Development of an Advertising Campaign for IKEAs Furniture - Case Study Example

Advertising Campaign for IKEA’s Furniture By + COMPANY PROFILE, PRODUCT AND TARGET AUDIENCE IKEAis a Swedish-based international company that was founded in 1943 by a teenager called Ingvar Kamprad. At only 17-years of age, he masterminded a business that is now estimated to be worth $3.8 billion. Before this estimation, his fortune had hit a long term high of $33 billion but he decided to get into retail business in which he transferred most of his economic stake. The company runs 345 stores in 42 nations in which 248 stores are European-based. In the year 2003, 17 more stores were established and among them were those fresh ones in Qatar and Lithuania (Inter IKEA Systems, 2011). The company mostly focusses on home improvement products, mostly furniture, in which customers are also able to shop online for the same. The company endeavours to “create a better everyday life for the many” in every aspect of their business efforts (Combs, 2012). IKEA brand is one of the strongest in the world and this is attributed to its business foundation. These ideas gives a foundation for a prosperous integrated advertising communication campaign which will strive to provide a platform for a strong foundation in promoting its furniture customization decisions and new marketing tools. This will cement their relationship with their customers thus increasing the demand and supply of the furniture hence increased revenues. Research has proved that IKEA has a potential to improve on its advertising campaign through social media and similar digital strategies, publicity on their energies towards sustainability and establishing strong customer rapport. This advertising strategy will emphasize on supporting creativity, funded advertising, public relations, sales campaigns, and direct marketing with the aim of proving to their clientele why spending on IKEA elevates their livelihoods. The strategies defined in this plan has the objective of explaining to customers exactly how IKEA has advanced tools to make it convenient to shop both online and in-store. They will also be sensitized about the sustainability efforts engineered by IKEA and their involvement in the world of furniture with the sense of acquiring stylish, custom-made pieces that fit into their budgets (Wal-Mart, 2011). 2. MESSAGE OBJECTIVES The objectives in this business project are somewhat broad since it covers many aspects of advertising campaigns that include Integrated Marketing Communications Plan, Paid Media, Public Relations and Paid Media. The objectives will be condensed so that every aspect is covered in each one of them. The below are the main objectives that will focus on the main topic with relation to each strategy. 2.1. Integrated Marketing Communications Plan This campaign is structured to support the sustainability options for IKEA and sensitize customers on the product hence increased product sales. This will also encourage customers to use online tools to shop for their desired products 2.1.1. Integrated Marketing Communications Plan Objectives Intensify online shopping by 15% in one year Increase in-store sales and visits by 10% in one year Intensify sustainability awareness in the target market by half a million customers in one year. Improve sales by 10% in one year Improve sales of loyal customers by 10% in one year Expand the proportion of customers in the target market who are allied to IKEA with affordable, custom-made furniture and environmental sustainability by 25% in one year. 2.1.2. Integrated Marketing Communications Plan Strategies Craft interactive web tools to involve the target audience and streamline shopping experience. Stimulate sustainability efforts in the paid media category Take part in community events to capture extra media reporting To come up with sales promotions that are in-store bound to maximize traffic. To use direct marketing to in promote both furniture and non-furniture products Incorporate social media to reach more target audience Exploit customer information to motivate them to make return visits 2.2. Paid Media Paid media includes radio, television, open-air advertising and social media, which will be used to promote sustainability efforts and sensitization of IKEA’s products in the target market in the next one year. 2.2.1. Paid Media Objectives Employ broadcast media to cover a range of 50% of the target market in the next one year Accomplish at least 80% reach in the months of September to December and 50% in the rest of the months with a minimum of 15% for the whole year Focus the target of 70% of all media coverage for current clients and 50% towards prospective customers. Engaging potential customers using social media sites to create a steady reach of 400, 000 members of the target audience every week in the next one year Engage open-air advertising to focus on potential customers residing in a four hour circumference from IKEA’s stores at a regularity of 3 times a week in the next one year. 2.2.2. Paid Media Strategies Come up with ads to air on cable television because they reach a large audience in different geographical locations Design ads to be published in print media so as to reach the target market in the readership niche. Spawning social media ads to push for increased traffic in the IKEA website and eventually in the stores. Social media has the advantage since 97% of people aged between 18-29 years use the Internet and 66% of grown-ups use social networks. Create open-air ads in a 200-mile radius from IKEA stores so as to pass the message of convenience shopping in the stores. Engage the satellite radio with ads as it reaches almost 36 million listeners annually. 2.3. Public Relations The key focus for public relations will emphasize on gaining positive media coverage for IKEA’s sustainability efforts and their influences on local communities. Engaging return customers will also assess customer satisfaction. 2.3.1. Public Relations Objectives Jointly sponsor 20 service projects in 20 states in the U.S. in the next one year Produce at least 100 positive media reports about the company’s sustainability efforts in the next one year Intensify awareness of the company’s sustainability campaigns in the target market by 30% in the next one year. Manage to achieve 65% customer satisfaction with reference to returning customers in the Sponsor 4 events in their stores with an invitation of 500 target audience members in attendance in the next one year. 3.0. MEDIA SELECTION AND TACTICS 3.1. Paid Media The paid media firstly will focus on cable television programmes, which will incorporate in-script ads in their production. The following programmes will be used to perform these ads with reference to their production companies. They include: How I Met Your Mother, White Collar, Scandal, The Mentalist and Suits. For Print Media, the advertisements will be printed in the following magazines: People, Cosmopolitan and Good Housekeeping. Social media and/or digital media will focus on creating ads to enhance the flow of traffic in IKEA’s website hence increasing awareness and eventually sales revenue. The social media sites include Facebook, Twitter and YouTube. The following keywords used to search for videos will automatically incorporate IKEA’s ads behind the videos: home improvements, stylish furniture, customized furniture and low-price furniture. For open-air or outdoor advertising, billboards, bus stop seats, and railway stations will be utilized. This is with the view that people who value the above transportation modes also value sustainability. The ads will incorporate photo collage of IKEA’s furniture Further to this, car wraps on hybrid vehicles will be done to unveil hoe IKE’s products can fit into small spaces. This will highlight the sustainability efforts pushed for by the company and to show easiness in transporting IKEA products. In radio advertising, ads will be aired in Kiss FM, Heat FM, Coffeehouse and The Highway (PEW Internet, 2012). 3.2. Public Relations In public relations advertising, IKEA will focus on jointly sponsoring 25 Habitat for Humanity Houses in 30 diverse states in the U.S. where their stores are presently run (CBS News, 2008). The company will contribute for a trip to their stores for Habitat for Humanity members and the families in need to pick furniture and relevant home items. Further to this three employees will be given to assist in the decoration and arrangement of the house in proper order. The media outlets will be served by press releases in a 50-mile range so as to intensify the sustainability campaign (Vega, 2010). 4.0. CREATIVE STRATEGY Creative strategy revolves around the why’s, how’s and what’s of the advertising campaign. The creative strategy idea is that IKEA sells affordable, custom-made furniture that is suits every customer’s priority and is eco-friendly. The creative strategy gives account of why the campaign has been launched and matters surrounding the events. The campaign is used for the intensification of awareness about IKEA’s sustainability efforts so as to pinpoint the diversified product that the company produces for sale especially the customized options. The target audience are individuals between the ages of 21 to 35 in the United States with the passion to customize their furniture. IKEA’s customers think the company sells affordable, fashionable furniture but then again quality is compromised (Target, 2011). The customers are also not aware of the sustainability activities surrounding their products with reference to the environment. On the other hand IKEA would like them to change their perceptions and know that the company has low-priced furniture that are customizable to match their tastes and preferences. The customers should know that shopping in IKEA is very convenient since it gives the customers the opportunity to shop for products they want, how they want them, within their budget and with positive environmental impacts. IKEA shopping experience is exclusive and gives consumers an opportunity to automatically give back to the world. The online services are very convenient as well and boost shopping experience. 5.0. EVALUATION OF EFFECTIVENESS The evaluation of effectiveness of this campaign will be measured by different paradigms. For the campaign to achieve its objectives, there should be proof of improved sales volume, increase in walk-in customers to the IKEA stores, greater than before positive media coverage, decline in customer complaints and increased customer numbers and their retention. The campaign will kick off by pre-tested ads before releasing them to the public. The target audience will be used to execute assortment tests of print ads and broadcast media. The below will be used to analyse the campaign; 5.1. Qualitative Testing Three focus groups session will be conducted in a one-year period with the size holding 9-12 people. Each session will contain members of the target audience: those who reside close to IKEA stores and those who reside away from IKEA stores. The ones who live far from the stores will focus on brand awareness and impression, the experiences they have that would make encourage a return visit. Customers will be intercepted for questioning like if they saw any ads etc. 5.2. Quantitative Testing Panel Studies will be done to measure the usefulness of IKEA online campaigns. This data will be taken in every 3 months to evaluate the efficiency of the integrated marketing communications campaign 6.0. CONCLUSION The most significant way of effectively creating long-lasting customer relationships is by executing integrated marketing communications (IMC). This strategy ensures that the message passed by the company reaches a vast majority of people thus creating awareness and increased customer numbers and profits. This campaign is structured to display sustainability efforts of IKEA through paid media, public relations and creative strategy with the aim of increasing sales and awareness of the brand coupled with healthy customer-company relationships. Bibliography Ashley Furniture Homestore, 2012. http://www.ashleyfurniturehomestore.com/?gclid=CMuU8_Klr­rECFRJl7AodhQYAeg Bruce A., Spicer J., 2012. 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