IKEA: International advertising strategy 2013

Résumé du document

In our current world completely flooded by globalization, companies need to develop themselves worldwide in order to stay competitive and sometimes to survive. However, managing its entry in a foreign country requires a communication strategy that needs to be studied in relation to the market targeted which means "one voice, many languages".

Therefore, it would be interesting to analyse the implications for our client IKEA – furniture manufacturer and retailer well known throughout the world for its knockdown furniture – in international advertising strategies. Advertising is important to make potential customers aware of store locations far from downtown. Then, lower prices and selection are supposed to do the rest.

As a matter of fact, international advertising is a crucial part in IKEA promotion policy as it is maybe the most visible activity among promotional tools. International advertising can be defined as advertising more or less uniform across many countries, generally, but not always, in media formats with global spread.

Extraits

[...] This represents the main debate and challenge of today's IKEA advertising strategy. As mentioned previously, standardization in international advertising presents many advantages such as cost savings, easier controls and global brand (Levitt, 1983). Standardized advertising would then be naturally suitable to IKEA home furnishings products offer as they are used in the same way from the United State to Australia. Besides, IKEA's CEO is quite convinced by this strategy and claims for a “one-design-suits-all” market that will reveal in the whole world respectively. [...]

[...] Conforama disposes of of market share in 2012 in France, not far behind IKEA with (LSA.fr, 2011) Conforama decides to distinguish itself with a communication based on prices mainly discounts and focus message to create trends and fashion. The firm takes position in improving lifestyle and facilitating access to home furnishing. The international market is heterogeneous and divided into three areas that are the Asian market, the American market and the European market. The Asian furniture market is a high potential market with new consumption habits close to European habits. The North-American market is a growing market where customers like stores with large range of products even if they show reluctance towards kit product. [...]

[...] In the store, customers are given a path, forcing them to discover all the products presented in their context to generate impulse buying. Indeed, an assembled version of the furniture was displayed in settings along with other IKEA furniture. The purchaser can then simply pick the pieces himself by taking the inventory tag number, finding the kit on the rack or having the kit delivered through the back door to the waiting car when the pieces are larger. IKEA develops, among the first in Europe, services around the store to extend the duration of the visit. [...]

[...] Only a few present completely standardized campaigns. Moreover, countries that share the same common language for instance, the United States, United Kingdom, South Africa, Australia often differ at the cultural level. It would be dangerous to ignore these specific. Although standardization allows cost reduction and global customers, it also has to face strong local competitors and a serious lack of uniqueness (Johansson, 2009). The adaptation of the communication campaign entails to adapt one's components to the characteristics of each country. [...]

[...] Between poor economic conditions and real estate pressures on the purchasing power, the furniture industry declined in 2012 after two years of growth. This could parallel witness the arrival of Amazon to sell furniture online. A real downturn happened in the furniture market with the emergence of new competitors, such as VPC and DIY stores, who prey on the creed of low prices. However, there are big entries barriers as there are leaders in the market, especially IKEA who is intensely committed to the market. [...]