

OUR IKEA

18

our mediaBEING ABLE TO CONNECT WITH CUSTOMERS ACROSS

A M U L T I M E D I A M U L T I - C H A N N E L P L A T F O R M W I L L

HELP TO INCREASE ENGAGEMENT WITH THE TARGET

AUDIENCE DURING 2012. IT ’S TIME TO GET SOCIAL.

OUR IKEA

19

MEDIA OBJECTIVES

Create awareness in the target market by implementing the following media objectives:

1. Maximize the current reach of traditional media to attract target audience by 25% in the first

six months of 2012.

2. Use 40% of media budget on social/digital spot campaigns in order to increase the affinity

and engagement of target audience in 2012.

3. Allocate 15% of budget for regency media promotions that start the week of Black Friday

in November of 2012.

4. Budget 10% on outdoor media for the Northeast census region for November-December 2012.

5. Increase email lists and opt-ins by 10% in 2012.

MEDIA STRATEGIESMaximize the current reach of traditional media to attract target audience by 25% in the first six months of 2012.

A 30 second commercial will be used to launch the creative positioning for the campaign “HI Design + Lo Price. Our Endless Possibilities.” In order to increase engagement with the target IKEA customer it will be important to run this ad in both the Philadelphia market and the surrounding Tri-state area. The cable placement will specifically be targeted for network and cable programming based on target audience viewing patterns. Cable channel placements will include: Bravo, CW, and E!. And network placements will be very minimal occurring only during primetime on: ABC, CBS, and FOX.

OUR IKEA

20

Use 40% of media budget on social/digital spot campaigns in order to increase the affinity and engagement of target audience in 2012.

Leverage social media platforms to create a community of IKEA customers who value “Hi Design + Lo Price.” It will be important in 2012, to keep a strong presence on social media platforms in order to: solicit customer feedback, monitor negative feedback, and enhance the brand image and customer experience. With exclusive incentive promotions made only available on social platforms will help to deepen engagement.

2011 Social campaign examples include:1. Use a social tie-in on blogs to “like” on Facebook the “HI Design + Lo Price Our Endless

Possibilities,” campaign.

2. Create a video sweepstakes on youtube.com to find the most creative spaces on a budget. The winning space will be broadcast across the following social media platforms: Pinterest, Tumblr, Foursquare, Twitter, Youtube and Facebook.

Allocate 15% of budget for regency media promotions that start the week of Black Friday in November of 2012. Black Friday is an opportunity for both an in-store event and a cyber event. By running a primetime 30 second spot airing on network television during Black Friday week this will help to build awareness and momentum for specials being promoted during that timeframe. Target, a direct competitor, runs a successful Black Friday campaign and it will be important to highlight IKEA as a lifestyle store that you can buy “Hi Design + Lo Price” items to complement your design aesthetic.

Budget 10% on outdoor media for the Northeast census region for November-December 2012.

Billboard advertisements will be located along the 1-95 Tri-State corridor to engage with holiday travelers and last minute gift buyers. Since IKEA is not only selling furniture, but “Hi Design + LoPrice” lifestyle products it will be important to keep shoppers aware of this positioning throughout the holiday season.

Increase email lists and opt-ins by 10% in 2012. Email is a very important medium to engage with the target audience. 2012 will be the year to look for new ways to engage with current customers by using CRM technology to maximizepersonalization and unique product offering classes. In order to gain new emails customers it will be important to offer coupons and in-store incentives for the exchange of a new email.

OUR IKEA

21

BUDGET ALLOCATION

BUDGET TACTICS

OUR IKEA

22

SOCIAL MEDIA

Medium Selections: Facebook, Foursquare, Youtube, Twitter, Tumblr, Pinterest

Budget Allocations: Each social media selection will be allocated $2M

Rationale: The target audience is very adept at using social media and it will be important to keep a strong presence across all platforms. These platforms allow for rapid engagement and the creative strategy of “HI Design + Lo Price Our Endless Possibilities,” to be integrated across all social platforms. Social platforms will help to create a strong affinity for the brand, which is consistent with the marcom goal of increasing customer brand awareness in the US by 5-10%.

MEDIUM SELECTIONS: A .30 second commercial running on cable & network for six months

BUDGET ALLOCATIONS: TV advertising will be allocated $5M

RATIONALE: This .30-second advertising commercial will be able to reach the target audience and set the tone for the rest of the marcom promotions. Broadcast media is a great catalyst in creating momentum for the IKEA brand and social/digital will be able to benefit from this investment.

MEDIUM SELECTIONS: E-Commerce/ CRM Platforms

BUDGET ALLOCATIONS: Email will be allocated $2M RATIONALE: In order to increase customer engagement and web penetration by 25% it will

be important to use the latest CRM technology to capture customer information. In order to achieve the marketing objective set for 2012, new methods and incentives will be need to be brought to the market. These efforts will help to keep email campaigns relevant and personalized to each recipient.

OUR IKEA

23

BROADCAST

EMAIL

FLOW CHART

OUR IKEA

24

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

“ to create a better everyday life for the many.”

our vision

· · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · ·

our pr & publicityG E N E R A T I N G B U Z Z A N D M A N A G I N G O U R I M A G E I S

I M P O R T A N T T O T H E S U C C E S S O F T H E C O M P A N Y .

C R E A T I N G G O O D W I L L I N T H E C O M M U N I T Y A N D

H O S T I N G D E S I G N E V E N T S F O R C U S T O M E R S W I L L

O N L Y H E L P T O S T R E N G T H E N O U R B R A N D I M A G E .

OUR IKEA

25

OUR IKEA

26

IKEA PR OBJECTIVES

1. Increase awareness of IKEA as a provider of sustainable products in 2012.

2. Increase the number of blog story placements by 15% in the fourth quarter of 2012.

3. Host a quarterly media tour to earn 25 media hits a quarter during 2012.

IKEA PR TACTICS

Increase the number of blog story placements by 15% in the fourth quarter of 2012.

Designsponge.com is a design blog that the target audience frequently reads and it would be a great platform to showcase the release of “HI Design + Lo Price” lifestyle collection to the target audience. The editor of the blog could partner with IKEA on posts about the collection. The target audience would be able to see new promotions and spread the word across other social platforms. Anything posted on Designsponge.com currently has the option for the reader to “Like” on Facebook. Having these social tie-ins will allow the blogging community the ability to engage across multi-channel platforms.

Host a quarterly media tour to earn 25 media hits a quarter during 2012.

A media tour will help to create publicity for new product offerings. The media tour would include: speaking engagements, interviews, and in-store do-it-yourself demonstrations. The speaking engagements will feature IKEA designers showcasing new products and how to make them part of your individual “HI Design + LO Price,” lifestyle. Any interviews conducted with designers would be shared with trade publications like Dwell or ID. Additional interviews, could be posted on blogs such as designsponge.com. In-store specials will include do-it-yourself demonstrations to help reinforce the marketing message of creating a custom solution that doesn’t look off the rack.

Increase awareness of IKEA as a provider of sustainable products in 2012.

In order to engage with the target audience out in the community, IKEA should have a presence at events they will be attending throughout the year. Sponsoring the Philadelphia half marathon, for example, would be a great opportunity to showcase sustainable products and the go green business position. The IKEA brand could be displayed on water bottles, athletic gear, and race signage. Another opportunity to increase awareness would be to sponsor a tree planting event for Earth Day in conjunction with the Habitat of Humanity of Philadelphia. IKEA would be able to team up with the target audience in the mission to plant trees to reduce C02.

our direct marketingE A C H Y E A R T H E C A T A L O G W O R K S A S A C A T A L Y S T

I N B R I N G I N G O U R I K E A C U S T O M E R S B A C K T O

T H E S T O R E . W O R K I N G O N I N T E G R A T I N G O T H E R

D I R E C T M A R K E T I N G T O O L S I N T O T H E M I X W I L L

HELP TO INCREASE THE SENSE OF COMMUNITY FOR

INDIVIDUALS WHO VALUE HI DESIGN + LO PRICE .

OUR IKEA

27

DIRECT MARKETING OBJECTIVES

OBJECTIVE ONE:

OBJECTIVE: Increase the number of repeat purchases made by the target audience during 2012 by 20%.

TACTIC: In order for the target audience to remember the IKEA in-store experience it will be beneficial to send follow-up emails detailing other products that fit with the products lines previously purchased.By utilizing a customer relationship database system for all HTML communications will allow IKEA to increase sales and marketing efficiency by being able to personalize and customize messaging to the target audience. The personalized emails will showcase product offering classes that complement the target audiences past purchases. By showing images of the in-store showroom along with coordinating products will help to make the customer a repeat purchaser.

OBJECTIVE TWO:

OBJECTIVE: Increase the number of offers made to customers by 30% during the first quarter of 2012.

TACTIC: By offering an incentive coupon for a free lunch in the IKEA café in exchange for customer’s email will help to increase the 2012 distribution list. This approach will bring the customer back to the store to experience IKEA both as a furniture retailer and a place to go for delicious Swedish meatballs.

RATIONALE:

Increasing the email-opt in list would be the direct marketing tactic that would best support the overall marketing objective goal of reaching 1 million households during 2012. By having a clean up to date system will help to strengthen future digital marketing promotions. Without having a database with the target audience’s current email address would jeopardize future promotions. The cost for this direct marketing campaign would be very minimal, since it doesn’t involve heavy print costs and metrics could be easily examined.

OUR IKEA

28

our sales promotion

IN A CROWDED RETAIL MARKET , IT IS IMPORTANT

TO KEEP OUR CUSTOMER ENGAGED WITH SPECIALS

AND UP TO DATE ON UNIQUE PRODUCT OFFERINGS.

OUR IKEA

29

SALES PROMOTION OBJECTIVES

OBJECTIVE ONE:

OBJECTIVE: Stimulate the trial for new products offered during the first quarter of 2012 by 15%.

TACTIC: Each year IKEA introduces unique product selections and it will be important to offer in-store coupons to bring customers back to there nearest store during 2012. An in-store coupon with a $25 dollars off $100 discount could be downloaded from IKEA.com in conjunction with the release of the new 2012 catalog.

OBJECTIVE TWO:

OBJECTIVE: Increase brand equity during the first quarter of 2012 by 25%.

Tactic: By offering a loyalty incentive program to customers this will increase the likelihood that they will be repeat purchasers. This program would be setup that in exchange for customer information a $10 off coupon would be given for online or in-store purchases. For every purchase made after that points would accrue for every dollar spent. Once the customer had received 500 points they would be entitled to receive another $10 off discount coupon.

RATIONALE:

Establishing a loyalty program would be the best tactic to implement in 2012. By doing this over stimulating trials for new products will work to build longer relationships with customers over a quick sales promotion tactic. A database will work to track metrics and sales promotions could be based on the buying patterns of the target audience. The more money that is spent by the customer the larger discount they will receive.

OUR IKEA

30

our evaluation

IT ALWAYS COMES BACK TO SALES AND THE BOTTOM LINE.

EVALUATING CAMPAIGNS IS OUR WAY TO INSURE THE

MESSAGE IS WELL RECEIVED BY THE TARGET AUDIENCE.

OUR IKEA

31

OUR IKEA

32

Making sure the five marketing objectives hit their respective benchmarks is the first step in the evaluation process.

ADDITIONAL MEASUREMENT METHODS:

QUALITATIVE METHODS:

1. FOCUS GROUPS: Holding routine focus groups would be one way to gain insider information about what is and isn’t working with the current marketing strategy. If the concept of “Hi Design + Lo Price Our Endless Possibilities” isn’t being well received by the group, then the necessary adjustments suggested could be made before the campaign was released. This is an inexpensive and fast measurement approach. Future discussions could be setup on an as needed basis.

2. COPY TESTING: This evaluation method would be utilized to study the “Hi Design + Lo Price Our Endless Possibilities” television commercial. Instead of focusing on the creative concept the ad’s effectiveness based on consumers’ responses would be examined. This evaluation method will help to gauge the success of the commercial prior to airing.

QUANTITATIVE METHODS:

1. DATA DELIVERY: Ability to track metrics for current interactive platforms such as: social media, .com, and customer relationship management systems. Capturing this data will allow employees to see the following: conversion rates, open rates, web penetration, number of posts, Tweets, Facebook “Likes”, web-site mentions, key search terms and the overall site abandonment rate. This information will allow employees to see what areas work and what areas need further refinement. Google Analytics is a platform that allows marketers to measure and track the ROI from campaigns and IKEA could should consider incorporating this data delivery system.

our conclusion2012 IS THE YEAR OF OUR ENDLESS POSSIBILIIES .

THE TIME IS NOW, TO REALIZE OUR MANY UNIQUE

OPPORTUNITIES. OUR MISSION AS A RETAILER HAS

ALWAYS BEEN TO PROVIDE DESIGN TO THE M A S S E S

A N D T H E N E X T G R E A T I D E A I S V E R Y P O S S I B L E .

OUR IKEA

33

In a very saturated retail market, IKEA needs to keep improving upon the Ingvar Kamprad formula.The target audience has many choices and brands to select from when it comes to buying lifestyle furniture products. With so many compeititors trying to solicit and engage with customers it will be necessary to present a unified and coordinated approach to all marketing communications viewed by the customer. Implementing an integrated approach will help to insure consistency of messaging across all platforms of engagement. The fundamentals of: customer, cost, convenience, and communication will be the heart of any business decision implemented in 2012.

Focusing on the customer is the first and foremost objective of this campaign. A strong creative position will be utilized of “Hi Design + Lo Price.” The second part of the positioning statement, is the value proposition of “Our Endless Possibilities,” which can be further segmented by: kitchen spaces, living spaces, outdoor spaces, bathroom spaces.

The IKEA brand is very well-know by some markets, but relatively unknown to markets outside the metropolis area. By increasing broadcast, social media and public relations efforts and extending the current media reach will help to start a new dialogue with prospective customers.

From a cost perspective, IKEA will be able to offer price reductions during the year the campaign is run for select products. For customers who regualry frequent IKEA, new sales promotion tools such as establishing a customer loyalty program will work to deepen brand affinity. A customer loyalty program will offer specials based upon buying history. Being able to build a database and track purchases made by customers will allow IKEA to see what is working and what isn’t working. If something is working, then more sales promotion should be based around that product.

In order to communicate with the target audience, email will be the best way to quickly engage. This medium is currently being under utilized and marketing should focus efforts on this platform. If IKEA worked at building up the current email distribution list, it could then be leveraged and used in conjunction with a content managment system in order to capitalize and segment customers based upon region and shopping preferences.

Anything is possible in retail, but the possibilities our endless at IKEA. By committing to a comprehensive integrated marketing plan the customer will see more of what IKEA has to offer in 2012. As a company, the future is bright and with the right marketing mix IKEA will be poised to meet the challenges of a tough economy, and continue to provide customers with endless possibilities. This is “our” year to be: everywhere, sustainable, intriguing, creative, unstoppable, and most importantly endless.

OUR IKEA

34

REFERENCES

Belch, George E. & Belch, Michael A. (2012). Advertising and promotion: An integrated marketing communications perspective (9th ed.). New York City, NY: McGraw-Hill/Irwin.

Burgess, Seth. (2008). IKEA case analysis. Retrieved from http://www.sethcburgess.com/2008/10/ikea-case-analysis.html

Carnick, Anna. (2010). The ikea phenomenon. Retrieved http://www.coolhunting.com/design/the-ikea-phenom.php

Mangla, I. (2008). An IKEA field guide. Money, 37(8), 136-137. Retrieved from EBSCOhost.

Musco, Michael. (2010). Ogilvy, IKEA seek to improve life. Retrieved fromhttp://www.mediabistro.com/agencyspy/ogilvy-ikea-seek-to-improve-life_b7400

Retrieved Septemember 4, 2011http://www.ikea.com/us/en/customerservices/faq#faqAnswers3-1

Retrieved September 19, 2011http://www.apartmenttherapy.com/chicago/diy/the-endlessly-adaptable-ikea-rast-dresser-156414

Retrieved September 19, 2011http://www.ikeafans.com/forums/kitchen-planning/13430-great-article-about-high-low-using-ikea-my-all-time-favorite-designer-complete-photos.html

Retrieved October 3, 2011http://www.srds.com/frontMatter/sup_serv/calculator/grp_trp/grps_trps.htmRetrieved October 10, 2011http://www.philadelphiamarathon.com/

Retrieved October 10, 2011http://www.designsponge.com/

Retrieved October 10, 2011http://www.habitatphiladelphia.org/

Retrieved October 23, 2011http://www.facebook.com/IKEAUSA

Retrieved October 23, 2011http://twitter.com/#!/ikealiving

Scully, J. (2004). Ikea. Time, 16316-17. Retrieved from EBSCOhost.

The secret of IKEA’s success. (2011). Economist, 398(8722), 67-68. Retrieved from EBSCOhost.

Vega, Tanzina. (2010). A focus on families (and furniture). Retrieved from http://www.nytimes.com/2010/09/13/business/media/13adco.html?ref=ikea