This document discusses IKEA's market research findings from interviewing prospective furniture buyers. It found that while some prefer to assemble their own furniture for customization and affordability, others prefer hiring someone due to age or not wanting to damage furniture. The document also discusses IKEA's product categories, competitive advantages like affordable prices and global presence, and opportunities and threats in the Philippine market such as development but also competition from local stores. The objectives discussed include introducing IKEA in the Philippines through advertising and PR to target classes A and B.

2. 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.

3. • 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

4. • 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.

5. “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

6. TOP THREE BRANDS:
• SM Homeworld
• Our Home
• Dimensione

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

8. WHY ARE WE THERE?
A. Marketing Mix
PRODUCT
• 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

9. • hard-wearing, easy to live with and a space
saver
• can cater to the hearts of almost all ages in
IKEA

10. 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

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

12. 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”

13. 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.

14. 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.

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

21. • 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.

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

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

24. • IKEA Billboard
using IKEA items in
New York

25. B. SWOT Analysis
STRENGTHS WEAKNESSES
- World’s largest furniture retailer - Few outlets worldwide
-Known globally, which makes it a credible - DIY might not be appealing to other
brand to patronize consumers
-Strong market position - No IKEA Philippines, only re-sellers; thus
the items are high-priced
- Design & function wrapped into one
- Absence of advertisements in the
- Multi-functional, intelligent, & fun country
-Wide variety of items
SWOT
- Growing economy of the country - Many furniture stores are venturing into
- Development of new infrastructure selling more affordable items.
- International presence - Emergence of highly-competitive,
- Increasing influence of social media alternative furniture shops.
OPPORTUNITIES THREATS

26. C. COMPETITIVE ANALYSIS
PRIMARY COMPETITORS:
• SM Homeworld
• Our Home
• Dimensione
• Blims Fine Furniture

27. • 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

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

29. • 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)

31. POSITIVE NEGATIVE
The future of appliances that
run via renewable energy It could be quite expensive
could be a huge help to the due to high exchange rate to
present environment. Philippine Peso because
IKEA is an international
store.
It could attract customers that Local Hardware stores may
prefer to design their own compete with their products
homes or offices in a and create a more affordable
preferable manner. solution.
Products are easy to use
which is an advantage and Location may be a problem
may gain the customers’ because the store usually
interest. needs a lot of space to carry
out its processes.
Its non-profit foundation can It might be quite hard to
contribute to society promote the brand to certain
especially for a third-world communities that do not
country. have internet connections.
It can provide employment.

32. WHERE DO WE WANT TO BE?
A. Marketing Objectives
The 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.

33. B. Communications Objectives
The 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.

34. 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.

35. 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.

36. 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.

37. 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?

38. 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.

39. SWS 2009
*The average monthly income of the Swedish is much higher:
$1,810 (around P75,600). (www.worldsalaries.org)

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

41. • 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

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

43. • 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

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

45. IKEA, “Your Home is Our Exciting Workplace”

46. 5. What brand character should come through?

47. • 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

48. 6. What can make the proposition credible?

49. • 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.

50. B. Promotional Tools
1. ATL
- Print
- Radio
- Television
- Internet

51. PRINT

52. PRINT

53. PRINT

54. 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!

55. TELEVISION

56. INTERNET

57. 2. BTL
- Billboards
- Events
- Sponsorship

58. BILLBOARDS

59. BILLBOARDS

60. BILLBOARDS

61. 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)

62. -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

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

64. 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