- 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;
- 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)
- 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 ?
- Elliot, Amy-Mae (2011), How an Integrated Marketing Campaign Boosted IKEA’s Sales over 7%, Mashable, retrieved from: http://news.yahoo.com/integrated-marketing-campaign-boosted-ikeas-sales-over-7-104826162.html
- IKEA Announces New “Design By IKEA” Blog and “Share Space” Photo-Sharing Website (2011), PRWeb, retrieved from: http://www.prweb.com/releases/2011/8/prweb8713903.htm