Integrated Marketing Communications Campaign Proposal Emily Martin IMC610 Final Project

TABLE OF CONTENTS

Executive Summary3 Background....4 - 5 Target Audience.....6 - 7 SWOT Analysis.......8 Marketing Objectives & Strategies...9 Ad Strategy..10 - 11 Creative Brief.....12 Media Objectives, Strategies, & Tactics..13 - 15 Budget Allocation.16 Promotional Objectives & Strategies...17 - 21 Public Relations Objectives & Strategies22 - 23 Direct Marketing Objectives & Strategies..24 - 28 Measurement & Evaluation Plan29 - 31 Conclusion32 References33

EXECUTIVE SUMMARY IKEA is an established company with a loyal brand following throughout the world. They have always relied upon Ingvar Komprads vision to make quality products available at a reasonable price. As identified in the following IMC proposal, young families represent a group of consumers who have been unable to fulfill that vision at other retailers. The 25-35 year old parents share concerns of price, safety and style when shopping for childrens products. By emphasizing IKEA as part of the family, the company is forming and enforcing a relationship that creates comfort for the target customer. The campaign communicates the idea that IKEA will help support their family in ways that create value and build trusted relationships between the company and the consumer. An emphasis on the family unit is important to young parents. By concentrating on the importance of sharing family time, offering the ability to fit the customers style, a creating a value-based relationship IKEA can begin a meaningful loyalty base. Fulfilling these visions, a relationship can be established that will continue through the span of birth to college and beyond: creating a life-cycle of consumer behavior that can be nurtured to include generations of customers. By utilizing this comprehensive IMC campaign, IKEA will benefit greatly. It has been proven it is more economical to concentrate on maintaining relationships with existing customers than to initiate relationships with prospective clients. Part of the family will strengthen bonds with familiar customers while utilizing effective means to attract new clients. Part of the family includes all major parts of an effective communications campaign that will recruit and maintain relationships. The successful completion of the IMC plan will assure effective promotion of the childrens product category. While IKEA utilizes a general message advertising strategy, emphasizing childrens products will increase exposure and lead to greater sales. The commonly overlooked sector has an unsatisfied demand in the marketplace. Repeat exposure to the products will lead to childrens merchandise being a larger, more profitable part of the IKEA family of products.

IKEA, part of the family

BACKGROUND

Ingvar Komprad began selling matches at the age of five. As a seven year old entrepreneur, he expanded his assortment to flower seeds, greeting cards, Christmas cards, pencils, & pens. Even at that time, his distribution methods were resourceful-pedaling through his home town of Smland, Sweden on a bicycle to deliver his goods. By the age of 17, Ingvar had registered his company as IKEA, named by his initials and the first letters of Elmtaryd and Agunnaryd, the farm and village where he was raised. From there, Ingvar began his innovative journey to building one of the most recognized furniture names in the world. His vision To create a better everyday life for the many people still rings true today. (IKEA.com) IKEA has established a vast assortment of 9,500 home furnishing products offered from a multi-channel operation including over 290 stores, a catalog distribution of over 198 million printed in 56 editions and 27 languages and a website: IKEA.com.

As IKEA grew from the meager first catalog in 1951, Ingvar needed to devise a plan to pack and ship his merchandise in an economical way. In 1956, the need was met when the company began using designers to engineer furniture that could be packed in pieces and shipped flat in order to avoid damage to the product as well as decrease shipping costs. Today, IKEA utilizes 28 corporate distribution centers and 11 customer distribution centers in 16 countries. Customers can pick up their purchases and assemble them at home, absorbing shipping and handling costs by eliminating the third party distributors. IKEA continuously strives to reinvent their product assortment. The company replaces one third of its product line yearly. Acknowledging customer needs are changing due to the current economic climate, IKEA has continued its initial perspective to provide quality products at low prices. While this is at the forefront of the company vision, safety and design are never lost. The company has created various groundbreaking construction methods by way of innovative materials and functional modern designs.

While servicing the customers with home decorating needs, IKEA has become an environmentally conscious company, thus appealing to a whole new group of consumers. In 1990, the company created its first environmental policy to ensure those involved in the company are responsible for the environmental effects of the business. Since then, IKEA has taken on such active roles in causes including reducing climate change, creating humane working conditions, UNICEF, Save the Children, and many more. As an environmentally conscious company, IKEA continues to reevaluate their business practices in order to sustain an eco-friendly presence in the design, manufacturing and distribution of its products.

So, who buys these products and where? IKEAs presence in the United States is growing. At this time, the company operates 37 stores across America. These locations mainly fall in urban areas where they market to lower and middle income consumers. A majority of its customers seek to furnish their homes with sturdy, appealing furnishings that wouldnt necessarily be considered investment pieces. IKEA reaches out to many different segments in the home furnishing market. As stated on the companys website, it is explained that For families with children, for singles, for couples or others sharing a home, IKEA provides an opportunity for better living by offering products designed to meet peoples real needs. In principle these needs are the same no matter where you live However some ads have been known to target lowerincome customers by asking higher paid customers not to come to sale events.

The caption under the picture reads: If you are very rich, you do not need to save up to 50% on select furniture and accessories throughout the store. You can clearly afford to pay the already low everyday prices. Please come back to IKEA after the sale. Thank you. (Home Textiles Today, 2002)

IKEA has historically focused its media attention on print advertising but has recently branched out to TV, radio, and internet. Its marketing mix is made up of 4 basic ideas: 1. Product Range: communicate the expanse of the product range. 2. Store: retail locations are the main method of communication of the variety of products and the IKEA concept. 3. Catalog: the main marketing tool, with 70% of the budget allocated to its production. 4. Advertising, PR, and other communications: these vehicles compliment the other three aspects of the IKEA marketing mix. In 2008, IKEA accounted for the largest share of the global home furnishings market, attaining 2.3 %. Its closest competitor was Bed Bath & Beyond followed by Federated Department Stores and Linens n Things. In recent years, big box stores Target and Wal-Mart have caught on to the low cost home furnishings market and are now considered competition for the Swedish retailer, as well as Pier1 Imports. Higher end home furnishing retailers Crate & Barrel, Pottery Barn and Restoration Hardware currently also hold shares in a slightly higher income market segment. Global home furnishings sales are forecasted to skyrocket in 2010 to an estimated 715 billion dollars and continue to increase sales through 2013. With this in mind, IKEA has an astounding opportunity to continue its lead position in the market. By holding true to their key principles of innovation, value and preservation the company can open the door to attaining greater market share, thus yielding higher profits. (Cook, 2003).

TARGET AUDIENCE

As mentioned in the background analysis of IKEA, the company focuses on lower to middle income individuals who live in metropolitan areas. These customers typically include college students and young adults who have a need for inexpensive durable furnishings that can be transported easily. As these consumers move into the next stage of their lives, many will marry and start families. While their home furnishing needs will change, many will still have to be conscious of cost and function. IKEA designed a childrens line of furniture in 1994 and launched the concept in 1997. Since then, the company has expanded their childrens product assortment to include items to accommodate new-born and beyond. IKEA doesnt just cater to the furnishings, either. Toys and outdoor equipment have made their way into the assortment. Childrens furnishing is an untapped market that many consumers ignore until they are in the last trimester of a pregnancy. It offers an opportunity for IKEA to maximize on an existing relationship with established customers who are moving into a new phase of their lives-one where they typically leave IKEA behind. By continuing the relationship with these young families, it opens up a door for the commitment to the brand to carry on throughout the span of generations. IKEA was able to sell to the parents as young adults, crossing into their growing family with childrens needs, then into adolescence as the children mature, and into college-thus starting the relationship again with a new generation of consumers.

Demographics:

Young adults age 25-35 Married, starting families Male & female family units primary focus on female/maternal figure All ethnicities Urban/suburban not rural Single/double income households: $30,000 -$60,000 annual income College education, entry-level careers

Psychographics:

Young, trendy, modern style Eco-orientedpreserving the earth and supporting responsible businesses Technologically inclined, Materialisticattentive to what others have Socially activetravel in large circles of friends Adjusting to parenthood, family life & new responsibilities

SWOT ANALYSIS

Strengths:
Established brand image Low prices for attainable decorating Vast product assortment Multi-channel shopping opportunities Loyal brand following Eco-friendly imagesustainable materials used in production of merchandise and packing materials Philanthropic stancenever-ending list of ways the company can help the environment and needy people Low expenses due to flat-pack distribution methods Modern, trendy design aesthetic

Weaknesses:

Low prices may portray image of poor quality product Overwhelming stores and catalogs-customers may feel they have too many options Very specific designs-may not appeal to traditional style of many US customers Store locationsmainly in metropolitan areas, not available to all Customer service satisfactiondifficult to create relationships with the brand when service representatives are scarce throughout stores

Opportunities:

Create cross-generational selling CRM program to track & appeal to repeat customers Capture childrens furniture market Expand into more markets across US Improved customer servicesdesign help, registries (wedding & baby) Marketing to secondary and tertiary markets to encourage catalog & web shopping Decreased housing marketinstead of moving, people are redecorating to get a new look & feel in their homes o Poor economic climate allows lower redecorating budgets, IKEA prices are ideal

Threats:
Increasing number of competitors o image of better quality o better service levels o similar prices o more populated in more areas of the country

MARKETING OBJECTIVES & STRATEGIES

Objectives:

Increase childrens concept sales by 5% within the next 12 months. Capture 4.5% of the market share in childrens home furnishings. Create awareness among 90% of the target audience of the childrens product assortment. Utilize an effective marketing mix of TV, print, and support media within a $20 million budget over a 12 month period. Launch customer relationship program to capture and track 85% of purchases in the childrens product category. Create repeat shoppers among 95% of existing IKEA customer within a 12 month period. Increase store traffic by 10% as a result of effective marketing mix.

Strategies:

Develop touching and intriguing television commercials featuring new families and IKEA childrens products that appeal to the target audience. Produce creative print advertisements featured in parenting and lifestyle magazines targeted to the 25-35 year old age range. Attract customers within the target market by utilizing social media outlets. o Create Facebook page to create buzz and improve communications between IKEA and target customers. o Launch IKEAfamily website to create communication lines between IKEA and existing IKEA customers. Hold internal and external store events that appeal to young families and drive traffic to the retail locations.

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AD STRATEGY

Affordable Safe Easy to transport Modern designs aesthetic Designed rooms In-store play place Assortment

Philanthropic Eco-friendly Fun designs (shapes, colors) Brand loyal Inspirational room design

(Insert ad-appropriate phrase: affordable, comfortable, fun, safe, stylish)

IKEA, part of the family. The ___ part.

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REJECTED STRATEGY STATEMENTS

IKEA-your family can fit your style. Kids change your life, not your style. Where life and style collide. Keep it personal. Family Style.

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Creative Brief
Client: Type: Marketing Mix Why are we advertising?
To increase sales and awareness of IKEA childrens line of furniture and products.

Date: 02/08/2010 Pages: 1

Whom are we talking to?

Existing customers: educated young couples (ages 25-35) who are starting families and have young children; are socially & environmentally conscious; have a modern, trendy decorating aesthetic; and live within the urban/suburban area of IKEA stores.

What do they currently think?

IKEA is affordable, functional and stylish-but think of the brand for decorating their college dorm room, they dont think of it for kids products.

What would you like them to think?

IKEA has quality, stylish and safe childrens products at affordable prices. It would be a good choice to continue their relationship with IKEA.

What is the single most persuasive idea we can convey?

IKEA is the place to buy childrens furniture and products.

Why should I believe it?

IKEA is affordable, with prices ranging from $0.49 toys to $229 wardrobes. The company offers safe products for newborn babies to tweens and beyond. Many customers already own IKEA furniture and know it fits their existing style.

Are there creative guidelines?

Magazine ads featuring creative use of ad space and multiple colors. Social media ads, through viral Facebook promotional offer campaigns. Television involvement through advertisements and sponsorships during prime-time and decorating shows. Customer Relationship Program: launch IKEAfamily and IKEAfamily.com.

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MEDIA OBJECTIVES, STRATEGIES, & TACTICS

Objectives:

Use television advertising to cover 90% of the target audience, young married adults ages 25-35 within the metro and suburban areas of IKEA locations, during a 12 month period. Use print media to reach 65% of said target market in weekly & monthly publications through advertisements and feature articles timed based upon promotional periods and events throughout the 12 month period. Attract & keep 65% of target consumers to the brand by utilizing support collateral, tracked by IKEAfamily card usage, sales resulting from in-store advertising collateral, and traffic generated by events. Create IKEAfamily facebook page to recruit 65% of target audience within the first quarter of the 12 month period, based upon user demographics. Create IKEAfamily.com to attract 90% of existing customers to the lifestyle website within the 12 month period.

Television
Objective: Use television advertising to cover 90% of the target audience, young married adults ages 25-35 within the metro and suburban areas of IKEA locations, during a 12 month period. Strategies:

Monthly spot advertising on cable, national channels. o TLC-Design on a Dime o ABC-The Deep End (before Greys Anatomy) Participation and product placement during TLC home decorating series. Pulsing strategy: o Continuous ads during promotional periods, reminder ads during nonpromotional periods o Introduction of the campaign will arise from higher frequency, and as it continues, frequency will decrease.

Tactics: Considering the established relationship with the target market, a lower frequency level of contact is required. o Commercials will be non-complex, highly unique, and sell the brand imagenot necessarily specific product. Commercials featuring the new family experience. o Humorous, touching, sentimental takes on new-found family situations.

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o Tie into a part of the family by emphasizing the ____part.

Print
Objective: Use print media to reach 65% of said target market in weekly & monthly publications through advertisements and feature articles timed based upon promotional periods and events throughout the 12 month period. Strategies: Tactics: Magazine o Parents o Real Simple o Full color o Creative space buys-two 1/2 page ads corresponding with related articles. o Advertising blended with content when applicable Local newspaper & corresponding on-line newspaper o Local Sunday newspaper: Births section Magazine print ads Local newspaper ads Feature articles on events and product

Support Media
Objectives: Attract & keep 65% of target consumers to the brand by utilizing support collateral, tracked by IKEAfamily card usage, sales resulting from in-store advertising collateral, and traffic generated by events. Strategies: External & Internal events o 6 internal and 6 external events, throughout the year. o Create a relationship with customers through event involvement. In-store advertising collateral o Provide emphasis on specific products recommended by IKEAfamily. Customer Relationship ProgramIKEAfamily card

Tactics:

External Events: Local events outside of the store to promote exposure for the brand & local IKEA store o Family Sponsorfund a needy familys home decoration

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o o o o o

Shelter Sponsorredecorate a family shelter room Donation Daysfamilies donate old, gently used furniture Family Fairslocal block party Kids Concertchildrens concert day IKEA Cares Dayrecycling collection of all materials

Internal Events: Take place within the local IKEA store to drive traffic into store on key dates o Family Daydiscount childrens items while providing scavenger hunt activities for kids o Decorating seminarsfree lessons to decorate kids rooms o Play Datechildren play in the play place while parents talk, decorate, & shop o Family Style Cooking Lessonslessons in the restaurant for Swiss family style cooking o Assembliesbasic how-to lessons for assembling furnishings o Finishing FurnishingsDecorator lessons on how to refinish or paint furniture/decorations, assemble decorations, and personalize purchases In-store Advertising Collateral o Signage, in-store ads, displays Customer Relationship Program o IKEAfamily membership card o Family accrues points based upon spending o Family member birthday discounts o Special in-store incentives for IKEAfamily customers exclusively o Purchase tracking for easy reference: in-store & on-line o Use of direct marketing to encourage repeat visits

Digital
Objectives:

Create IKEAfamily facebook page to recruit 65% of target audience within the first quarter of the 12 month period, based upon user demographics. Create IKEAfamily.com to attract 90% of existing customers to the lifestyle website within the 12 month period.

Strategies:

Tactics:

IKEAfamily facebook page IKEAfamily.com

IKEAfamily on Facebook o Stimulate conversation about IKEAfamily. o Collect feedback about promotions, store experiences, IKEAfamily membership, and conversation forum to provide market research. IKEAfamily.com o Lifestyle website.

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o o

Promote brand image & continue relationships through consistent contact with willing users. Exclusive offers, coupons, conversation forums, share pictures of IKEAfamilies, offers decorating tips, special features, PR articles & contests. Linked from IKEA.com, facebook, participating TV websites, online newspapers, & magazine webpages.

BUDGET ALLOCATION: $20 MILLION

Television Print Support Media Digital

Television:

$10 Million

Since television is the most expensive investment, 1/2 of the budget will be dedicated to advertising.

Print:

$2.5 Million
Local advertising and magazine placement will occupy 1/8 of the budget.

Support Media:

$5 Million

1/4 of the media budget will allow for event support media.

Digital:

$2.5 Million
Although the Facebook campaign will take limited resources, the IKEAfamily website will incur a substantial cost.

* Please refer to attachment Appendix A:

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IKEA Media Plan Flow Chart for calendar of events.

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PROMOTIONAL OBJECTIVES & STRATEGIES

Objectives:

Utilize IKEAfamily as the primary promotional vehicle in order to increase customer preference for the IKEA brand through customer relationship development and enforcement. o The program offers the most expansive contact with customers on a consistent basis. o Incentives are earned based upon customer spending and loyalty o Offers the opportunity to continuously communicate with the customer and build a relationship with the family through the lifecycle of their patronage. o A consistent, long-term method of promotional activity. Execute the What Part Are You? contest as a promotional tool to increase brand interest and website traffic. o Gain exposure not only for IKEA, but the contest participants. o Generate public relations attention and short-term buzz. o Opportunities to continue profits would not be sustainable for the long-term.

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Promotional Objective #1:

IKEAfamily
Strategies:
IKEAfamily is a promotional program to build client relationships through consistent contact and reward incentives. The customer will receive coupons and communications, providing IKEA the opportunity to interact with customers frequently. The customer can earn reward coupons, sign up family members to receive birthday coupons, and stay informed of company initiatives throughout the year. IKEAfamily is also an opportunity for the company to promote specific items that may be slow to sell, or over-stocked pieces to the key young family consumers in the target market.

Welcome to the family! Enjoy 20% off all childrens merchandise purchases.

IKEAfamily

IKEAfamily

Offer valid at IKEA stores only.

Must present coupon to receive discount on one full day of shopping.

Offer Code: NC12345

Initial sign-on coupon: Customer receives 20% off all purchases for their first visit to the store after signing up for the IKEAfamily program.

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Happy Birthday!
Enjoy 15% off all of your Birthday purchases. Another reason IKEA is part of the family The festive part!

IKEA family
Birthday Coupon: Each member of the family receives a coupon the month of their birthday. 15% off all of their merchandise purchases on one full day during the month of their birthday. Each registered family member receives one coupon per year.

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A part of the familyThe rewarding part!

$25 reward certificate

IKEA family
Please enjoy this $25 reward certificate. Because we appreciate your family, we want to thank you with $25 toward your next purchase in any IKEA store.
Remember, anytime you make an IKEA purchase; use your IKEAfamily card to gain points toward your next reward certificate.

IKEA, part of the family!

Offer code: RC12345

Reward Certificate: Each time a customer makes a purchase with the IKEAfamily card, they accumulate points toward Reward Certificates. One dollar equals one point. Once a customer reaches 250 points, they receive a $25 coupon. Quarterly, double points are offered (where $1=2 points).

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Promotional Objective #2:

What Part Are You? Contest

IKEA, a part of the familyWhat part are you? Stylish Fun Eccentric Classy Eclectic
Write an essay to describe what part of the family you are. Tell us why you deserve to have your childrens play room redecorated on TLCs Design on a Dime. IKEA professionals and decorating gurus will fill your playroom with IKEA furniture and put a personal spin on the space. Log onto IKEAfamily.com to download your application or find applications in Parent and Real Simple magazines. Include the completed application and photos of your family as well as the space you want decorated in a sealed packet. Contest packets accepted at your local IKEA store. Dont forget to include an essay telling us what part of the IKEAfamily you are. Include your family story, why you deserve to be the featured IKEAfamily member, and any other information you think will make you win!

Strategies:
Sweepstakes: Contact point on different levels for the customer: IKEAfamily.comexposure to the website (hopefully register as a user to promote future visits to the site) IKEA storesto submit the application packet, generating in-store traffic Design on a Dime promotion of viewership Parent and Real Simple promoted as venues to attain applications Continues relationships with advertising mediums to solidify reciprocal business in the future.

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PUBLIC RELATIONS OBJECTIVES & STRATEGIES

PR Objectives:

Create awareness of IKEAfamily initiative among 65% of target audience, existing customers in the 25-35 age range, within three months of the customer relationship program launch date. Attract 50% of said target market to attend monthly events throughout a one year period. Increase store traffic during internal events by 25% over the previous years traffic counts on day of event. Convert 70% of internal event attendees who during the day of the event to purchasers. Promote IKEAs favorable philanthropic image among 65% of target audience on a monthly basis. Create 25% more publicity from PR efforts over a one year period among target media outlets, including print, web, and television.

PR Strategies:
Coordinate monthly events to promote customer relationships. o Internal Events: provide coupons to use in-store during event creating a measurable result from event attendance and coupon redemption. Family Daydiscount childrens items while providing scavenger hunt activities for kids. Decorating Seminarsfree lessons to decorate kids rooms. Play Datechildren play in the play place while parents can connect. Family Style Cooking Lessonslessons in the restaurant for Swiss family style cooking. Assembliesbasic how-to lessons for assembling furnishings. Finishing Furnishingsdecorating lessons to refinish or paint furniture/decorations, assemble decorations, and personalize purchases.

o External Events: provide opportunities for IKEA to become a responsible corporate

citizen in its surrounding communities. Results measurable through attendance and donation results. Family Sponsorfund a needy familys home decoration Explore possible link to Habitat for Humanity. Shelter Sponsordecorate a local family shelter room/living space to provide a comfortable area for families in need of comfort. Donation Daysfamilies donate old, gently used furniture. Offer coupon for donations. Donate used items to local charities. Family Fairslocal block party to increase feeling of intimacy and family interaction through IKEA. Kids concertInvite IKEAfamily members to concert sponsored by IKEA featuring childrens performers and acts. Ikea Cares Daycollection day to gather all recyclable materials.

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Provides ability to educate/involve young children in IKEAs sustainability vision and eco-friendly stance.

*Please refer to Appendix A: IKEA Media Plan Flow Chart for calendar of events. Promote the above events through: o Press Releases to relevant media venues including: Print: Target market magazines including advertising outlets: Parent & Real Simple among others. Local newspapers & magazines IKEA catalog features Television: Invite local news stations to the events to cover the effects of the campaign. Sponsored Design on a Dime episodes o Feature Family and Shelter Sponsor efforts for episode ideas, creating a responsible, caring image for both IKEA and TLC. Web: IKEA.com, IKEAfamily.com Facebook TLC.com Local television sites Non-profit websites: Habitat for Humanity, local family shelters o Direct marketing efforts to IKEAfamily members

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DIRECT MARKETING

Objectives:
Reach 3 million prospective customers over a 3 month period using purchased database information. Move 250,000 of those new customers to purchase within 1 month of contact. Utilize reminder marketing postcards to contact 85% of the existing customers who have made purchases at IKEA stores within the past 6 months. Attract 250,000 lapsed customers who have not purchased from IKEA stores in the past 6 months to make an in-store purchase. Launch a Facebook viral direct marketing campaign to reach 10,000 friends within a 4 week period. Utilize the Facebook campaign to encourage 15% of those friends to visit the IKEA website to make a purchase.

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DIRECT MARKETING

Strategies:
New Customer Acquisition:
Objectives: Reach 3 million prospective customers over a 3 month period using purchased database information. Move 250,000 of those new customers to purchase within 1 month of contact.

Strategies: Send an introduction postcard to 3 million prospective customers to invite them to visit an IKEA store. Offer 20% off their first visit purchase. Introduce the IKEAfamily concept to generate thought about the benefits of the CRM program. o Capture customer information on coupon when redeemed to add to customer database.

Visit IKEA to save 20%

and see why you need to become part of the

IKEAfamily
Visit your local IKEA store to learn why it pays to become part of the family: Earn points toward $25 Reward Certificates Birthday Coupon for everyone in the family

Special events for IKEAfamily members Promotional periods throughout the year And many more perks just for you! Share your information with us: Name _________________________ Address ________________________ ________________________ Email __________________________
Offer valid in IKEA stores only. Expires April 30, 2010. Offer Code: NEWFAMILY123

IKEAfamily

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Existing Customer Interest

Objective: Utilize reminder marketing postcards to contact 85% of the existing customers who have made purchases at IKEA stores within the past 6 months.

Strategies:

Send a postcard featuring seasonal childrens product and a 20% off coupon to drive traffic into the store. Offer 20% coupon for a friend to use o Encourage friends to shop together & generate buzz. o Capture new customer information by collecting filled out coupons.

New additions to the family!

SKOJIG lighting: Safe, fun, & durable. Save 20% on the SKOJIG family of products Share this offer with a friend to spread the joy!

IKEAfamily

IKEAfamily

Offer available only in IKEA stores. Expires April 30, 2010. Offer code: SKOJIG123

Welcome to the family!

SKOJIG lighting: Safe, fun, & durable. Save 20% on the SKOJIG family & learn why being a part of

IKEAfamily
Pays off!

IKEAfamily
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Share your information with us: Name _________________________ Address _______________________ _____________________________ Email __________________________
Offer only available in IKEA stores. Expires April 30, 2010 Offer Code: FRIEND123

Lapsed Customer Attraction

Objective:

Attract 250,000 lapsed customers who have not purchased from IKEA stores in the past 6 months to visit and make an in-store purchase.

Strategies: Send a postcard inviting the customer to come back to IKEA. Offer 20% off to visit the store again. Feature new product to spur interest.

Welcome back to the family!

Weve missed you! Visit IKEA by April 30, 2010 To see what youve been missing! Introducing the SKOJIG lighting family: Safe, fun, & durable.

IKEAfamily

IKEAfamily

Offer only available in IKEA stores. Expires April 30, 2010 Offer Code: MISSED123

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Facebook Viral Campaign

Objective:

Launch a Facebook viral direct marketing campaign to reach 10,000 friends within a 4 week period. Utilize the Facebook campaign to encourage 15% of those friends to visit the IKEA website to make a purchase. Strategies:

Offer 20% off specific items during a specific time period through the web only. Generate interest for new, slow-moving, or seasonal items before they become obsolete. Direct customers to IKEA.com to make a purchase of those

I LOVE IKEAfamily! I just saved 20% on all childrens lighting with offer code SKOJIG123. Visit IKEA.com to find out how to get more coupons! Share this with all your Facebook friends so they can become part of the family too!!!

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MEASUREMENT & EVALUATION PLAN

Evaluation Recommendations:
Pretests:
Concept Testing OBJECTIVE: Test audience feelings and comprehension of IKEA television and print advertising. Check for audience understanding and message cohesion resulting from the combined television and print messages. METHOD: Test 50 participants (5 groups of 10 people) who are familiar with IKEA and have shopped within the last 6 months. The group is made up of 25-35 year old existing customers who will be exposed to 10 variations of the marketing message: IKEA, part of the family. OUTPUT: Qualitative data will be retrieved consisting of the audiences positive and negative feelings toward the messages. Interpretation of the data will indicate the customers decision regarding childrens furniture purchases including. The successful message will produce: 60% probability to purchase childrens furniture at IKEA within the next 6 months. (Persuasion to purchase based on the advertising) 60% awareness of IKEAs brand image induced by the message 30% retention of the images and messages portrayed in the test

Inquiry Testing: OBJECTIVE: Determine effectiveness of support media ads and offers on Facebook and IKEAfamily.com to measure the value and relationship formed by such interactions. METHOD: Create 5 different promotional offers through support media outlets to friends of Facebook and IKEAfamily members. Utilize promotional codes that will track the redemption rates and dollars spent per purchase. OUTPUT: Quantitative data will be measured via coupon redemption and website hits during redeemable periods. A successful support media plan will include: Coupon redemption among 25% of IKEAfamily members 1,000 direct hits from Facebook link Increased sales by 5% as a direct link to support mediums Measurement of the most effective promotion and offers

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Post-testing:
Test Marketing: OBJECTIVE: To dictate the most effective method of promotional activity to create brand buzz and promote brand identity METHOD: Use 150 IKEAfamily members to test effectiveness of each promotional program and contest. Allow them to access both promotional programs, subject respondents to a questionnaire about each method. Base questions on message recall, probability to purchase, sign up for the IKEAfamily program (if they were not already members), and loyalty as a result of the coupons. OUTPUT: Qualitative data collection will include: Questionnaire response as to what program was most effective Which would move the customer to purchase Which promotional program was viewed as most valuable to the customer Successful execution of the appropriate promotional program will include: o 75% understanding of promotion o 50% participation rate of respondents o 40% movement to purchase as a result of promotion o 45% affinity for IKEAfamily program as a result of promotion Quantitative data will be measured in: % effectiveness of each promotional effort Increased shopping tendencies as a result of added value from promotions Increased IKEAfamily program interest resulting in increased members Which program will create more loyalty to IKEA Successful execution of the appropriate promotional program will include: 75% understanding of promotion 50% participation rate of respondents 40% movement to purchase as a result of promotion 45% affinity for IKEAfamily program as a result of promotion Inquiry Test: OBJECTIVE: To measure effectiveness of internal and external events in creating brand loyalty, increasing store traffic, and indicating which type of event is most successful. METHOD: During event, use traffic counters to track event attendance. Collect interested event attendees information from redeemed coupons distributed at events. Follow up with subjects to participate in a survey. Analyze data on effectiveness of events. OUTPUT: Qualitative data will include: Subjects feelings toward IKEA before and after the event What influence those feelings will have on purchasing and loyalty behaviors in the future

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Willingness to participate in such events in the future

Quantitative data will be measured in: Primarily event attendance Event coupon redemption $ generated as a direct result of the event, dollars per transaction and dollars per customer spent during event. (higher or lower than average?) Odds that the customers would participate in events in the future Which % of events were the best-attended Successful event execution will be indicated by: 65% ROI in dollar sales At least 100 participants for each event 65% coupon redemption of day of event 80% chance respondents would attend another event 80% chance the respondents would discuss the event with others

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CONCLUSION
Integrated Marketing Communications: A cohesive plan to communicate a companys brand identity, initiatives, and messages through a complementary mix of marketing tactics implemented by following a clear and effective arrangement of objectives and strategies. Part of the family The part of the family IMC proposal includes all major parts of an effective communications campaign that will recruit and maintain relationships with a specific target market of consumers. The successful completion of the objectives and strategies in the marketing mix will assure customer retention and satisfaction to promote the childrens product category. While IKEA utilizes a general message advertising strategy, emphasizing the childrens product assortment will increase exposure and lead to greater sales of the division. It is an often over-looked sector that has an unsatisfied demand in the marketplace. Repeat exposure to the products will lead to childrens merchandise being a larger, more profitable part of the IKEA family of products. A general overview of effective aspects of the marketing mix: Advertising strategies o Target a specific group of consumers o Appeal through common-ground experiences o Concentrated efforts through strategic mediums Events o Promote IKEA through attractive events o Support charitable efforts through promoting consumer involvement o Appeal to parents by offering family-centered events Promotions o Maintaining client relationships by launching IKEAfamily CRM program o Incentive programs encourage participation and repeat purchasing o Contest promotes IKEA as a desirable and necessary part of the home Public Relations o Promote IKEAs efforts through

Interesting community involvement Charitable efforts Company initiatives Product placement within publications and on television

Part of the family. The effective part.

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REFERENCES: Cook, Brad. (2003, August 4). IKEA put together. Retrieved January 30, 2010 from http://www.brandchannel.com/features_profile.asp?pr_id=138. Home Furnishing Retail Industry Profile: Global. March 2009, p1, 27p, 13 charts, 9 graphs. Ikea ads target lower-income customers. Home Textiles Today. 6/3/2002, Vol. 23 Issue 39, p2, 1/5p, 1 bw. N.A. IKEA company website. Retrieved January 30, 2010 from: www.ikea.com. :

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