digital-marketing-ikea.pdf

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Digital marketing ikea
BBA (Savitribai Phule Pune University)
Studocu is not sponsored or endorsed by any college or university
Digital marketing ikea
BBA (Savitribai Phule Pune University)
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A Project Report on the topic
“Case Study – IKEA”
Submitted To
MES Garware College of Commerce (Autonomous), Pune
Bachelor of Business Administration
By
Name: - Arya Parchure
Seat No: ______
BBA IV Semester
Under the guidance of
Dr. Sandeep Rathod
Project Guide
MES Garware College of Commerce (Autonomous), Karve Road, Pune 411004
(2021-2022)
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DECLARATION
I, Arya Parchure, of Second Year BBA hereby declare that the project report submitted on
“Case Study - IKEA”, made under the subject of Digital Marketing represents my own
collection of information, original research and work, was carried out by me in MES
Garware College of Commerce (Autonomous), Karve Road, Pune – 04.
I have completed this mandatory project work prescribed by Savitribai Phule Pune
University. I further declare that the foregoing statements made by me in regard to my project
report are correct and complete.
Date – 17/05/2022
Place – MES Garware College of Commerce (Autonomous), Karve Road, Pune – 411004.
Mr/Ms. Arya Parchure [14045]
SY. BBA Marketing Specialization
MES Garware College of Commerce (Autonomous)
Karve Road, Pune – 411004
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ACKNOWLEDGEMENT
I would like to express gratitude towards our college for the immense support and help
throughout the curriculum, and a special thanks my project guide Dr. Sandeep Rathod Sir, for
extending help, cooperation and guidance right from the generation till the finalization of the
report. He has been a constant source of encouragement and inspiration in designing out this
study. I am grateful to all respective people who have guided me throughout the report.
I would also like to thank Dr Geeta Acharya Madam, Officiating Principal, GCC, for the
immense support and timely help regarding any aspect of the entire curriculum. My sincere
thanks to my friends enabling me to take up various tedious operations easily.
Date – 17/05/2022
Place – MES Garware College of Commerce, Karve Road, Pune – 411004.
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CHAPTER NO CONTENTS
Chapter 1 Introduction
Chapter 2 Literature review
2.1 Ikea’s target audience in India
2.2 Goals
2.3 Challenges
2.4 Characteristics
2.5 Preferred medium
Chapter 3 Data analysis and discussion
3.1 IKEA’S website analysis
3.2 Mobile application
3.3
IKEA’s SEO (Search Engine Optimization)
3.4 IKEA’s SEM (Search Engine Marketing)
3.5 IKEA’s SMM (Social Media Marketing)
3.6 Remarketing
3.7 Google and Quora Reviews
3.8 WebEngage: Email, SMS, and Whatsapp
Marketing
3.9 Telecalling
Chapter 4 Observations and findings
Chapter 5 Suggestions
Chapter 6 Conclusion
Chapter 7 References
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Index
SR NO CONTENTS PAGE NO
1. Title page 1
2. Certificate of guidance 2
3. Acknowledgement 3
4. Index page 4
5. Content page 5
6. Preface 6
7. Chapter 1 : Introduction 7
8. Chapter 2: Literature
review
8
9. Chapter 3: Data analysis
and discussion
9
10. Chapter 4: Observations
and findings
23
11. Chapter 5: Suggestions 24
12. Chapter 6: Conclusion 25
13. Chapter 7: References 26
14. Chapter 8: Abbreviations
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Preface
The work of writing this report has been the journey of hard work
filled with good and bad moments with the latest open ended in
laughter. This report helps us accomplishing one of a bachelor work
and also it gave us new insight that will most definitely be guiding us
in the future.
This report was written for Garware College of Commerce where you
are given opportunity to look into different experience from the
customer's perspective about one of the most unique company's
existing today like IKEA. We like to thank our participants for taking
the time to contribute to ore report by taking part in different work
where our own ideas went dry.This made it possible for us to learn the
purpose of this study.
IKEA is a multinational enterprise that manufactures and distributes
ready-to-assemble furniture, kitchen appliances, and home
furnishings, as well as other useful household items and services.
IKEA started its first store in India in the year 2018 and in the time of
4 years has become a prominent furniture brand due to its marketing
strategy.
We would also like to take this opportunity to thank our faculty for
showing us priceless support and giving us the confidence to always
do our best. Finally, we hope that our work will be a useful learning
material as well as a source of inspiration
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The DIY Giant’s Entry in India: A Marketing Strategy
Case Study on IKEA
Chapter 1: Introduction
IKEA is a multinational enterprise that manufactures and distributes ready-to-assemble
furniture, kitchen appliances, and home furnishings, as well as other useful household items
and services.
Ikea is a Swedish-founded, Dutch company that offers a wide range of well-designed,
functional home furnishing products at very low prices. This is to ensure that a maximum
number of people can afford and experience their offerings.
The company’s stand-out feature is its DIY(Do-It-Yourself) products, meaning that the
furniture comes with guides to be assembled by the customers themselves. This is a fun
activity that became really popular as a trend on YouTube and other social media platforms,
as Ikea assembling challenges.
The company recently opened doors in India and has since garnered a lot of interest in the
market. Although the company only has 2 physical stores in the country as of now, customers
are hopeful in anticipation of more. Its present store locations are one in Navi Mumbai, and
the other in Hyderabad. They do offer online shopping and delivery services in Mumbai,
Hyderabad, Pune, Ahmedabad, Surat, and Vadodara for now.
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Chapter 2: Literaure review
A target audience is the intended audience of a business and its offerings. This is the segment
of people that the company targets and markets to. Each target audience has a unique set of
characteristics and functional needs.
The following is the customer profile of Ikea’s target audience in India-
 Demographics:
 Goals: Work from home, decoration, kids bedroom upgrade, kitchen supplies
 Challenges: Safety is of utmost importance, working 8+ hours, lack of creative
thinking for kids, minimalist living
 Characteristics: Active on all social platforms, closely follow western culture, very
organised, love OTT shows
 Preferred Mediums: Websites/Apps, Social Media, Google, Quora, SMS, Email,
Whatsapp
This is the unique customer profile of IKEA’s target market. An even better customer analysis
can be offered by decoding the target audience’s digital journey:
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Chapter 3: Data analysis and discussion
We will be analysing the various strategies of Ikea’s marketing efforts step by
step here .
1. IKEA’s Website Analysis
 Website Speed Test
For a positive user experience, website speed is critical. Conversion rates are likely to
decrease if your website’s speed isn’t up to the mark. If your website takes longer than 3
seconds to load, nearly 40% of visitors will flee.
Upon testing IKEA India’s mobile website’s speed, it was found that the score was quite
below average at 31. Their desktop website speed was also found to be average at a score of
50. This only leads to an increase in the number of people abandoning the site, technically
known as a high bounce rate. This is quite detrimental to the business. The following can thus
be implemented to improve the site speed on mobile
And these are some other pointers that will improve the site speed on desktop
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 Website UI/UX
The controls customers use to engage with a website or app, such as button displays and
gesture controls, are referred to as the user interface (UI). User Experience (UX) refers to
how consumers behave and feel while using a website or app. Both of these are extremely
important in retaining and attracting individuals to the site.
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The UI/UX of IKEA’s website is quite decent. It also has an enquiry-based chatbot. This can
although be improved by making the chatbot objective. It should provide pre-set options to
users. It should also be personal, having a touch of human elements like a name or a picture.
2. Mobile Application
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Ikea’s app here offers home furnishing products in categories of- product, room, collections,
etc. The user interface & user experience of their application is great as discussed before. But
they can definitely improve upon pointers such as:
 The app should send notifications for new offers, discounts, promotions, etc.
 The app should also send notifications for products left in the cart (unpurchased)
 The app should send updates for new workshop events.
 It needs better keyword optimization to increase app installs
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3. IKEA’s SEO (Search Engine Optimization)
The process of enhancing your site’s visibility for relevant searches is referred to as SEO. The
higher your pages’ visibility in search results, the more likely you are to attract attention and
draw new and existing customers to your company.
IKEA can improve its SEO by focusing on brand and product-specific high intent, purchase
keywords like:
 Buy furniture online: 8100
 Buy furniture: 1600
 Best place to buy furniture: 390
 Ikea furniture reviews:140
 Buy Ikea furniture online: 10
The numbers above are the search volumes for each keyword, which basically means that it
shows how many people are searching for these phrases. Ikea can also publish blogs on the
following topics based on the keywords:
 Apps to buy furniture online
 How to buy furniture online
 Where to buy good furniture online
 How to order furniture online
 Should you buy furniture online
Apart from this, IKEA must optimize its content by conducting on-page and off-page SEO
activities to rank higher.
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4. IKEA’s SEM (Search Engine Marketing)
Search engine marketing is a digital marketing strategy used for increasing a website’s
visibility in the search engine results pages. The term almost entirely refers to paid search
advertising.
Paid search advertising and Pay Per Click (PPC) are other terms for search engine marketing.
With an increasing number of people conducting product research and purchasing online,
SEM is crucial in beating competition.
For this, IKEA can make use of the following competitor-specific, high intent and purchase
keywords:
 Amazon Furniture Offers – 480
 Pepperfry Offers – 3,600
 Pepperfry Reviews – 1,000
Blog ideas to target the most-searched-for topics by customers:
 Ikea vs Pepperfry vs Amazon: Best Place to buy furniture online
 Is it safe to buy furniture online
 What is the best place to buy furniture online?
These blogs will not only improve SEO and SEM but also provide value to the readers and
build brand trust and image.
It was also found that IKEA was not ranking for ads on certain high-volume keywords. To
tackle this they must optimise by increasing bids on high intent and purchase keywords.
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5. IKEA’s SMM (Social Media Marketing)
IKEA’s Indian handles are very active on Facebook, Instagram, Twitter, and Youtube. Their
digital presence is impressive, to say the least. Let’s look at a quick summary of their social
media marketing practices.
 It has 30 Million likes on Facebook, 350 Thousand followers on Instagram, 5.3
Thousand followers on Twitter, and 41.2 Thousand subscribers on YouTube.
 IKEA’s Instagram bio links to its website. The website is also linked thoroughly over
all of their social media posts.
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 The ‘view shop’ option is available, which leads to a list of IKEA’s product
catalogues.
 The ‘call’ option is also available for direct assistance via customer service.
 The company makes excellent use of highlights with visually appealing and
informative content.
 The use of ‘swipe-up’ stories to bring website traffic is also common which is a good
practice.
 IKEA has been conducting free online workshops that draw in lots of enthusiastic
customers, in turn resulting in gaining leads.
 Relevant ads are put out on all social media with compelling CTAs. (Calls to Action)
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So Ikea has clearly got their social media game down. They are acing it on all fronts with
their social media marketing strategy.
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6. Remarketing
Remarketing is a method of connecting to people who have previously visited your website
or downloaded your mobile app. It enables you to carefully place your adverts in front of
these audiences while they explore Google or its partner websites, either increasing brand
awareness or reminding them to make a purchase.
Remarketing a series of 15-second relatable video ads to people who have visited IKEA’s
website would be the ideal strategy here in luring people back.
Another remarketing method could be showing 1-minute video ads of customer testimonials
to people who checked the ‘design your home’ section on IKEA’s website. This is directing
efforts towards the people who are already interested in their services by nudging them to act
further.
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7. Google and Quora Reviews
Upon evaluating IKEA’s pages on Google and Quora, it was observed that the company does
not reply to the questions on the GMB (Google My Business) Q&A Section. This is not a
good ORM (Online Reputation Management) practice.
This is far from ideal as it is very important to address the issues of customers. In order to
have a positive brand image, IKEA must reply to these questions and display it as an example
of dialogue between the consumer and the brand.
It is imperative to have a good brand image on Google, as customers almost always check the
reviews before buying.
Having good ORM results in satisfied customers, thus increasing conversions in the long
term, if not in the short term.
There are also many highly searched questions regarding IKEA on Quora that do not have
satisfactory answers. It is important to tackle such questions which rank on the SERPs
(Search Engine Results Page) and have a good search volume, as these are high intent-based.
This practice ensures the building of brand trust and earns more conversions in the long run.
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8. WebEngage: Email, SMS, and Whatsapp Marketing
WebEngage is a full-stack marketing automation tool that helps consumer businesses grow by
allowing them to engage customers through a variety of channels, including Push, In-app,
SMS, On-site Notifications, Web Push, Email, Facebook-Instagram, and WhatsApp.
IKEA should make use of this tool and curate its own email, SMS, and Whatsapp campaigns.
This is an extremely useful instrument that automates relevant and necessary communication
with customers.
9. Telecalling
Another suggestion for conversions is telecalling. Telecalling is a cost-effective and efficient
method of disseminating information and marketing products and services to both new and
already existing customers.
It enables direct selling wherein the salesperson of a company converses directly with an
interested customer. This strategy is only advisable for very high-priced products and
customised services in the case of IKEA.
All these solutions and strategies combined together form the ‘integrated marketing solution’
that new-age brands and companies are looking for while they increase their presence in the
customers’ minds. Our student team has left no aspect of digital marketing unturned and
presented a wonderfully well-planned strategy to help IKEA market itself and gain ground in
the Indian furniture market.
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Chapter 4: Observations and findings
We studied IKEA’s current Indian digital marketing strategy in-depth and
identified that they could work on improving its conversion rate by optimising it
to be most efficient in terms of results.
The percentage of users to your website who fulfil a targeted goal (a
conversion) out of the total number of visitors is known as the conversion rate.
A high conversion rate indicates that your marketing efforts are successful. It is
an important metric in determining the efficacy of a company’s digital
marketing strategy.
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Chapter 5: Suggestions
The expected and efficient change will be only noticeable when:
1. Current marketing strategy
2. Improving conversion rate
3. Feedbacks
When these 3 aspects will work uniformly and will be equally benefited from
each other then the solution / result of this marketing strategy will be visible.
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Chapter 6: Conclusion
IKEA is a unique company in a country like India. It has so far
understood its target audience well and positioned itself accordingly
in the ideal digital and physical locations. Their marketing strategy is
clearly at par for a brand of its repute and size.
After extensively researching and inspecting their digital marketing
strategy- which already was pretty holistically impressive- we
provided solutions and suggestions to take it to the next level by
improving their conversion rates. The expected result from
implementing all of our solutions to IKEA’s existing marketing
strategy is a growth of 1.5% to the original 1% rate of conversion,
leading to a score of 2.5% which is consistent with the industry
average. This will only aid IKEA in its upward path in the Indian
market.
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Chapter 7: References
1. https://iide.co/
2. https://www.ikea.com/in/en/
3. https://www.instagram.com/ikea.india/?hl=en
4. https://www.youtube.com/user/ikea
5. https://www.brafton.com/blog/strategy/ikea-
marketing-strategy/
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