IKEA: Analysis of the international communication campaign

Résumé du document

Almost everyone has already been in an IKEA store. Every day the 250 IKEA branded stores receive more than 1 million visitors. One my therefore wonder how this brand in yellow and blue succeed so well in a market where there are so many competitors. What do its stores have more than what the others do? IKEA was created in 1943, in Sweden; its name comes from the initials of the creator Ingvar Kamprad (IK), followed by the initials of the name of the farm and the village where he grew up, Elmtaryd and Almühlt (EA). His goal was to sell furniture at a low price. We can now take a census of over 250 stores all over the world that sell low-price products, including furniture, and bathroom and kitchen accessories in retail stores. While the core business is selling home furnishing, the company also develops and purchases its products in relationship with other suppliers. Today, 250 IKEA stores are established in 34 countries or territories. The turnover in 2006 was about 17.3 billion (from 09/01/2005 to 08/31/2006), representing a growth of 336% in 10 years. IKEA group employs 90 000 people that work in 44 countries. They are employed in the stores (79,800 employees), in the products development service, in the purchase and stock services and in the IKEA subsidiary company Swedwood that takes care of the production.

Extraits

[...] While the core business is selling home furnishing, the company also develops and purchases its products in relationship with suppliers. Nowadays IKEA stores are implanted in 34 countries or territories. The 2006 turnover is about 17.3 billion (from 09/01/2005 to 08/31/2006), representing a growth of 336% in 10 years. IKEA group employs people that work in 44 countries. Those co-workers work in the stores (79,800 employees), in the products development service, in the purchase and stock services and in the IKEA subsidiary company Swedwood that takes care of the production. [...]

[...] Bibliographie indicative Great Ikea ! Par Elen Lewis, Cyan Communications avril 2005) Leading by Design: The Ikea Story, par Bertil Torekull, Ingvar Kamprad, Joan Tate ; HarperCollins Publishers août 1999) Ikea : un modèle à démonter, par Olivier Bailly, Jean-Marc Caudron, Denis Lambert, éditions Luc Pire septembre 2006) Details of the operation in Appendix. Group National Groups Shops Launched in 1951, it is the IKEA marketing strategy basis. It represents 50% of the group marketing budget with 160 million copies (in 25 languages) distributed in 34 LMNQöìß˾­œ€hP?1h9_OJ[2]QJ[3]^J[4]mH sH h9_h9_OJ[5]QJ[6]^J[7]mH s countries. [...]

[...] Its strengths are based on three main things. The company vision is create a better everyday life for many people”, by offering a wide range of well-designed, functional home furnishing products at prices so low that many people will be able to buy them. Concerning the promotion, the stores have the same name all over the world, even with a translation, it is still the same. Moreover, a lot of catalogs are sent every year with the same products from country to country. [...]

[...] International comparison a. A global strategy First, IKEA chosed to adopt a global strategy, meaning that it goal is offer a wide range of functional furniture with a polished design, at a low price so the majority of people are able to buy them.” In 1994, only 11% of the IKEA sales had been realized in Sweden. As they sell the same products all around the world, they can afford to make substantial savings in the conception, and in the production area, also in marketing. [...]

[...] IKEA marketing process Relational marketing The objective is to develop loyalty from the client to IKEA. The idea is to communicate with each one but in a different way, according to the profile of everyone. That is the reason why the company has a huge database and an “advantage club” that they use to send information and promotional offers to every member. They have also created a “family card” to keep in touch with the most important clients. Street Marketing In 2005, from April, the 23rd to May, the 2nd, IKEA organized a particular direct marketing campaign in the French subway. [...]