SVKM’S Narsee Monjee Institute of Management

Studies, Hyderabad

Post Graduate Diploma in Management

2018-20

Integrated Marketing Communication Report:

IKEA

Submitted by:
Abhimanyu Rawat – 80303180151
Disha Kashyap – 80303180092
Kanishk Ailawadi – 80303180013
Rushit Sheth – 80303180177
Executive Summary

‘We make saving energy look good’

It is not just a fancy statement designed to sell products, but the creative thought behind the
whole campaign. Consumers need to feel good about their purchase decisions and IKEA
products can provide that for them. By purchasing from IKEA, consumers feel like they are
making a positive impact on the environment as well as expressing their personal style.

The campaign employs the appropriate mix of marketing aspects to best achieve the outlined
objectives. Television, radio, OOH and print ads are supplemented by banner advertising on
the Internet to help raise awareness. Social media tactics, such as Facebook, Instagram, Pintrest
and Twitter profiles will help build the strong, open relationship between IKEA and its
consumers by creating a forum encouraging two-way communication.

The campaign wouldn’t be complete without direct marketing and sales promotion strategies.
The direct marketing ideas aim to create awareness as well as increase sales through direct
mailers and coupons. These tactics will supplement the successful catalogue distribution as
well as entice new customers to experience IKEA. In-store launch promotions, such as a buy-
one-get-one free program, will also encourage new customers to shop at IKEA. Last but not
least, an entire overhaul of the IKEA Family program rounds out the campaign by passing on
value to current customers and offering them the incentive to return to IKEA for their entire
home furnishing needs.

Environmental responsibility is an increasing theme across the nation and because IKEA has
already made great strides in this area, it makes sense to promote it. It is in IKEAʼs best interest
to take advantage of this campaign and the opportunity it provides.

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Table of Contents
Executive Summary ......................................................................................................... 2
About Ikea ...................................................................................................................... 5
History .................................................................................................................................... 5
Vision...................................................................................................................................... 6
IKEA in India ......................................................................................................................... 6
Brand Brief ..................................................................................................................... 7
Pricing .................................................................................................................................... 7
Place (Distribution) ................................................................................................................. 7
Product ................................................................................................................................... 7
Promotions ............................................................................................................................. 8
Marketing Communications ................................................................................................... 9
Target Audience .............................................................................................................11
Creative Brief .................................................................................................................12
Why are we creating an IMC campaign? ................................................................................................ 12
Whom are we talking to? .......................................................................................................................... 12
What do they currently think? ................................................................................................................. 12
What would we like them to think? ......................................................................................................... 12
What is the single most persuasive idea we can convey? ....................................................................... 12
Why should they believe it? ...................................................................................................................... 12
Are there any creative guidelines? ........................................................................................................... 13
Are there any particular tools or mediums to be used to advertise? .................................................... 13

IMC Plan Objectives and Strategies ................................................................................14

Overview: ............................................................................................................................. 14
Objectives: ............................................................................................................................ 14
Strategies: ............................................................................................................................. 14
Integrated Creative Strategy Statement ...........................................................................15
Creative Execution (Digital & Print Sample)...................................................................16
Creative Body Copy ........................................................................................................17
Brand .......................................................................................................................................................... 17
Headline ...................................................................................................................................................... 17
Subhead ...................................................................................................................................................... 17
Copy ............................................................................................................................................................ 17
Tagline ........................................................................................................................................................ 17

Media Plan .....................................................................................................................18

Overview: ............................................................................................................................. 18
Objectives: ............................................................................................................................ 18
Strategies: ............................................................................................................................. 18
Budget Allocation: ................................................................................................................ 19
Tactics: ................................................................................................................................. 19

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 1. Digital/Social Media: Rs. 27 Crore ................................................................................................. 19
2. Television: Rs. 63 Crore .................................................................................................................. 20
3. Print: Rs. 36 Crore ........................................................................................................................... 21
4. Radio: Rs. 9 Crore ........................................................................................................................... 21
5. OOH Advertising: Rs. 18 Crore ..................................................................................................... 21

Media Scheduling...........................................................................................................23
Direct Marketing Objectives and Tactics .........................................................................24
Objective 1:........................................................................................................................... 24
Tactic:................................................................................................................................... 24
Objective 2:........................................................................................................................... 24
Tactic:................................................................................................................................... 24
Sales Promotions Objectives and Tactics .........................................................................25
Objective 1:........................................................................................................................... 25
Tactic:................................................................................................................................... 25
Objective 2:........................................................................................................................... 25
Tactic:................................................................................................................................... 25
Measurement and Evaluation Plan .................................................................................26
Overview: ............................................................................................................................. 26
Pre-testing ............................................................................................................................ 26
Post-testing ........................................................................................................................... 26
Conclusion .....................................................................................................................28

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About Ikea
IKEA is a global leader in furniture and home products. Founded in Sweden in 1943, IKEA is
now a worldwide retailer of affordable, well-designed products and solutions for every room
in your home. Since Ingvar Kamprad founded IKEA in 1943, the company has been inspired
by innovation and hard work and desires to champion sustainable living and responsible
sourcing. IKEA offers a wide range of products and prides itself on making attractive, good
quality items that can be sold at a low price. In addition to furnishings and home products,
stores typically include a restaurant and a café offering a variety of foods. In addition to its
low-cost offerings, IKEA makes it a priority to use environmental friendly practices and to
give back to the community, particularly to help better the lives of children. IKEA is a very
successful and profitable corporation because it cares about selling quality products at an
affordable price while giving back to the community

History

The name IKEA is derived from the founderʼs initials (IK), the farm, Elmtaryd (E), and village,
Agunnaryd (A) where he grew up. The area where Kamprad was from plays a large role behind
the IKEA ideal. The company began in an economically challenged region of Sweden, which
is partly responsible for why the company is economically responsible. It is no coincidence
that IKEA brands itself with yellow and blue as they are the national colours of Sweden.
Kamprad learned at an early age how to make the most from limited resources, and this ideal
still carries the IKEA brand today. This concept behind the IKEA lends value to the brand and
can potentially attract consumers as well and retain current customers who value hard work
and integrity. Consumers today are also looking for ways to better their lives and the world
around them, but are also restricted due to busy schedules and tight budgets. IKEA strives to
create a “better everyday life for the many people” and this isn’t just about providing stylish
and affordable furnishings, but also to educate and help consumers make smart decisions when
it comes to helping the environment and cutting energy usage and costs.

The IKEA logo has changed during the company’s history and the 1983 version
remains a consistent symbol of the IKEA BUSINESS

IKEA started selling furniture in 1948, and published its first catalogue in 1951. Flat-packing
was introduced in 1956 and has been the foundation of maintaining low prices ever since. IKEA
opened its first store in 1958 in Älmhult, Sweden and today the IKEA Group has 420 plus
stores in 50 countries.

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Vision

At the heart of the IKEA concept is its vision: to create a better everyday life for the many
people. The IKEA concept starts with the idea of providing a range of home furnishing products
that are affordable to the many people, not just the few. It is achieved by combining function,
quality, design and value - always with sustainability in mind.

The IKEA Concept exists in every part of the company, from design, sourcing, packing and
distributing through to its business model. The aim is to help more people live a better life at
home.

IKEA in India

IKEA India has been present in India for 30 years as part of the INGKA Group, sourcing many
different products for IKEA stores worldwide. Today they source products for approximately
€ 315 million every year, with the aim of doubling it in the next few years to meet our global
and Indian needs. They work with 48 suppliers in India, engaging 45,000+ direct co-workers
and approximately 400,000 co-workers in our extended supply chain. The suppliers are long
term partners who share our vision and values. IKEA opened its first independent Indian store
in Hyderabad and is set to open its next store in Navi Mumbai, with online sales in Mumbai
likely to be launched before. It has set a target of attracting 100 million middle-class shoppers
in India as it rushes to open more stores.

“India is a long-term commitment for IKEA, and we will focus on fast expansion with a multi-
channel approach," says Peter Betzel, CEO, IKEA India.

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Brand Brief

Pricing

Affordable Pricing – IKEA’s products are not only low price but good quality for the price
paid. IKEA manufactures in bulk to keep the costs down, and ensure affordability. Additionally
brick and mortar stores are typically placed outside city centers to keep prices even lower.
Suburbs are generally more affordable to build on due to more space being available. The IKEA
Concept is to provide low-priced items that help people live a better life at home. It determines
the way products are designed, built, shipped, sold, and assembled. The goal is to offer a wide-
range of functional and well-designed products that are affordable to the masses. IKEAʼs
pricing strategy is unique because the design of their products actually begins with the price
tag. Once the price point is established, IKEA designers start creating a quality product to fit
that price by considering how to maximize production, how to efficiently use raw materials
and how to apply technical innovations to make the best possible product. IKEA keeps waste
at a minimum and relies on flat-packaging and self-assembly.

Place (Distribution)

Recently, IKEA has altered its strategy and adopted two new store models. Its smaller stores
located inside town display a limited range of products. There are bigger stores at city centres
that display a larger range of products, present on the outskirts of the town. It has got an
excellent place and distribution strategy as a part of its marketing mix. It has huge volumes on
manufacturing side and flat packages i.e. it is useful in increasing value to weight ratio. IKEA
has over 25+ distribution centres and has business operations in more than 50 countries. Over
9,500 products are sold at IKEA. Procuring materials in proximity with supply chain to reduce
transport costs and using more of ocean transport than road transports by building DCs in
proximity to ports are some strategies adopted by IKEA. Products are transferred from
suppliers to IKEA stores directly. This reduces handling costs, reduces transport and lowers
the carbon footprint. Also warehouses are attached to retail stores.

Product

IKEA products are also based on elegant design with modular fit and function. The products
are of modern design, to which many young adults find visually appealing. The furniture is
shipped unassembled to keep cost down, but engineered and designed to allow easy assembly.
The layout and design of the IKEA catalogue appeals to designers, young professionals,
architects and artistic types. The company does a magnificent job of using photography of their
products in real use scenarios to make the items look more appealing. In fact, IKEA’s main
marketing tool is their catalogue which accounts for 70% of their annual marketing budget.

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IKEA flaunts a deep product mix having following product line and product depth:

• Outdoor furniture
• Baby & children’s products
• Eating
• Bathroom storage
• Desks
• Mirrors
• Beds & mattresses
• Chairs
• Cooking
• Clothes storage
• Decoration
• Leisure & safety products
• Sofas & armchairs
• Small storage
• Lighting
• Kitchen cabinets & appliances
• Textiles & Rugs
• Storage furniture
• Swedish food
• Tables
• Wireless charging
• TV & media furniture
• Tools & hardware

Promotions

IKEA focuses a lot on its marketing activities. IKEA uses promotion tools like TV, print, online
ads, billboards, etc. in its marketing mix. Due to its popular brand name, and its pricing
structure, the best promotions which bring results for Ikea are sales promotions and trade
promotions. Thus, this is where Ikea concentrates the most. Using coupons, price discounts,
festival promotions, and all other marketing gimmicks in their bag, Ikea ensures that customers
get regular advantages from various deals offered by the large scale manufacturer. Further to
BTL promotions, Ikea uses ATL medium like Newspapers, Television as well as Digital media.
The print ads of Ikea are known to be smart and to the point which grabs customer attention.
As they have a presence in varying geographies, the communication too differs from the
country. In general, Ikea is a smart marketer and their product itself speaks volumes. The
promotions support the products by making them look desirable and unique in their design.

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Marketing Communications

IKEA has shown innovation in the design of its product line, as well as its current and past
marketing communications. Their current marketing efforts seem to mainly focus on design
and style. There is a huge opportunity for IKEA if they decide to better promote their dedication
to the people and the planet. The following arel some of IKEAʼs best marketing efforts:

• IKEA’s take on augmented reality - back in 2013, when IKEA rolled out a catalogue
app feature called ‘Place in Your Room’ that allowed users to try out their desired
products in their homes incorporating the latest technologies like augmented reality to
help customers make the right purchasing decisions.

• “According to Carnegie Melon, only one book has been distributed in more copies than
the Bible — the Ikea catalogue the thought-provoking quote surely reminds us of the
sheer volume of Ikea catalogues that circulates around each year: 200 million. The
‘’bookbook’’ promo, one of its most witty campaigns, may still be fresh in your
memory. Released in 2015, IKEA reassured its confidence in the good old printed
catalogue by skilfully suggesting that prints are not dead in the digital age.

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• Guerrilla marketing and freebies - IKEA also takes a bolder approach when it comes to
ambient marketing. It’s ‘Moving Day’ marketing stunt in Quebec caught passerby’s
attention with free boxes of moving, printed with moving tips, checklists, a dinner offer
for those yet to set up their kitchens, and a discount offer for IKEA furniture. The result?
Store traffic increased more than 14% from the same weekend the previous year,
whereas sales increased by over 24.5% than the previous year.

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Target Audience
IKEAʼs target market consists of college-educated, middle-class men and women in their mid-
20s to mid-30s and families from various ethnic backgrounds living near metropolitan areas.
These are mainly millennial generation, who are cost conscience, technologically savvy, and
appreciate modern design. They are mainstreamers and aspirers, favouring well-known brands,
and valuing image and appearance (“Psychographic segmentation”). They also value hard work
and a job well done. The target market makes purchases when they are experiencing changes
in lifestyle, such as moving to a new home, or having a child. The target looks for affordability
and functionality, as well as quality and style, when shopping for home furnishings. The target
audience desires a stylish and trendy lifestyle without having to spend a lot of money to achieve
it. However, because IKEA does offer competitive pricing on quality products, the company’s
products may appeal to all sexes, ages, and geographic locations. IKEA’s price point makes
their products attractive to students and professionals, young and old alike.

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Creative Brief
Client: IKEA India Date: 16/08/2019
Type: IMC Campaign Pages: 2

Why are we creating an IMC campaign?

We are creating this campaign to create pre-launch brand awareness in Mumbai, to increase
awareness of IKEA’s 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. It aims to help consumers realize they don’t have to compromise quality and
style in order to have a positive impact on the environment.

Whom are we talking to?

We are talking to millennial, families and individual men and women in India, between the
ages of mid 20’s to early 40’s, people who want to take steps to a greener lifestyle, but don’t
want to sacrifice their personal style or a lot of money, to do so. These individuals appreciate
sustainability efforts.

What do they currently think?

Our customers think IKEA has inexpensive, trendy furniture but at times quality suffers. They
also think being green can be expensive or will require too much effort. Customers are typically
unaware of the contributions that IKEA makes to the environment and the world. They think,
to be green you have to be extreme.

What would we like them to think?

IKEA has low priced furniture that customers can readily purchase or customize to match their
style. By shopping at IKEA the customer is also making a contribution to the environment.
Simple everyday solutions can make a big difference.

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. IKEA does the hard
work for you when it comes to energy-saving solutions.

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. IKEA’s

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online resources also simplify and enhance the shopping experience while effectively blend
style and sustainability.

Are there any creative guidelines?

All materials will include: IKEA logo, the brand slogan – The Wonderful Everyday, bright
colours, IKEA products and website URL. 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 store making customers’ lives and the world around them
better.

Are there any particular tools or mediums to be used to advertise?

The communication mediums can be any or all, considering that the message communicated
has be in sync with the IKEA concept - help consumers realize they don’t have to compromise
quality and style in order to have a positive impact on the environment.

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IMC Plan Objectives and Strategies

Overview:

IKEA must grow sales in the developing Indian market. Over the 2019 calendar, IKEA aims
to launch its new store in Navi Mumbai as well as start online operations in Mumbai. The single
most important marketing strategy for most western manufacturers and retailers is to try to tap
into India’s market. India is a market ready to explode.

Objectives:

• Create awareness about IKEA entering the Mumbai market

• In six months, increase awareness of IKEAʼs sustainability and responsibility to the
environment by 15%.
• In one year, increase sales by 30% among the target audience by leveraging IKEAʼs
environmentally-conscious business ideas.
• In six months, increase awareness by 20% by positioning IKEA as a stylish and
affordable place to buy furniture for first-time homebuyers.

Strategies:

• India and most of Asia are very populated, therefore there is typically very little
available space for family homes. So homes are small and very compact. Because of
this, IKEA’s products are ideal to fit due to their sleek design and modular functionality.
Any marketing campaign in India has to start with simply building brand recognition.
• Associate the IKEA brand with the environment by linking the indoors and the outdoor
through messages that show nature interacting with IKEA products, to emphasize that
IKEA products are good for the environment.
• Create messages that correlate shopping at IKEA with a greener and more eco-friendly
lifestyle by featuring IKEA products that have energy-saving features
• Create content and creative that shows the energy-efficient technology that goes into
building new Mumbai store and upgrading the existing Hyderabad store with the same.
• Encourage first -time homebuyers to furnish their new homes with products from
IKEA, by creating messages that show how convenient shopping at IKEA is because
of their wide variety of home furnishings and their one-stop shop approach.
• Since this is a brand building exercise, you have to believe that as recognition increases,
sales will also increase.

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Integrated Creative Strategy Statement

“We make saving energy look good”

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Creative Execution (Digital & Print Sample)

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Creative Body Copy
Brand: IKEA

Target: Men and women, ages 20-30, who want their homes to look stylish and also want to
take steps toward helping the environment, all while staying on a budget.

Headline: “We make saving energy look good”.

Subhead: Inspiring a more sustainable life at home.

Copy: At IKEA, 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 don’t have to
sacrifice style to stay in your budget. Shopping at IKEA means you get what you want, in your
budget and you’re giving back. That’s why we take steps to minimize waste and make careful
use of our resources, including recycling almost 90% of in-store waste for energy production.
By designing stylish furniture and offering it at affordable prices, we help you take steps to
bettering your life and saving energy in your own home. In fact, we make saving energy look
good.

Tagline: We make saving energy look good.

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Media Plan

Overview:

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

Objectives:

• Broadcast media to reach 60% of the target market a minimum of 10 times over a 12
month period.
• To reach 65% this percentage in the first three quarters, and 80% by the last quarter.
• Target 60% of media resources at pre-launch awareness in Mumbai and 40% towards
existing Hyderabad 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 OOH media to target potential customers living between one and three hours
away from the new store location at a frequency of 3 times per week over a 12 month
period.
• To gain 250,000 followers each on Twitter and Facebook in six months.

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. It aims to
increase store visits by engaging consumers and encouraging them to visit a store for
easy and affordable energy-saving solutions.
• Make Pintrest, Twitter, Instagram and Facebook creatives with tips on how to cut
energy costs, updates on new store construction and energy-saving resources used
for the new store and links to outside articles on sustainable living: Using Digital
media is important because 97% of individuals are millennial and use the Internet
heavily, and 66% of adults use social networking sites.
• Develop outdoor ads for use within a 150 mile radius of IKEA store: OOH ads will
be utilized to express how it feels to shop at IKEA. The outdoor venue allows for the
message to meet the customers without interrupting their day
• Radio advertising on Fever FM: Fever FM is the most popular FM channel in
Mumbai and has the maximum reach. Mumbai is famous for its heavy traffic so it’s
very likely the target audience will turn to the radio while commuting.
• The use of banner ads on home furniture websites to increase website visits: This
will help increase the website traffic

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 • Create ads for print magazines use: Print magazines are a great addition to the
campaign because they gel well with the famous hard-copy catalogue use of the brand
is and are read by many individuals in the target market

Budget Allocation:

The total budget allotted for media usage is Rs. 153 Crores. Budget allocation per medium is
as follows:

• Television: Rs. 63 Crore

• Print: Rs. 36 Crore
• Digital/Social: Rs. 27 Crore
• Outdoor: Rs. 18 Crore
• Radio: Rs. 9 Crore

Tactics:

1. Digital/Social Media: Rs. 27 Crore

Facebook and Instagram:

• Create ads updates about cutting energy usage at home to increase traffic to/and
interaction with IKEA INDIA Facebook and Instagram handles.
• Photo updates on new Mumbai store to create buzz.
• Posts about the technology that is used to make the new store energy-efficient.
• Use user generated content about which IKEA products make their lives at home easier
and which products they use to cut their energy costs.

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YouTube:

• Promote the TVC made for IKEA India Campaign – ‘We make saving energy look
good’ via Internet.
• Create background and pre-launch 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.

Twitter:

• Tweets including tips on how to easily cut energy costs at home.

• Tweets about/links to information on new store opening and the energy-saving
technology used in the construction of the store.
• Links to outside articles on sustainable living to direct traffic to website.

Banner ads:

• HGTV.com, Pepperfry, Urbanladder websites

Rationale:

• We chose banner ads because they are less obnoxious than pop-ups and unlike pop-up
ads, banner ads can’t be blocked. Banner ads create more awareness and reach the right
audience. We chose HGTV.com, Pepperfry and Urbanladder websites because they are
popular websites to visit when looking for home improvement and decorating ideas.
IKEA should be positioned as the number one source for stylish, affordable, energy-
saving home furnishings and décor.
• Social Media provides a forum for two-way communication between IKEA and its
consumers, while building a relationship. IKEA will appear more “approachable” as a
brand. Twitter, Facebook and Instagram were chosen as a way to communicate with
consumers and keep them up-to-date on what IKEA INDIA is doing to help the
environment. Twitter and Facebook/Instagram posts can show consumers that IKEA
isnʼt just preaching sustainable living, but they are practicing what they preach by
posting pictures and updates on the energy-efficient technology that goes into building
new store.

2. Television: Rs. 63 Crore

• 30 second ad spots
• Network television
o Star, Sony, Central
o Prime time day – part

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 o The ads will be aired one per commercial break and each ad will further a
continuous story line. The viewer isn’t looking at one ad multiple times, but
rather a series of ads that tell a story throughout the program.

Rationale:

We chose television because it has a national coverage and is popular among the target market.
We chose the prime day-part because it draws the largest audience. A 30-second spot is selected
because it is the most common, plus a 15-second spot wouldn’t be long enough to convey the
message, and a 60-second spot could lose viewer’s attention.

3. Print: Rs. 36 Crore

• Full page, minimalistic colour usage to match brand guidelines

• Homify Magazine, Architectural Design Magazine, Livspace Magazine

Rationale:

We chose Homify, Architectural Design and Livspace Magazines for the same reasons we
chose the websites: they are the most famous Indian Interior design and home décor magazines
and a good source of information on home improvement and decorating. The circulation is
high and will reach a large number of consumers. We chose full page, minimalistic-colour ads
for the most visual impact.

4. Radio: Rs. 9 Crore

• 30 second slot during prime time

Rationale:

We chose Fever FM Radio channel as it is the most popular FM channel in Mumbai and has
the maximum reach. Mumbai is famous for its heavy traffic so it’s very likely the target
audience will turn to the radio while commuting. It is a good source of quick tips and
information on home improvement and decoration.

5. OOH Advertising: Rs. 18 Crore

• Billboards and Hoardings in and around 150 mile radius of the IKEA store in Mumbai
• Simple creative, minimalistic colour pallet
• Quirky headlines to catch maximum attention

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Rationale:

We chose Billboards and Hoardings as a media to create maximum buzz in the nearby areas of
the new store location of Mumbai and has great impact as there’s heavy traffic on Mumbai
roads so viewship will be high. It is a good way to communicate on what IKEA INDIA is doing
to help the environment and can show consumers that IKEA isn’t just preaching sustainable
living, actually doing so.

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Media Scheduling

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Direct Marketing Objectives and Tactics

Objective 1:

• To increase sales among new customers by 20% in one year.

Tactic:

• Send coupons for 20% discount on purchase, to new residents at apartment complexes
in cities within a 150 mile radius of the IKEA Hyderabad store.
• Coupons would be valid for 60 days to encourage new tenants to go to IKEA to buy
home furnishings for their new apartments.

Objective 2:

• To increase awareness about IKEA’s Mumbai launch and its eco-friendly products by
60% over a six month period.

Tactic:

• Direct mailers
o Mailers would be sent to households matching IKEAʼs target market profile.
o Mailers would include information on energy-efficient/eco-friendly product
choices available at IKEA.
o To encourage purchase, recipients of the mailers would be invited to go online
to activate a printable coupon to use during their in-store on the launch day.

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Sales Promotions Objectives and Tactics

Objective 1:

• To increase repeat purchases by 30% in one year among current customers (Hyderabad
store).

Tactic:

• IKEA Family loyalty program upgrade.

o Currently, the IKEA Family program offers members monthly discounts on
select products. While this is a good way for customers to save money on items,
the products featured each month might not be items the customer needs or
wants to purchase. Implementing a points program for IKEA Family members
would be a more effective way to pass savings on to customers.
▪ One point would be earned for every Rupee spent.
▪ Rewards certificates can be earned at three levels: 500 points = Rs. 100
certificate; 1000 points = Rs. 400 certificate; and 2000 points = Rs. 700
certificate. Certificates can be redeemed up to six months after the date
it is earned, and can be redeemed on any in-store purchase.
▪ On select weekends, double points can be earned.

Objective 2:

• To increase repeat purchases by 20% in one year among new customers (Mumbai
Store)

Tactic:

• Buy one, get one free offer on complementary products

o Examples: Buy a new IKEA lamp, get a pack of LED light bulbs for free; buy
a new IKEA mattress, get the bed base for free.
o This promotion gives customer the incentive to buy at IKEA because they can
buy everything in one place and are saving money on items they were going to
have to purchase anyway.
o This would be a good way for first-time IKEA shoppers to realize the value
IKEA provides by offering a variety of products in one store.

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Measurement and Evaluation Plan

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
• Increase customer growth and retention

Pre-testing

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 adopted to further evaluate the campaign:

• Concept testing

A focus group of 12 people comprised of IKEAʼs target audience will be assembled in both
Hyderabad and Mumbai. The purpose of the focus group is to test that the campaign is headed
in the right direction and the right strategies are being employed. We are looking to measure
whether the tactics outlined in the campaign will increase awareness about IKEAʼs launch in
Mumbai and its mission to better the planet and its people. The members of the focus group
will hopefully conclude that the strategies designed for IKEA in this plan are successful in
creating awareness and correlating buying IKEA furniture and home furnishings as an easy
and effectual way for consumers to do their part in becoming more eco-friendly.

• Recognition method

Utilizing the recognition method will measure if the TVC and print ads being run as part of
this campaign stand out and capture consumer’s attention, how good is the brand recall, as well
as whether the ad communicates the message that IKEA provides furnishings that are good for
the environment and can save the customer money in energy costs.

Post-testing

• Tracking studies

Using a tracking study will evaluate the effectiveness of the parts of the campaign designed to
increase awareness, purchase, and repeat purchase. Primarily, we would like to determine
whether the revised IKEA Family loyalty rewards program is encouraging repeat purchases

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among the existing consumer base. If 30% or more of IKEA Family members are making
multiple purchases in one year, that would be considered a success.

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Conclusion

Integrated marketing communications (IMC) is the key to successfully building and

maintaining customer relationships. Due to the vast marketing opportunities available today,
IMC is a necessity for IKEA’s future campaigns. A solid company identity can be effectively
communicated through IMC and adds reliability to the company voice. The campaign – ‘We
Make Saving Energy Look Good’ is designed to build customer relationships, and showcase
IKEA’s sustainability efforts. IKEA is a company that understands how various parts work
together to achieve the best ‘whole’. IKEA has a hand in design, price, production, distribution,
etc., so it only makes sense for IKEA to implement and integrated marketing communications
campaign. A successful IMC campaign achieves marketing and sales objectives by combining
the non-traditional and traditional forms of media. Integrated marketing communications is
about innovation and adaptation, much like IKEA.

This campaign has mixed well, the traditional with the non-traditional marketing methods to
create a plan that works best for IKEA. The brand’s dedication to the people and the planet will
be capitalized by the campaign on IKEAʼs environmentally-conscious nature and better expose
this side of IKEA to the target market. The combination of creative strategy, paid media, direct
marketing and sales promotion listed above will assist IKEA in creating pre-launch buzz in the
country, increasing sales, increasing sustainability awareness and improving relationships with
customers. By implementation of this IMC plan, IKEA will be able to increase customer
engagement and more effectively communicate IKEA’s mission and vision to the target
audience.

In past years, IKEA has focused primarily on print advertising and relied very heavily on their
catalogue efforts. With IKEA’s increased investment in sustainability, and the shifts in
marketing and advertising 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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