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Advertising Strategies of IKEA
Presented by:1. Anu Damodaran2. Abhinav Gupta3. Sakshi Sharma4. Iccha Gandhi
MBA G, Amity University, Dubai
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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