ikea presentation group 7

GROUP 7 (4CA3)

WHERE ARE WE?

A. Standing in the mind• IKEA is currently one of the leading home

furnishing retailers and the largest in the world, so the group interviewed people who are prospective buyers of furniture namely architects, interior designers, developers, newlyweds, etc.

• 5 out of the 5 interviewees (2 architects, 3 dads) are familiar with the concept of DIY but not all of them wanted to assemble their own furniture

• respondents who wanted to assemble their furniture themselves said that it was because it makes the furniture affordable and more open to customization and adjustments

• Those who preferred to hire someone to assemble their furniture stated that it was because of old age or because they do not want to cause damage to the furniture.

“The IKEA Effect: When Labor Turns to Love”

by Michael I. Norton, Daniel Mochon and Dan Ariely

• the concept of DIY gives customers a sense of fulfilment

TOP THREE BRANDS:

• SM Homeworld• Our Home• Dimensione

• The brands that the respondents were least aware of are IKEA and Blims Fine Furniture.

WHY ARE WE THERE?

A. Marketing MixPRODUCT• known to be the world’s largest furniture dealer

which sells over 10,000 different home products• product range meets the standard of every

people, offering products for every part of the home at affordable prices that as many people as possible can afford them

• hard-wearing, easy to live with and a space saver

• can cater to the hearts of almost all ages in IKEA

IKEA products are organized in the following major product categories (Inter IKEA Systems B.V., 2011, All products):

• Eating • Desks • Mirrors • Children’s IKEA • Cooking • Bathroom storage • Beds & mattresses • Chairs • Clothes storage • Decoration

• Flooring • IKEA FAMILY products • Kitchen cabinets & appliances • Lighting • Small storage • Sofas & armchairs • Storage furniture • Tables • Textiles & rugs • Tools & hardware • TV stands & media solutions

PRICE• IKEA’s vision is “to create a better everyday life

for the many people”.• This explains why IKEA has a very low price

range.• To offer customers with “prices so low that as

many people as possible will be able to afford them”

PLACING• 329 stores around the world and still growing• IKEA stores are placed strategically on locations

that have a very wide space and are easily accessed by most people.

• The stores are designed to have realistic room settings and real-life homes to showcase the products of IKEA and encourage the customers to purchase the whole room package.

PROMOTION• IKEA uses a catalogue as their main marketing tool

which amounts to 70% of the company’s annual budget.

• Inside the catalogue are the different products that are offered in IKEA and the price of each product.

• Another form of their promotions is the release of viral videos in YouTube featuring a certain product and its features and convenience compared to other products.

AD CAMPAIGNS: • Hangin’ Out in Copenhagen-It is IKEA’s way of representing a roomin a cube which is suspended from construction equipment.

• Happy Birthday in Stockholm-They used the IKEA store as their main promotional tool to represent IKEA’s anniversary making the store as a big cake.

• Hangin’ Out in Copenhagen-It is IKEA’s way of representing a roomin a cube which is suspended from construction equipment.

• Bus Stop in Instanbul-IKEA placed sofas in random bus stops in Instanbul opposite the metal benches.

• IKEA Billboard using IKEA items in New York

B. SWOT Analysis

- World’s largest furniture retailer-Known globally, which makes it a credible brand to patronize-Strong market position- Design & function wrapped into one- Multi-functional, intelligent, & fun-Wide variety of items

- Few outlets worldwide- DIY might not be appealing to other consumers- No IKEA Philippines, only re-sellers; thus the items are high-priced- Absence of advertisements in the country

- Growing economy of the country- Development of new infrastructure - International presence- Increasing influence of social media

- Many furniture stores are venturing into selling more affordable items.- Emergence of highly-competitive, alternative furniture shops.

SWOT

STRENGTHS WEAKNESSES

OPPORTUNITIES THREATS

C. COMPETITIVE ANALYSISPRIMARY COMPETITORS:• SM Homeworld• Our Home• Dimensione• Blims Fine Furniture

• different home furnishings and pieces of high quality and affordability

• relatively priced lower than the products of IKEA

• outlets spread across the country• media exposure and sponsorships

SECONDARY COMPETITORS:• CW Home Depot• Wilcon Builder’s Depot• MC Home Depot• Small-time furniture shops

• main focus is on the construction supply industry

• have other items that are not sold at IKEA stores (electrical items, paints, power tools, automotive items, etc.)

• do not create that much of an impact (small-time furniture stores)

POSITIVE NEGATIVE

The future of appliances that

run via renewable energy

could be a huge help to the

present environment.

It could be quite expensive

due to high exchange rate to

Philippine Peso because

IKEA is an international

store.

It could attract customers that

prefer to design their own

homes or offices in a

preferable manner.

Local Hardware stores may

compete with their products

and create a more affordable

solution.

Products are easy to use

which is an advantage and

may gain the customers’

interest.

Location may be a problem

because the store usually

needs a lot of space to carry

out its processes.

Its non-profit foundation can

contribute to society

especially for a third-world

country.

It might be quite hard to

promote the brand to certain

communities that do not

have internet connections.

It can provide employment.

WHERE DO WE WANT TO BE?

A. Marketing ObjectivesThe marketing objective is to launch the brand IKEA in the Philippine home furnishing market and introduce it through a mix of advertising, direct marketing, events and other PR tools. This campaign is also geared to utilizing social media to engage customers in costumer-initiated touchpoints such as word-of-mouth and viral marketing strategies.

B. Communications ObjectivesThe key communication objectives are centred on introducing IKEA to the Philippine market and creating brand awareness especially to our target market, classes A and B Although IKEA’s business idea is to create a better everyday life for the many people by “offering a wide range of well-designed, functional home furnishing products” with an affordable price so that as many people as possible can afford them, the idea of “affordability” cannot be exploited in the Philippine market because while IKEA is mostly available in first-world and developed/industrialized countries like Sweden, Luxembourg, Switzerland, the United States, Canada, Japan, Singapore, Hong Kong, and many more. The social classes in these countries differ from the Philippines which is still a developing country.

Because of this, our main objective is to introduce IKEA as an international home furnishing brand which offers a wide range of products with the perfect combination of superior design and quality mixed with sheer functionality, which is matched with an unparalleled thrust towards innovation. Henceforth, we would like to capitalize on what we think sets IKEA apart from other home furnishing brands, may it be local or international, and that is the fact that IKEA strives for an equal balance of their seriousness in offering the best products and services to their new and their loyal customers, and their passion for fun and excitement which keeps their customers coming back.

The products we offer and the place where they are sold communicates the image of the brand. Through this, we build the IKEA brand and we inspire customers to come to our stores. Offering high quality products in a good and homey environment would encourage customers to visit our stores, making them to prefer the brand which will eventually lead to brand loyalty. This would be achieved through advertising and various public relation tools.

C. Media Objectives Above-the-Line and Below-the-Line advertising would be used to reach IKEA’s target market, classes A and B. Particular target markets include newlyweds, renovators, interior designers, architects, DIY enthusiasts, SOHO owners, developers and the competitors’ customers.

HOW DO WE GET THERE?

A. 6-pack question:

1. Who are our target markets and what do they currently think, feel or do in relation to

the brand?

Primary Market: Classes A & B customers that are potential buyers of new and modern style furniture; particularly, newly wedded couples, interior designers, architects, developers, SOHO owners and pre-existing home owners.

SWS 2009

*The average monthly income of the Swedish is much higher: $1,810 (around P75,600). (www.worldsalaries.org)

2. What do we want them to think, feel or do as a result of the advertising?

• establish IKEA as the superior home furnishing brand in the Philippine archipelago, starting with the country’s capital where its flagship store is going to be erected

• IKEA’s name is synonymous to highest quality and unmatchable functionality

• the standard of home furnishing excellence mainly by making the competitors’ customers switch to our brand

3. What is the most important insight that we should exploit?

• We want IKEA’s name to be synonymous to highest quality and unmatchable functionality.

• a brand which satisfies the needs and desires of the most discerning of the industry clientele

• emphasize that unlike other brands, IKEA is a mixture of seriousness, fun and excitement

4. Based on that insight, what single-minded proposition should we make?

IKEA, “Your Home is Our Exciting Workplace”

5. What brand character should come through?

• well-rounded person who lives a balanced life• serious about her/his job but knows how to

perfectly balance it with fun and excitement• knows where she/he wants to be, and how she/he

is going to get there• never stagnates at anything• creative enough to always be more innovative than

her/his peers/colleagues• does not settle for mediocrity; strives for supremacy

6. What can make the proposition credible?

• The fact that IKEA’s products are DIY makes the whole IKEA experience fun already. This is the only brand that can balance seriousness in delivering the best services and products, and giving a sense of fun and excitement to their customers at the same time.

B. Promotional Tools1. ATL- Print- Radio- Television- Internet

PRINT

PRINT

PRINT

RADIO

The biggest furniture retailer in the world is finally here in the Philippines! Be at the grand opening of the IKEA Store on December 29, 2013, 10 a.m. at the Bonifacio Global City. Special gift prizes would be awarded to the first 500 customers in line! Get a chance to win a ten thousand-peso gift certificate! Yep you heard that right, ten thousand pesos! The excitement continues all weekend! See you there!

TELEVISION

INTERNET

2. BTL- Billboards- Events- Sponsorship

BILLBOARDS

BILLBOARDS

BILLBOARDS

EVENTS

• IKEA Grand Store Opening• IKEA Monthly Features

-Out With The Old, In With The New (January 2013) -I IKEA♥ (February 2013)-Organize It! (March 2013)-Colors of Summer (April to May 2013)-Back-to-School Must-Haves (June to July 2013)-Independence Day Celebration (June to July 2013)

-Kitchen Month (August 2013)-Textiles and Cushions Galore (September 2013)-Spooktacular Finds (October 2013)-Toys for the Tots (November 2013)-Have an IKEA Christmas (December 2013)

• IKEA Easter Egg Hunt• Trick-or-Treat at IKEA• IKEA @ 1: Gotta Love Your Home

SPONSORSHIP

• “Obra Maestra” at the 18th WORLDBEX• Home and Modern Living Expo• Kris TV

ARE WE GETTING THERE?A. Sales Volume

- Compare possible and expected performance once it is launched in the Philippines by revising its increase or decrease in percentage

B. Surveys- Useful in determining the brand awareness of the costumers about the product

C. Events- Number of attendees in the events that IKEA will host

D. Social Media- Likes, comments and people who participated in the games by IKEA

E. Amount of Media Exposure- counting the times that it was shown in television, print and radio; ad space in billboards and magazines