1. Advertising Strategies of IKEA
Presented by:
1. Anu Damodaran
2. Abhinav Gupta
3. Sakshi Sharma
4. Iccha Gandhi
MBA G, Amity University, Dubai

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3. IKEA - founder’s initials (I.K.) plus the first letters of Elmtaryd DÉCOR and
Agunnaryd (A), the farm and village where he grew up
1950s - proper furniture retail store
1960s - first IKEA restaurant opens
2000s - expands to new markets of Russia and Japan
2006 - launches its own food label covering about 30 percent of the 150
products in its food range
Over six decades, IKEA went from the woods of southern Sweden to being
a major retail experience in 44 countries around the world
http://www.youtube.com/watch?v=fRnegv5-cc8
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4. Vision statement
 “To create a better everyday life for the many people.”
Mission statement
 “To offer a wide range of well designed, functional home furnishing
products at prices so low that as many people as possible will be able
to afford them.”
Business idea
 “To offer a wide range of well designed, functional home furnishing
products at prices so low that as many people as possible will be able
to afford them.”
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5. Designing great products in terms of:
 Convenience
 Functionality
 Price
 Quality
 Clever solutions
 Great value to the customers
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6. 1. Products - Design, variety and range of furniture
 Outdoor
 Children
 Kitchen
 Office
 Mirrors
 Beds and mattresses
 Chairs
 Storage
 Decoration
 Lighting
 Sofas and armchairs
 Tables
 Textiles and rugs
 TV and media
4 Ps OF IKEAs MARKETING
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7. 2. Pricing - Low
3. Place - Outskirts of large cities, large stores
4. Promotion*
CUSTOMER SEGMENTS
 Women
 Youth
 Children
 Family
 Fashionable people
 People who love modern and innovative stuff
 Low Income families
4 Ps OF IKEAs MARKETING
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8.  Pottery Barn
 JC-Penny
 Ashly Furniture
 Raymour and Flanigan
 John Lewis
 Argos
 B&Q
 Next
 Home Depot
 Pier1
 THE ONE (in UAE)
IKEAs COMPETITORS
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9. Advertising partners:
 Forsman & Bodenfors
 BDDH
 Ogilvy & Mather
CREATIVE POSITIONING STATEMENT
“HI DESIGN+LO PRICE our endless possibilities”
PROMOTION - ADVERTISING STRATEGY OF IKEA
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10.  Media tactics
 Public relations tactics
 Direct mail tactics
 Sales promotion tactics
 In store displays
 Store layout
 WOM
http://www.youtube.com/watch?v=uaxtLru4-Vw
PROMOTIONAL MIX
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11.  Increase website traffic by 10 percent in 12 months
 Increase foot traffic in-store by 5 percent in 12 months
 Increase awareness of sustainability/philanthropy efforts in the
target market by one million people in 12 months
 Increase sales by 10 percent 12 months
 Increase sales of returning customers by 15 percent in 12 months
 Increase the percentage of customers in the target demographic who
associate IKEA with low priced, customizable furniture and
environmental sustainability by 10 percent in 12 months
INTEGRATED MARKETING COMMUNICATIONS OBJECTIVES
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12.  Social (UNICEF)
 Environmental (Sustainability)
 Economic (Low Price, value employees)
ROLE OF IKEAs ADVERTISING
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15.  Digital communication
 Social media
 Improve the content
 Increase customer interaction with the page
 Micro blogging
 Adjust all the above to local language, humor, taste and
preferences
CONCLUSION
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