IKEA’s advertising strategies

In Morocco

A Research Paper Submitted in Partial Fulfilment of the Requirement

of a License Degree

Prepared by:
Hind El Madani

Supervised by:
Dr. Khalid Berrada

May 2023
 TABLE OF CONTENT

1. Introduction….......................................................................................................... 1

1.1. Statement of the Problem….............................................................................. 1

1.2. The Goals of the Study…................................................................................. 1

1.3. Research Questions…........................................................................................ 1

2. Literature Review....................................................................................................... 2

2.1. Definition of Advertising...................................................................................

2.2. Types of Advertising..........................................................................................

2.2.1. Digital Advertising …................................................................................... 3

2.2.2. Traditional Advertising.................................................................................. 3

2.3. The Purpose of Advertising................................................................................

2.3.1. Informing........................................................................................................ 4

2.3.2. Persuading..................................................................................................... 4

2.3.3. Remindig:...................................................................................................... 5

3. IKEA........................................................................................................................... 6

3.1. History of the Company......................................................................................

6
 3.2. Company strucrure..............................................................................................

3.3. IKEA’s Products and Services............................................................................

4. IKEA’s Advertising Strategies.................................................................................... 9

4.1. Advertising Strategies.........................................................................................

4.2. Social Media.......................................................................................................

4.3. The Website........................................................................................................

11

4.4. Celebrity Branding............................................................................................

12

4.5. Broadcast Advertising.......................................................................................

13

4.6. Outdoor Advertising.........................................................................................

14

5. Evaluation................................................................................................................. 16

5.1. Strengths..........................................................................................................

16

5.2. Weaknesses..................................................................................................... 17

5.3. Marketing Improvement Proposal................................................................. 17

6. Conclusion................................................................................................................ 17

References..............................................................................................................................
 1. Introduction

1.1. Statement of the Problem:

Advertising is an essential part of modern marketing and has become an integral

component of our daily lives. From billboards and TV commercials to social media ads and
influencer marketing, advertising is everywhere, shaping our perceptions and decisions as
consumers. It is a strategic process that involves the creation and dissemination of persuasive
messages through various media channels, such as television, radio, print, digital platforms,
and outdoor advertising. The goal of advertising is to influence consumer behavior and
generate sales or brand recognition. Ikea is a well-known global brand recognized for its
creative advertising campaigns. However, the Moroccan market presents unique challenges
for advertising due to cultural differences, local competition, and economic factors.

1.2. The Goals of the Study:

This study aims at identifying the key elements of Ikea's advertising strategies in
Morocco and provides recommendations for improving their effectiveness in reaching and
engaging with the target audience.

1.3. Research Questions:

1. What are the key elements of Ikea's advertising strategies in Morocco?
2. What are the strengths and weaknesses of Ikea's advertising strategies in Morocco?
3. How can Ikea enhance the effectiveness of its advertising strategies in Morocco?

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 2. Literature Review

2.1. Definition of Advertising:

Advertisement is described by the American Marketing Association (AMA) as "the

placement of announcements and persuasive messages in time or space purchased in any of
the mass media by business firms, nonprofit organizations, government agencies, and
individuals who seek to inform and/or persuade members of a particular target market or
audience about their products, services, organizations, or ideas."

“Advertising is a message paid for by an identified sponsor and delivered through mass
medium of mass communication. Advertising is persuasive communication. It is not neutral;
it is not unbiased; it says; ‘I am going to sell you a product or an idea.”- J Thomas Russell and
W. Ronald Lane

With the development of media and technology, the concept of advertising has altered
over time. Advertising may have solely served to promote businesses prior to the 1890s, but
when new media and technology, such as printing technology, were developed, print
advertising started to take off. After the 20th century, the first generation of electronic media,
such as radio, began to spread, prompting the birth of the modern advertising industry. (Wu
YM, Lee PM.,2017). Online advertising has grown to be the most common type of advertising
today, and marketers utilize the Internet to establish brands, reach prospects, close deals, and
boost revenues. (Li, D.K., 1994). Digital advertising has evolved with time, and marketers use
online advertising to deliver new promotional marketing messages for all kinds of products
and services, to specifically targeted consumers at ease, at less cost, and with fast and vast
reach. The ever-evolving digital design and communication have made digital advertising
more effective for modern consumers, especially the young generation. (Debono, J., 2012)

2.2. Types of Advertising:

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 2.2.1. Digital Marketing:
Digital Marketing is an effective way of communication for companies to target a large
number of potential consumers at the same time. Using the internet channel for marketing is a
quick approach to target a number of potential consumers and prospects at same time all over
the world. Social Media Marketing has also revolutionized these marketing activities on
different social media platforms such as Facebook, Twitter, LinkedIn, Pinterest etc.
Moreover, Digital Marketing makes advertisements more accessible to target customers at
any time or any place. There is no time and place limitation for the prospects to visit any
website and view ads. The perpetually displayed ads attract the prospects to get in touch with
you and find the products and services of their need. But these ads should be managed
efficiently to display on a webpage. Using the internet, Digital Marketing is found cost-
effective and cheaper source of advertising as compared to traditional marketing channels
like T.V, Radio, Magazines, Newspapers, and Banners etc. Digital marketing allows
marketers to set their advertising campaigns subject to availability of their budget. Mostly,
the websites and business profiles (displaying ads and information about products or services)
generate huge traffic for free. Social media, with its numerous benefits has played a vital role
in promoting digital marketing activities. Social Media Marketing platforms such as
Facebook, Twitter, Google+, LinkedIn, WhatsApp, Blogs, Yelp, Instagram, and YouTube
etc. also provide a huge traffic source. Bhojaraja and Muniraju, M. (2018).

2.2.2. Traditional Marketing:

Before the emergence of digital marketing, businesses employed traditional methods and
tactics to sell their goods and services. These methods and strategies are referred to as
traditional marketing. It includes a range of offline platforms and strategies, including
billboards, direct mail, trade exhibitions, print ads, television and radio commercials, and
telemarketing. To reach a large audience and build brand awareness, traditional marketing
mainly relies on print media and tangible promotional items. Usually, businesses use a one-
way communication strategy to convey their message to their target audience without prompt
contact or reaction. Although it has been increasingly complemented or supplanted by digital
marketing strategies in recent years, traditional marketing has long been a popular strategy.
P., Simona. (2020).

3
 2.3. The Purpose of Advertising:

Advertising is an efficient tool that businesses can use to accomplish a number of

marketing objectives. Advertising can be extremely important in achieving these objectives,
whether they be increasing brand awareness, boosting sales, or building consumer loyalty.
Advertising must, however, be appealing to the target audience in order to have an impact on
their behavior. This is where the AIDA model comes in. The AIDA model is a commonly
used framework in advertising that outlines three primary objectives: informing, persuading,
and reminding. By understanding these objectives and incorporating them into their
advertising strategies, businesses can create compelling campaigns that engage and motivate
their audiences. Gever, C. V. (2017)

2.3.1. Informing:

Informative advertising is a way of providing people with information that will make
them think. One is given clear facts to believe because they are conveyed simply. It informs
the audience with facts pertaining to the product. Although listeners are not emotionally
invested as much, information is nevertheless presented compellingly. Moreover, informative
advertising is commonly used to drive "primary demand" for new product and service
categories. Integrating new goods and services into current categories is another use for it.
Even though this kind of advertising depends on statistics to prompt desired behavior, the
message is typically presented in a captivating way. Instead of focusing on a clever strategy
to persuade clients to buy a product or service, informative advertising use techniques that
exclusively rely on the power of product features to influence customers to make purchases.

2.3.2. Persuading:

Persuasive advertising tends to be user-oriented. It has the mission of building selective

brand preference by communicating a personal benefit for a user that is unique to a specific
brand. This type of advertising may use beautiful or famous people in marketing campaigns
to encourage consumers to associate positive emotions with their company. Companies also
might offer discounts on purchases to encourage consumers to buy higher quantities of
specific products or encourage purchases across a wider product range. Persuasive
advertising uses more emotive, value-oriented ideas than informative advertising. The goal of
persuasive advertising is to drive selective demand for specific products or services.

4
 2.3.3. Reminding:

Reminder advertising is a type of advertising that reminds existing customers to become

medium or heavy users of the products or services of the firm that have been purchased by
them at least once. Reminder advertising does not contain any new information and does not
influence preferences therefore an exclusion restriction holds: it will only influence the
probability to think about buying a product, but not the decision whether or not to buy a
product once a consumer is thinking about it. He, C., & Klein, T.J. (2018) As opposed to
other types of advertising that aim to create brand awareness or persuade consumers to try a
new product. Reminder advertising can be effective in increasing sales. However, reminder
advertising can also have negative effects, such as reminding consumers of past scandals and
safety risks, as seen in field experiments on China's infant formula industry. Ma, J., Wang, Z.,
& Khanna, T.M. (2017) .

5
 3. IKEA

3.1. History of the company:

IKEA is owned by a Dutch-registered organization that is under the management of the

Kamprad family. Ingvar Kamprad, then 17 years old, launched the company in Sweden in
1943. Through its retail locations, the company, which has its roots in Smland, Sweden,
distributes its goods. In 37 countries as of August 2009, the network has 301 locations, the
majority of which were in Europe, North America, Asia, and Australia. “The IKEA Concept
began when Ingvar Kamprad, an entrepreneur from the Småland province in southern
Sweden, had an innovative idea. In Småland, although the soil is thin and poor, the people
have a reputation for working hard, living frugally, and making the most out of limited
resources. So when Ingvar started his furniture business in the late 1940s, he applied the
lessons he learned in Småland to the home furnishings market. Ingvar's innovative idea was
to offer home furnishing products of good function and design at prices much lower than
competitors by using simple cost-cutting solutions that did not affect the quality of products.
Ingvar used every opportunity to reduce costs, and he scraped and saved in every way

6
possible - except on ideas and quality. The name IKEA comes from the initials of Ingvar
Kamprad, I, and K, plus the first letters of Elmtaryd and Agunnaryd, which are the names of
the farm and village where he grew up.” Riddhima Chopra (2009)

“The Swedish company has reportedly invested 40 million euros to build its first store in Morocco
in the city of Zenata located between Casablanca and the capital Rabat. Al Homaizi Group from
Kuwait, which owns the franchise of the Swedish brand in Kuwait and Jordan, will operate the IKEA
store in Morocco as well.” (Staff writer, 2014)

3.2. Company Structure:

Despite its Swedish roots, a complex network of non-profit corporations owns and runs
IKEA. The corporate structure of IKEA is a franchise. INGKA Holding, a private, for-profit
Dutch corporation, is in charge of the majority of IKEA's operations, including management
of the vast majority of its stores, design, and production of its furniture, and purchasing and
supply activities. 235 of the IKEA stores throughout 36 nations are managed by INGKA
Holding. The remaining 30 stores are run by franchisees outside of the INGKA Holding.

“While most IKEA stores operate under the direct purview of Ingka Holding and the
Ingka Foundation, the IKEA trademark and concept is owned by an entirely separate Dutch
company, inter IKEA Systems. Every IKEA store, including those run by Ingka Holding,
pays a franchise fee of 3% of the revenue to Inter IKEA Systems. The ownership of Inter
IKEA Systems is exceedingly complicated and, ultimately, uncertain. Inter IKEA Systems is
owned by Inter IKEA Holding, a company registered in Luxembourg. Inter IKEA Holding, in
turn, belongs to an identically named company in the Netherlands Antilles that is run by a
trust company based in Curaçao. The owners of this trust company are unknown (IKEA
refuses to identify them) but are assumed to be members of the Kamprad family.” Riddhima
Chopra (2009)

3.3. IKEA’s Products and Services:

IKEA has established a

reputation as a home
furnishing specialist over a
7
diverse range of well-designed functional solutions at an affordable price that appeals to
families with a combined household income of RM2,000. Currently, it sells approximately
8,500 products ranging from bedding to kitchen utensils children’s furniture, and textiles as
well as your infamous sought-after meatballs.

One of the foundations of the IKEA idea is low costs, which encourages customers to
shop there. This low-pricing strategy is combined with a large selection of useful, well-
designed products. Customers of IKEA, who represent a diverse range of ages and household
kinds, can choose products that fit their lifestyles and different stages of life. This is crucial
when the retail industry is struggling since it expands IKEA's potential market.

IKEA has always cared about people and the environment since its founding. This
concern is at the core of the IKEA mission, "to create a better everyday life for many people."
IKEA has adjusted its product line, suppliers, retail locations, and communication in response
to the public's growing concern for sustainability. Additionally, it has recognized the
commercial potential of offering sustainable solutions. IKEA strives to use energy and raw
materials more efficiently because it cares about people and the environment. This reduces
expenses, aids the business in achieving its environmental goals, and benefits the
environment as a whole. Fa, Y. (2010)

8
 4. IKEA’s Advertising Strategies

4.1. Advertising Strategies:

IKEA’s advertising strategies have been very successful in helping the company to grow
its business and reach new customers. The company’s campaigns are often creative and
engaging, and they always communicate IKEA’s core values of affordability, simplicity,
sustainability, and inspiration.

The following sections of the paper will explore key principles in detail. The specific
advertising strategies that IKEA has used to achieve its success will also be discussed. By the
end of the paper, how IKEA uses advertising to build its brand and reach its target audience
will be understood.

4.2. Social Media:

In today's digital era, social media has become a powerful platform for businesses to
connect with their target audience, build brand awareness, and drive sales. Ikea has
effectively harnessed the potential of social media advertising, with its innovative and
customer-centric approach, Ikea has developed a range of strategies to engage and captivate
users on various social media platforms. Using its presence on social media platforms Ikea
has established itself as a frontrunner in the furniture and home decor industry by leveraging
visually appealing content, user-generated contributions, influencer collaborations, targeted
advertising, and compelling storytelling,

IKEA's social media presence is all

about connecting with people on a
personal level and creating a sense of
community. Their Instagram account,
"@ikea.maroc," has amassed an
impressive following of 474 thousand

9
people who are eager to see the beautiful images and videos that Ikea shares. From cozy
living room setups to innovative

storage solutions, Ikea's posts on Instagram transport followers into a world of inspiration and
possibilities.

On Facebook, their page simply named "IKEA"

has garnered a devoted following of fans who engage
with Ikea's engaging content, promotions, and
updates. Pinterest is where Ikea showcases its
creativity with boards on their account "@IKEA,"
inviting users to explore a treasure trove of design
ideas and DIY projects. On Facebook, their page
simply named "IKEA" has garnered a devoted
following of fans who engage with Ikea's engaging
content, promotions, and updates.

Meanwhile, their YouTube channel, "IKEA Maroc" with over 3.6K subscribers, brings
products to life through detailed showcases, design tips, and practical tutorials.

( IKEA’s official Youtube Channel )

With their thoughtful and humanized approach across these platforms, Ikea has
successfully cultivated a loyal following, turning customers into brand advocates, and making
home furnishing a truly personal experience.

4.3. The Website:

10
 Ikea's website is a fantastic online
destination for all customers’ shopping
needs. When visiting ikea.com, the
visitor will be greeted by a visually
appealing homepage that showcases a
wide range of products and exciting promotions. Navigating through the website is a breeze,
which allows the ease of exploring different categories like furniture, home accessories, and
kitchenware.

One of the standout

features of Ikea's website is
the interactive room planner
tool. It lets the visitor
experiment with various
furniture arrangements
virtually, giving the visitor a glimpse of how everything will fit and look in their home.

When it comes to making a

purchase, Ikea's website lets the
customer easily add items to their
shopping cart and choose from
different payment options for a
smooth checkout process. And
whether they prefer to pick up
their order from a store or have it
delivered to their doorstep, the website offers convenient options to suit their needs.

Creating an account on Ikea's website adds an extra layer of convenience. Customers can
keep track of their orders, save their favorite products, and receive personalized
recommendations based on their interests. It's like having your own personalized shopping
experience tailored just for you.

4.4. Celebrity Branding:

11
 Celebrity branding is a popular marketing strategy that involves associating a celebrity
with a brand to enhance its image, credibility, and appeal. While Ikea is known for its
minimalistic and affordable home furnishing products, they have also leveraged celebrity
endorsements to further strengthen its brand identity.

One notable example of celebrity branding by Ikea is their collaboration with the
Moroccan comedian and actor Bassou. In 2022, Ikea partnered with Bassou to create a series
of commercials showcasing their products. The campaign aimed to bring Ikea's products to
life and demonstrate how they could be seamlessly integrated into people's homes.

( Shopping with Bassou )

By associating themselves with a well-respected celebrity like Bassou, Ikea was able to
tap into his popularity and influence to attract a wider audience. The collaboration elevated
the perception of Ikea's brand and created a sense of aspiration and encouraged customers to
see Ikea as a brand that offers affordable solutions without compromising on style and
quality.

4.5. Broadcast advertising:

Ikea's broadcast advertising campaigns in Morocco often involve creative and visually
appealing commercials that showcase their furniture and home decor offerings. These
commercials are designed to capture viewers' attention and convey the benefits and features
of Ikea's products. They may highlight the functionality, style, affordability, or versatility of
their furniture, emphasizing how it can enhance people's homes and lifestyles.

To make their advertising more effective in Morocco, Ikea tailors their broadcast
campaigns to align with the local culture and preferences. They may incorporate Moroccan-
inspired elements, colors, or motifs to resonate with the target audience. This localization

12
strategy helps Ikea establish a connection with Moroccan consumers and make their brand
feel more relevant and relatable.

Moreover, Ikea's broadcast advertising in Morocco often includes promotional offers,

discounts, or special events to encourage viewers to visit their stores or make purchases. They
may highlight limited-time sales or exclusive deals to create a sense of urgency and drive
customer engagement.

By utilizing broadcast advertising in Morocco, Ikea can reach a broad audience across
different regions and demographics. Television and radio remain popular mediums of
communication in the country, making them effective channels for Ikea to raise awareness,
build brand recognition, and drive customer traffic to their stores.

4.6. Outdoor advertising:

In recent years, digital outdoor advertising has gained popularity, allowing for more
dynamic and interactive campaigns. Digital displays offer the flexibility to change content
and messages remotely, providing advertisers with greater flexibility and the ability to tailor
their campaigns based on real-time data or specific time periods.

Outdoor advertising is a powerful and impactful medium used by companies to reach a

wide audience in public spaces. It encompasses various forms such as billboards, posters,
digital displays, transit ads, and signage. Outdoor advertising allows brands to engage with
people as they go about their daily routines, whether they're walking on the street, driving, or
using public transportation. This form of advertising reaches a diverse audience in various
locations, showcasing creativity and artistry through captivating visuals and clever
messaging. By strategically placing ads in the right places, advertisers engage with
individuals based on their interests and preferences. Additionally, digital displays add
interactivity and entertainment to outdoor campaigns. Outdoor advertising adds vibrancy and
magic to the world around us, making everyday experiences more exciting and memorable.

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 ( IKEA’s billboard in Casablanca )

Outdoor advertising allows for precise

targeting and contextual relevance. Ikea
Advertisers can strategically select locations
based on their target audience demographics,
ensuring their message reaches the right
people at the right place and time. For
example, placing ads near shopping centers
or busy transportation hubs can help reach
potential customers who are more likely to
be interested in the advertised products or services Another advantage of outdoor advertising
is its 24/7 visibility. Unlike other forms of advertising that may have time constraints,
outdoor ads are visible around the clock, capturing the attention of both daytime and
nighttime audiences. This continuous exposure can reinforce brand messaging and establish a
strong presence in consumers' minds.

5. Evaluation

5.1. Strengths:

The advertising tactics used by IKEA in Morocco exhibit a number of noteworthy

advantages. First off, the business makes good use of the popularity of its brand on a global

14
scale to build trust and familiarity among Moroccan customers. IKEA can immediately gain
attention and create a solid market presence thanks to this advantage. Second, IKEA makes
sure that its marketing initiatives are relevant to and resonate with Moroccan consumers by
adjusting them to the local culture and interests. IKEA builds a deep emotional bond with the
target market by combining Moroccan aesthetics, values, and lifestyle features into its
commercials. Moreover, the company excels in utilizing various channels to reach its
customers, including television, social media, and outdoor advertising. IKEA is able to reach
a wide audience and maximize its reach thanks to this multi-channel strategy. Additionally,
IKEA's advertising highlights the value and excellence of its goods, appealing to the
Moroccan market's need for well-designed and long-lasting furniture while also being cost-
effective. Finally, IKEA's dedication to sustainability is in line with the country's rising
environmental consciousness, and its advertising campaigns successfully convey the
company's eco-friendly initiatives to consumers. IKEA's advertising methods in Morocco
have generally been successful because of its strengths in terms of brand awareness, cultural
adaption, multichannel presence, price, and sustainability.

5.2. Weaknesses:

In Morocco, Ikea mainly focuses on online and social media channels to advertise its
products. While this strategy may successfully target younger and more tech-savvy
demographics, it may leave out others who have less access to or engagement with digital
media. As a result, Ikea's marketing initiatives in Morocco might not successfully reach all
social classes, thus leading to a smaller customer base. Moreover, Despite having a presence
in Morocco, IKEA's advertising activities are not extensive or available everywhere. The
brand's capacity to effectively communicate with potential customers across the country is
restricted by this limited coverage, which also limits the brand's reach. Because of this, many
Moroccans could not be completely aware of IKEA's services, special offers, and new items,
which could affect the company's overall market penetration and growth potential in
Morocco. Lastly, IKEA in Morocco faces intense competition from local stores and furniture
manufactures. Local furniture producers provide distinctive styles and goods that are tailored
to Moroccan consumers' particular interests and preferences. These manufacturers frequently
place an emphasis on traditional craftsmanship and materials to draw clients looking for
genuine Moroccan furniture. Local retailers have also made a name for themselves in the
industry and built solid relationships with their customers. They provide customized

15
assistance and a wide variety of furniture solutions, including both national and international
brands, that appeal to Moroccan customers.

5.3. Marketing Improvement proposal:

For a company to dominate the market and establish lasting relationships with
consumers, companies must implement an innovative and effective advertising approach.
First, IKEA may expand its reach of the cities it targets with its regional advertising. This can
be accomplished by creating regionally relevant localized campaigns. Second, by
collaborating with local media outlets including radio stations, newspapers, and television
networks, IKEA can reach a wider audience in various regions of Morocco. With this
strategy, the brand is able to access the well-known and dependable platforms that consumers
in specific regions already trust. Moreover, by adopting a multi-channel approach, Ikea can
engage a wider range of audiences, including those who may have limited access to digital
platforms. Finally, IKEA must retain its essential values of accessibility, usability, and
modern design while carefully analyzing and responding to the local market dynamics.

6. Conclusion:

This paper’s main aim is to point out and investigate the various strategies that IKEA adopts
to advertise its brand in Morocco. In addition, it looks into the brands history, structure and
the products and services it provides. This study highlights IKEA’s marketing strengths and
weaknesses and suggests recommendations for improvement in the Moroccan market.

References:

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IKEA :

https://www.ikea.com/ma/en/

https://www.youtube.com/@ikeamaroc2982

https://www.youtube.com/@ikeamaroc2982

https://www.instagram.com/ikea.maroc/

Fa, Y. (2010). IKEA Products and Services Based Marketing.

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P., Simona. (2020). Traditional Marketing Versus Digital Marketing.

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