Han Sun

IKEA Full Digital Strategy

Background of IKEA

Furnishings retail company

Founded in Sweden in 1943

Operating 360 stores in 47 countries.

According to Forbes, as of May 2015, Ikea achieved sales of $37.4 billion and has 11,000 employees worldwide.

Ikea is unquestionable to be one of the world’s most valued corporation.

http://www.forbes.com/forbes/welcome/

Not limited to middle class customers worldwide.

Some Ikea stores even have "Småland” Playrooms.

All major social media platforms:

Online research digital marketing is growing exponentially.

90% consumer who call you are most likely ready to buy.

Have to understand buyer personas.

Inbound marketing delivers 54% more leads than outbound marketing.

Relevant emails drive 18 times more revenue than broadcast emails.

Targeted email is different from spam.

Target Audiences of IKEA

http://www.hubspot.com/inbound-marketing

“Affordable and high Quality.”

Brand cultural: simple, clear and straightforward.

Known for its contemporary yet affordable furniture.

Unique selling proposition (USP): price advantage in which the flat pack furniture is economical and easy to transport.

The Big Idea of IKEA

http://www.josephyiptong.com/2008/11/14/communication-the-10-cs/

Uses all assessable platforms support its brand image.

Create useful content that viewers are willing to share.

Facebook: 1st among its social media platforms, as nearly three quarters of Americans adults use the site.

Instagram: great for retailers such as Ikea, who rely heavily on images.

Articles with images receive 94 percent more views.

Twitter: target customers base on gender, interest and location.

LinkedIn: attract further employees.

To keep track: Follows & Likes: Facebook, Instagram, & Twitter. Shares, Follows & Subscription: Pinterest & YouTube. Follows, Engagement, Conversation & Shares: LinkedIn

Social Media Strategy of IKEA

https://twitter.com/davidcohen007

Website clearly divided into several sub-categories.

Display sliding advertisement such as promotions, discounts and customer relations.

Ikea’s website exists for: promoting sales, awareness, product distribution, public relation, education, customer service, recruitment, etc.

Internet Marketing of IKEA (KPIs)

http://www.ikea.com/ms/en_JP/customer_service/faq/help/about_ikea/ikea_catalogue.html

As of 2015: > 3 billion internet users; ~ 25.9% use English. Ikea’s websites support 17 language for 28 countries.

Ikea’s websites still follow standard website conventions. Ikea websites working on a variety of devices.

A successful search engine marketing focus on keywords that will lead people right into the products website.

Selecting the right keywords.

The key phrases and “ad groups” that should be considered:“where to buy furniture”“home decoration”“cheap and good quality furniture” etc.

Long tail keywords are especially important for retailers such as Ikea. Marketers learned that long tail keywords catch people later in the buying cycle, while that of Ikea is very effective.

KPIs for Ikea website measure three main categories:Browsing rateUsabilitySales turnover

Internet Marketing of IKEA (KPIs)

http://blog.htc.ca/2013/09/03/web-design-conventions/

“IKEA Store” available in Apple’s App Store.

The originally setting of the display fit perfectly within the screen without any size distortion. User do have the option to enlarge and zoom into the content.

Upper half of the homepage: Products, Find a store and Log in. Lower half of the homepage, other customer options: Services, Gift Card, Jobs, etc.

For user convenience, “Go to top” button is also available.

Ikea also geared towards giving customers the same user experience using mobile site and websites.

Mobile Strategy of IKEA

Ikea typically spends close to 70% of its marketing budget on content creation.

Every year, IKEA publishes 208 million furniture catalogs in 62 different variations across 43 countries.

Based on the pass results we believe that Ikea should maintain a similar annual marketing budget of $25 million.Within, ~ $17 million digital marketing.

Digital Marketing Budget of IKEA

http://www.wsj.com/articles/SB10000872396390444508504577595414031195148

Slide2: http://www.forbes.com/forbes/welcome/ Slide3: http://www.hubspot.com/inbound-marketing Slide4:http://www.josephyiptong.com/2008/11/14/communication-the-10-cs/ Slide5: https://twitter.com/davidcohen007 Slide6:http://www.ikea.com/ms/en_JP/customer_service/faq/help/about_ikea/ikea_catalogue.html Slide7:http://blog.htc.ca/2013/09/03/web-design-conventions/ Slide9:http://www.wsj.com/articles/SB10000872396390444508504577595414031195148http://www.theaustralian.com.au/business/media/ikea-launches-5m-makeover-campaign/story-fna12mff-1226719929345

Sources

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Thank You!