IKEA PRESENTATION

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IKEA PRESENTATION

  1. 1. 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.
  2. 2. • 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
  3. 3. • 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.
  4. 4. “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
  5. 5. TOP THREE BRANDS:• SM Homeworld• Our Home• Dimensione
  6. 6. • The brands that the respondents were least aware of are IKEA and Blims Fine Furniture.
  7. 7. WHY ARE WE THERE?A. Marketing MixPRODUCT• 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
  8. 8. • hard-wearing, easy to live with and a space saver• can cater to the hearts of almost all ages in IKEA
  9. 9. 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
  10. 10. • Flooring• IKEA FAMILY products• Kitchen cabinets & appliances• Lighting• Small storage• Sofas & armchairs• Storage furniture• Tables• Textiles & rugs• Tools & hardware• TV stands & media solutions
  11. 11. 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”
  12. 12. 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.
  13. 13. 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.
  14. 14. AD CAMPAIGNS: • Hangin’ Out in Copenhagen -It is IKEA’s way of representing a room in a cube which is suspended from construction equipment.
  15. 15. • Happy Birthday inStockholm-They used the IKEAstore as their mainpromotional tool torepresent IKEA’sanniversary makingthe store as a bigcake.
  16. 16. • Hangin’ Out inCopenhagen-It is IKEA’s way ofrepresenting a roomin a cube which issuspended fromconstructionequipment.
  17. 17. • Bus Stop inInstanbul-IKEA placed sofas inrandom bus stops in Instanbulopposite the metalbenches.
  18. 18. • IKEA Billboardusing IKEA items inNew York
  19. 19. 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
  20. 20. C. COMPETITIVE ANALYSISPRIMARY COMPETITORS:• SM Homeworld• Our Home• Dimensione• Blims Fine Furniture
  21. 21. • 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
  22. 22. SECONDARY COMPETITORS:• CW Home Depot• Wilcon Builder’s Depot• MC Home Depot• Small-time furniture shops
  23. 23. • 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)
  24. 24. POSITIVE NEGATIVEThe future of appliances thatrun via renewable energy It could be quite expensivecould be a huge help to the due to high exchange rate topresent environment. Philippine Peso because IKEA is an international store.It could attract customers that Local Hardware stores mayprefer to design their own compete with their productshomes or offices in a and create a more affordablepreferable manner. solution.Products are easy to usewhich is an advantage and Location may be a problemmay gain the customers’ because the store usuallyinterest. needs a lot of space to carry out its processes.Its non-profit foundation can It might be quite hard tocontribute to society promote the brand to certainespecially for a third-world communities that do notcountry. have internet connections.It can provide employment.
  25. 25. WHERE DO WE WANT TO BE?A. 6-pack question: 1. Who are our target markets and what do they currently think, feel or do in relation to the brand?
  26. 26. Primary Market: Classes A & B customers thatare potential buyers of new and modern stylefurniture; particularly, newly wedded couples,interior designers, architects, developers,SOHO owners and pre-existing home owners.
  27. 27. SWS 2009*The average monthly income of the Swedish is much higher:$1,810 (around P75,600). (www.worldsalaries.org)
  28. 28. 2. What do we want them to think, feel or do as a result of the advertising?
  29. 29. • 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
  30. 30. 3. What is the most important insight that we should exploit?
  31. 31. • 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
  32. 32. 4. Based on that insight, what single-minded proposition should we make?
  33. 33. IKEA, “Your Home is Our Exciting Workplace”
  34. 34. 5. What brand character should come through?
  35. 35. • 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
  36. 36. 6. What can make the proposition credible?
  37. 37. • 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, while giving their customers a sense of fun and excitement at the same time.
  38. 38. B. 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.
  39. 39. C. Communication 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.
  40. 40. Because of this, our main objective is to introduce IKEA asan international home furnishing brand which offers a widerange of products with the perfect combination of superiordesign and quality mixed with sheer functionality, which ismatched with an unparalleled thrust towards innovation.Henceforth, we would like to capitalize on what we thinksets IKEA apart from other home furnishing brands, may itbe local or international, and that is the fact that IKEAstrives for an equal balance of their seriousness in offeringthe best products and services to their new and their loyalcustomers, and their passion for fun and excitement whichkeeps their customers coming back.
  41. 41. The products we offer and the place where theyare sold communicates the image of the brand.Through this, we build the IKEA brand and weinspire customers to come to our stores. Offeringhigh quality products in a good and homeyenvironment would encourage customers to visitour stores, making them prefer the brand whichwill eventually lead to brand loyalty. This wouldbe achieved through advertising and variouspublic relation tools.
  42. 42. 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.
  43. 43. HOW DO WE GET THERE?• The big idea for this campaign is “Your Home is Our Exciting Workplace”, which aims to show how IKEA delivers to the expectations of its customers seriously while being dynamic enough to be fun and exciting.• It would also show that IKEA is a company that is very keen on researching for the improvement of the homes and lives of their customers
  44. 44. A. Promotional Tools1. ATL- Print- Radio- Television- Internet
  45. 45. PRINT
  46. 46. PRINT
  47. 47. PRINT
  48. 48. RADIOThe biggest furniture retailer in the world isfinally here in the Philippines! Be at the grandopening of the IKEA Store on December 29,2013, 10 a.m. at the Bonifacio Global City.Special gift prizes would be awarded to thefirst 500 customers in line! Get a chance towin a ten thousand-peso gift certificate! Yepyou heard that right, ten thousand pesos! Theexcitement continues all weekend! See youthere!
  49. 49. TELEVISION
  50. 50. INTERNET
  51. 51. INTERNET
  52. 52. INTERNET
  53. 53. 2. BTL- Billboards- Events- Sponsorship
  54. 54. BILLBOARDS
  55. 55. BILLBOARDS
  56. 56. BILLBOARDS
  57. 57. 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 2013)• -The June Bride and Groom Collection (June2013)
  58. 58. -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
  59. 59. SPONSORSHIP• “Obra Maestra” at the 18th WORLDBEX• Home and Modern Living Expo• Kris TV
  60. 60. 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 percentageB. Surveys - Useful in determining the brand awareness of the costumers about the productC. Events - Number of attendees in the events that IKEA will hostD. Social Media - Likes, comments and people who participated in the games by IKEAE. Amount of Media Exposure - counting the times that it was shown in television, print and radio; ad space in billboards and magazines

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