Ikea advertising strategy pdf

The taste and preference of the consumers are different from than that of europe. Jun 19, 2014 comparison of marketing mix of ikea in four countries 1. Time based strategy applied in companys can reduce costs, improve efficiency and increase customer services, even create much values for the organization george, s, jr. On the advertising aspect, the swedish brand is present on different channels, offline and online. The ikea vision, business idea and market positioning statem ent provide a framework for all ikea marketing communication worldwide. Ikeas uk marketing boss on evolving how it talks to customers. In the digital age, catalogues arent enough to even for the worlds largest furniture retailer hence they invest in content marketing. Every ikea stores is a unique building with the noted brand symbol and style. Apr 21, 2019 consumers nowadays are getting tired of the hard sell, and thats part of the reason ikeas strategy resonates with them. Ikea wants to reach the many people on each local market. Ikea shifts marketing strategy to focus on product innovation. Inter ikea holding, in turn, belongs to an identically named company in the netherlands antilles that is run by a trust company based in curacao.

Easy to assemble the branded web series is all the rage today, but ikea was far ahead of the game in 2008 with easy to assemble, which ran for four seasons plus a spinoff musical venture and won two streamy awards and webby awards each. For ikea the step into the chinese market was a big step, maybe as big at the. Ikea is facing numbers of problems in their marketing strategies and the study of. Lastly, the marketing mix and strategies adopted by ikea on how they make use of their 4ps to determine the product strategy for spacesaving furniture and unique designs, place strategy that lacking of presence in a particular country of ikea, price strategy that features in organizing promotional sales discount to induce customer to clear old stocks and the last p refers to the promotion. Internal and external factors analysis of ikea student.

Globalization is the current trend for most of the companies nowadays. The wonderful everyday platform launched three years ago as a means for the brand to show its knowledge of and interest in peoples lives and how that tied into its range. Secret behind ikeas pricing strategy t1 2016 mpk732. Anywhere in the world you find an ikea, youll also find an agency turning out first class advertising for it. Ikea will need to apply attitude changing strategy, as ikeas. What you can learn from ikea about changing customer preferences. The case is oriented towards upperlevel undergraduate or mba marketing students and can be taught within a one to twohour class with several hours of outside student preparation. The furniture chain isnt alone in having to change direction. How did ikea climb up the ladder to become the only one furniture retailer with an impressive number of followers. Pdf standardized marketing strategies in retailing. Finally, market communication involves traditional tools, such as advertising tv, print and outdoor and promotion. Our communication reflects ikea values both visually and in tone of voice, so marketing and communications coworkers include art directors and copywriters, interior designers and project leaders.

Ikea arrived in australia in 1975 and first ikea shop opened in sydney. The ikea business is operated through a franchise system. Ikea seeks for suppliers who could manufactures welldesigned subassemblies at the lowest costs and customers need to assemble the products themselves. Based on porters generic strategies, which were proposed by michael porter, ikea mainly follows the cost leadership strategy. The ikea business model also requires updates from time to time. A reporter with ad age since 2015, adrianne pasquarelli covers the marketing strategies of retailers and financial institutions. She joined ad age after a dozen years of writing for crains new.

Five of the best ikea marketing campaigns ever appnova. Ikea shifts marketing strategy to focus on product. Compared to other furnishing retailers, ikea shows their products in prototype rooms which are miscellaneous and stylish. Apr 30, 2016 ikea arrived in australia in 1975 and first ikea shop opened in sydney. These four key practices have equipped ikea to become the next digital. This study attempts to explain a reasonable marketing entry strategy of ikea in china based on the existing literatures. This thesis is a presentation of ikeas marketing strategy, and to be more. The us market has been a very difficult one for ikea. The new wonders can come out of the blue campaign, created by mother, kicks off this week. Their advertising reflects this by keeping things light and fun.

How ikea adapted its strategies to expand and become profitable in china. Ikeas unique digital marketing strategy nicholas dessy. Since it operates on a global stage, ikea needs a platform that has the power to reach anywhere in the world. Ikea s main marketing channel is its catalogue that is distributed worldwide as 191 million copies in 56 different. I may say ikea is a master in crafting online content that people eager to watch. Marketing strategy of ikea ikea marketing strategy. Ikea takes the information that it receives from its customers, identifies the needs of each segment, and then changes designs when necessary. However, in creating low prices ikea is not willing to sacrifice its principles. They use mediascapes to blend global and cultural aspects in their marketing strategies. Theres even a touching homage to hitchhikers guide author douglas. Lastly, the marketing mix and strategies adopted by ikea on how they make use of. Diy renovation materials cheap, unique, designed furniture. It also assesses some lessons the company learnt in china that might be useful in india.

Initially that was a philosophical approach, but ikea is now. The largest group of ikea franchisees is the ikea group, a private group of. But as youll see, ikea s content marketing efforts go far beyond its catalog. Around 70% of the annual marketing budget is spent on the catalogue alone. Ikeas global marketing strategymarketingcase studycase. Ikeas advertising and promotion is dominated by the catalogue. The methodology part explains what techniques were used to achieve the set objective in. Ikea heavily uses are sales promotions and trade promotions to attract maximum customers. The owners of this trust company are unknown ikea refuses to identify them but are assumed to be members of the. At face value ikea is a household name, popular within culture, and with a long record of creative marketing. In europe the catalogue reaches around 200 million people every year. The report illustrates the application of the major analytical strategic frameworks in business studies such as swot, pestel, porters five forces, value chain analysis, ansoff matrix and mckinsey 7s model on ikea.

Marketing mix of ikea 4ps of marketing mix of ikea. They make a lot of adjustments in many aspects of their marketing strategies. May 16, 2016 ikea basis its strategy on providing low priced home furniture so that they can cater to every possible person in the market. Ikea has limited advertising and promotional strategies. Together they work with the ikea catalog, ikea websites, publications, brochures, advertising, internal communication and public relations. Inter ikea systems is owned by inter ikea holding, a company registered in luxembourg. As of august 31, 2016, the brand had 340 stores operating across 28 countries. It consists of an introductory come home to your home. As with any successful integrated marketing communications plan, ikea will need to implement multiple waves of communication media to encompass all aspects.

Fewer catalogs means more kinds of marketing for ikea ad age. But as youll see, ikeas content marketing efforts go far beyond its catalog. Ikea s strategy is to give customers a choice of shopping experiences. It illustrates how ikea built a global brand and its localization strategies in markets including the us and china. Ikea can develop advertising in which customer can involve himself deeply. Dec 04, 2014 the main tool ikea uses to communicate is its catalog, which represent 70% of total marketing budget annually. Summarizing ikea marketing entry strategy in china is a gradual process. Ikea has been on a journey with its marketing over the past couple of years.

Jan 25, 2020 the marketing mix of ikea discusses the 4ps of one of the largest furniture and home equipments manufacturer in the world. Ikea group report contains a full analysis of ikea marketing strategy. Ikea s marketing strategies in sweden, the uk and china article pdf available in journal of retailing and consumer services 183. Companies like practicer, tepehome, kelebak, englishhome, and much more are dealing in online and offline mode while ikea has only franchised stores which mean low infrastructure cost and high visibility. May 15, 2019 advertising and marketing constitutes a substantial share of a retailers annual expenditure and tv has been the most dominant mode of campaigning until internet marketing started chipping the limelight away. How ikea adapted its strategies to expand and become. What were the strategies they used to maintain the success. Corporate and current business strategies of ikea marketing essay. What you can learn from ikea about changing customer. Ikea is one of the leading global retail chains spread across the world. Ikea uses a variety of promotional techniques to promote its brand.

Ikeas brilliant advertising strategy written by multiview on june 02, 2014 i recently came across a blog post by one of my college pals, griffin shaffer, on about ikea s latest advertising strategy. Jan 27, 2017 the ikea catalogue is the main marketing tool of the swedish retailer. While excellent product quality and affordable prices can be good for penetrating new markets, the way a brand is marketed decides its fortune in the long term. The product strategy and mix in ikea marketing strategy can be explained as follows. Ikea made a shocking shift in strategy thatll make. The strategy actually paid up as stories reached up to 22% of ikeas followers on instagram. You are free to use it for research and reference purposes in order to write your own paper. This case study analyses how ikea adapted its strategies to expand and become profitable in china. Ikea should follow some advertising guidelines which are. It is produced in 38 different editions, 17 languages for 28 countries. One of the reasons why ikea gets successful is because they take advantage of price strategy, especially in consumers psychology.

It is achieved by combining function, quality, design and value always with sustainability in mind. Integrated marketing communication program for ikea. Basically, the company innovated the way people purchase furniture. External factors analysis the external factors generally refer to the external environment of business and, therefore, can be divided into two categories. Which entry mode of ikea should be applied in the future chinese market. Sharing this page means that you agree to ikea s terms and conditions. Jun 23, 2015 weve put together the top 5 content strategy tips inspired from ikea s marketing to provide insight into how your brand can effectively use content. The new wonders can come out of the blue campaign, created by. The question is, how did it become such a marketing success. Nov 02, 2019 ikea business strategy is built upon the ikea concept. Psychology of pricing is the price ending in 9, referent pricing and price discount. Ikea is facing numbers of problems in their marketing strategies and the study of consumer behavior in their home furnishing products markets. Jun 30, 2014 advertising strategies of ikea presented by.

Ikea is a world famous brand of affordable home furnishing products. Ikea, home furnishings industry, international expansion. Ikea does not spread their typically swedish identity all over the world. Ikea knows furniture is part of your life, but they also know there are more important things in your life than their products. To gain market share in new entry countries especially asia, ikea corporate and business strategies determine its sustainability and competitive advantage among competitors in future. Why did ikea become so popular on a global mass scale. Ikea s localised marketing strategies are well aware of the need to add a distinctive twist to make the brand more. This popular furniture retailer has customized its marketing efforts for a new generation through a cohesive and forwardthinking digital strategy. Swot analysis, goals and objectives, creative brief, strategy and execution, media and public relations strategies, objectives and tactics, and both direct marketing and. The promotional and advertising strategy in the ikea marketing strategy is as follows.

Hence, in order to solve the research questionhow ikea designs marketing strategies for the chinese market, integrating its global marketing strategies with culturallybased marketing activitiesconducting a case study is a sensible selection. Ikea marketing strategy essay example just great database. The companys main targets comprise a keen attention on pricing, classy, middleincome earners and families. Ikea is shifing its marketing strategy, moving away from its traditional focus on rooms to instead put the spotlight on product innovation and showcase how the addition of just a few new things can transform the home. This is why we have jobs in marketing and communication in all ikea retail countries, even if numbers are limited. Ikea produced products based on customisation in order to meet customers demand and increase profits. This case study on ikea companys marketing strategy was written and submitted by user demetrius huff to help you with your own studies. Introduction ikea is a swedish company registered in the netherlands which was founded in sweden in 1943 by ingvar kamprad. Ikea companys marketing strategy 630 words case study. The case discusses the global marketing strategies of sweden based furniture retailer ikea. The furniture of the 1950s is the not the furniture of the 21st century. Heres an entertaining jaunt from memac ogilvy in dubai that envisions the annual ikea catalogue as the answer to quite literally life, the universe and everything.

Comparison of marketing mix of ikea in four countries. The starting point of this master thesis is the background. Oct 02, 2016 besides, ikea follows differentiation strategy to some extent. How ikea became kings of content marketing contently. Coupons, special product discounts, festival promotions are other marketing tactics which are used by ikea to gain new customers and maintain their existing customer base.

Case study ikea about ikea since its 1943 founding in sweden, ikea has offered home furnishings and. Ikea business strategy is built upon the ikea concept. It is a brand that has broadly differentiated and has not depended upon a solitary classification of items or administrations for its extension. Which factors would influence ikea timing of entry in chinese market.

Putting ikeas digital strategy together with no leftover. To meet this vision ikea provides many well fun many people as possible can afford to buy them. Integrated marketing communication program for ikea executive summary this paper presents an integrated marketing communications scheme for ikea. Apart from its affordable products, the brand is also known for great quality and matchless designs. The ikea concept starts with the idea of providing a range of home furnishing products that are affordable to the many people, not just the few. Ikea uses promotion tools like tv, print, online ads, billboards etc in its marketing mix.