Situation Analysis

The current housing market in the U.S. shows that more people are choosing to rent homes or apartments as opposed to buying them. “Rising apartment demand reflects a drop in demand for homeownership in today’s marketplace,” said the chief economist for the National Multi Housing Council, Mark Obrinsky. And while the demand to rent is increasing, the availability of rental properties is not. This means landlords have the ability to charge higher rent fairs, leaving renters with less expendable income, says Market Watch’s Amy Hoak.

With higher rent and the economy still feeling the affects of the 2008 recession, consumers are demanding lower prices for big-ticket items, like home furnishings. Currently, Target Corp. and IKEA lead the home furnishing industry in terms of affordable, stylish, and quality home goods. There are also other large discount retailers in the U.S. that sell home furnishings, such as Costco and Wal-Mart. However, these two places primarily associated with the ‘inexpensive concept rather than ‘inexpensive and stylish’. That is why Target Home Goods is IKEA’s only notable competitor to.

While IKEA is a furniture warehouse and has the widest selection, it is not the most convenient. See below:

The picture on the right shows the IKEA store locations in the state of Massachusetts. The picture on the left shows the Target locations in the Boston/Suffolk County area.

Strengths o  Affordable o  Stylish o  Eco-friendly o  Quality products o  Fun shopping experience

o  food & play area for kids o  Variety o  Modern, not trendy products

Weaknesses o  Not convenient for many consumers o  Consumers have to put products together themselves o  Can be an overwhelming shopping experience o  Modern products; little selection of “classic” pieces

Opportunities o  More renters and less homeowners

o  means people less willing to invest in furniture if they’re not living in a permanent residence

o  Price of rent is increasing o  consumers have less expendable income

o  Recession yields overall spending less in family budgets o  Consumers are not coerced into paying for delivery or assembly at IKEA

Threats o  Economy o  Target Corp.

o  Has more convenient locations o  Is more of a one-stop shop

o  Costco expanding it’s furniture selection

SWOT

Target

Demographics o  Ages 25-35

o  All races

o  0-1 kid

o  Married/engaged/serious relationship

o  Annual HHI: $30,000-$60,000

o  College educated

o  Suburban + urban residential neighborhoods, northeast US

Psychographics o  Aspirations to keep advancing career/education

o  Looking to start a family

o  Budget conscious but still have some expendable income

Objectives

1.  Raise awareness of IKEA’s online retail a)   Currently IKEA’s competitors, mainly Target Corp. have

greater sales in the online market space

2.  Inform consumers of IKEA’s delivery service

3.  Promote the IKEA lifestyle of modern style, affordability, and environmental sustainability as something desirable so they will utilize the online retail and delivery services

Strategy

Go directly to the consumer. Put IKEA products and services in front of the target in places that are convenient for them. Let them see, feel, and test the products themselves.

Messages

1.  The IKEA lifestyle can come to you

2.  IKEA’s style, prices, quality, and social responsibility make it a wise choice for furniture purchases.

Positioning

Qualifications o  Style

o  Price

o  Quality

Features

o  Style

o  Price

o  Quality

o  Environmentally friendly

o  Variety of selection

Benefits

o  Style

o  Price

Tactics

May 2012

June

July

August

September

October

November

By-line article series begins A writer will pitch different ways readers can improve their quality of life through home design. Series will be pitched to People magazine

Redecorate a non-profit organization’s office A non-profit dedicated to protecting the environment will get their old, worn office furnishings replaced by IKEA. Office desks and chairs, waiting rooms, and break rooms will be redecorated.

Video news release of the office redecoration To be posted on IKEA US website and YouTube channel

By-line article #2

Product Placement: Network sitcom characters take a trip to IKEA

By-line article # 3

IKEA US Official Pinterest Account starts pinning

December

January

February

March

April

May

Final by-line article, #5

IKEA furnishes a newly completed Habitat for Humanity project in the New York Metropolitan area

Hybrid “Green Delivery Vehicle” will drive around trunk show tour cities near where the show will be set up

Trunk Show Tour Launch Party in NYC with Brad Goreski as the guest speaker

Open-Air Trunk Show tour begins IKEA will visit the major cities in the northeast US every other weekend in April in May.

Open-Air Trunk Show Tour ends

February’s hybrid “Green Delivery Vehicle”

Evaluation

o  Gauge amount and reactions of press coverage on tactics

o  Social media scope o  how many people are talking about IKEA and how many people are engaging with official IKEA profiles

o  Measure online sales and delivery service orders

Company Backgrounder

IKEA first expanded into the United States in 1985. It now operates 37 retail centers in the U.S with its American headquarters in Conshohocken, Pennsylvania. In 2009, Mike Ward was named the President of IKEA US. IKEA is the world leader in affordable, stylish, quality, and eco-friendly home solutions.

IKEA’s goal is to provide as many people as possible with product for their home to make their lives better. From strainers to full family functional room furnishings, IKEA is committed to bringing customers the absolute best products for their affordable price points compared to competitors such as Target Corp. and Costco home furnishings. IKEA will help customers with everything from design inspiration with; free online virtual office planning and offers delivery and assembly services.

The Ethispere Institute, a research-based think tank, recognized IKEA’s efforts when it recognized IKEA as One of the World’s Most Ethical Companies in 2010. Forbes has also recognized IKEA when the company was deemed the world’s second most reputable company in 2009. In addition, Save the Children awarded IKEA the Visionary Award in 2011. These awards were reflected in IKEA’s 2011 sales. IKEA increased its annual net income by 10.3% from 2010 while it also lowered its prices by 2.6% for customers.

IKEA was founded in 1943 by 17 year-old Ingvar Kamprad in the small village of Elmtaryd, Agunnaryd, Sweden. The IKEA retail centers operate in 41 different countries in Europe, North America, Australia, the Middle East, Asia, and even the Canary Islands. There are approximately 131,000 employees called “co-workers” throughout IKEA’s 287 stores worldwide. The IKEA international headquarters are located in Leiden, Netherlands. Since 2009, Mikael Ohlsson has been President and CEO of the IKEA Group.

Delivery Service Fact Sheet Availability

Delivery is available at most IKEA locations. It is also available for items purchased online or through the IKEA catalogue. IKEA ships throughout the continental U.S. but does not ship to P.O. Boxes and APO addresses. Shipments to Hawaii and Alaska are available for parcel delivery only.

Pricing

o  Shipping and handling fees are determined by item(s) weight, volume, delivery destination, and retail value of the order

o  There is a minimum rate for parcel and truck deliveries based on distance from warehouse

o  Quotes can be calculated at

o  ikeacatalogueorder.com o  calling 1-800-434-IKEA (4532)

More about IKEA Delivery Service

o  Item(s) are shipped via parcel or truck from IKEA warehouse

o  Method of shipment is dependant on features of item, e.g. fragility

o  IKEA can also refer customers to a third party home delivery service

Media Contact

Blair Mosberg President BKM Communications blair@bkm.com 617.834.4532

August 1, 2013

Blair Mosberg 80 Boylston St Boston, MA 02116 617.834.4532 blair@bkm.com

Lillian Cunningham 7 World Trade Center New York, NY 10007 212.389.5300 lillian@fastcompany.com

Dear Ms. Cunningham,

Lately, consumers have been winning. A burgeoning trend in products and services is to high quality, comfort, style, and customer service at a low price. That is many companies thriving in the recession era are making product and offering services that are not only affordable, but also reliable and in style.

In this recession-stricken era, consumers are demanding quality products and service that deliver quality and panache at an affordable price. They’re looking for the whole package. At IKEA, home furnishings are built to last and look distinctly modern. They’re also practical. A bookshelf will not have a hand painted couture mural on the back if it is built to hold books. IKEA comes from humble beginnings, in rural Sweden, and it seems in this day and age consumers are eating a piece of humble pie. Hence, they’re buying IKEA instead of Anthropologie. But this trend isn’t just limited to furniture. Virgin America is delivering a quality airline experience for discount prices. Virgin creates a comfortable plane cabin with excellent customer service. Overall, it promotes itself as a fun brand. Before Virgin America, “fun” and “airplane” could not associated with each other. Hyundai Motors also fall in this category. Hyundai has revamped its line and now makes fuel-efficient, long-lasting vehicles instead of just mid-size inexpensive sedans.

To learn more about how IKEA is pioneering this trend, I can set up an interview with IKEA US President, Mike Ward. I can also set up an interview with former Virgin America CMO, Porter Gale, who developed VA’s social media-customer service integrated strategy. I greatly appreciate you taking this time to read my consideration. If you have any questions, please do not hesitate to contact me at blair@ikea.us.com or call me at 610.834.4532.

Sincerely,

Blair Mosberg BKM Communications

Media Contact:

Blair Mosberg Mona Astra Liss President IKEA Corporate PR BKM Communications IKEA US 617.834.4532 610.834.0180 ext.5852 blair@bkm.com Mona.Liss@IKEA.com

FOR IMMEDIATE RELEASE:

IKEA US ANNOUNCES A BOSTON STOP ON OPEN-AIR TRUNK SHOW TOUR

IKEA US to fill Copley Square with fully furnished showrooms

BOSTON, MA (March 22, 2013) — IKEA US is announcing their 2012 open-air trunk

show tour dates. The tour will make a stop in Copley Square on May 11, 2012 from 10am until

3pm. In Copley IKEA will set up fully furnished showrooms of living rooms, kitchens, dining

rooms, and bedrooms from its variety of stylized collections. Guests will be allowed to test

furniture and view IKEA’s catalogue. IKEA co-workers will be on hand at each show room to

answer questions and assist in purchasing decisions. IKEA US hopes the trunk show tour will

increase sales in urban areas and raise awareness of its delivery and assembly services.

- More -

Guests will be able to purchase showroom and catalogue items at the trunk show,

which IKEA will ship to homes for free. “It’s important the tour stop in Boston because the

city’s geography is not fit for driving a new couch down very old cobblestone streets. Boston

is a prime example of a city whose residents would greatly benefit from a delivery service,”

said IKEA US president, Mike Ward. There will be 12 showrooms of different varieties and

styles for visitors to test. The types of showrooms include 3 different fully furnished kitchens,

3 living rooms, 2 bedrooms, 2 kids bedrooms, and 2 office spaces.

In addition to the showrooms and co-workers present, the trunk show will feature

souvenirs from and donation boxes for Greater Boston Habitat for Humanity, Boston Cares,

and the Environmental League of Massachusetts. There will also be a supervised, free playpen

for children under age seven. And in true IKEA spirit, there will be free samples of Swedish

meatballs, lingon berry juice, and cinnamon buns.

IKEA US operates 37 retail facilities within the United States. Since 2009, Mike Ward

has been President of IKEA US. IKEA US headquarters are located in Conshohocken, PA.

IKEA’s mission is to create the IKEA lifestyle of comfort, style, and quality at affordable

prices while enacting and promoting sustainable practices. IKEA US is a subsidiary of the

IKEA Worldwide, located in Leiden, Netherlands. To visit IKEA US’s website, please go to

www.ikea.com/us.

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Boston Date for IKEA Trunk Show Tour. Add 2

MEDIA ADVISORY

IKEA US TO LAUNCH TRUNK SHOW TOUR IN NYC WITH PARTY

IKEA US is hosting a launch party to kick off its spring outdoor trunk show tour. IKEA fans who purchase tickets or received V.I P. invitations, local press, and design and family bloggers are will be in attendance. Hollywood stylist Brad Goreski will be speaking about the value of IKEA’s mission, and why awareness of the delivery service is a milestone for the IKEA Group.

WHO: IKEA and Brad Goreski WHAT: Launch Party WHEN: March 21 at 8pm WHERE: The Loft at Dumbo NYC, Brooklyn, NY 11231  WHY: Promote IKEA’s trunk show tour and delivery service

Brad Goreski will be available for press interviews following his speech.

Company Overview IKEA hopes to improve the lives of as many people as possible with its product line of home goods. Products are modern, comfortable, practical, eco-friendly, and built to last. IKEA operates 37 retail centers in the U.S with its American headquarters in Conshohocken, PA. In 2009, Mike Ward was named the President of IKEA US. IKEA is the world leader in affordable, stylish, quality, and eco-friendly home solutions.

###

Media Contact: Blair Mosberg BKM Communications blair@bkm.com 610.834.4532

Always having an eye for style, Brad Goreski is the leader of his newly burgeoning fashion styling empire. Brad has been styling celebrity clients such as Maya Rudolph, Kate Hudson, and Christian Slater on his own since he started his solo business in 2010. His work has earned him the title, “Zelig of Fashion Week” donned by the New York Times. His cheerful personality and trademark POC (pop of color) has made him a favorite figure among the fashion industry and public alike.

In 2012, Brad released his memoir, How to be Brad that is now available in stores. Beginning in late 2011, Brad starred in his own reality show, “It’s a Brad Brad World” on Bravo TV. Brad built his career as Style Director for Hollywood stylist Rachel Zoe from 2008 until 2010. Before working for Zoe, Brad was a West Coast Assistant for Vogue.

Brad was born in Ontario, Canada. He moved to his current residence, Los Angeles, when studied at the University of Southern California. At USC he earned a B.A. in Art History. His passion for style began at age 12 when he frequently perused the pages of high-fashion magazines.

Brad Goreski

Speech by Brad Goreski for Launch Party

Hi everyone, thank you for coming. It’s such an honor to be here tonight.

So I think we all know how much I love a good trunk show! But today I don’t want to talk to you about fashion. I want to talk to you about quality of life. It almost goes without saying that safety, health, and one’s income contributes to one’s standard of living. However, today I want to talk about comfort and style, how that relates to atmosphere, and overall how it contributes to your quality of life.

IKEA aims to create a lifestyle for consumers with its modern, and comfortable products made from eco-friendly materials. But how does this lifestyle relate to quality of life? Like I said earlier, it has to do with atmosphere. If your room’s atmosphere is inviting, cozy, and designed with your taste in mind, then you feel at ease in your own space. Can you imagine living in a home you thought was ugly? You would feel uncomfortable, and maybe even ashamed or embarrassed in your own space. You’d be miserable. If you’re miserable in your own home, then your quality of life is not up to the standard it should be.

A living room couch can be modern in design and so comfortable that you fall asleep watching the latest episode of “The Voice”. A coffee table can make a statement and hold a hefty pile of books you’ve never opened alongside empty vases. And a home office doesn’t have to look like a cubicle or sterile building. It can be colorful and funky so long as you get your work done. Your home should be filled with pieces that express your style and personality. Self-expression is an important aspect of personal style, and thus it is pertinent to your quality of life. When you’re happy in your home, it shows in your home’s atmosphere, and then you can feel a real sense of self-satisfaction.

Today, I want to announce IKEA’s open-air trunk show tour. The tour will feature a variety of showrooms that visitors can test—and by test I mean play “house” in—and then purchase on the spot. This tour will demonstrate that the IKEA lifestyle and its goal to improve your quality of life can come to you even if you don’t live near an IKEA retail center. IKEA essentially is bringing its stores to your city with this tour. What good would the IKEA lifestyle be if it wasn’t accessible to as may people as possible. That is why in conjunction with the tour, IKEA is promoting its delivery service.

Now my time is up so I would like to thank you all for coming. On behalf of IKEA I hope you’re all comfortable and enjoying yourself. If you would like to talk some more I’ll be in my office, right over there [points to office space showroom].

Brad Goreski at Launch Party