NAME BRAND PITCH TYPE
Media Work
MARKET
United States
DATE
March 1 , 2016
The Data You Need to Win This Pitch
st
DESCRIPTION
Ikea is reviewing its entire $444 million global media account, which is currently split between a range of agencies across five different holding companies.
Ikea is No. 66 in the ranking of Top 100 Global Marketers compiled by Ad Age's Datacenter. In 2014, the vast majority of Ikea's spending – 79% – was in Europe, with 15% in the U.S. and less than 2% in Asia.
Ikea kicks off a $444 Million Global Media
Review
Client Profile / Market
Ikea is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories.Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed as one of the world's richest people in 2013.The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity.[7] In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed Ikea to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.
As of March 2016, Ikea owns and operates 381 stores in 47 countries
FINANCIAL OVERVIEWCOMPANY BACKGROUND
MAIN COMPETITORS
2015 Sales (mil)
2015 Employees
Employee Growth Percent
Assets (mil)
Net Income Growth Percent
Sales Growth Percent
351.915.000
350
NA
NA
NA
11.2%
+ 2.9%+ 12%$ 98.23 bn
Furniture & furnishingstore sales in the U.S.
in 2015
Furniture market statistics
Compared to2011’s sales
Annual rate growththrought 2019
98.23 + 12% + 2.9%
Ikea’s Circular Economy Vision
“We will be increasingly building a circular Ikea where you can repair and recycle products”
Steve HowardIkea’s head of sustainability
INCREASE by 20204x
$ 1.13 BOf sustainable products sold in 2013
+ 58%Compared to 2012 sales
Online sales are increasing
Internet sales of furniture is expected to hit$32b by 2018
By that year, the web will also influence the
62%of offline furniture sales.
US FURNITURE E-COMMERCE OUTLOOK
25
20
15
5
0
30
35
10
2014
20
2015
23
2016
26
2017
29
32
2013
15
2018F
18
SALES FORECAST (USD BIL.) WEB-INFLUENCED SALES
2013
2018
47% 49% 4%
62% 30% 8%
Web-Influenced Offline Sales
Non-Web-Influenced Offline Sales
Online Retail Sales
1
0.8
0.6
0.4
0.2
Sales of UPCYCLED items from 8.000 in 2010to +200,000 in 2014
SEARCHES WITHIN THE HOME FURNITURE CATEGORY
Upcycled items leading online sales
0
Rustic
0.3
Contemporary
0.25
Shabby Chic
0.15
Traditional
0.02
Vintage / Antique
1
Source: Google Data, January - July 2014, Indexed Search Query Volume (Home Furniture Category), United States
on
Sales of UPCYCLED items
up 89% in 2014compared to 2013
on
‘We will be increasingly building a circular Ikea where you can repair
and recycle products’
UPCYCLIST• • •
Steve HowardIkea’s head of sustainability
• • •
69% Are Females
67% Are Married
76% Have no Children living at Home
THE UPCYCLIST
Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless and/or unwanted products into new materials or products of better quality or for better environmental value.
QUICK DEFINITION
70% College Educated
Upcyclists: Who they are
IKEA AUDIENCE CROSSOVERS
Females accounting for the majority of Ikea’s audience (78%)
59% of Ikea’s audience is married
Ikea’s audience is composed primarily by people living with a
children at home (60.3%)
68% of Ikea’s audiencefrequented College.
ARTS, DESIGN & HOME DECORATION
READING
BEAUTY
POLITICS
The Upcyclists’ passions
IKEA AUDIENCE CROSSOVERS
Reading isn’t one of Ikea’s audience main passions.
(Readers trait pop: 94.3)
Arts, Design and Home Decoration are popular interests for Ikea’s
audience too.
Political activism doesn’t catch Ikea’s audience interest.(Politically Active Pop: 71.6)
Beauty is one of the top interest of individual following Ikea
(Beauty & Welness Aware - Pop: 172.2)
TOP GALLERIESTOP ARTISTS
Upcyclists & Arts
VISUAL ART & DESIGN159.6
( popularity index )
ART APPRECIATORS188.6
( popularity index )
IKEA AUDIENCE CROSSOVERS
They share the interested in Visual Arts (Pop Index: 127.4).
AVAM (108.1) and De Young Museum (36.8) aren’t among their
favorite galleries.
Sue Bryce (135.6) and Simon Beck (112.8) score good relevance index.
Grounds for Sculpture has positive relevancy (120.2).
de Young Museum
Ground of SculptureLurie Belegurschi
Simon Beck
Sue Bryce
150
TOP MAGAZINES & WEBSITESTOP BOOKSREADERS
144.1( popularity index )
Reading
IKEA AUDIENCE CROSSOVERS
Nourished Kitchen (120.3) and Mother Earth News (104.6) have
positive relevance index
Websites (118.4) and Magazines (136.5) have positive popularity
indexes, while Books (68.7) gather low interest
100 Days of Real Food (150.8) and Magic Tree House (137.8) is a book
gathering much interest.
Discworld is not a book that Ikea’s audience would like to read.
112,5
37,5
0
75
Magazines
15
WebsitesBooks
Discworld
BEAUTY & WELLNESS AWARE148.9
( popularity index )
Beauty & Wellness
IKEA AUDIENCE CROSSOVERS
Burt’s Bees (151.8) is one of the favorite brands of Ikea’s audience
Weight Watchers (147.7) and Tom’s of Maine (135.1) are relevant brands
Makeup Geek (128.3) and Makeup.com (133.4) are relevant
news sources
GreenMedInfo.com (79.7) is not a relevant website for Ikea’s audience.
TOP BRANDS TOP SOURCES
SOCIAL ISSUES& ADVOCACY
188.7( popularity index )
TOP SOURCESTOP ORGANIZATIONSPOLITICALLY ACTIVE
177.8( popularity index )
Politics & Activism
IKEA AUDIENCE CROSSOVERS
Box Tops for Education is one of the most relevant organizations
(155.1)
Social Issues are not particularly felt(Pop. Index: 109.6)
Treehugger (76.1), Grist (77.4) and NaturalNews (97.9)
Are scoring low relevance points
Climate Reality (38.6) and Sierra Club (47.2) are scoring poor
relevance indexes.Natural News
62.5%
UPCYCLIST
Ikea - UpcyclistsAdherence
Ikea’s audience share 62.5% of the
Upcyclists’ favorite interests and
passions.
CONSUMER INSIGHTS SUITE
Get more information on this topic
TRY NOW FOR FREE >
See how it works hands-on!