IKEA

Integrated Marketing Communications Campaign

Kat Shanahan
IMC 610 Final Project
Due: June 23, 2012

Kat Shanahan - Integrated Marketing Communications - IKEA

Executive Summery
IKEA is a home improvement store that takes pride in providing their customers with low-priced
furniture and giving back to the world around them. Since the nearly 70 years since IKEAs
beginnings, they have grown into a $30 billion dollar company that strives to create a better
everyday life for the many in all of their business efforts. When shopping at IKEA, in-store or
online, customers are treated to an experience that no other furniture store can offer.
IKEA has a strong brand personality in addition to a solid business foundation. These concepts
provide the foundation for a successful integrated marketing communications campaign. This
campaign will build off of IKEAs strong foundation and promote IKEAs sustainability efforts,
furniture customization options, and new marketing tools that will make the shopping experience
more convenient for IKEAs customers.
Market research has indicated that IKEA as room for improvements in their digital/social media
strategies, publicity of their sustainability efforts and improving customer relationships. This
integrated marketing communications plan will focus on aligning IKEAs marketing efforts with
their sustainability efforts, while increasing the sales and awareness of IKEAs products. This
integrated approach will unite creativity, paid advertising, public relations, direct marketing
and sales promotion to show customers why shopping at IKEA improves their life and the world
around them. The tactics outlined in this plan will communicate to customers how IKEA has
developed tools to make shopping in-store and online more convenient. Customers will also be
informed of IKEAs sustainability efforts and how they are contributing to the world around them
while purchasing stylish, customizable furniture that fits into their budget.
The single most important thing this campaign will communicate to customers is that shopping at
IKEA not only allows the customer to get what they want, the way they want it and in the budget
they want, it also has positive effects on the environment.

Kat Shanahan - Integrated Marketing Communications - IKEA

Table of Contents
IKEA Background Information

History

Mission Statement

Company Financials

Creating a Better Life

Product Mix

Marketing Mix
Competitors
Target Market
SWOT Analysis
Integrated Marketing Communications Plan

Objectives
Strategies
Creative Strategy

Statement
Brief
Execution
Paid Media

Objectives
Strategies
Tactics
Budget
Flowchart
Public Relations

Objectives
Tactics
Direct Marketing

Objectives
Tactics
Sales Promotions

Objectives
Tactics
Additional Social/Digital Recommendations
Product Packaging
Measurement and Evaluation
Conclusion
Works Cited
Images

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Kat Shanahan - Integrated Marketing Communications - IKEA

IKEA Company Information

History Highlights

History
IKEA was founded in 1943 by Ingvar Kamprad and is
currently under the parent company INGKA Holding B.V
that is owned by Stichting INGKA Foundation. Ingvar
Kamprad got his modest start selling pens, Christmas cards
and seeds in southern Sweden. From there, Kamprad began
advertising and demands grew too high for him to handle
individual sales calls. In 1948, the first piece of furniture
was introduced into his product range. True to todays IKEA
philosophy, the furniture was made from local manufacturers
and the resources were from the forests close to his home
(ikea.com).
Kamprads first catalog was published in 1951, and since
then IKEA has distributed 208 million copies in 30 different
languages (IKEA Systems B.V., 2011). After the success of the
IKEA catalog, Kamprad opened his first furniture showroom
in lmhult, Sweden. Over the next seven years Kamprad
introduced flat packed furniture that requires self-assembly,
opened the first IKEA store in lmhult and gained IKEAs
100th co-worker. It wasnt until the 1980s that IKEA began
to expand into other markets including the United States.
Since then, IKEA has been expanding all over the world.

1943
Kamprad founded IKEA in the village
where he was raised. Some of the first
products sold were:
Pens
Wallets
Watches
1945
The first IKEA advertisement
was developed
1948
Furniture introduced into
product mix
1951
IKEA catalog created
1953
First furniture showroom opened
1956
Furniture is designed to be flat
packed and assembled by customers
1958
First IKEA store opens in Sweden
1959
100th co-worked hired at IKEA

IKEAs current operations include:

26 Distribution center
11 Customer distribution center
287 Stores in 28 countries
Operations in 41 countries

1960
First IKEA restaurant opens
1985
IKEA opens first store in the U.S.
10,000 co-workers in 60 IKEA stores

Mission Statement and Business Principle

IKEA was built on the foundation of creating a better life for
the many people. Their business principle is simple, 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 (Inter IKEA Systems B.V., 2011).

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1997
IKEA launches website
Childrens IKEA is created
1999
50,000 co-workers in 158 stores
located in 29 countries
2004
200th IKEA stores opens

Kat Shanahan - Integrated Marketing Communications - IKEA

Company Financials
It is because IKEA still strives to create a better everyday life for the many people that in 2011
they achieved more than $30 billion in total revenue, celebrated 131,000 coworkers in 41
countries, and saw 655 million store visitors and 870 million website visitors (Inter IKEA Systems
B.V., 2011).

Total revenue in billions of dollars

Creating a better life

Not only did IKEA see business success in 2011, they helped create notable changes in the world
around them. Because of IKEAs business success, the United Nations High Commission for
Refugees saw a $62 million dollar donation, and UNICEF and Save the Children saw a $13.8
million donation to provide books, classrooms and teachers to approximately 2.8 million children
located in 20 countries around the world (Inter IKEA Systems B.V., 2011).
In addition to donating to organizations around the world, IKEA has been focusing on
sustainability efforts including wind turbines and solar panels. At the end of IKEAs 2011 fiscal
year, they had 69 wind turbines creating 15 percent of the energy needed to run their stores
and distribution centers. By July 19, 2012 IKEAs U.S. solar panel array reached 535,800 square
feet and contained 17,443 panels. This addition allows IKEA to reduce carbon emissions by
the equivalent of 791 cars annually. IKEA still has 17 solar panel projects underway in the U.S.
(Combes, 2012).
IKEA was also built on the principle of growing from their own resources, which means the
company earns money before they spend money. In 2011, customers saw this in the form of a
2-3 percent price reduction on products across the store (Inter IKEA Systems B.V., 2011). This
principle also translates into the treatment of their employees. The company believes their
coworkers, and the values they share, are their most valuable asset and pride themselves on their
development opportunities.
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Kat Shanahan - Integrated Marketing Communications - IKEA

Product Mix
Currently, IKEA offers approximately 12,000
products including furniture for the kitchen,
bathroom, bedroom, living room and
patio. All products are designed with cost
effective packing, shipping and distribution
in mind. This strategy furthers IKEAs focus
to keep costs low while providing stylish
and innovative products for their customers.
IKEA focus their marketing communication
strategies on the customization and diversity
of these products, and most importantly,
their price point.

Product Lines of Interest

EKTORP

BILLY

STRANNE

LAIVA

HEMNES

FRGRIK

MALM

ARV

BAROMETER

RUTBO

IKEA designs product based on:

Determining the price tag first
Seeing things differently: Reusing products and experimenting with re-purposing materials
Flat packing: IKEA is able to keep costs low by flat packing products and customer self-
assembly
Responsibility for people and the environment: IKEA strives to reduce their contribution to

climate change
Good design and function
Products and materials: IKEA strives to reduce the negative impact of their materials on the
environment

Marketing Mix
One of the most memorable IKEA marketing campaigns was the 2010 life improvement store
campaign, which was based off of their mission of creating a better life for the many. This was
the first campaign for IKEA in three years. The campaign aimed to convince the target market that
having better spaces in your home made for a better life. IKEA spent $90 - $100 million dollars
on the campaign, which lead to more than $23 billion in total revenue (Vega, 2010).
Previously, IKEA has focused their marketing efforts on print and outdoor advertisements. In
recent years they have been slow to enter the digital advertising and social networking media.
IKEA has four primary areas in their marketing mix.
IKEA Product Range: IKEAs product range is the key to their marketing efforts
IKEA Catalog
IKEA Stores
Advertising and Public Relations: Advertising and PR help support the other three areas of the

marketing mix

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Kat Shanahan - Integrated Marketing Communications - IKEA

Competitors
IKEA faces competition from many low-priced furniture outlets in the United States and overseas.
Some of the largest competitors in the United States include, Pottery Barn, Pier 1 Imports, Ashley
Furniture and Bedding, Target and Walmart. Some of these competitors are outlined below.

Target

Target offers similar furniture pieces to IKEAs EXPEDIT and LACK product
series
Prices are very competitive
Target has more brick-and-mortar locations in the US than IKEA
2011: $69.87 billion in revenue (target.com)

Walmart
Competitive pricing on furniture
More brick-and-mortar locations in the United States than
IKEA
Walmart is a super store that allows for convenient

shopping on a diverse range of products
2011: $44.4 billion in revenue (walmart.com)

Pottery Barn

Large furniture dealer with locations in the United States, Canada

and the Middle East
Online design tools and inspiration
Outlet centers
Heavy utilization of social networking and digital marketing efforts

Ashley Furniture and Bedding

Competitive pricing on furniture
Specialize in furniture production
Retail locations in the US, Costa Rica, Japan, Mexico, Puerto Rico,

Canada and Indonesia
Delivery and assembly services available
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Kat Shanahan - Integrated Marketing Communications - IKEA

Target Market
IKEAs target market is men and women living in the United States between the ages of 2231, landing them in the millennial generation (CBS News, 2008). They are the target of many
advertising campaigns and are one of the most difficult audiences to effectively reach. These
individuals have bachelors degrees and are in pursuit of, or recently placed in their first
professional employment opportunities, and for the first time in their lives have disposable
income. Additional characteristics are outlined below.

Geographic
Live in the U.S.
Live in a state with an IKEA store

however, it usually takes a few hours to

get to a location
Purchasing or renting unfurnished spaces
Spent many years in university living

arrangements or parent homes
Reside in medium to large cities
Public transportation available in cities

Demographic Information
On the verge of marriage, or are recently
married
Average annual income: $26,000 $45,000
Bachelors degree
English is primary language
Born in the United States
No children or very young children
Average debt: $40,000 single
Average debt: $70,000 married
Own Smartphone
Dwellings contain multiple computers/tablets
Occupations: technology, art, medical, engineering

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Kat Shanahan - Integrated Marketing Communications - IKEA

Psychographic Information
Budget-conscious,
Not afraid to invest for the future
Value a low price on quality products
Value strong customer service due to

being raised with a me first

mentality (CBS News, 2008)
Take pride in their appearance
Enjoy customization
Self confident
Free time: entertaining, engaging with

friends, video games, and traveling
Enjoy online shopping
Open minded
Support global initiatives and shop at companies that support those initiatives
Disposable income: dinner, movies, coffee, traveling, entertainment and technological gadgets
Members of multiple social networks including Facebook, Twitter and LinkedIn

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Kat Shanahan - Integrated Marketing Communications - IKEA

SWOT Analysis
Overview
IKEA is a global company with a strong brand image. They have a very strong company mission,
which contributes to their marketing success. Currently, they are facing challenges ranging from
economic issues in the United States to increases in social/digital media advertising demands.

Strengths

Weaknesses

Strong brand identity/personality

Product customization, diversity and

integration between product lines
Cost effective products made from recycled

and environmentally friendly materials

(Inter IKEA Systems B.V., 2011)
Investment in solar panels and wind turbines
Strong company values

Being a global brand makes maintaining

standards difficult
Less than one store per state in the U.S.
Poor delivery service, complicated truck

rental, and expensive shipping
Heavy reliance on cost effective products

leads to difficulty improving struggling
areas
No option for purchasing assembled furniture

Opportunities

Threats

Increased interest in sustainable efforts

Increased demand for affordable furniture
Increased demand for social networking/

online marketing
Lower carbon footprint

Additional stores selling low priced furniture

(Target, Walmart) with more

brick-and-mortar locations in the U.S.
Economic recession in the U.S. (Zucherman,

2011) and in Europe (Bruce & Spicer,
2012)
Americans are waiting longer to purchase

their first homes (National Association of

Realtors, 2011)
Rising gas prices in the U.S. make traveling

great distance to IKEA stores difficult

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Kat Shanahan - Integrated Marketing Communications - IKEA

Integrated Marketing Communications Plan

Overview
The following campaign is designed to promote IKEAs sustainability efforts and increase product
awareness and sales in the target demographic. The campaign will also convince customers that
shopping at IKEA and utilizing their new online and digital tools will make their lives easier, and
the world around them better. In addition, shopping at IKEA means customers get what they
want in a budget that fits their life style.

Integrated Marketing Communications Objectives

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 Strategies

Promote sustainability/philanthropy efforts across all paid media
Create interactive web/digital tools to engage target audience and simplify shopping experience
Participate in community events to generate earned media coverage
Develop sales promotions redeemable in-store only to attract customers from greater distances

and increase in-store traffic
Promote furniture and non-furniture items to customers through direct marketing efforts
Utilize social media to communicate with target market
Utilize consumer information to encourage return visits

from customers
Develop consistent and integrated creative concepts for

paid media, social/digital media, sales promotions and

direct marketing tactics

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Kat Shanahan - Integrated Marketing Communications - IKEA

Creative Strategy
Creative Strategy Statement: IKEA has low priced, customizable furniture that fits everyones
needs and has a positive impact on the environment.

Creative Brief

Client: IKEA
Type: Overall IMC Campaign

Date: 06/17/12
Pages: 1

Why are we creating an IMC campaign?

We are creating this campaign to increase awareness of IKEAs sustainability efforts, to highlight
the customization options and diversity of IKEA products, and demonstrate how shopping at IKEA
will make the customers lives and the world better.
To whom are we talking?
We are talking to men and women, between the ages of 22 and 31, in the United States who
enjoy customizing their furniture and are on a tight budget. These individuals appreciate
sustainability efforts.
What do they currently think?
Our customers think IKEA has inexpensive, trendy furniture but at times quality suffers. Many of
them also think that shopping at IKEA is an all day trip because they do not live near a store. They
are somewhat aware of the customization options with the furniture. Customers are typically
unaware of the contributions that IKEA makes to the environment and the world.
What would we like them to think?
IKEA has low priced furniture that customers can create or customize to match their style, and
the online tools make customers lives easier. By shopping at IKEA the customer is also making a
contribution to the environment.
What is the single most persuasive idea we can convey?
Shopping at IKEA not only allows you to get the products you want, the way you want them and
in the budget you want, it also has positive effects on the environment.
Why should they believe it?
IKEA gives the customer a unique shopping experience while allowing them to effortlessly give
back to the world. IKEA allows shoppers to customize and custom build furniture. IKEAs online
resources also simplify and enhance the shopping experience.
Are there any creative guidelines?
Fun, upbeat ads that show the target audience having fun traveling to IKEA, shopping at IKEA
or using the IKEA website. The ads will also show IKEA products, resources and stores making
customers lives and the world around them better. All materials will include; IKEA logo, the
slogan The Life Improvement Store, bright colors, IKEA products and website URL.
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Kat Shanahan - Integrated Marketing Communications - IKEA

At the life improvement

store we want to make
your life, and your world,
better. You enjoy low
prices and customizable
furniture, which allows us
to give back to the
environment. You dont
have to sacriice style to
stay in your budget.
Shopping at IKEA means
you get what you want, in
your budget and youre
giving back. Your life, your
world, better.

www.ikea.com

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Kat Shanahan - Integrated Marketing Communications - IKEA

Paid Media
Overview
Paid media will be essential to promoting sustainability efforts and product knowledge to IKEAs
target market. Over the next 12 months, television, radio, social/digital media, and outdoor
advertising will be utilized to meet the campaign objectives.

Media Objectives
Use broadcast media to reach 60 percent of the target market a minimum of 10 times over a 12

month period
Achieve a minimum reach of 75 percent during April, May, August, September and a minimum

reach of 60 percent during the remaining eight months with a minimum frequency

of 10 during all 12 months
Target 60 percent of media resources at current customers and 40 percent towards potential
customers
Use social/digital media to maintain a consistent weekly reach of 250,000 members of the

target audience at a minimum of 4 times per week over 12 months
Utilize outdoor advertising to target potential customers living between one and three hours

away from an IKEA store at a frequency of 3 times per week over a 12 month period

Media Strategies
Create ads to run on cable television

Cable television spots are essential to the campaign because they reach a large audience

in many geographic locations.
Create ads for use in print magazines

Print magazines are a great addition to the campaign because they have pass along

readership and are read by many individuals in the target market.
Generate Social Media/Digital ads to drive traffic to the IKEA web site and stores

Social Media/Digital ads are important because 97% of individuals 18-29 years old use

the Internet, and 66% of adults use social networking sites (pewinternet.org).
Develop outdoor ads for use within a 150 mile radius of IKEA stores

Outdoor ads will be utilized to express how it feels to shop at IKEA. The outdoor venue

allows for messages to meet the customers without interrupting their day.
Develop radio ads for use on satellite radio

SiriusXM satellite radio reaches over 35.5 million listeners a year (siriusxm.com/

advertise) and free trials are included with the purchase of many new cars including

Hyundai, Chevy and Ford.

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Kat Shanahan - Integrated Marketing Communications - IKEA

Media Tactics
Cable Television

How I Met Your Mother CBS

Supernatural CW

The Big Bang Theory CBS

So You Think You Can Dance FOX

Suits - USA
Print

Good Housekeeping

People

In Style
Social Media/Digital

Social Media

Facebook

Create ads to increase traffic to/and interaction with IKEA USA Facebook

YouTube

Create background and pre-roll ads for use on popular YouTube videos to

drive traffic to IKEA website

Ads will be displayed behind videos searched with the following tags:

Stylish furniture, low-priced furniture, home improvements,

sustainable furniture, better furniture, life improvement,
modern furniture, home goods

Digital Media

HuluPlus

Sponsorship of Modern Family
The TV show Modern Family originally airs on ABC Family.

The episodes are posted on HuluPlus the following

day. HuluPlus is a paid service and allows companies

to sponsor shows/episodes with limited commercial

interruption. In addition, select IKEA furniture is

used on the set of Modern Family. The ads will be

aired one per commercial break and each ad will

further a continuous story line. The viewer isnt

looking at one ad multiple times, but rather a series of

ads that tell a story throughout the program.

Sponsorship of Design Star

Similar to the Modern Family campaign, ads shown during Design


Star will create a unique story line featuring a couple making a
day trip to IKEA.

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Kat Shanahan - Integrated Marketing Communications - IKEA

Outdoor

Billboards, bus stop benches and train stations: Individuals utilizing these types of

transportation typically value sustainability

Ads will feature a collage of photos of IKEA products. The small product photos

will be arranged so that when viewed as a large image the photos create a

benefit to the environment.

Example: Small photos of IKEA products create an image of the
world

Car wraps on hybrid cars

Wraps will be used to highlight IKEAs sustainability efforts and how easy and

convenient it is to transport IKEA products. Hybrid cars will be used to

promote environmental sustainability and how many IKEA products you can

fit in a small space.
Radio

SiriusXM:

Ads will be heard on the following stations:

The Pulse, KIIS, The Blend, The Coffeehouse, The Highway

Budget Allocation
The following represents a breakdown of the $20 million advertising budget designed for this year
with $3 million built in for a contingency plan.
Television: $7 Million
Print: $4 Million
Digital/Social: $3 Million
Outdoor: $2 Million
Radio: $1 Million
Contingency: $3 Million

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Media Flowchart

IKEA
Kat Shanahan
Cable TV - $7 Million
How I Met Your Mother
Supernatural
The Big Band Theory
So You Think You Can Dance
Suits
Print - $4 Million
Good Housekeeping
People
In Style
Digital/Social - $3 Million
Facebook
Youtube
HuluPlus: Modern Family
HuluPlus: Design Star
Outdoor - $2 Million
Billboards
Benches
Train Stations
Car Wraps
Radio - $1 Million
The Pulse
KIIS
The Coffeehouse
The Blend
The Highway

January
4

February
5

11

March
10

12

13

14

15

16

April
17

18

19

20

May
21

22

23

25

June
24

26

27

29

July
28

30

31

33

34

August
32

35

37

38

39

September
36

40

41

42

October

43

44

45

46

47

November

48

50

51

52

December

49

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Public Relations
Overview
IKEAs public relations efforts will focus on earning positive media for IKEAs sustainability efforts
and IKEAs contributions to local communities. Efforts will also be made to monitor customer
satisfaction among returning customers.

Public Relations Objectives

Generate a minimum of 50 positive media reports about IKEAs sustainability efforts over the

next 12 months
Co-Sponsor 30 service projects in the United States over 12 months
Increase awareness of IKEA sustainability efforts in the target market by 25 percent over the next

12 months
Achieve 75 percent customer satisfaction among returning customers over the next 12 months
Sponsor 3 in-store events in the next 12 months attended by 300 members of the target

audience at each event

Public Relations Tactics

Out of Store
Co-Sponsor 30 Habitat for Humanity houses in 30 different U.S. states containing IKEA stores

IKEA will donate a shopping trip to Habitat for Humanity members and the family in

need, to purchase furniture and other needed items for their new home. IKEA will

also donate the time of two employees for one day to help assemble the furniture

and decorate the house.

Implementation

Send press releases to all media outlets within a 45 mile radius of
targeted houses in development

Contact housing blogs, community blogs, and community social

networking sites at all housing locations to build pre-
event excitement

Invite members of the press to an open house event when the

Habitat for Humanity house is fully decorated

Create social media buzz by posting photos and information in real
time at each location

Create Facebook events for each building site and invite local

community members to the open house

Create in-house videos of the habitat family shopping for their

IKEA products and the IKEA employees helping to assemble
the products

Videos utilized on IKEA USA YouTube and Facebook pages
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Create a biweekly electronic newsletter highlighting IKEA USA product information and

worldwide sustainability efforts.

The newsletter will contain sustainability information, recall information, soon-to-be

discontinued products, design tips and feature a client-designed space. This

will generate interest in IKEA products and keep customers and other stakeholders

informed about sustainability efforts and products in IKEA stores.

Implementation

The newsletter will be disseminated electronically to align with
sustainability efforts

Social networking sites will also promote mailing list sign ups

Client-designed spaces featured in the newsletter will also be

showcased on the IKEA Shared Space web site

It will be sent as a hybrid press release/newsletter to media outlets,

customers, community members, and interested parties

that opt-in to the mailing list currently found on IKEA
web page

The newsletter will be disseminated quarterly
Implement a follow up program with current customers in order to monitor and improve

customer satisfaction. Customer satisfaction surveys will be utilized in two ways.

Implementation

Exit Surveys: An exit survey will display on self-check out screens. This

will help monitor customer satisfaction and increase repeat
purchases.

Online Surveys: A survey page will be developed on the IKEA web site.

When customers receipts print, it will include a link for the survey.
In Store

Create foursquare check-ins in departments around IKEA stores. When customers check-

in they will receive tips and products of interest in each department. A badge will

be created for individuals who check in at 75 percent of locations within
IKEA stores.

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Create three sustainability conferences where customers can come to an IKEA store and hear

updates on IKEAs sustainability efforts and meet IKEA executives.

These conferences will provide attendees with the opportunity to learn

not only about IKEAs sustainability efforts, but also what they can do

to contribute. Each IKEA USA location will provide three, one-

day conferences a year. Attendees will receive media kits

which include the following.

Photos of children IKEA has helped through their donations

Fact sheets on IKEAs sustainability efforts and progress with

solar panel installation and distribution

Product news and information

Pre-event PR initiatives include:

Send press releases to all local media outlets three weeks
prior to event

Generate promotional content on IKEA USA Facebook page

Place small potted trees in local communities with invites attached

Direct Marketing
Overview
The direct marketing portion of the integrated marketing communications campaign for IKEA will
utilize direct mailings and catalogs to achieve the desired objectives. The target market for IKEAs
direct marketing efforts will be individuals in the target demographic who have recently changed
their living situation, individuals who do not live near IKEA stores, and individuals who enjoy
shopping at IKEA.

Direct Marketing Objectives

Utilize direct mail to generate 1,000 new

leads in the target market over 12 months
Utilize catalogs to increase direct-order internet

sales by 2 percent over 12 months

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Direct Marketing Tactics

Utilize direct mail to generate leads and create new customers

IKEA will create miniature magnetic IKEA products and mail them to customers in the

target market. Segments of interest include:

Individuals in the target demographic who have recently moved/had their
mail forwarded

Individuals in the target demographic who recently purchased their first
homes

Individuals in the target demographic recently accepted into a higher
education program

Examples of products and slogans:

A small kitchen product

We heard you moved and might need one of these

A miniature furniture piece

We can help you with small spaces
Direct mail will generate interest in IKEA products and assist in the formation of brand
relationships. In addition, the miniatures can also be used as magnets and remind customers of
the products IKEA offers. Miniature products for this promotion will be selected on the basis of
product awareness, price, popularity and season. Also included on the mailer will be a response
card to request an IKEA catalog or sign up for the mailing list. The mailings will be sent in
January, May, September, and November in order to ensure the message is still applicable to the
target market.
Redesign the IKEA catalog to better align with sustainability efforts and condense information

for better utilization by target demographic

IKEA will create a condensed catalog that allows for easier utilization by target
demographic and reduces postage costs. This campaign will be a series of minicatalogs that together compose the traditional IKEA catalog. Each catalog will
highlight different areas of the home in order to make the content more manageable
and encourage frequent Internet sales. The catalog will also inform customers of
product changes and price reductions. The catalog, in its entirety, will be available
for download on the IKEA website. In order to align with IKEAs sustainability
efforts, the mini-catalogs will be printed on recycled paper and included in the
current IKEA catalog app. The timeline for release will be dependent upon IKEAs
product release information, price reductions and seasonal offerings.

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Suggested distribution

In-store distribution

Entrances and checkouts

Positioned with the store maps

Digital distribution

IKEA mini-catalogs will be a .pdf on the web site for easy

download and integration on mobile devices (ex. iBooks)

The mini-catalog information will be represented in the IKEA
newsletter

The mini-catalogs will be downloadable through the IKEA catalog
app

Customers may sign up via the IKEA web site

Direct mail distribution

Mini-catalogs will be mailed to individuals in the target

demographic that do not live within 45 miles of an IKEA store

Customer may request the mini-catalog via the direct mail tactic
listed above
This format will generate excitement and allow for more frequent communication with target
market. This technique will encourage the target demographic to improve their home roomby-room and not be overwhelmed by the many products that IKEA has to offer. Contacting the
customers frequently, and focusing on items with reasonable shipping costs, will encourage
customers to utilize IKEAs online store.

Sales Promotions
Overview
The sales promotion medium will utilize a loyalty program in addition to a promotion targeted to
individuals living more than 45 miles from an IKEA store. The target demographic for IKEAs sales
promotion efforts will be returning customers and potential customer living greater than 45 miles
from an IKEA stores.

Sales Promotion Objectives

Acquire 50,000 new members in the IKEA loyalty program over the next 12 months
By targeting customers living more than 45 miles from an IKEA store, create a sales promotion

that is redeemed by 25 percent of customers over 12 months

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Sales Promotion Tactics

Implement an IKEA customer loyalty program

IKEA will implement a loyalty program where customers are rewarded for purchasing

items from IKEA. The program will be based on dollar amounts, not the quantity of

products purchased. The program will be free for customers to join and be

renewed on a yearly basis. The customers in the program will also receive the

IKEA newsletter, which contains the mini-catalog information. The program will

be designed as follows:

The customer and sale information will be kept in a digital format and
viewable by customers online

Customers reach milestones based on the dollar amount they spend

When customers reach a milestone, they will receive a coupon in the mail

for a discount on their next purchase or free shipping up to a
predetermined dollar amount

When the customer views their receipt (in-store or via the website), their

loyalty information will be included as well as how theyre

contributing to IKEAs sustainability efforts
A loyalty program will increase brand relationships between IKEA and their customers.
Customers feel valued when they receive awards and feel as though theyve become part of the
IKEA family. The program also ties the customers shopping experience with IKEAs sustainability
efforts.
Implement a sales promotion that rewards customers who are not located near an IKEA store

for shopping in-store

Customers that live at least 45 miles from an IKEA store and bring in proof of address

will have a calculated amount taken off of their total IKEA bill. This promotion will

be utilized one weekend a month over the course of a year. The promotion will be

designed as follows:

Customers drive to the nearest IKEA store with proof of address

The number of miles between the two locations will be multiplied

by a pre-determined rate (ex. .25) and that amount will be

subtracted from the customers total bill.
This promotion will encourage customers who do not live near an IKEA store to make a day trip
to IKEA and purchase larger items for their homes. Customers that need to travel a substantial
distance to IKEA stores are more inclined to make additional purchases because they cant swing
by later and pick it up. This promotion also rewards customers for shopping at IKEA stores and
diminishes the idea of wasting money on gas if they do not find the items they need. However,
when customers are in the store, they find items they werent necessarily looking for, which
increases their total sale.

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Kat Shanahan - Integrated Marketing Communications - IKEA

Create in-store Build It To Win It events.

Three times a year IKEA will host Build It To Win It events where couples have the
opportunity to compete to win products. Couples will compete against each other
and the couples that build the IKEA products the fastest will win those products.
There will be different heats and advancement opportunities throughout the
day and the products will become more challenging as the day progresses. This
will be a great event for returning customers and they will encourage their family
members to watch them compete and IKEA will gain more in-store traffic.

Additional Social/Digital Media Recommendations

In order to improve relationships with target market via social networking, IKEA will

need to closely monitor their social networking sites such as their IKEA USA Facebook site.

Recommendations include:

Create splash page to ensure customers like IKEA page prior to viewing content

Respond to comments, questions and feedback within one hour of user
submitting content

Offer exclusive content for Facebook USA site. Content could include:

Design insight

Increased development of the Spaces series (also shown on YouTube
page)

New series for different types of rooms such as dorm rooms, studio
apartments, two bedroom apartments, etc.
A new web page will be developed on the IKEA website that allows users to input their room
dimensions and available furnishing options will appear on the right side of the screen.
The user will then be able to drag and drop furniture into their room to finalize designs.
This will create a positive experience for shoppers that live a few hours away from IKEA
stores and will also generate positive online reviews. IKEA USA can utilize their Facebook
page to push out content and announcements about the sites.

Product Packaging
QR codes on all IKEA products will lead to an interactive list for

use by store shoppers

This will allow the target audience to easily keep track of

their purchases and locations in product pick up

areas. QR codes will assist in improving customer

satisfaction and help customers keep track of
their purchases.
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Kat Shanahan - Integrated Marketing Communications - IKEA

Measurement and Evaluation

Overview
Measurement and evaluation of this integrated marketing communications campaign will be
based on a variety of measures. In order to be successful the overall campaign will:
Increase sales
Increase the number of customers visiting IKEA in-store and online
Increase positive material on third party media
Diminish negative customer service calls
Increase customer growth and retention

Pretesting
This campaign will utilize copy testing to pretest ads prior to releasing them. The target market
will also be utilized to perform portfolio tests of print ads and on-air theater tests for broadcast
media. The following will be utilized to further evaluate the campaign.

Qualitative
Conduct 3 focus group session over the course of this 12 month campaign

Session group size: 8 10 individuals

Each session will be composed of target audience members in two groups

Those that live near IKEA stores

Those that do not live near IKEA stores

Areas of focus

Overall brand awareness

Overall brand impression

Types of experiences/initiatives that would increase return visits

Intercepts at IKEA stores will be utilized to discuss how the individual viewed their shopping
experience

These intercepts will be discussion based and the customer will be dictating the

direction of the conversation

Employee will ask if they saw any ads, etc. that lead them to IKEA

Quantitative
Conduct panel studies to measure the effectiveness of IKEAs online efforts
Conduct tracking studies semi-annually to measure the effectiveness of the integrated marketing

communications campaign

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Kat Shanahan - Integrated Marketing Communications - IKEA

Conclusion
Integrated marketing communications (IMC) is the key to successfully building and maintaining
customer relationships. IMC ensures the message from the company is reliable and thus
builds relationships with clients. Due to the vast marketing opportunities available today,
IMC is a necessity for IKEAs future campaigns. A solid company identity can be effectively
communicated through IMC and adds reliability to the company voice.
This campaign is designed to build customer relationships, and showcase IKEAs sustainability
efforts. The combination of creative strategy, paid media, public relations, direct marketing
and sales promotion listed above will assist IKEA in increasing sales, increasing sustainability
awareness and improving relationships with customers.
One of the most pressing areas for IKEA to further develop is digital communications and social
networking. IKEA has taken great steps by segmenting their social networking however, the
IKEA USA Facebook page is lacking in content, customer support and overall maintenance. By
creating the splash page and additional content outlined in the social/digital media section of
this plan, IKEA will be able to increase customer interaction with the page and more effectively
communicate IKEAs mission and vision to the target audience. IKEA cannot afford to ignore
customers comments and reactions voiced through social media. Promptly responding to
customer feedback in a public manner and addressing concerns will generate positive reactions
from the target market.
In addition, IKEA needs to focus on paid advertising tactics listed that increase reach to
individuals in the target market that do not live near IKEA stores. This is a critical market that
is being overlooked by IKEAs current paid advertising efforts. The previously outlined paid
advertising and sales promotion tactics will build relationships with this key market and increase
in-store and online sales. Many individuals in this market consider a visit to IKEA an all day
adventure and IKEA will benefit financially from capitalizing on this.
In past years, IKEA has focused primarily on print advertising and relied very heavily on their
catalog efforts. With IKEAs increased investment in sustainability, and the shifts in marketing to
digital/social media, IKEA needs to realign their marketing efforts in order to better communicate
with their target market. Communication with the target market through the integrated marketing
communications plan listed above will assist IKEA in their mission to create a better everyday life
for the many.

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Kat Shanahan - Integrated Marketing Communications - IKEA

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