NEW BUSINESS PITCH

Everything is possible if you think in opportunities

NAME BRAND PITCH TYPE

Media Work

MARKET

United States

DATE

March 1 , 2016

The Data You Need to Win This Pitch

st

DESCRIPTION

Ikea is reviewing its entire $444 million global media account, which is currently split between a range of agencies across five different holding companies.

Ikea is No. 66 in the ranking of Top 100 Global Marketers compiled by Ad Age's Datacenter. In 2014, the vast majority of Ikea's spending – 79% – was in Europe, with 15% in the U.S. and less than 2% in Asia.

Ikea kicks off a $444 Million Global Media

Review

Client Profile / Market

Ikea is a multinational group of companies that designs and sells ready-to-assemble furniture (such as beds, chairs and desks), appliances and home accessories.Founded in Sweden in 1943 by then-17-year-old Ingvar Kamprad, who was listed as one of the world's richest people in 2013.The company is known for its modern architectural designs for various types of appliances and furniture, and its interior design work is often associated with an eco-friendly simplicity.[7] In addition, the firm is known for its attention to cost control, operational details, and continuous product development, corporate attributes that allowed Ikea to lower its prices by an average of two to three percent over the decade to 2010 during a period of global expansion.

As of March 2016, Ikea owns and operates 381 stores in 47 countries

FINANCIAL OVERVIEWCOMPANY BACKGROUND

MAIN COMPETITORS

2015 Sales (mil)

2015 Employees

Employee Growth Percent

Assets (mil)

Net Income Growth Percent

Sales Growth Percent

351.915.000

350

NA

NA

NA

11.2%

+ 2.9%+ 12%$ 98.23 bn

Furniture & furnishingstore sales in the U.S.

in 2015

Furniture market statistics

Compared to2011’s sales

Annual rate growththrought 2019

98.23 + 12% + 2.9%

Ikea’s Circular Economy Vision

“We will be increasingly building a circular Ikea where you can repair and recycle products”

Steve HowardIkea’s head of sustainability

INCREASE by 20204x

$ 1.13 BOf sustainable products sold in 2013

+ 58%Compared to 2012 sales

Online sales are increasing

Internet sales of furniture is expected to hit$32b by 2018

By that year, the web will also influence the

62%of offline furniture sales.

US FURNITURE E-COMMERCE OUTLOOK

25

20

15

5

0

30

35

10

2014

20

2015

23

2016

26

2017

29

32

2013

15

2018F

18

SALES FORECAST (USD BIL.) WEB-INFLUENCED SALES

2013

2018

47% 49% 4%

62% 30% 8%

Web-Influenced Offline Sales

Non-Web-Influenced Offline Sales

Online Retail Sales

1

0.8

0.6

0.4

0.2

Sales of UPCYCLED items from 8.000 in 2010to +200,000 in 2014

SEARCHES WITHIN THE HOME FURNITURE CATEGORY

Upcycled items leading online sales

0

Rustic

0.3

Contemporary

0.25

Shabby Chic

0.15

Traditional

0.02

Vintage / Antique

1

Source: Google Data, January - July 2014, Indexed Search Query Volume (Home Furniture Category), United States

on

Sales of UPCYCLED items

up 89% in 2014compared to 2013

on

‘We will be increasingly building a circular Ikea where you can repair

and recycle products’

UPCYCLIST• • •

Steve HowardIkea’s head of sustainability

• • •

69% Are Females

67% Are Married

76% Have no Children living at Home

THE UPCYCLIST

Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless and/or unwanted products into new materials or products of better quality or for better environmental value.

QUICK DEFINITION

70% College Educated

Upcyclists: Who they are

IKEA AUDIENCE CROSSOVERS

Females accounting for the majority of Ikea’s audience (78%)

59% of Ikea’s audience is married

Ikea’s audience is composed primarily by people living with a

children at home (60.3%)

68% of Ikea’s audiencefrequented College.

ARTS, DESIGN & HOME DECORATION

READING

BEAUTY

POLITICS

The Upcyclists’ passions

IKEA AUDIENCE CROSSOVERS

Reading isn’t one of Ikea’s audience main passions.

(Readers trait pop: 94.3)

Arts, Design and Home Decoration are popular interests for Ikea’s

audience too.

Political activism doesn’t catch Ikea’s audience interest.(Politically Active Pop: 71.6)

Beauty is one of the top interest of individual following Ikea

(Beauty & Welness Aware - Pop: 172.2)

TOP GALLERIESTOP ARTISTS

Upcyclists & Arts

VISUAL ART & DESIGN159.6

( popularity index )

ART APPRECIATORS188.6

( popularity index )

IKEA AUDIENCE CROSSOVERS

They share the interested in Visual Arts (Pop Index: 127.4).

AVAM (108.1) and De Young Museum (36.8) aren’t among their

favorite galleries.

Sue Bryce (135.6) and Simon Beck (112.8) score good relevance index.

Grounds for Sculpture has positive relevancy (120.2).

de Young Museum

Ground of SculptureLurie Belegurschi

Simon Beck

Sue Bryce

150

TOP MAGAZINES & WEBSITESTOP BOOKSREADERS

144.1( popularity index )

Reading

IKEA AUDIENCE CROSSOVERS

Nourished Kitchen (120.3) and Mother Earth News (104.6) have

positive relevance index

Websites (118.4) and Magazines (136.5) have positive popularity

indexes, while Books (68.7) gather low interest

100 Days of Real Food (150.8) and Magic Tree House (137.8) is a book

gathering much interest.

Discworld is not a book that Ikea’s audience would like to read.

112,5

37,5

0

75

Magazines

15

WebsitesBooks

Discworld

BEAUTY & WELLNESS AWARE148.9

( popularity index )

Beauty & Wellness

IKEA AUDIENCE CROSSOVERS

Burt’s Bees (151.8) is one of the favorite brands of Ikea’s audience

Weight Watchers (147.7) and Tom’s of Maine (135.1) are relevant brands

Makeup Geek (128.3) and Makeup.com (133.4) are relevant

news sources

GreenMedInfo.com (79.7) is not a relevant website for Ikea’s audience.

TOP BRANDS TOP SOURCES

SOCIAL ISSUES& ADVOCACY

188.7( popularity index )

TOP SOURCESTOP ORGANIZATIONSPOLITICALLY ACTIVE

177.8( popularity index )

Politics & Activism

IKEA AUDIENCE CROSSOVERS

Box Tops for Education is one of the most relevant organizations

(155.1)

Social Issues are not particularly felt(Pop. Index: 109.6)

Treehugger (76.1), Grist (77.4) and NaturalNews (97.9)

Are scoring low relevance points

Climate Reality (38.6) and Sierra Club (47.2) are scoring poor

relevance indexes.Natural News

62.5%

UPCYCLIST

Ikea - UpcyclistsAdherence

Ikea’s audience share 62.5% of the

Upcyclists’ favorite interests and

passions.

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