Session 7: Integrated Marketing Case Study – IKEA

IKEA’s Problem: 

  • In previous years, IKEA was able to increase revenues by opening new stores and acquiring new customers.
  • Only one store was opened in 2011.
  • To maintain a similar sales increase as previous years, IKEA needed to grow the amount spent by customers on every transaction (known as “ticket size”).

IKEA Consumer Behavior:

  • Tends to buy furniture at IKEA usually when starting out (e.g. going to college, first home)
  • Tends to buy home accessories and small items instead of whole rooms of furniture;

IKEA Research:

  • Spent time with 35-year old low-ticket female shoppers in the store and at their homes
  • Researchers realized that female shoppers wanted personalized inspiration for putting rooms together that could deliver their unique vision of a happy family life

IKEA’s Integrated Marketing Campaign:

  • Goal: All forms of advertising had to demonstrate the ability to put a room together with the  various styles at IKEA
  • TV ads (examples)
  • Online display ads
  • Public relations using magazine editorial integrations
  • Sponsored reality TV show “Fix This Kitchen”
  • Ran “Life Improvement Seminars” in 53 IKEA stores with media partners such as “O”, the Oprah magazine, “This Old House”, “Family Circle” and “Cooking Light”
  • Online destination Share Space where users can upload their design ideas and learn from ideas posted by others; all designs carry the tagline – “Made by <CUSTOMER NAME>, designed by IKEA”
  • Design By IKEA Blog
  • Facebook page (http://www.facebook.com/IKEAUSA)
  • Youtube channel (http://www.youtube.com/ikeausa)
  • Twitter handle (@DesignByIKEA)

Campaign Results:

  • Overall sales grew above expectations at 7.4% (versus the 5% target)
  • Sales of rooms rose 9% for living rooms and 12% for kitchens (compared to industry growth of 1.05%);
  • Ticket size increased by 6.2%, which shows that IKEA successfully drove people to spend more on whole rooms;
  • IKEA’s Facebook fan base tripled to 354,000;
  • @DesignByIKEA Twitter account hit 13,648 Twitter followers in just over a month;
  • The Share Space site saw more than 36,000 unique users within the first month of launch;

Questions:

  • How does Share Space encourage users to contribute their photos ?
  • What is the benefit of asking users to tag their photos on Share Space ?
  • What can users do with spaces that they’ve uploaded ? How about spaces uploaded by others that they admire ?
  • How does Share Space support IKEA’s campaign goal of increasing ticket size ?
  • How does this marketing campaign support IKEA’s customer relationship management processes ?

References:

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One thought on “Session 7: Integrated Marketing Case Study – IKEA

  1. Pingback: Four Ways to Improve Your Integrated Marketing Campaign | Search Engine People | Toronto

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