ikea imc plan

8/16/2019 Ikea Imc Plan

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IKEAIntegrated Marketing Communications Campaign

Kat Shanahan

IMC 610 Final Project

Due: June 23, 2012


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Executive Summery

IKEA is a home improvement store that takes pride in providing their customers with low-pricedfurniture and giving back to the world around them. Since the nearly 70 years since IKEA’sbeginnings, 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 oronline, 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 conceptsprovide the foundation for a successful integrated marketing communications campaign. Thiscampaign 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 experiencemore convenient for IKEA’s customers.

Market research has indicated that IKEA as room for improvements in their digital/social mediastrategies, publicity of their sustainability efforts and improving customer relationships. Thisintegrated marketing communications plan will focus on aligning IKEA’s marketing efforts withtheir sustainability efforts, while increasing the sales and awareness of IKEA’s products. Thisintegrated approach will unite creativity, paid advertising, public relations, direct marketingand sales promotion to show customers why shopping at IKEA improves their life and the worldaround them. The tactics outlined in this plan will communicate to customers how IKEA hasdeveloped tools to make shopping in-store and online more convenient. Customers will also beinformed of IKEA’s sustainability efforts and how they are contributing to the world around themwhile purchasing stylish, customizable furniture that ts 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 budgetthey want, it also has positive effects on the environment.


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Table of Contents

IKEA Background Information History

Mission Statement

Company Financials Creating a Better Life Product Mix Marketing Mix CompetitorsTarget MarketSWOT AnalysisIntegrated Marketing Communications Plan Objectives Strategies

Creative Strategy Statement Brief ExecutionPaid Media Objectives Strategies Tactics Budget FlowchartPublic Relations

Objectives TacticsDirect Marketing Objectives TacticsSales Promotions Objectives TacticsAdditional Social/Digital RecommendationsProduct PackagingMeasurement and EvaluationConclusionWorks CitedImages

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1212121314141415161718

1818202021222223242425262728


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IKEA Company Information

History

IKEA was founded in 1943 by Ingvar Kamprad and iscurrently under the parent company INGKA Holding B.Vthat is owned by Stichting INGKA Foundation. IngvarKamprad got his modest start selling pens, Christmas cardsand seeds in southern Sweden. From there, Kamprad beganadvertising and demands grew too high for him to handleindividual sales calls. In 1948, the rst piece of furniturewas introduced into his product range. True to today’s IKEAphilosophy, the furniture was made from local manufacturersand the resources were from the forests close to his home(ikea.com).

Kamprad’s rst catalog was published in 1951, and sincethen IKEA has distributed 208 million copies in 30 differentlanguages (IKEA Systems B.V., 2011). After the success of theIKEA catalog, Kamprad opened his rst furniture showroomin Älmhult, Sweden. Over the next seven years Kampradintroduced at packed furniture that requires self-assembly,opened the rst IKEA store in Älmhult and gained IKEA’s100th co-worker. It wasn’t until the 1980’s that IKEA beganto 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 forthe many people”. Their business principle is simple, “offera wide range of well-designed, functional home furnishingproducts at prices so low that as many people as possible willbe able to afford them (Inter IKEA Systems B.V., 2011).”

1943 Kamprad founded IKEA in the village

where he was raised. Some of the rst

products sold were:Pens

WalletsWatches

1945 The rst 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 at

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 rst 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


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Company Financials

It is because IKEA still strives “to create a better everyday life for the many people” that in 2011they achieved more than $30 billion in total revenue, celebrated 131,000 coworkers in 41countries, 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 forRefugees saw a $62 million dollar donation, and UNICEF and Save the Children saw a $13.8million donation to provide books, classrooms and teachers to approximately 2.8 million childrenlocated 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 onsustainability efforts including wind turbines and solar panels. At the end of IKEA’s 2011 scalyear, they had 69 wind turbines creating 15 percent of the energy needed to run their storesand distribution centers. By July 19, 2012 IKEA’s U.S. solar panel array reached 535,800 squarefeet and contained 17,443 panels. This addition allows IKEA to reduce carbon emissions bythe 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 thecompany earns money before they spend money. In 2011, customers saw this in the form of a2-3 percent price reduction on products across the store (Inter IKEA Systems B.V., 2011). Thisprinciple also translates into the treatment of their employees. The company believes theircoworkers, and the values they share, are their most valuable asset and pride themselves on theirdevelopment opportunities.


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Product Mix

Currently, IKEA offers approximately 12,000products including furniture for the kitchen,bathroom, bedroom, living room and

patio. All products are designed with costeffective packing, shipping and distributionin mind. This strategy furthers IKEA’s focusto keep costs low while providing stylishand innovative products for their customers.IKEA focus their marketing communicationstrategies on the customization and diversityof these products, and most importantly,their price point.

IKEA designs product based on:

• Determining the price tag rst• Seeing things differently: Reusing products and experimenting with re-purposing materials• Flat packing: IKEA is able to keep costs low by at 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 wasthe rst campaign for IKEA in three years. The campaign aimed to convince the target market thathaving better spaces in your home made for a better life. IKEA spent $90 - $100 million dollarson 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. Inrecent 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


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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, AshleyFurniture and Bedding, Target and Walmart. Some of these competitors are outlined below.

Target

• Target offers similar furniture pieces to IKEA’s EXPEDIT and LACK productseries

• 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, Canadaand 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


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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 manyadvertising campaigns and are one of the most difcult audiences to effectively reach. These

individuals have bachelor’s degrees and are in pursuit of, or recently placed in their rstprofessional employment opportunities, and for the rst time in their lives have disposableincome. 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 toget to a location

• Purchasing or renting unfurnished spaces• Spent many years in university livingarrangements or parent homes

• Reside in medium to large cities • Public transportation available in cities

Demographic Information

• On the verge of marriage, or are recentlymarried

• 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


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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 tobeing raised with a “me rst”mentality (CBS News, 2008)

• Take pride in their appearance• Enjoy customization• Self condent• 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


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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 fromeconomic 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 maintainingstandards difcult

• 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 difculty improving strugglingareas

• 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 morebrick-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 purchasetheir rst homes (National Association ofRealtors, 2011)

• Rising gas prices in the U.S. make travelinggreat distance to IKEA stores difcult


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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 thatshopping at IKEA and utilizing their new online and digital tools will make their lives easier, andthe world around them better. In addition, shopping at IKEA means customers get what theywant in a budget that ts their life style.

Integrated Marketing Communications Objectives

• Increase website trafc by 10 percent in 12 months• Increase foot trafc in-store by 5 percent in 12 months

• Increase awareness of sustainability/philanthropy efforts in the target market by one millionpeople 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 12months

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 trafc• 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 anddirect marketing tactics


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Creative Strategy

Creative Strategy Statement: IKEA has low priced, customizable furniture that ts everyone’sneeds and has a positive impact on the environment.

Creative Brief Client: IKEA Date: 06/17/12Type: 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 highlightthe customization options and diversity of IKEA products, and demonstrate how shopping at IKEAwill 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 whoenjoy customizing their furniture and are on a tight budget. These individuals appreciatesustainability efforts.

What do they currently think?Our customers think IKEA has inexpensive, trendy furniture but at times quality suffers. Many ofthem also think that shopping at IKEA is an all day trip because they do not live near a store. Theyare somewhat aware of the customization options with the furniture. Customers are typicallyunaware 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, andthe online tools make customers’ lives easier. By shopping at IKEA the customer is also making acontribution 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 andin 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 onlineresources 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 IKEAor using the IKEA website. The ads will also show IKEA products, resources and stores makingcustomers’ lives and the world around them better. All materials will include; IKEA logo, theslogan The Life Improvement Store, bright colors, IKEA products and website URL.


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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


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Paid Media

Overview

Paid media will be essential to promoting sustainability efforts and product knowledge to IKEA’starget market. Over the next 12 months, television, radio, social/digital media, and outdooradvertising 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 12month period

• Achieve a minimum reach of 75 percent during April, May, August, September and a minimumreach 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 potentialcustomers

• Use social/digital media to maintain a consistent weekly reach of 250,000 members of thetarget audience at a minimum of 4 times per week over 12 months

• Utilize outdoor advertising to target potential customers living between one and three hoursaway 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 trafc 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 venueallows 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 includingHyundai, Chevy and Ford.


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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 trafc to/and interaction with IKEA USA Facebook

• YouTube • Create background and pre-roll ads for use on popular YouTube videos to

drive trafc 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 aday trip to IKEA.

• The TV show Modern Family originally airs on ABC Family.The episodes are posted on HuluPlus the followingday. HuluPlus is a paid service and allows companiesto sponsor shows/episodes with “limited commercialinterruption.” In addition, select IKEA furniture isused on the set of Modern Family. The ads will beaired one per commercial break and each ad willfurther a continuous story line. The viewer isn’tlooking at one ad multiple times, but rather a series ofads that tell a story throughout the program.


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• Outdoor

• Billboards, bus stop benches and train stations: Individuals utilizing these types oftransportation 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 abenet to the environment.

• Example: Small photos of IKEA products create an image of theworld

• 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 topromote environmental sustainability and how many IKEA products you cant 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 yearwith $3 million built in for a contingency plan.

Television: $7 MillionPrint: $4 MillionDigital/Social: $3 MillionOutdoor: $2 MillionRadio: $1 MillionContingency: $3 Million


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Media Flowchart I K E A

K a t S h a n a h a n

C a b l e T V - $ 7 M i l l i o n

1

2

3

4

5

6

7

8

9

1 0

1 1

1

2 1 3

1 4

1 5

1 6

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2 1

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2 6

2

7 2 8

2 9

3 0

3 1

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3 3

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4 1

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5 2

H o w I M e t Y o u r M o

t h e r

S u p e r n a t u r a l

T h e B i g B a n d T h e o r

y

S o Y o u T h i n k Y o u C a n D a n c e

S u i t s

P r i n t - $ 4 M i l l i o n

G o o d H o u s e k e e p i n

g

P e o p l e

I n S t y l e

D i g i t a l / S o c i a l - $ 3 M

i l l i o n

F a c e b o o k

Y o u t u b e

H u l u P l u s : M o d e r n F a m i l y

H u l u P l u s : D e s i g n S t a r

O u t d o o r - $ 2 M i l l i o

n

B i l l b o a r d s

B e n c h e s

T r a i n S t a t i o n s

C a r W r a s

R a d i o- $ 1 M i l l i o n

T h e P u l s e

K I I S

T h e C o f f e e h o u s e

T h e B l e n d

T h e H i g h w a y

J a n u a r y

F e b r u a r y

M a r c h

D e c e m b e r

A u g u s t

S e p t e m b e r

O c t o b e r

N o v e m b e r

A p r i l

M a y

J u n e

J u l y


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Public Relations

Overview

IKEA’s public relations efforts will focus on earning positive media for IKEA’s sustainability effortsand IKEA’s contributions to local communities. Efforts will also be made to monitor customersatisfaction among returning customers.

Public Relations Objectives

• Generate a minimum of 50 positive media reports about IKEA’s sustainability efforts over thenext 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 willalso donate the time of two employees for one day to help assemble the furnitureand 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 theHabitat for Humanity house is fully decorated

•Create social media buzz by posting photos and information in realtime at each location

• Create Facebook events for each building site and invite localcommunity members to the open house

• Create “in-house” videos of the habitat family shopping for theirIKEA products and the IKEA employees helping to assemblethe products

• Videos utilized on IKEA USA YouTube and Facebook pages


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• Create a biweekly electronic newsletter highlighting IKEA USA product information andworldwide sustainability efforts.• The newsletter will contain sustainability information, recall information, soon-to-be

discontinued products, design tips and feature a client-designed space. Thiswill 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 beshowcased 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 partiesthat opt-in to the mailing list currently found on IKEAweb page

• The newsletter will be disseminated quarterly

• Implement a follow up program with current customers in order to monitor and improvecustomer 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 repeatpurchases.

• 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 willbe created for individuals who check in at 75 percent of locations withinIKEA stores.


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• Create three sustainability conferences where customers can come to an IKEA store and hearupdates 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 doto contribute. Each IKEA USA location will provide three, one-

day conferences a year. Attendees will receive media kitswhich 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 willutilize 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 changedtheir living situation, individuals who do not live near IKEA stores, and individuals who enjoyshopping at IKEA.

Direct Marketing Objectives

• Utilize direct mail to generate 1,000 newleads in the target market over 12 months

• Utilize catalogs to increase direct-order internet

sales by 2 percent over 12 months


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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 theirmail forwarded

• Individuals in the target demographic who recently purchased their rsthomes

• Individuals in the target demographic recently accepted into a highereducation 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 brandrelationships. In addition, the miniatures can also be used as magnets and remind customers ofthe products IKEA offers. Miniature products for this promotion will be selected on the basis ofproduct awareness, price, popularity and season. Also included on the mailer will be a responsecard 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 thetarget market.

• Redesign the IKEA catalog to better align with sustainability efforts and condense informationfor better utilization by target demographic

• IKEA will create a condensed catalog that allows for easier utilization by targetdemographic and reduces postage costs. This campaign will be a series of “mini-catalogs” that together compose the traditional IKEA catalog. Each catalog willhighlight different areas of the home in order to make the content more manageableand encourage frequent Internet sales. The catalog will also inform customers ofproduct changes and price reductions. The catalog, in it’s entirety, will be availablefor download on the IKEA website. In order to align with IKEA’s sustainabilityefforts, 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’sproduct release information, price reductions and seasonal offerings.


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• 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 easydownload and integration on mobile devices (ex. iBooks)

• The mini-catalog information will be represented in the IKEAnewsletter

• The mini-catalogs will be downloadable through the IKEA catalogapp

• 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 targetmarket. 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 thecustomers frequently, and focusing on items with reasonable shipping costs, will encouragecustomers to utilize IKEA’s online store.

Sales Promotions

Overview

The sales promotion medium will utilize a loyalty program in addition to a promotion targeted toindividuals living more than 45 miles from an IKEA store. The target demographic for IKEA’s salespromotion efforts will be returning customers and potential customer living greater than 45 milesfrom 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


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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 berenewed on a yearly basis. The customers in the program will also receive theIKEA newsletter, which contains the mini-catalog information. The program willbe designed as follows:

• The customer and sale information will be kept in a digital format andviewable 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 apredetermined 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’recontributing 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 theIKEA family. The program also ties the customers’ shopping experience with IKEA’s sustainabilityefforts.

• Implement a sales promotion that rewards customers who are not located near an IKEA storefor 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 willbe utilized one weekend a month over the course of a year. The promotion will bedesigned 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 besubtracted 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 “swingby later and pick it up.” This promotion also rewards customers for shopping at IKEA stores anddiminishes the idea of “wasting money on gas” if they do not nd the items they need. However,when customers are in the store, they nd items they weren’t necessarily looking for, whichincreases their total sale.


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• 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 willneed 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 YouTubepage)

• New series for different types of rooms such as dorm rooms, studioapartments, 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 foruse by store shoppers• This will allow the target audience to easily keep track of

their purchases and locations in product pick upareas. QR codes will assist in improving customersatisfaction and help customers keep track oftheir purchases.

opportunity to compete to win products. Couples will compete against each otherand 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. Thiswill be a great event for returning customers and they will encourage their familymembers to watch them compete and IKEA will gain more in-store trafc.

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 nalize designs.This will create a positive experience for shoppers that live a few hours away from IKEAstores and will also generate positive online reviews. IKEA USA can utilize their Facebookpage to push out content and announcements about the sites.


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Page 25

Measurement and Evaluation

Overview

Measurement and evaluation of this integrated marketing communications campaign will bebased 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 marketwill also be utilized to perform portfolio tests of print ads and on-air theater tests for broadcastmedia. 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


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Conclusion

Integrated marketing communications (IMC) is the key to successfully building and maintainingcustomer 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 effectivelycommunicated through IMC and adds reliability to the company voice.

This campaign is designed to build customer relationships, and showcase IKEA’s sustainabilityefforts. The combination of creative strategy, paid media, public relations, direct marketingand sales promotion listed above will assist IKEA in increasing sales, increasing sustainabilityawareness 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, theIKEA USA Facebook page is lacking in content, customer support and overall maintenance. Bycreating the splash page and additional content outlined in the social/digital media section ofthis plan, IKEA will be able to increase customer interaction with the page and more effectivelycommunicate IKEA’s mission and vision to the target audience. IKEA cannot afford to ignorecustomers’ comments and reactions voiced through social media. Promptly responding tocustomer feedback in a public manner and addressing concerns will generate positive reactionsfrom the target market.

In addition, IKEA needs to focus on paid advertising tactics listed that increase reach toindividuals 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 paidadvertising and sales promotion tactics will build relationships with this key market and increasein-store and online sales. Many individuals in this market consider a visit to IKEA an all day“adventure” and IKEA will benet nancially from capitalizing on this.

In past years, IKEA has focused primarily on print advertising and relied very heavily on theircatalog efforts. With IKEA’s increased investment in sustainability, and the shifts in marketing todigital/social media, IKEA needs to realign their marketing efforts in order to better communicatewith their target market. Communication with the target market through the integrated marketingcommunications plan listed above will assist IKEA in their mission to create a better everyday lifefor the many.


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Works Cited

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Bruce A., Spicer J., (2012). Euro zone in decline, U.S. and China gain Retrieved from http://www.reuters.com/article/2012/06/05/us-global-economy-wrap-idUSBRE8540TF20120605

CBS News. (2008). The “Millennials” Are Coming. Retrieved from http://www.cbsnews.com/ stories/2007/11/08/60minutes/main3475200.shtml

Combs, H. (2012). IKEA Installs Five More Solar Power Arrays. Retrieved from http://www.furni-turetoday.com/article/553425-Ikea_installs_ve_more_solar_power_arrays.php

Inter IKEA Systems B.V. (2011). Welcome Inside 2010. Retrieved from http://www.ikea.com/ms/

en_US/about_ikea/facts_and_gures/yearly_summary.htmlInter IKEA Systems B.V. (2011). Welcome Inside 2011. Retrieved from http://www.ikea.com/ms/ en_US/about_ikea/facts_and_gures/yearly_summary.html

National Association of Realtors. (2011). NAR Home Buyer and Seller Survey Reects Tight CreditConditions [Press release]. Retrieved from http://www.realtor.org/news-releases/2011/11/nar-home-buyer-and-seller-survey-reects-tight-credit-conditions

Pew Internet. (2012). Who’s Online: Internet User Demographics. Retrieved from http://www.pewinternet.org/Trend-Data-%28Adults%29Whos-Online.aspx

Pew Internet. (2012). What Internet Users Do Online. Retrieved from http://www.pewinternet.org/ Trend-Data-%28Adults%29/Online-Activites-Total.aspxSiriusXM Satellite Radio (2012) Retrieved from http://www.siriusxm.com/advertise

Pottery Barn (2012) http://www.potterybarn.com/customer-service/store-locator.html?cm_type=fnav

Target (2011). Annual Reports: 2011. Retrieved from http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-061597

Vega, T. (2010) A Focus on Families (and Furniture). Retrieved from http://www.nytimes.com/2010/09/13/business/media/13adco.html?_r=1&ref=ikea

Wal-Mart (2011) Annual Report WalMart Financials Retrieved from http://www.walmartstores.com/sites/annual-report/2012/CFOLetter.aspx

Zucherman, M. (2011) The Great Jobs Recession Goes On. Retrieved from http://www.usnews.com/opinion/mzuckerman/articles/2011/02/11/the-great-jobs-recession-goes-on


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Images

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