Month: October 2012

Session 8: Mobile Marketing – Augmented Reality

DistrictNerds has just released a free iPhone app called ‘IKEA Now & Furnish’ which lets users see how the furniture items from IKEA’s catalog would look like in their homes before they buy the item.

The app features the 3D models of various IKEA furniture pieces. Augmented reality is used to let users take a photo of the 3D furniture model within the real space around them, to see if the furniture’s style and size fits in with the surroundings. The app also lets users get more information about the product.

The app only features 70 pieces of furniture as of the time of writing but the company will be adding more furniture pieces soon. If interested, you can download the app from iTunes. You can read the app’s FAQ, too.

IKEA Mobile

IKEA Mobile

Image Source: iTunes


Session 7: Digital Marketing with Twitter (IKEA USA)

Visit @DesignbyIKEA at and browse the updates posted here.

Click on the hashtags #IKEA, #inspired, #DIY, #contest and #OYou2012. What is the purpose of  hashtags ?

What actions can users perform on the posts (or “tweets”) posted on the @DesignbyIKEA Twitter page ?


How do interactions on Twitter differ from interactions on Facebook ?

Session 7: Digital Marketing with Facebook (IKEA Hong Kong)

With the Facebook app ‘Made Better by You’ , created by ad agency Ogilvy & Mather Hong Kong, IKEA Hong Kong now lets customers customize one of five classic pieces—LACK (side table), TARVE (chest of 6 drawers), BILLY (bookcase), DOTTEVIK (shade), KARLSTAD (two-seat sofa), and INGOLF (chair)—with their own designs.

Users can also save the furniture piece they customized under their preferred moniker, on IKEA Hong Kong’s Facebook page, and post it on their wall.


What do you think are IKEA’s objectives in this marketing campaign ?

Evaluate the effectiveness of using social networking to accomplish its objectives.

Reference: DesignTaxi

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 (
  • Youtube channel (
  • 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;


  • 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 ?