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IKEAIntegrated Marketing Communications Campaign
Kat Shanahan
IMC 610 Final Project
Due: June 23, 2012
Kat Shanahan - Integrated Marketing Communications - IKEA
Executive Summery
IKEA is a home improvement store that takes pride in providing their customers with low-priced
furniture and giving back to the world around them. Since the nearly 70 years since IKEA’s
beginnings, they have grown into a $30 billion dollar company that strives to “create a better
everyday life for the many” in all of their business efforts. When shopping at IKEA, in-store or
online, customers are treated to an experience that no other furniture store can offer.
IKEA has a strong brand personality in addition to a solid business foundation. These concepts
provide the foundation for a successful integrated marketing communications campaign. This
campaign will build off of IKEA’s strong foundation and promote IKEA’s sustainability efforts,
furniture customization options, and new marketing tools that will make the shopping experience
more convenient for IKEA’s customers.
Market research has indicated that IKEA as room for improvements in their digital/social media
strategies, publicity of their sustainability efforts and improving customer relationships. This
integrated marketing communications plan will focus on aligning IKEA’s marketing efforts with
their sustainability efforts, while increasing the sales and awareness of IKEA’s products. This
integrated approach will unite creativity, paid advertising, public relations, direct marketing
and sales promotion to show customers why shopping at IKEA improves their life and the world
around them. The tactics outlined in this plan will communicate to customers how IKEA has
developed tools to make shopping in-store and online more convenient. Customers will also be
informed of IKEA’s sustainability efforts and how they are contributing to the world around them
while purchasing stylish, customizable furniture that fits into their budget.
The single most important thing this campaign will communicate to customers is that shopping at
IKEA not only allows the customer to get what they want, the way they want it and in the budget
they want, it also has positive effects on the environment.
Kat Shanahan - Integrated Marketing Communications - IKEA
Table of Contents
IKEA Background Information
	 History	
	 Mission Statement
	 Company Financials
	 Creating a Better Life
	 Product Mix
	 Marketing Mix
	Competitors
Target Market
SWOT Analysis
Integrated Marketing Communications Plan
	 Objectives
	Strategies
Creative Strategy
	 Statement
	Brief
	Execution
Paid Media
	 Objectives
	Strategies
	Tactics
	Budget
	Flowchart
Public Relations
	 Objectives
	Tactics
Direct Marketing
	 Objectives
	Tactics
Sales Promotions
	 Objectives
	Tactics
Additional Social/Digital Recommendations
Product Packaging
Measurement and Evaluation
Conclusion
Works Cited
Images
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Kat Shanahan - Integrated Marketing Communications - IKEA
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IKEA Company Information
History
IKEA was founded in 1943 by Ingvar Kamprad and is
currently under the parent company INGKA Holding B.V
that is owned by Stichting INGKA Foundation. Ingvar
Kamprad got his modest start selling pens, Christmas cards
and seeds in southern Sweden. From there, Kamprad began
advertising and demands grew too high for him to handle
individual sales calls. In 1948, the first piece of furniture
was introduced into his product range. True to today’s IKEA
philosophy, the furniture was made from local manufacturers
and the resources were from the forests close to his home
(ikea.com).
Kamprad’s first catalog was published in 1951, and since
then IKEA has distributed 208 million copies in 30 different
languages (IKEA Systems B.V., 2011). After the success of the
IKEA catalog, Kamprad opened his first furniture showroom
in Älmhult, Sweden. Over the next seven years Kamprad
introduced flat packed furniture that requires self-assembly,
opened the first IKEA store in Älmhult and gained IKEA’s
100th co-worker. It wasn’t until the 1980’s that IKEA began
to expand into other markets including the United States.
Since then, IKEA has been expanding all over the world.
IKEA’s current operations include:
•	 26 Distribution center
•	 11 Customer distribution center
•	 287 Stores in 28 countries
•	 Operations in 41 countries
Mission Statement and Business Principle
IKEA was built on the foundation of “creating a better life for
the many people”. Their business principle is simple, “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 (Inter IKEA Systems B.V., 2011).”
1943
Kamprad founded IKEA in the village
where he was raised. Some of the first
products sold were:
Pens
Wallets
Watches
1945
The first IKEA advertisement
was developed
1948
Furniture introduced into
product mix
1951
IKEA catalog created
1953
First furniture showroom opened
1956
Furniture is designed to be flat
packed and assembled by customers
1958
First IKEA store opens in Sweden
1959
100th co-worked hired at IKEA
1960
First IKEA restaurant opens
1985
IKEA opens first store in the U.S.
10,000 co-workers in 60 IKEA stores
1997
IKEA launches website
Children’s IKEA is created
1999
50,000 co-workers in 158 stores
located in 29 countries
2004
200th IKEA stores opens
History Highlights
Kat Shanahan - Integrated Marketing Communications - IKEA
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Company Financials
It is because IKEA still strives “to create a better everyday life for the many people” that in 2011
they achieved more than $30 billion in total revenue, celebrated 131,000 coworkers in 41
countries, and saw 655 million store visitors and 870 million website visitors (Inter IKEA Systems
B.V., 2011).
Total revenue in billions of dollars
Creating a better life
Not only did IKEA see business success in 2011, they helped create notable changes in the world
around them. Because of IKEA’s business success, the United Nations High Commission for
Refugees saw a $62 million dollar donation, and UNICEF and Save the Children saw a $13.8
million donation to provide books, classrooms and teachers to approximately 2.8 million children
located in 20 countries around the world (Inter IKEA Systems B.V., 2011).
In addition to donating to organizations around the world, IKEA has been focusing on
sustainability efforts including wind turbines and solar panels. At the end of IKEA’s 2011 fiscal
year, they had 69 wind turbines creating 15 percent of the energy needed to run their stores
and distribution centers. By July 19, 2012 IKEA’s U.S. solar panel array reached 535,800 square
feet and contained 17,443 panels. This addition allows IKEA to reduce carbon emissions by
the equivalent of 791 cars annually. IKEA still has 17 solar panel projects underway in the U.S.
(Combes, 2012).
IKEA was also built on the principle of growing from their own resources, which means the
company earns money before they spend money. In 2011, customers saw this in the form of a
2-3 percent price reduction on products across the store (Inter IKEA Systems B.V., 2011). This
principle also translates into the treatment of their employees. The company believes their
coworkers, and the values they share, are their most valuable asset and pride themselves on their
development opportunities.
Kat Shanahan - Integrated Marketing Communications - IKEA
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Product Mix
Currently, IKEA offers approximately 12,000
products including furniture for the kitchen,
bathroom, bedroom, living room and
patio. All products are designed with cost
effective packing, shipping and distribution
in mind. This strategy furthers IKEA’s focus
to keep costs low while providing stylish
and innovative products for their customers.
IKEA focus their marketing communication
strategies on the customization and diversity
of these products, and most importantly,
their price point.
IKEA designs product based on:
• Determining the price tag first
• Seeing things differently: Reusing products and experimenting with 	re-purposing materials
• Flat packing: IKEA is able to keep costs low by flat packing products and customer self- 			
	assembly
• Responsibility for people and the environment: IKEA strives to reduce their contribution to 		
	 climate change
• Good design and function
• Products and materials: IKEA strives to reduce the negative impact of their materials on the 		
	environment
		
Marketing Mix
One of the most memorable IKEA marketing campaigns was the 2010 “life improvement store”
campaign, which was based off of their mission of “creating a better life for the many.” This was
the first campaign for IKEA in three years. The campaign aimed to convince the target market that
having better spaces in your home made for a better life. IKEA spent $90 - $100 million dollars
on the campaign, which lead to more than $23 billion in total revenue (Vega, 2010).
Previously, IKEA has focused their marketing efforts on print and outdoor advertisements. In
recent years they have been slow to enter the digital advertising and social networking media.
IKEA has four primary areas in their marketing mix.
• IKEA Product Range: IKEA’s product range is the key to their marketing efforts
• IKEA Catalog
• IKEA Stores
• Advertising and Public Relations: Advertising and PR help support the other three areas of the 		
	 marketing mix
Product Lines of Interest
		EKTORP
		STRANNE
		HEMNES
		MALM
		BAROMETER
BILLY
LAIVA
FÄRGRIK
ARV
RUTBO
Kat Shanahan - Integrated Marketing Communications - IKEA
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Competitors
IKEA faces competition from many low-priced furniture outlets in the United States and overseas.
Some of the largest competitors in the United States include, Pottery Barn, Pier 1 Imports, Ashley
Furniture and Bedding, Target and Walmart. Some of these competitors are outlined below.
	 Target
	 • Target offers similar furniture pieces to IKEA’s EXPEDIT and LACK product 		
		 series
	 • Prices are very competitive
	 • Target has more brick-and-mortar locations in the US than IKEA
	 • 2011: $69.87 billion in revenue (target.com)
Walmart
• Competitive pricing on furniture
• More brick-and-mortar locations in the United States than 	
	IKEA
• Walmart is a super store that allows for convenient 		
	 shopping on a diverse range of products
• 2011: $44.4 billion in revenue (walmart.com)
	 Pottery Barn
	 • Large furniture dealer with locations in the United States, Canada 		
		 and the Middle East
	 • Online design tools and inspiration
				 • Outlet centers
				 • Heavy utilization of social networking and digital marketing efforts
Ashley Furniture and Bedding
• Competitive pricing on furniture
• Specialize in furniture production
• Retail locations in the US, Costa Rica, Japan, Mexico, Puerto Rico, 		
	 Canada and Indonesia
• Delivery and assembly services available
Kat Shanahan - Integrated Marketing Communications - IKEA
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Target Market
IKEA’s target market is men and women living in the United States between the ages of 22-
31, landing them in the millennial generation (CBS News, 2008). They are the target of many
advertising campaigns and are one of the most difficult audiences to effectively reach. These
individuals have bachelor’s degrees and are in pursuit of, or recently placed in their first
professional employment opportunities, and for the first time in their lives have disposable
income. Additional characteristics are outlined below.
	Geographic
	 • Live in the U.S.
	 • Live in a state with an IKEA store 			
		 however, it usually takes a few hours to 		
		 get to a location
	 • Purchasing or renting unfurnished spaces
	 • Spent many years in university living 			
		 arrangements or parent homes
	 • Reside in medium to large cities
	 • Public transportation available in cities 			
		 		
Demographic Information
• On the verge of marriage, or are recently 		
	married
• Average annual income: $26,000 – $45,000
• Bachelor’s degree
• English is primary language
• Born in the United States
• No children or very young children
• Average debt: $40,000 single
• Average debt: $70,000 married
• Own Smartphone
• Dwellings contain multiple computers/tablets
• Occupations: technology, art, medical, engineering
Kat Shanahan - Integrated Marketing Communications - IKEA
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Psychographic Information
• Budget-conscious,
• Not afraid to invest for the future
• Value a low price on quality products
• Value strong customer service due to 		
	 being raised with a “me first” 		
	 mentality (CBS News, 2008)
• Take pride in their appearance
• Enjoy customization
• Self confident
• Free time: entertaining, engaging with 		
	 friends, video games, and traveling
• Enjoy online shopping
• Open minded
• Support global initiatives and shop at companies that support those initiatives
• Disposable income: dinner, movies, coffee, traveling, entertainment and technological gadgets
• Members of multiple social networks including Facebook, Twitter and LinkedIn
Kat Shanahan - Integrated Marketing Communications - IKEA
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SWOT Analysis
Overview
IKEA is a global company with a strong brand image. They have a very strong company mission,
which contributes to their marketing success. Currently, they are facing challenges ranging from
economic issues in the United States to increases in social/digital media advertising demands.
Strengths
• Strong brand identity/personality
• Product customization, diversity and 		
	 integration between product lines
• Cost effective products made from recycled 	
	 and environmentally friendly materials 	
	 (Inter IKEA Systems B.V., 2011)
• Investment in solar panels and wind turbines
• Strong company values
Weaknesses
• Being a global brand makes maintaining 		
	 standards difficult
• Less than one store per state in the U.S.
• Poor delivery service, complicated truck 		
	 rental, and expensive shipping
• Heavy reliance on cost effective products 		
	 leads to difficulty improving struggling 		
	areas
• No option for purchasing assembled furniture
Opportunities
• Increased interest in sustainable efforts
• Increased demand for affordable furniture
• Increased demand for social networking/	
	 online marketing
• Lower carbon footprint
Threats
• Additional stores selling low priced furniture
	 (Target, Walmart) with more
	 brick-and-mortar locations in the U.S.
• Economic recession in the U.S. (Zucherman, 		
	 2011) and in Europe (Bruce & Spicer, 		
	2012)
• Americans are waiting longer to purchase
	 their first homes (National Association of 		
	 Realtors, 2011)
• Rising gas prices in the U.S. make traveling 		
	 great distance to IKEA stores difficult
Kat Shanahan - Integrated Marketing Communications - IKEA
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Integrated Marketing Communications Plan
Overview
The following campaign is designed to promote IKEA’s sustainability efforts and increase product
awareness and sales in the target demographic. The campaign will also convince customers that
shopping at IKEA and utilizing their new online and digital tools will make their lives easier, and
the world around them better. In addition, shopping at IKEA means customers get what they
want in a budget that fits their life style.
Integrated Marketing Communications Objectives
• 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 Strategies
• Promote sustainability/philanthropy efforts across all paid media
• Create interactive web/digital tools to engage target audience and simplify shopping experience
• Participate in community events to generate earned media coverage
• Develop sales promotions redeemable in-store only to attract customers from greater distances 	
	 and increase in-store traffic
• Promote furniture and non-furniture items to customers through direct marketing efforts
• Utilize social media to communicate with target market
• Utilize consumer information to encourage return visits 	
	 from customers
• Develop consistent and integrated creative concepts for 	
	 paid media, social/digital media, sales promotions and 	
	 direct marketing tactics
Kat Shanahan - Integrated Marketing Communications - IKEA
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Creative Strategy
Creative Strategy Statement: IKEA has low priced, customizable furniture that fits everyone’s
needs and has a positive impact on the environment.
Creative Brief
Client: IKEA								 Date: 06/17/12
Type: Overall IMC Campaign					 Pages: 1
Why are we creating an IMC campaign?
We are creating this campaign to increase awareness of IKEA’s sustainability efforts, to highlight
the customization options and diversity of IKEA products, and demonstrate how shopping at IKEA
will make the customers’ lives and the world better.
To whom are we talking?
We are talking to men and women, between the ages of 22 and 31, in the United States who
enjoy customizing their furniture and are on a tight budget. These individuals appreciate
sustainability efforts.
What do they currently think?
Our customers think IKEA has inexpensive, trendy furniture but at times quality suffers. Many of
them also think that shopping at IKEA is an all day trip because they do not live near a store. They
are somewhat aware of the customization options with the furniture. Customers are typically
unaware of the contributions that IKEA makes to the environment and the world.
What would we like them to think?
IKEA has low priced furniture that customers can create or customize to match their style, and
the online tools make customers’ lives easier. By shopping at IKEA the customer is also making a
contribution to the environment.
What is the single most persuasive idea we can convey?
Shopping at IKEA not only allows you to get the products you want, the way you want them and
in the budget you want, it also has positive effects on the environment.
Why should they believe it?
IKEA gives the customer a unique shopping experience while allowing them to effortlessly give
back to the world. IKEA allows shoppers to customize and custom build furniture. IKEA’s online
resources also simplify and enhance the shopping experience.
Are there any creative guidelines?
Fun, upbeat ads that show the target audience having fun traveling to IKEA, shopping at IKEA
or using the IKEA website. The ads will also show IKEA products, resources and stores making
customers’ lives and the world around them better. All materials will include; IKEA logo, the
slogan The Life Improvement Store, bright colors, IKEA products and website URL.
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 13
At the life improvement
store we want to make
your life, and your world,
better. You enjoy low
prices and customizable
furniture, which allows us
to give back to the
environment. You don’t
have to sacri�ice style to
stay in your budget.
Shopping at IKEA means
you get what you want, in
your budget and you’re
giving back. Your life, your
world, better.
www.ikea.com
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 14
Paid Media
Overview
Paid media will be essential to promoting sustainability efforts and product knowledge to IKEA’s
target market. Over the next 12 months, television, radio, social/digital media, and outdoor
advertising will be utilized to meet the campaign objectives.
Media Objectives
• Use broadcast media to reach 60 percent of the target market a minimum of 10 times over a 12 	
	 month period
• Achieve a minimum reach of 75 percent during April, May, August, September and a minimum 		
	 reach of 60 percent during the remaining eight months with a minimum frequency 			
	 of 10 during all 12 months
• Target 60 percent of media resources at current customers and 40 percent towards potential 		
	customers
• Use social/digital media to maintain a consistent weekly reach of 250,000 members of the 		
	 target audience at a minimum of 4 times per week over 12 months
• Utilize outdoor advertising to target potential customers living between one and three hours 		
	 away from an IKEA store at a frequency of 3 times per week over a 12 month period
Media Strategies
• Create ads to run on cable television
	 • Cable television spots are essential to the campaign because they reach a large audience 	
		 in many geographic locations.
• Create ads for use in print magazines
	 • Print magazines are a great addition to the campaign because they have pass along 		
		 readership and are read by many individuals in the target market.
• Generate Social Media/Digital ads to drive traffic to the IKEA web site and stores
	 • Social Media/Digital ads are important because 97% of individuals 18-29 years old use 		
		 the Internet, and 66% of adults use social networking sites (pewinternet.org).
• Develop outdoor ads for use within a 150 mile radius of IKEA stores
	 • Outdoor ads will be utilized to express how it feels to shop at IKEA. The outdoor venue 		
		 allows for messages to meet the customers without interrupting their day.
• Develop radio ads for use on satellite radio
	 • SiriusXM satellite radio reaches over 35.5 million listeners a year (siriusxm.com/			
		 advertise) and free trials are included with the purchase of many new cars including 	
		 Hyundai, Chevy and Ford.
Kat Shanahan - Integrated Marketing Communications - IKEA
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Media Tactics
• Cable Television
	 • How I Met Your Mother – CBS
	 • Supernatural – CW
	 • The Big Bang Theory – CBS
	 • So You Think You Can Dance – FOX
	 • Suits - USA
• Print
	 • Good Housekeeping
	 • People
	 • In Style
• Social Media/Digital
	 • Social Media
		 • Facebook
			 • Create ads to increase traffic to/and interaction with IKEA USA Facebook 	
		 • YouTube
			 • Create background and pre-roll ads for use on popular YouTube videos to 		
				 drive traffic to IKEA website
			 • Ads will be displayed behind videos searched with the following tags:
				 • Stylish furniture, low-priced furniture, home improvements, 			
					 sustainable furniture, better furniture, life improvement, 		
					modern furniture, home goods
	 • Digital Media
		 • HuluPlus
			 • Sponsorship of Modern Family
			 • Sponsorship of Design Star
				 • Similar to the Modern Family campaign, ads shown during Design 		
				 	 Star will create a unique story line featuring a couple making a 	
					day trip to IKEA.
• The TV show Modern Family originally airs on ABC Family. 	
	 The episodes are posted on HuluPlus the following 	
	 day. HuluPlus is a paid service and allows companies 	
	 to sponsor shows/episodes with “limited commercial 	
	 interruption.” In addition, select IKEA furniture is 	
	 used on the set of Modern Family. The ads will be 	
	 aired one per commercial break and each ad will 	
	 further a continuous story line. The viewer isn’t 		
	 looking at one ad multiple times, but rather a series of 	
	 ads that tell a story throughout the program.
Kat Shanahan - Integrated Marketing Communications - IKEA
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• Outdoor
	 • Billboards, bus stop benches and train stations: Individuals utilizing these types of
		 transportation typically value sustainability
		 • Ads will feature a collage of photos of IKEA products. The small product photos 		
			 will be arranged so that when viewed as a large image the photos create a 		
			 benefit to the environment.
				 • Example: Small photos of IKEA products create an image of the 		
					world
	 • Car wraps on hybrid cars
		 • Wraps will be used to highlight IKEA’s sustainability efforts and how easy and 		
			 convenient it is to transport IKEA products. Hybrid cars will be used to 		
			 promote environmental sustainability and how many IKEA products you can 	
			 fit in a small space.
• Radio
	 • SiriusXM:
		 • Ads will be heard on the following stations:
			 • The Pulse, KIIS, The Blend, The Coffeehouse, The Highway
Budget Allocation
The following represents a breakdown of the $20 million advertising budget designed for this year
with $3 million built in for a contingency plan.
Television: $7 Million
Print: $4 Million
Digital/Social: $3 Million
Outdoor: $2 Million
Radio: $1 Million
Contingency: $3 Million
Kat Shanahan - Integrated Marketing Communications - IKEA
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Media Flowchart
IKEA
KatShanahan
CableTV-$7Million12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152
HowIMetYourMother
Supernatural
TheBigBandTheory
SoYouThinkYouCanDance
Suits
Print-$4Million
GoodHousekeeping
People
InStyle
Digital/Social-$3Million
Facebook
Youtube
HuluPlus:ModernFamily
HuluPlus:DesignStar
Outdoor-$2Million
Billboards
Benches
TrainStations
CarWraps
Radio-$1Million
ThePulse
KIIS
TheCoffeehouse
TheBlend
TheHighway
JanuaryFebruaryMarchDecemberAugustSeptemberOctoberNovemberAprilMayJuneJuly
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 18
Public Relations
Overview
IKEA’s public relations efforts will focus on earning positive media for IKEA’s sustainability efforts
and IKEA’s contributions to local communities. Efforts will also be made to monitor customer
satisfaction among returning customers.
Public Relations Objectives
• Generate a minimum of 50 positive media reports about IKEA’s sustainability efforts over the 		
	 next 12 months
• Co-Sponsor 30 service projects in the United States over 12 months
• Increase awareness of IKEA sustainability efforts in the target market by 25 percent over the next	
	 12 months
• Achieve 75 percent customer satisfaction among returning customers over the next 12 months
• Sponsor 3 in-store events in the next 12 months attended by 300 members of the target 			
	 audience at each event
Public Relations Tactics
Out of Store
• Co-Sponsor 30 Habitat for Humanity houses in 30 different U.S. states containing IKEA stores
	 • IKEA will donate a shopping trip to Habitat for Humanity members and the family in 		
		 need, to purchase furniture and other needed items for their new home. IKEA will 		
		 also donate the time of two employees for one day to help assemble the furniture 		
		 and decorate the house.
			 • Implementation
				 • Send press releases to all media outlets within a 45 mile radius of 		
					targeted houses in development
				 • Contact housing blogs, community blogs, and community social 		
					 networking sites at all housing locations to build pre-			
					event excitement
				 • Invite members of the press to an “open house event” when the 		
					 Habitat for Humanity house is fully decorated
				 •Create social media buzz by posting photos and information in real 		
					time at each location
				 • Create Facebook events for each building site and invite local 		
					 community members to the open house
				 • Create “in-house” videos of the habitat family shopping for their 		
					 IKEA products and the IKEA employees helping to assemble 		
					the products
					 • Videos utilized on IKEA USA YouTube and Facebook pages
Kat Shanahan - Integrated Marketing Communications - IKEA
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• Create a biweekly electronic newsletter highlighting IKEA USA product information and 			
	 worldwide sustainability efforts.
	 • The newsletter will contain sustainability information, recall information, soon-to-be 		
		 discontinued products, design tips and feature a client-designed space. This 			
		 will generate interest in IKEA products and keep customers and other stakeholders 		
		 informed about sustainability efforts and products in IKEA stores.
			 • Implementation
				 • The newsletter will be disseminated electronically to align with 		
					sustainability efforts 				
				 • Social networking sites will also promote mailing list sign ups
				 • Client-designed spaces featured in the newsletter will also be 		
					 showcased on the IKEA Shared Space web site
				 • It will be sent as a hybrid press release/newsletter to media outlets, 		
					 customers, community members, and interested parties 		
					 that opt-in to the mailing list currently found on IKEA 			
					web page
				 • The newsletter will be disseminated quarterly
• Implement a follow up program with current customers in order to monitor and improve 		
	 customer satisfaction. Customer satisfaction surveys will be utilized in two ways.
	 • Implementation
		 • Exit Surveys: An exit survey will display on self-check out screens. This 			
			 will help monitor customer satisfaction and increase repeat 				
			purchases.
		 • Online Surveys: A survey page will be developed on the IKEA web site. 			
			 When customers’ receipts print, it will include a link for the survey.
In Store
	 • Create foursquare check-ins in departments around IKEA stores. When customers check-	
		 in they will receive tips and products of interest in each department. A badge will 		
		 be created for individuals who check in at 75 percent of locations within 			
		IKEA stores.
Kat Shanahan - Integrated Marketing Communications - IKEA
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• Create three sustainability conferences where customers can come to an IKEA store and hear 		
	 updates on IKEA’s sustainability efforts and meet IKEA executives.
	 • These “conferences” will provide attendees with the opportunity to learn 				
		 not only about IKEA’s sustainability efforts, but also what they can do 				
		 to contribute. Each IKEA USA location will provide three, one-				
		 day conferences a year. Attendees will receive media kits 					
		 which include the following.
			 • Photos of children IKEA has helped through their donations
			 • Fact sheets on IKEA’s sustainability efforts and progress with 				
				 solar panel installation and distribution
			 • Product news and information
		 Pre-event PR initiatives include:
			 • Send press releases to all local media outlets three weeks 				
				prior to event
			 • Generate promotional content on IKEA USA Facebook page
			 • Place small potted trees in local communities with invites attached
Direct Marketing
Overview
The direct marketing portion of the integrated marketing communications campaign for IKEA will
utilize direct mailings and catalogs to achieve the desired objectives. The target market for IKEA’s
direct marketing efforts will be individuals in the target demographic who have recently changed
their living situation, individuals who do not live near IKEA stores, and individuals who enjoy
shopping at IKEA.
Direct Marketing Objectives
• Utilize direct mail to generate 1,000 new
	 leads in the target market over 12 months
• Utilize catalogs to increase direct-order internet
	 sales by 2 percent over 12 months
Kat Shanahan - Integrated Marketing Communications - IKEA
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Direct Marketing Tactics
• Utilize direct mail to generate leads and create new customers
	 • IKEA will create miniature magnetic IKEA products and mail them to customers in the 		
		 target market. Segments of interest include:
			 • Individuals in the target demographic who have recently moved/had their 		
				mail forwarded
			 • Individuals in the target demographic who recently purchased their first 		
				homes
			 • Individuals in the target demographic recently accepted into a higher 		
				education program
	 • Examples of products and slogans:
		 • A small kitchen product
			 • We heard you moved and might need one of these
		 • A miniature furniture piece
			 • We can help you with small spaces
Direct mail will generate interest in IKEA products and assist in the formation of brand
relationships. In addition, the miniatures can also be used as magnets and remind customers of
the products IKEA offers. Miniature products for this promotion will be selected on the basis of
product awareness, price, popularity and season. Also included on the mailer will be a response
card to request an IKEA catalog or sign up for the mailing list. The mailings will be sent in
January, May, September, and November in order to ensure the message is still applicable to the
target market.
• Redesign the IKEA catalog to better align with sustainability efforts and condense information 		
	 for better utilization by target demographic
	 • IKEA will create a condensed catalog that allows for easier utilization by target
demographic and reduces postage costs. This campaign will be a series of “mini-
catalogs” that together compose the traditional IKEA catalog. Each catalog will
highlight different areas of the home in order to make the content more manageable
and encourage frequent Internet sales. The catalog will also inform customers of
product changes and price reductions. The catalog, in it’s entirety, will be available
for download on the IKEA website. In order to align with IKEA’s sustainability
efforts, the mini-catalogs will be printed on recycled paper and included in the
current IKEA catalog app. The timeline for release will be dependent upon IKEA’s
product release information, price reductions and seasonal offerings.
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 22
		 • Suggested distribution
			 • In-store distribution
				 • Entrances and checkouts
				 • Positioned with the store maps
			 • Digital distribution
				 • IKEA mini-catalogs will be a .pdf on the web site for easy 		
					 download and integration on mobile devices (ex. iBooks)
				 • The mini-catalog information will be represented in the IKEA 	
					newsletter
				 • The mini-catalogs will be downloadable through the IKEA catalog 	
					app
				 • Customers may sign up via the IKEA web site
			 • Direct mail distribution
				 • Mini-catalogs will be mailed to individuals in the target 		
					 demographic that do not live within 45 miles of an IKEA store
				 • Customer may request the mini-catalog via the direct mail tactic 	
					listed above
This format will generate excitement and allow for more frequent communication with target
market. This technique will encourage the target demographic to improve their home room-
by-room and not be overwhelmed by the many products that IKEA has to offer. Contacting the
customers frequently, and focusing on items with reasonable shipping costs, will encourage
customers to utilize IKEA’s online store.
Sales Promotions
Overview
The sales promotion medium will utilize a loyalty program in addition to a promotion targeted to
individuals living more than 45 miles from an IKEA store. The target demographic for IKEA’s sales
promotion efforts will be returning customers and potential customer living greater than 45 miles
from an IKEA stores.
Sales Promotion Objectives
• Acquire 50,000 new members in the IKEA loyalty program over the next 12 months
• By targeting customers living more than 45 miles from an IKEA store, create a sales promotion 	
	 that is redeemed by 25 percent of customers over 12 months
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 23
Sales Promotion Tactics
• Implement an IKEA customer loyalty program
	 • IKEA will implement a loyalty program where customers are rewarded for purchasing 	
		 items from IKEA. The program will be based on dollar amounts, not the quantity of 	
		 products purchased. The program will be free for customers to join and be 		
		 renewed on a yearly basis. The customers in the program will also receive the 	
		 IKEA newsletter, which contains the mini-catalog information. The program will 	
		 be designed as follows:
			 • The customer and sale information will be kept in a digital format and 	
				viewable by customers online
			 • Customers reach milestones based on the dollar amount they spend
			 • When customers reach a milestone, they will receive a coupon in the mail 	
				 for a discount on their next purchase – or – free shipping up to a 	
				predetermined dollar amount
			 • When the customer views their receipt (in-store or via the website), their 	
				 loyalty information will be included as well as how they’re 		
				 contributing to IKEA’s sustainability efforts
A loyalty program will increase brand relationships between IKEA and their customers.
Customers feel valued when they receive awards and feel as though they’ve become part of the
IKEA family. The program also ties the customers’ shopping experience with IKEA’s sustainability
efforts.
• Implement a sales promotion that rewards customers who are not located near an IKEA store 	
	 for shopping in-store
	 • Customers that live at least 45 miles from an IKEA store and bring in proof of address 	
		 will have a calculated amount taken off of their total IKEA bill. This promotion will 	
		 be utilized one weekend a month over the course of a year. The promotion will be 	
		 designed as follows:
			 • Customers drive to the nearest IKEA store with proof of address
				 • The number of miles between the two locations will be multiplied 	
					 by a pre-determined rate (ex. .25) and that amount will be 	
					 subtracted from the customer’s total bill.
This promotion will encourage customers who do not live near an IKEA store to make a “day trip”
to IKEA and purchase larger items for their homes. Customers that need to travel a substantial
distance to IKEA stores are more inclined to make additional purchases because they can’t “swing
by later and pick it up.” This promotion also rewards customers for shopping at IKEA stores and
diminishes the idea of “wasting money on gas” if they do not find the items they need. However,
when customers are in the store, they find items they weren’t necessarily looking for, which
increases their total sale.
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 24
• Create in-store Build It To Win It events.
	 • Three times a year IKEA will host Build It To Win It events where couples have the
Additional Social/Digital Media Recommendations
• In order to improve relationships with target market via social networking, IKEA will 			
	 need to closely monitor their social networking sites such as their IKEA USA Facebook site. 	
	 Recommendations include:	
		 • Create splash page to ensure customers “like” IKEA page prior to viewing content
		 • Respond to comments, questions and feedback within one hour of user 			
			submitting content
		 • Offer exclusive content for Facebook USA site. Content could include:
			 • Design insight
			 • Increased development of the “Spaces” series (also shown on YouTube 		
				page)
				 • New series for different types of rooms such as dorm rooms, studio 		
					apartments, two bedroom apartments, etc.
• A new web page will be developed on the IKEA website that allows users to input their room
Product Packaging
• QR codes on all IKEA products will lead to an interactive list for 		
	 use by store shoppers
	 • This will allow the target audience to easily keep track of 		
		 their purchases and locations in product pick up 		
		 areas. QR codes will assist in improving customer 		
		 satisfaction and help customers keep track of 			
		their purchases.
opportunity to compete to win products. Couples will compete against each other
and the couples that build the IKEA products the fastest will win those products.
There will be different “heats” and advancement opportunities throughout the
day and the products will become more challenging as the day progresses. This
will be a great event for returning customers and they will encourage their family
members to watch them compete and IKEA will gain more in-store traffic.
dimensions and available furnishing options will appear on the right side of the screen.
The user will then be able to drag and drop furniture into their room to finalize designs.
This will create a positive experience for shoppers that live a few hours away from IKEA
stores and will also generate positive online reviews. IKEA USA can utilize their Facebook
page to push out content and announcements about the sites.
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 25
Measurement and Evaluation
Overview
Measurement and evaluation of this integrated marketing communications campaign will be
based on a variety of measures. In order to be successful the overall campaign will:
• Increase sales
• Increase the number of customers visiting IKEA in-store and online
• Increase positive material on third party media
• Diminish negative customer service calls
• Increase customer growth and retention
Pretesting
This campaign will utilize copy testing to pretest ads prior to releasing them. The target market
will also be utilized to perform portfolio tests of print ads and on-air theater tests for broadcast
media. The following will be utilized to further evaluate the campaign.
Qualitative
• Conduct 3 focus group session over the course of this 12 month campaign
	 • Session group size: 8 – 10 individuals
	 • Each session will be composed of target audience members in two groups
		 • Those that live near IKEA stores
		 • Those that do not live near IKEA stores
	 • Areas of focus
		 • Overall brand awareness
		 • Overall brand impression
		 • Types of experiences/initiatives that would increase return visits
		
• Intercepts at IKEA stores will be utilized to discuss how the individual viewed their shopping 		
	experience
	 • These intercepts will be discussion based and the customer will be dictating the 			
		 direction of the conversation
	 • Employee will ask if they saw any ads, etc. that lead them to IKEA
Quantitative
• Conduct panel studies to measure the effectiveness of IKEA’s online efforts
• Conduct tracking studies semi-annually to measure the effectiveness of the integrated marketing	
	 communications campaign
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 26
Conclusion
Integrated marketing communications (IMC) is the key to successfully building and maintaining
customer relationships. IMC ensures the message from the company is reliable and thus
builds relationships with clients. Due to the vast marketing opportunities available today,
IMC is a necessity for IKEA’s future campaigns. A solid company identity can be effectively
communicated through IMC and adds reliability to the company voice.
This campaign is designed to build customer relationships, and showcase IKEA’s sustainability
efforts. The combination of creative strategy, paid media, public relations, direct marketing
and sales promotion listed above will assist IKEA in increasing sales, increasing sustainability
awareness and improving relationships with customers.
One of the most pressing areas for IKEA to further develop is digital communications and social
networking. IKEA has taken great steps by segmenting their social networking however, the
IKEA USA Facebook page is lacking in content, customer support and overall maintenance. By
creating the splash page and additional content outlined in the social/digital media section of
this plan, IKEA will be able to increase customer interaction with the page and more effectively
communicate IKEA’s mission and vision to the target audience. IKEA cannot afford to ignore
customers’ comments and reactions voiced through social media. Promptly responding to
customer feedback in a public manner and addressing concerns will generate positive reactions
from the target market.
In addition, IKEA needs to focus on paid advertising tactics listed that increase reach to
individuals in the target market that do not live near IKEA stores. This is a critical market that
is being overlooked by IKEA’s current paid advertising efforts. The previously outlined paid
advertising and sales promotion tactics will build relationships with this key market and increase
in-store and online sales. Many individuals in this market consider a visit to IKEA an all day
“adventure” and IKEA will benefit financially from capitalizing on this.
In past years, IKEA has focused primarily on print advertising and relied very heavily on their
catalog efforts. With IKEA’s increased investment in sustainability, and the shifts in marketing to
digital/social media, IKEA needs to realign their marketing efforts in order to better communicate
with their target market. Communication with the target market through the integrated marketing
communications plan listed above will assist IKEA in their mission to create a better everyday life
for the many.
Kat Shanahan - Integrated Marketing Communications - IKEA
Page 27
Works Cited
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Page 28
Images
http://rjschmidt.info/images/ikea-florida-usa.jpg
http://www.google.com/imgres?q=target+logo&hl=en&client=firefox-a&hs=UxK&sa=X&rls=org.mozilla:en-US:official&biw=
1260&bih=1230&tbm=isch&prmd=imvnsz&tbnid=3YFApnHRxsorPM:&imgrefurl=http://couponclippindaddy.com/2012/03/
target-deals-325-331.html/target-logo-2012/&docid=Oq46wXdliNb-3M&imgurl=http://couponclippindaddy.com/wp-content/up-
loads/2012/03/Target-Logo-2012.png&w=432&h=574&ei=6SoMUMOxForrrAGw54jKCg&zoom=1&iact=hc&vpx=1026&vpy=3
35&dur=520&hovh=259&hovw=195&tx=137&ty=183&sig=115012317990016856654&page=1&tbnh=162&tbnw=123&start=0
&ndsp=35&ved=1t:429,r:11,s:0,i:175
http://www.google.com/imgres?q=modern+family&um=1&hl=en&client=firefox-a&hs=xvL&sa=N&rls=org.mozilla:en-US:
official&biw=1260&bih=1230&tbm=isch&tbnid=dNDBGEEsNjzD2M:&imgrefurl=http://newwaysministryblog.wordpress.
com/2012/05/12/catholic-media-award-to-modern-family/&docid=XZatzrdh3JearM&imgurl=http://newwaysministryblog.files.
wordpress.com/2012/05/modern-family-300x351.jpg&w=300&h=351&ei=jjkMUOKUApTvqAHzl6zHCg&zoom=1&iact=hc&vpx
=735&vpy=499&dur=2434&hovh=243&hovw=208&tx=136&ty=159&sig=115012317990016856654&page=1&tbnh=162&tbnw
=138&start=0&ndsp=32&ved=1t:429,r:13,s:0,i:185
http://www.google.com/imgres?q=how+i+met+your+mother&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:officia
l&biw=1260&bih=1230&tbm=isch&tbnid=9fMnfGEZLBmejM:&imgrefurl=http://thepopculturefiend.blogspot.com/2011/12/robin-
on-how-i-met-your-mother-is.html&docid=5X5tyKqaiZSquM&imgurl=http://1.bp.blogspot.com/-u30_gZfGvSQ/TuKZE_nxkPI/
AAAAAAAABI0/D7lN4Ijm68E/s1600/511ZfTRK5NL._SX500_.jpg&w=500&h=375&ei=yjoMULCaFYPKqgGKtJCoCg&zoom=1&ia
ct=hc&vpx=962&vpy=738&dur=3824&hovh=194&hovw=259&tx=141&ty=118&sig=115012317990016856654&page=2&tbnh
=154&tbnw=192&start=30&ndsp=35&ved=1t:429,r:14,s:30,i:283
http://www.google.com/imgres?q=ikea&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=1260&bi
h=1230&tbm=isch&tbnid=zdbqRoGCmYg-mM:&imgrefurl=http://broke207.com/tag/ikea-bus/&docid=qNc37z4GG2W7WM
&imgurl=http://broke207.files.wordpress.com/2011/03/large_ikea.jpg&w=453&h=300&ei=mkIMUJGEJ5D5rAG5voCmCg&z
oom=1&iact=rc&dur=299&sig=115012317990016856654&page=2&tbnh=150&tbnw=196&start=30&ndsp=35&ved=1t:429
,r:0,s:30,i:252&tx=141&ty=49
http://www.google.com/imgres?q=ikea+catalog&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=
1260&bih=1230&tbm=isch&tbnid=IP0xOisY6iLR_M:&imgrefurl=http://www.information-facts.com/ikea-catalog-is-the-3rd-
most-printed-publication-in-the-world/&docid=ZBaL8dUXgZi6aM&imgurl=http://www.information-facts.com/wp-content/
uploads/3792306067_0f8362d5801.jpg&w=430&h=500&ei=eUMMULTTLcqfrAHdqumuCg&zoom=1&iact=hc&vpx=388&vpy=
523&dur=2143&hovh=242&hovw=208&tx=131&ty=122&sig=115012317990016856654&page=1&tbnh=153&tbnw=127&start
=0&ndsp=34&ved=1t:429,r:13,s:0,i:182
http://www.google.com/imgres?q=ikea+catalog&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=1260
&bih=1230&tbm=isch&tbnid=MhUBrjSHQ5lFpM:&imgrefurl=http://manolohome.com/2009/06/03/the-ikea-naming-scheme/&do
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y=131&sig=115012317990016856654&page=1&tbnh=174&tbnw=148&start=0&ndsp=34&ved=1t:429,r:5,s:0,i:156
http://www.google.com/imgres?q=ikea+catalog+2011&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw
=1260&bih=1230&tbm=isch&tbnid=1adyE_iyMIlujM:&imgrefurl=http://www.freshfreestuff.net/free/free-ikea-catalog-2011.html&
docid=RLdB5JhKNHyoZM&imgurl=http://www.freshfreestuff.net/wp-content/uploads/2010/10/ikea-catalog2011.jpg&w=361&h=3
55&ei=ykMMUO_5F8nirQHTqYDTCg&zoom=1&iact=hc&vpx=197&vpy=156&dur=673&hovh=216&hovw=219&tx=104&ty=1
33&sig=115012317990016856654&page=1&tbnh=161&tbnw=164&start=0&ndsp=30&ved=1t:429,r:0,s:0,i:75
http://www.google.com/imgres?q=IKEA+logo&hl=en&client=firefox-a&hs=Qvh&sa=X&rls=org.mozilla:en-US:official&bi
w=1260&bih=1230&tbs=isz:m&tbm=isch&prmd=imvns&tbnid=NXXS6Sgt0Usf-M:&imgrefurl=http://www.notsorandom-
musings.com/2012/06/ikea.html&docid=7SJ86Yd4_CbrlM&imgurl=http://4.bp.blogspot.com/-v20pV-pAIAU/T9y-mNlibqI/
AAAAAAAAGNc/2tJ6i7_BMnc/s1600/ikea-logo-main.jpg&w=640&h=229&ei=dE0MUMKJGMOBqQG5vZhQ&zoom=1&iact=hc
&vpx=326&vpy=746&dur=391&hovh=69&hovw=193&tx=138&ty=61&sig=115012317990016856654&page=1&tbnh=69&tbnw
=193&start=0&ndsp=30&ved=1t:429,r:16,s:0,i:193

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IKEA IMC Plan

  • 1. IKEAIntegrated Marketing Communications Campaign Kat Shanahan IMC 610 Final Project Due: June 23, 2012
  • 2. Kat Shanahan - Integrated Marketing Communications - IKEA Executive Summery IKEA is a home improvement store that takes pride in providing their customers with low-priced furniture and giving back to the world around them. Since the nearly 70 years since IKEA’s beginnings, they have grown into a $30 billion dollar company that strives to “create a better everyday life for the many” in all of their business efforts. When shopping at IKEA, in-store or online, customers are treated to an experience that no other furniture store can offer. IKEA has a strong brand personality in addition to a solid business foundation. These concepts provide the foundation for a successful integrated marketing communications campaign. This campaign will build off of IKEA’s strong foundation and promote IKEA’s sustainability efforts, furniture customization options, and new marketing tools that will make the shopping experience more convenient for IKEA’s customers. Market research has indicated that IKEA as room for improvements in their digital/social media strategies, publicity of their sustainability efforts and improving customer relationships. This integrated marketing communications plan will focus on aligning IKEA’s marketing efforts with their sustainability efforts, while increasing the sales and awareness of IKEA’s products. This integrated approach will unite creativity, paid advertising, public relations, direct marketing and sales promotion to show customers why shopping at IKEA improves their life and the world around them. The tactics outlined in this plan will communicate to customers how IKEA has developed tools to make shopping in-store and online more convenient. Customers will also be informed of IKEA’s sustainability efforts and how they are contributing to the world around them while purchasing stylish, customizable furniture that fits into their budget. The single most important thing this campaign will communicate to customers is that shopping at IKEA not only allows the customer to get what they want, the way they want it and in the budget they want, it also has positive effects on the environment.
  • 3. Kat Shanahan - Integrated Marketing Communications - IKEA Table of Contents IKEA Background Information History Mission Statement Company Financials Creating a Better Life Product Mix Marketing Mix Competitors Target Market SWOT Analysis Integrated Marketing Communications Plan Objectives Strategies Creative Strategy Statement Brief Execution Paid Media Objectives Strategies Tactics Budget Flowchart Public Relations Objectives Tactics Direct Marketing Objectives Tactics Sales Promotions Objectives Tactics Additional Social/Digital Recommendations Product Packaging Measurement and Evaluation Conclusion Works Cited Images 4 4 5 5 6 6 7 8 10 11 11 11 12 12 12 13 14 14 14 15 16 17 18 18 18 20 20 21 22 22 23 24 24 25 26 27 28
  • 4. Kat Shanahan - Integrated Marketing Communications - IKEA Page 4 IKEA Company Information History IKEA was founded in 1943 by Ingvar Kamprad and is currently under the parent company INGKA Holding B.V that is owned by Stichting INGKA Foundation. Ingvar Kamprad got his modest start selling pens, Christmas cards and seeds in southern Sweden. From there, Kamprad began advertising and demands grew too high for him to handle individual sales calls. In 1948, the first piece of furniture was introduced into his product range. True to today’s IKEA philosophy, the furniture was made from local manufacturers and the resources were from the forests close to his home (ikea.com). Kamprad’s first catalog was published in 1951, and since then IKEA has distributed 208 million copies in 30 different languages (IKEA Systems B.V., 2011). After the success of the IKEA catalog, Kamprad opened his first furniture showroom in Älmhult, Sweden. Over the next seven years Kamprad introduced flat packed furniture that requires self-assembly, opened the first IKEA store in Älmhult and gained IKEA’s 100th co-worker. It wasn’t until the 1980’s that IKEA began to expand into other markets including the United States. Since then, IKEA has been expanding all over the world. IKEA’s current operations include: • 26 Distribution center • 11 Customer distribution center • 287 Stores in 28 countries • Operations in 41 countries Mission Statement and Business Principle IKEA was built on the foundation of “creating a better life for the many people”. Their business principle is simple, “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 (Inter IKEA Systems B.V., 2011).” 1943 Kamprad founded IKEA in the village where he was raised. Some of the first products sold were: Pens Wallets Watches 1945 The first IKEA advertisement was developed 1948 Furniture introduced into product mix 1951 IKEA catalog created 1953 First furniture showroom opened 1956 Furniture is designed to be flat packed and assembled by customers 1958 First IKEA store opens in Sweden 1959 100th co-worked hired at IKEA 1960 First IKEA restaurant opens 1985 IKEA opens first store in the U.S. 10,000 co-workers in 60 IKEA stores 1997 IKEA launches website Children’s IKEA is created 1999 50,000 co-workers in 158 stores located in 29 countries 2004 200th IKEA stores opens History Highlights
  • 5. Kat Shanahan - Integrated Marketing Communications - IKEA Page 5 Company Financials It is because IKEA still strives “to create a better everyday life for the many people” that in 2011 they achieved more than $30 billion in total revenue, celebrated 131,000 coworkers in 41 countries, and saw 655 million store visitors and 870 million website visitors (Inter IKEA Systems B.V., 2011). Total revenue in billions of dollars Creating a better life Not only did IKEA see business success in 2011, they helped create notable changes in the world around them. Because of IKEA’s business success, the United Nations High Commission for Refugees saw a $62 million dollar donation, and UNICEF and Save the Children saw a $13.8 million donation to provide books, classrooms and teachers to approximately 2.8 million children located in 20 countries around the world (Inter IKEA Systems B.V., 2011). In addition to donating to organizations around the world, IKEA has been focusing on sustainability efforts including wind turbines and solar panels. At the end of IKEA’s 2011 fiscal year, they had 69 wind turbines creating 15 percent of the energy needed to run their stores and distribution centers. By July 19, 2012 IKEA’s U.S. solar panel array reached 535,800 square feet and contained 17,443 panels. This addition allows IKEA to reduce carbon emissions by the equivalent of 791 cars annually. IKEA still has 17 solar panel projects underway in the U.S. (Combes, 2012). IKEA was also built on the principle of growing from their own resources, which means the company earns money before they spend money. In 2011, customers saw this in the form of a 2-3 percent price reduction on products across the store (Inter IKEA Systems B.V., 2011). This principle also translates into the treatment of their employees. The company believes their coworkers, and the values they share, are their most valuable asset and pride themselves on their development opportunities.
  • 6. Kat Shanahan - Integrated Marketing Communications - IKEA Page 6 Product Mix Currently, IKEA offers approximately 12,000 products including furniture for the kitchen, bathroom, bedroom, living room and patio. All products are designed with cost effective packing, shipping and distribution in mind. This strategy furthers IKEA’s focus to keep costs low while providing stylish and innovative products for their customers. IKEA focus their marketing communication strategies on the customization and diversity of these products, and most importantly, their price point. IKEA designs product based on: • Determining the price tag first • Seeing things differently: Reusing products and experimenting with re-purposing materials • Flat packing: IKEA is able to keep costs low by flat packing products and customer self- assembly • Responsibility for people and the environment: IKEA strives to reduce their contribution to climate change • Good design and function • Products and materials: IKEA strives to reduce the negative impact of their materials on the environment Marketing Mix One of the most memorable IKEA marketing campaigns was the 2010 “life improvement store” campaign, which was based off of their mission of “creating a better life for the many.” This was the first campaign for IKEA in three years. The campaign aimed to convince the target market that having better spaces in your home made for a better life. IKEA spent $90 - $100 million dollars on the campaign, which lead to more than $23 billion in total revenue (Vega, 2010). Previously, IKEA has focused their marketing efforts on print and outdoor advertisements. In recent years they have been slow to enter the digital advertising and social networking media. IKEA has four primary areas in their marketing mix. • IKEA Product Range: IKEA’s product range is the key to their marketing efforts • IKEA Catalog • IKEA Stores • Advertising and Public Relations: Advertising and PR help support the other three areas of the marketing mix Product Lines of Interest EKTORP STRANNE HEMNES MALM BAROMETER BILLY LAIVA FÄRGRIK ARV RUTBO
  • 7. Kat Shanahan - Integrated Marketing Communications - IKEA Page 7 Competitors IKEA faces competition from many low-priced furniture outlets in the United States and overseas. Some of the largest competitors in the United States include, Pottery Barn, Pier 1 Imports, Ashley Furniture and Bedding, Target and Walmart. Some of these competitors are outlined below. Target • Target offers similar furniture pieces to IKEA’s EXPEDIT and LACK product series • Prices are very competitive • Target has more brick-and-mortar locations in the US than IKEA • 2011: $69.87 billion in revenue (target.com) Walmart • Competitive pricing on furniture • More brick-and-mortar locations in the United States than IKEA • Walmart is a super store that allows for convenient shopping on a diverse range of products • 2011: $44.4 billion in revenue (walmart.com) Pottery Barn • Large furniture dealer with locations in the United States, Canada and the Middle East • Online design tools and inspiration • Outlet centers • Heavy utilization of social networking and digital marketing efforts Ashley Furniture and Bedding • Competitive pricing on furniture • Specialize in furniture production • Retail locations in the US, Costa Rica, Japan, Mexico, Puerto Rico, Canada and Indonesia • Delivery and assembly services available
  • 8. Kat Shanahan - Integrated Marketing Communications - IKEA Page 8 Target Market IKEA’s target market is men and women living in the United States between the ages of 22- 31, landing them in the millennial generation (CBS News, 2008). They are the target of many advertising campaigns and are one of the most difficult audiences to effectively reach. These individuals have bachelor’s degrees and are in pursuit of, or recently placed in their first professional employment opportunities, and for the first time in their lives have disposable income. Additional characteristics are outlined below. Geographic • Live in the U.S. • Live in a state with an IKEA store however, it usually takes a few hours to get to a location • Purchasing or renting unfurnished spaces • Spent many years in university living arrangements or parent homes • Reside in medium to large cities • Public transportation available in cities Demographic Information • On the verge of marriage, or are recently married • Average annual income: $26,000 – $45,000 • Bachelor’s degree • English is primary language • Born in the United States • No children or very young children • Average debt: $40,000 single • Average debt: $70,000 married • Own Smartphone • Dwellings contain multiple computers/tablets • Occupations: technology, art, medical, engineering
  • 9. Kat Shanahan - Integrated Marketing Communications - IKEA Page 9 Psychographic Information • Budget-conscious, • Not afraid to invest for the future • Value a low price on quality products • Value strong customer service due to being raised with a “me first” mentality (CBS News, 2008) • Take pride in their appearance • Enjoy customization • Self confident • Free time: entertaining, engaging with friends, video games, and traveling • Enjoy online shopping • Open minded • Support global initiatives and shop at companies that support those initiatives • Disposable income: dinner, movies, coffee, traveling, entertainment and technological gadgets • Members of multiple social networks including Facebook, Twitter and LinkedIn
  • 10. Kat Shanahan - Integrated Marketing Communications - IKEA Page 10 SWOT Analysis Overview IKEA is a global company with a strong brand image. They have a very strong company mission, which contributes to their marketing success. Currently, they are facing challenges ranging from economic issues in the United States to increases in social/digital media advertising demands. Strengths • Strong brand identity/personality • Product customization, diversity and integration between product lines • Cost effective products made from recycled and environmentally friendly materials (Inter IKEA Systems B.V., 2011) • Investment in solar panels and wind turbines • Strong company values Weaknesses • Being a global brand makes maintaining standards difficult • Less than one store per state in the U.S. • Poor delivery service, complicated truck rental, and expensive shipping • Heavy reliance on cost effective products leads to difficulty improving struggling areas • No option for purchasing assembled furniture Opportunities • Increased interest in sustainable efforts • Increased demand for affordable furniture • Increased demand for social networking/ online marketing • Lower carbon footprint Threats • Additional stores selling low priced furniture (Target, Walmart) with more brick-and-mortar locations in the U.S. • Economic recession in the U.S. (Zucherman, 2011) and in Europe (Bruce & Spicer, 2012) • Americans are waiting longer to purchase their first homes (National Association of Realtors, 2011) • Rising gas prices in the U.S. make traveling great distance to IKEA stores difficult
  • 11. Kat Shanahan - Integrated Marketing Communications - IKEA Page 11 Integrated Marketing Communications Plan Overview The following campaign is designed to promote IKEA’s sustainability efforts and increase product awareness and sales in the target demographic. The campaign will also convince customers that shopping at IKEA and utilizing their new online and digital tools will make their lives easier, and the world around them better. In addition, shopping at IKEA means customers get what they want in a budget that fits their life style. Integrated Marketing Communications Objectives • 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 Strategies • Promote sustainability/philanthropy efforts across all paid media • Create interactive web/digital tools to engage target audience and simplify shopping experience • Participate in community events to generate earned media coverage • Develop sales promotions redeemable in-store only to attract customers from greater distances and increase in-store traffic • Promote furniture and non-furniture items to customers through direct marketing efforts • Utilize social media to communicate with target market • Utilize consumer information to encourage return visits from customers • Develop consistent and integrated creative concepts for paid media, social/digital media, sales promotions and direct marketing tactics
  • 12. Kat Shanahan - Integrated Marketing Communications - IKEA Page 12 Creative Strategy Creative Strategy Statement: IKEA has low priced, customizable furniture that fits everyone’s needs and has a positive impact on the environment. Creative Brief Client: IKEA Date: 06/17/12 Type: Overall IMC Campaign Pages: 1 Why are we creating an IMC campaign? We are creating this campaign to increase awareness of IKEA’s sustainability efforts, to highlight the customization options and diversity of IKEA products, and demonstrate how shopping at IKEA will make the customers’ lives and the world better. To whom are we talking? We are talking to men and women, between the ages of 22 and 31, in the United States who enjoy customizing their furniture and are on a tight budget. These individuals appreciate sustainability efforts. What do they currently think? Our customers think IKEA has inexpensive, trendy furniture but at times quality suffers. Many of them also think that shopping at IKEA is an all day trip because they do not live near a store. They are somewhat aware of the customization options with the furniture. Customers are typically unaware of the contributions that IKEA makes to the environment and the world. What would we like them to think? IKEA has low priced furniture that customers can create or customize to match their style, and the online tools make customers’ lives easier. By shopping at IKEA the customer is also making a contribution to the environment. What is the single most persuasive idea we can convey? Shopping at IKEA not only allows you to get the products you want, the way you want them and in the budget you want, it also has positive effects on the environment. Why should they believe it? IKEA gives the customer a unique shopping experience while allowing them to effortlessly give back to the world. IKEA allows shoppers to customize and custom build furniture. IKEA’s online resources also simplify and enhance the shopping experience. Are there any creative guidelines? Fun, upbeat ads that show the target audience having fun traveling to IKEA, shopping at IKEA or using the IKEA website. The ads will also show IKEA products, resources and stores making customers’ lives and the world around them better. All materials will include; IKEA logo, the slogan The Life Improvement Store, bright colors, IKEA products and website URL.
  • 13. Kat Shanahan - Integrated Marketing Communications - IKEA Page 13 At the life improvement store we want to make your life, and your world, better. You enjoy low prices and customizable furniture, which allows us to give back to the environment. You don’t have to sacri�ice style to stay in your budget. Shopping at IKEA means you get what you want, in your budget and you’re giving back. Your life, your world, better. www.ikea.com
  • 14. Kat Shanahan - Integrated Marketing Communications - IKEA Page 14 Paid Media Overview Paid media will be essential to promoting sustainability efforts and product knowledge to IKEA’s target market. Over the next 12 months, television, radio, social/digital media, and outdoor advertising will be utilized to meet the campaign objectives. Media Objectives • Use broadcast media to reach 60 percent of the target market a minimum of 10 times over a 12 month period • Achieve a minimum reach of 75 percent during April, May, August, September and a minimum reach of 60 percent during the remaining eight months with a minimum frequency of 10 during all 12 months • Target 60 percent of media resources at current customers and 40 percent towards potential customers • Use social/digital media to maintain a consistent weekly reach of 250,000 members of the target audience at a minimum of 4 times per week over 12 months • Utilize outdoor advertising to target potential customers living between one and three hours away from an IKEA store at a frequency of 3 times per week over a 12 month period Media Strategies • Create ads to run on cable television • Cable television spots are essential to the campaign because they reach a large audience in many geographic locations. • Create ads for use in print magazines • Print magazines are a great addition to the campaign because they have pass along readership and are read by many individuals in the target market. • Generate Social Media/Digital ads to drive traffic to the IKEA web site and stores • Social Media/Digital ads are important because 97% of individuals 18-29 years old use the Internet, and 66% of adults use social networking sites (pewinternet.org). • Develop outdoor ads for use within a 150 mile radius of IKEA stores • Outdoor ads will be utilized to express how it feels to shop at IKEA. The outdoor venue allows for messages to meet the customers without interrupting their day. • Develop radio ads for use on satellite radio • SiriusXM satellite radio reaches over 35.5 million listeners a year (siriusxm.com/ advertise) and free trials are included with the purchase of many new cars including Hyundai, Chevy and Ford.
  • 15. Kat Shanahan - Integrated Marketing Communications - IKEA Page 15 Media Tactics • Cable Television • How I Met Your Mother – CBS • Supernatural – CW • The Big Bang Theory – CBS • So You Think You Can Dance – FOX • Suits - USA • Print • Good Housekeeping • People • In Style • Social Media/Digital • Social Media • Facebook • Create ads to increase traffic to/and interaction with IKEA USA Facebook • YouTube • Create background and pre-roll ads for use on popular YouTube videos to drive traffic to IKEA website • Ads will be displayed behind videos searched with the following tags: • Stylish furniture, low-priced furniture, home improvements, sustainable furniture, better furniture, life improvement, modern furniture, home goods • Digital Media • HuluPlus • Sponsorship of Modern Family • Sponsorship of Design Star • Similar to the Modern Family campaign, ads shown during Design Star will create a unique story line featuring a couple making a day trip to IKEA. • The TV show Modern Family originally airs on ABC Family. The episodes are posted on HuluPlus the following day. HuluPlus is a paid service and allows companies to sponsor shows/episodes with “limited commercial interruption.” In addition, select IKEA furniture is used on the set of Modern Family. The ads will be aired one per commercial break and each ad will further a continuous story line. The viewer isn’t looking at one ad multiple times, but rather a series of ads that tell a story throughout the program.
  • 16. Kat Shanahan - Integrated Marketing Communications - IKEA Page 16 • Outdoor • Billboards, bus stop benches and train stations: Individuals utilizing these types of transportation typically value sustainability • Ads will feature a collage of photos of IKEA products. The small product photos will be arranged so that when viewed as a large image the photos create a benefit to the environment. • Example: Small photos of IKEA products create an image of the world • Car wraps on hybrid cars • Wraps will be used to highlight IKEA’s sustainability efforts and how easy and convenient it is to transport IKEA products. Hybrid cars will be used to promote environmental sustainability and how many IKEA products you can fit in a small space. • Radio • SiriusXM: • Ads will be heard on the following stations: • The Pulse, KIIS, The Blend, The Coffeehouse, The Highway Budget Allocation The following represents a breakdown of the $20 million advertising budget designed for this year with $3 million built in for a contingency plan. Television: $7 Million Print: $4 Million Digital/Social: $3 Million Outdoor: $2 Million Radio: $1 Million Contingency: $3 Million
  • 17. Kat Shanahan - Integrated Marketing Communications - IKEA Page 17 Media Flowchart IKEA KatShanahan CableTV-$7Million12345678910111213141516171819202122232425262728293031323334353637383940414243444546474849505152 HowIMetYourMother Supernatural TheBigBandTheory SoYouThinkYouCanDance Suits Print-$4Million GoodHousekeeping People InStyle Digital/Social-$3Million Facebook Youtube HuluPlus:ModernFamily HuluPlus:DesignStar Outdoor-$2Million Billboards Benches TrainStations CarWraps Radio-$1Million ThePulse KIIS TheCoffeehouse TheBlend TheHighway JanuaryFebruaryMarchDecemberAugustSeptemberOctoberNovemberAprilMayJuneJuly
  • 18. Kat Shanahan - Integrated Marketing Communications - IKEA Page 18 Public Relations Overview IKEA’s public relations efforts will focus on earning positive media for IKEA’s sustainability efforts and IKEA’s contributions to local communities. Efforts will also be made to monitor customer satisfaction among returning customers. Public Relations Objectives • Generate a minimum of 50 positive media reports about IKEA’s sustainability efforts over the next 12 months • Co-Sponsor 30 service projects in the United States over 12 months • Increase awareness of IKEA sustainability efforts in the target market by 25 percent over the next 12 months • Achieve 75 percent customer satisfaction among returning customers over the next 12 months • Sponsor 3 in-store events in the next 12 months attended by 300 members of the target audience at each event Public Relations Tactics Out of Store • Co-Sponsor 30 Habitat for Humanity houses in 30 different U.S. states containing IKEA stores • IKEA will donate a shopping trip to Habitat for Humanity members and the family in need, to purchase furniture and other needed items for their new home. IKEA will also donate the time of two employees for one day to help assemble the furniture and decorate the house. • Implementation • Send press releases to all media outlets within a 45 mile radius of targeted houses in development • Contact housing blogs, community blogs, and community social networking sites at all housing locations to build pre- event excitement • Invite members of the press to an “open house event” when the Habitat for Humanity house is fully decorated •Create social media buzz by posting photos and information in real time at each location • Create Facebook events for each building site and invite local community members to the open house • Create “in-house” videos of the habitat family shopping for their IKEA products and the IKEA employees helping to assemble the products • Videos utilized on IKEA USA YouTube and Facebook pages
  • 19. Kat Shanahan - Integrated Marketing Communications - IKEA Page 19 • Create a biweekly electronic newsletter highlighting IKEA USA product information and worldwide sustainability efforts. • The newsletter will contain sustainability information, recall information, soon-to-be discontinued products, design tips and feature a client-designed space. This will generate interest in IKEA products and keep customers and other stakeholders informed about sustainability efforts and products in IKEA stores. • Implementation • The newsletter will be disseminated electronically to align with sustainability efforts • Social networking sites will also promote mailing list sign ups • Client-designed spaces featured in the newsletter will also be showcased on the IKEA Shared Space web site • It will be sent as a hybrid press release/newsletter to media outlets, customers, community members, and interested parties that opt-in to the mailing list currently found on IKEA web page • The newsletter will be disseminated quarterly • Implement a follow up program with current customers in order to monitor and improve customer satisfaction. Customer satisfaction surveys will be utilized in two ways. • Implementation • Exit Surveys: An exit survey will display on self-check out screens. This will help monitor customer satisfaction and increase repeat purchases. • Online Surveys: A survey page will be developed on the IKEA web site. When customers’ receipts print, it will include a link for the survey. In Store • Create foursquare check-ins in departments around IKEA stores. When customers check- in they will receive tips and products of interest in each department. A badge will be created for individuals who check in at 75 percent of locations within IKEA stores.
  • 20. Kat Shanahan - Integrated Marketing Communications - IKEA Page 20 • Create three sustainability conferences where customers can come to an IKEA store and hear updates on IKEA’s sustainability efforts and meet IKEA executives. • These “conferences” will provide attendees with the opportunity to learn not only about IKEA’s sustainability efforts, but also what they can do to contribute. Each IKEA USA location will provide three, one- day conferences a year. Attendees will receive media kits which include the following. • Photos of children IKEA has helped through their donations • Fact sheets on IKEA’s sustainability efforts and progress with solar panel installation and distribution • Product news and information Pre-event PR initiatives include: • Send press releases to all local media outlets three weeks prior to event • Generate promotional content on IKEA USA Facebook page • Place small potted trees in local communities with invites attached Direct Marketing Overview The direct marketing portion of the integrated marketing communications campaign for IKEA will utilize direct mailings and catalogs to achieve the desired objectives. The target market for IKEA’s direct marketing efforts will be individuals in the target demographic who have recently changed their living situation, individuals who do not live near IKEA stores, and individuals who enjoy shopping at IKEA. Direct Marketing Objectives • Utilize direct mail to generate 1,000 new leads in the target market over 12 months • Utilize catalogs to increase direct-order internet sales by 2 percent over 12 months
  • 21. Kat Shanahan - Integrated Marketing Communications - IKEA Page 21 Direct Marketing Tactics • Utilize direct mail to generate leads and create new customers • IKEA will create miniature magnetic IKEA products and mail them to customers in the target market. Segments of interest include: • Individuals in the target demographic who have recently moved/had their mail forwarded • Individuals in the target demographic who recently purchased their first homes • Individuals in the target demographic recently accepted into a higher education program • Examples of products and slogans: • A small kitchen product • We heard you moved and might need one of these • A miniature furniture piece • We can help you with small spaces Direct mail will generate interest in IKEA products and assist in the formation of brand relationships. In addition, the miniatures can also be used as magnets and remind customers of the products IKEA offers. Miniature products for this promotion will be selected on the basis of product awareness, price, popularity and season. Also included on the mailer will be a response card to request an IKEA catalog or sign up for the mailing list. The mailings will be sent in January, May, September, and November in order to ensure the message is still applicable to the target market. • Redesign the IKEA catalog to better align with sustainability efforts and condense information for better utilization by target demographic • IKEA will create a condensed catalog that allows for easier utilization by target demographic and reduces postage costs. This campaign will be a series of “mini- catalogs” that together compose the traditional IKEA catalog. Each catalog will highlight different areas of the home in order to make the content more manageable and encourage frequent Internet sales. The catalog will also inform customers of product changes and price reductions. The catalog, in it’s entirety, will be available for download on the IKEA website. In order to align with IKEA’s sustainability efforts, the mini-catalogs will be printed on recycled paper and included in the current IKEA catalog app. The timeline for release will be dependent upon IKEA’s product release information, price reductions and seasonal offerings.
  • 22. Kat Shanahan - Integrated Marketing Communications - IKEA Page 22 • Suggested distribution • In-store distribution • Entrances and checkouts • Positioned with the store maps • Digital distribution • IKEA mini-catalogs will be a .pdf on the web site for easy download and integration on mobile devices (ex. iBooks) • The mini-catalog information will be represented in the IKEA newsletter • The mini-catalogs will be downloadable through the IKEA catalog app • Customers may sign up via the IKEA web site • Direct mail distribution • Mini-catalogs will be mailed to individuals in the target demographic that do not live within 45 miles of an IKEA store • Customer may request the mini-catalog via the direct mail tactic listed above This format will generate excitement and allow for more frequent communication with target market. This technique will encourage the target demographic to improve their home room- by-room and not be overwhelmed by the many products that IKEA has to offer. Contacting the customers frequently, and focusing on items with reasonable shipping costs, will encourage customers to utilize IKEA’s online store. Sales Promotions Overview The sales promotion medium will utilize a loyalty program in addition to a promotion targeted to individuals living more than 45 miles from an IKEA store. The target demographic for IKEA’s sales promotion efforts will be returning customers and potential customer living greater than 45 miles from an IKEA stores. Sales Promotion Objectives • Acquire 50,000 new members in the IKEA loyalty program over the next 12 months • By targeting customers living more than 45 miles from an IKEA store, create a sales promotion that is redeemed by 25 percent of customers over 12 months
  • 23. Kat Shanahan - Integrated Marketing Communications - IKEA Page 23 Sales Promotion Tactics • Implement an IKEA customer loyalty program • IKEA will implement a loyalty program where customers are rewarded for purchasing items from IKEA. The program will be based on dollar amounts, not the quantity of products purchased. The program will be free for customers to join and be renewed on a yearly basis. The customers in the program will also receive the IKEA newsletter, which contains the mini-catalog information. The program will be designed as follows: • The customer and sale information will be kept in a digital format and viewable by customers online • Customers reach milestones based on the dollar amount they spend • When customers reach a milestone, they will receive a coupon in the mail for a discount on their next purchase – or – free shipping up to a predetermined dollar amount • When the customer views their receipt (in-store or via the website), their loyalty information will be included as well as how they’re contributing to IKEA’s sustainability efforts A loyalty program will increase brand relationships between IKEA and their customers. Customers feel valued when they receive awards and feel as though they’ve become part of the IKEA family. The program also ties the customers’ shopping experience with IKEA’s sustainability efforts. • Implement a sales promotion that rewards customers who are not located near an IKEA store for shopping in-store • Customers that live at least 45 miles from an IKEA store and bring in proof of address will have a calculated amount taken off of their total IKEA bill. This promotion will be utilized one weekend a month over the course of a year. The promotion will be designed as follows: • Customers drive to the nearest IKEA store with proof of address • The number of miles between the two locations will be multiplied by a pre-determined rate (ex. .25) and that amount will be subtracted from the customer’s total bill. This promotion will encourage customers who do not live near an IKEA store to make a “day trip” to IKEA and purchase larger items for their homes. Customers that need to travel a substantial distance to IKEA stores are more inclined to make additional purchases because they can’t “swing by later and pick it up.” This promotion also rewards customers for shopping at IKEA stores and diminishes the idea of “wasting money on gas” if they do not find the items they need. However, when customers are in the store, they find items they weren’t necessarily looking for, which increases their total sale.
  • 24. Kat Shanahan - Integrated Marketing Communications - IKEA Page 24 • Create in-store Build It To Win It events. • Three times a year IKEA will host Build It To Win It events where couples have the Additional Social/Digital Media Recommendations • In order to improve relationships with target market via social networking, IKEA will need to closely monitor their social networking sites such as their IKEA USA Facebook site. Recommendations include: • Create splash page to ensure customers “like” IKEA page prior to viewing content • Respond to comments, questions and feedback within one hour of user submitting content • Offer exclusive content for Facebook USA site. Content could include: • Design insight • Increased development of the “Spaces” series (also shown on YouTube page) • New series for different types of rooms such as dorm rooms, studio apartments, two bedroom apartments, etc. • A new web page will be developed on the IKEA website that allows users to input their room Product Packaging • QR codes on all IKEA products will lead to an interactive list for use by store shoppers • This will allow the target audience to easily keep track of their purchases and locations in product pick up areas. QR codes will assist in improving customer satisfaction and help customers keep track of their purchases. opportunity to compete to win products. Couples will compete against each other and the couples that build the IKEA products the fastest will win those products. There will be different “heats” and advancement opportunities throughout the day and the products will become more challenging as the day progresses. This will be a great event for returning customers and they will encourage their family members to watch them compete and IKEA will gain more in-store traffic. dimensions and available furnishing options will appear on the right side of the screen. The user will then be able to drag and drop furniture into their room to finalize designs. This will create a positive experience for shoppers that live a few hours away from IKEA stores and will also generate positive online reviews. IKEA USA can utilize their Facebook page to push out content and announcements about the sites.
  • 25. Kat Shanahan - Integrated Marketing Communications - IKEA Page 25 Measurement and Evaluation Overview Measurement and evaluation of this integrated marketing communications campaign will be based on a variety of measures. In order to be successful the overall campaign will: • Increase sales • Increase the number of customers visiting IKEA in-store and online • Increase positive material on third party media • Diminish negative customer service calls • Increase customer growth and retention Pretesting This campaign will utilize copy testing to pretest ads prior to releasing them. The target market will also be utilized to perform portfolio tests of print ads and on-air theater tests for broadcast media. The following will be utilized to further evaluate the campaign. Qualitative • Conduct 3 focus group session over the course of this 12 month campaign • Session group size: 8 – 10 individuals • Each session will be composed of target audience members in two groups • Those that live near IKEA stores • Those that do not live near IKEA stores • Areas of focus • Overall brand awareness • Overall brand impression • Types of experiences/initiatives that would increase return visits • Intercepts at IKEA stores will be utilized to discuss how the individual viewed their shopping experience • These intercepts will be discussion based and the customer will be dictating the direction of the conversation • Employee will ask if they saw any ads, etc. that lead them to IKEA Quantitative • Conduct panel studies to measure the effectiveness of IKEA’s online efforts • Conduct tracking studies semi-annually to measure the effectiveness of the integrated marketing communications campaign
  • 26. Kat Shanahan - Integrated Marketing Communications - IKEA Page 26 Conclusion Integrated marketing communications (IMC) is the key to successfully building and maintaining customer relationships. IMC ensures the message from the company is reliable and thus builds relationships with clients. Due to the vast marketing opportunities available today, IMC is a necessity for IKEA’s future campaigns. A solid company identity can be effectively communicated through IMC and adds reliability to the company voice. This campaign is designed to build customer relationships, and showcase IKEA’s sustainability efforts. The combination of creative strategy, paid media, public relations, direct marketing and sales promotion listed above will assist IKEA in increasing sales, increasing sustainability awareness and improving relationships with customers. One of the most pressing areas for IKEA to further develop is digital communications and social networking. IKEA has taken great steps by segmenting their social networking however, the IKEA USA Facebook page is lacking in content, customer support and overall maintenance. By creating the splash page and additional content outlined in the social/digital media section of this plan, IKEA will be able to increase customer interaction with the page and more effectively communicate IKEA’s mission and vision to the target audience. IKEA cannot afford to ignore customers’ comments and reactions voiced through social media. Promptly responding to customer feedback in a public manner and addressing concerns will generate positive reactions from the target market. In addition, IKEA needs to focus on paid advertising tactics listed that increase reach to individuals in the target market that do not live near IKEA stores. This is a critical market that is being overlooked by IKEA’s current paid advertising efforts. The previously outlined paid advertising and sales promotion tactics will build relationships with this key market and increase in-store and online sales. Many individuals in this market consider a visit to IKEA an all day “adventure” and IKEA will benefit financially from capitalizing on this. In past years, IKEA has focused primarily on print advertising and relied very heavily on their catalog efforts. With IKEA’s increased investment in sustainability, and the shifts in marketing to digital/social media, IKEA needs to realign their marketing efforts in order to better communicate with their target market. Communication with the target market through the integrated marketing communications plan listed above will assist IKEA in their mission to create a better everyday life for the many.
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  • 28. Kat Shanahan - Integrated Marketing Communications - IKEA Page 28 Images http://rjschmidt.info/images/ikea-florida-usa.jpg http://www.google.com/imgres?q=target+logo&hl=en&client=firefox-a&hs=UxK&sa=X&rls=org.mozilla:en-US:official&biw= 1260&bih=1230&tbm=isch&prmd=imvnsz&tbnid=3YFApnHRxsorPM:&imgrefurl=http://couponclippindaddy.com/2012/03/ target-deals-325-331.html/target-logo-2012/&docid=Oq46wXdliNb-3M&imgurl=http://couponclippindaddy.com/wp-content/up- loads/2012/03/Target-Logo-2012.png&w=432&h=574&ei=6SoMUMOxForrrAGw54jKCg&zoom=1&iact=hc&vpx=1026&vpy=3 35&dur=520&hovh=259&hovw=195&tx=137&ty=183&sig=115012317990016856654&page=1&tbnh=162&tbnw=123&start=0 &ndsp=35&ved=1t:429,r:11,s:0,i:175 http://www.google.com/imgres?q=modern+family&um=1&hl=en&client=firefox-a&hs=xvL&sa=N&rls=org.mozilla:en-US: official&biw=1260&bih=1230&tbm=isch&tbnid=dNDBGEEsNjzD2M:&imgrefurl=http://newwaysministryblog.wordpress. com/2012/05/12/catholic-media-award-to-modern-family/&docid=XZatzrdh3JearM&imgurl=http://newwaysministryblog.files. wordpress.com/2012/05/modern-family-300x351.jpg&w=300&h=351&ei=jjkMUOKUApTvqAHzl6zHCg&zoom=1&iact=hc&vpx =735&vpy=499&dur=2434&hovh=243&hovw=208&tx=136&ty=159&sig=115012317990016856654&page=1&tbnh=162&tbnw =138&start=0&ndsp=32&ved=1t:429,r:13,s:0,i:185 http://www.google.com/imgres?q=how+i+met+your+mother&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:officia l&biw=1260&bih=1230&tbm=isch&tbnid=9fMnfGEZLBmejM:&imgrefurl=http://thepopculturefiend.blogspot.com/2011/12/robin- on-how-i-met-your-mother-is.html&docid=5X5tyKqaiZSquM&imgurl=http://1.bp.blogspot.com/-u30_gZfGvSQ/TuKZE_nxkPI/ AAAAAAAABI0/D7lN4Ijm68E/s1600/511ZfTRK5NL._SX500_.jpg&w=500&h=375&ei=yjoMULCaFYPKqgGKtJCoCg&zoom=1&ia ct=hc&vpx=962&vpy=738&dur=3824&hovh=194&hovw=259&tx=141&ty=118&sig=115012317990016856654&page=2&tbnh =154&tbnw=192&start=30&ndsp=35&ved=1t:429,r:14,s:30,i:283 http://www.google.com/imgres?q=ikea&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=1260&bi h=1230&tbm=isch&tbnid=zdbqRoGCmYg-mM:&imgrefurl=http://broke207.com/tag/ikea-bus/&docid=qNc37z4GG2W7WM &imgurl=http://broke207.files.wordpress.com/2011/03/large_ikea.jpg&w=453&h=300&ei=mkIMUJGEJ5D5rAG5voCmCg&z oom=1&iact=rc&dur=299&sig=115012317990016856654&page=2&tbnh=150&tbnw=196&start=30&ndsp=35&ved=1t:429 ,r:0,s:30,i:252&tx=141&ty=49 http://www.google.com/imgres?q=ikea+catalog&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw= 1260&bih=1230&tbm=isch&tbnid=IP0xOisY6iLR_M:&imgrefurl=http://www.information-facts.com/ikea-catalog-is-the-3rd- most-printed-publication-in-the-world/&docid=ZBaL8dUXgZi6aM&imgurl=http://www.information-facts.com/wp-content/ uploads/3792306067_0f8362d5801.jpg&w=430&h=500&ei=eUMMULTTLcqfrAHdqumuCg&zoom=1&iact=hc&vpx=388&vpy= 523&dur=2143&hovh=242&hovw=208&tx=131&ty=122&sig=115012317990016856654&page=1&tbnh=153&tbnw=127&start =0&ndsp=34&ved=1t:429,r:13,s:0,i:182 http://www.google.com/imgres?q=ikea+catalog&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw=1260 &bih=1230&tbm=isch&tbnid=MhUBrjSHQ5lFpM:&imgrefurl=http://manolohome.com/2009/06/03/the-ikea-naming-scheme/&do cid=94SC6eL9lwoBmM&imgurl=http://manolohome.com/wordpress/wp-content/uploads/2009/05/ikea-catalogue.jpg&w=381&h =450&ei=eUMMULTTLcqfrAHdqumuCg&zoom=1&iact=hc&vpx=1014&vpy=180&dur=7979&hovh=244&hovw=207&tx=162&t y=131&sig=115012317990016856654&page=1&tbnh=174&tbnw=148&start=0&ndsp=34&ved=1t:429,r:5,s:0,i:156 http://www.google.com/imgres?q=ikea+catalog+2011&um=1&hl=en&client=firefox-a&sa=N&rls=org.mozilla:en-US:official&biw =1260&bih=1230&tbm=isch&tbnid=1adyE_iyMIlujM:&imgrefurl=http://www.freshfreestuff.net/free/free-ikea-catalog-2011.html& docid=RLdB5JhKNHyoZM&imgurl=http://www.freshfreestuff.net/wp-content/uploads/2010/10/ikea-catalog2011.jpg&w=361&h=3 55&ei=ykMMUO_5F8nirQHTqYDTCg&zoom=1&iact=hc&vpx=197&vpy=156&dur=673&hovh=216&hovw=219&tx=104&ty=1 33&sig=115012317990016856654&page=1&tbnh=161&tbnw=164&start=0&ndsp=30&ved=1t:429,r:0,s:0,i:75 http://www.google.com/imgres?q=IKEA+logo&hl=en&client=firefox-a&hs=Qvh&sa=X&rls=org.mozilla:en-US:official&bi w=1260&bih=1230&tbs=isz:m&tbm=isch&prmd=imvns&tbnid=NXXS6Sgt0Usf-M:&imgrefurl=http://www.notsorandom- musings.com/2012/06/ikea.html&docid=7SJ86Yd4_CbrlM&imgurl=http://4.bp.blogspot.com/-v20pV-pAIAU/T9y-mNlibqI/ AAAAAAAAGNc/2tJ6i7_BMnc/s1600/ikea-logo-main.jpg&w=640&h=229&ei=dE0MUMKJGMOBqQG5vZhQ&zoom=1&iact=hc &vpx=326&vpy=746&dur=391&hovh=69&hovw=193&tx=138&ty=61&sig=115012317990016856654&page=1&tbnh=69&tbnw =193&start=0&ndsp=30&ved=1t:429,r:16,s:0,i:193