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Advertising Plan

I. OverviewThe intent of this Advertising Plan is to present the new marketing

objective for the 2010 year. The Advertising Plan will review Ikea’s top com-petitors as well as analysis the overall furniture category. After covering the basic

information and background for the Ikea market, the plan will describe the new media strategy that will accomplish the Ikea’s objectives.

II. Marketing Objective

Ikeas total sales revenue for 2007 was 27,017.1 and 2009 was estimated at 32,475.0, this is the result of a yearly 4.4% growth since 2002. Contributing operations in sales include Europe at 80%, North Amer-

ica 15%, Asia and Australia with 5%. The marketing objective for 2010 is an estimation of 36,000.0 million; this is an 11% growth (10.85%). The timeline to achieve the marketing objective starts the beginning of June

2010 and stops at the end of November 2010

III. Advertising Objective

The new message in the Ikea campaign is all about nature and the environment, visually, furniture will replace ran-dom eco icons (Ex. A bookcase made of wood will replace a tree in an image of a forest. Ex. A lamp in the place of a flower in an image of a garden). Research proves the Ikea’s The tone is a result from the demographic, a young and unattached group. This group is still optimistic for what the future holds for both their personal and professional life. The tag line will read, “Let nature take it’s course.” The tag illustrates that the furniture comes from nature and other natural resources and on the furniture; nature will take its course. IV. Category Review

The US furniture retailing industry includes about 20,000 companies with combined annual revenue of about $50 billion. Household furniture sales are closely linked to home sales. Office furniture sales are linked to employment growth and new business formations. The profitability of furniture stores depends on merchandising and marketing. Small stores can co-exist with large ones by carrying special goods that appeal to a particular type of customer.

A typical furniture store sells living room, dining room, kitchen and bedroom furniture, and mattresses. Most retail furniture stores sell a broad range of products, but some concentrate on one furniture type, such as mattresses, so-fas, or office or children’s furniture. Store operations involve sales management, merchandising, inventory man-agement, and credit financing. Stores generally target a particular type of consumer based on style and price. Selling furniture requires showrooms, which can be large, often between 40,000 and 100,000 square feet. Specialty retailers can be successful using much smaller stores, but must usually carry a more expensive line of products because turnover is lower.

V. Competitive Review

Ikea:The IKEA advertising, PR and other types of communication are complements to the IKEA

Range, store and catalogue are used to spearhead the penetration of our target mar-ket. The UK marketing department IKEA advertising in the UK is intended to raise

awareness of the IKEA brand and drive traffic to the stores. Some people love our unique style of retail advertising; some hate it, but everyone Despite

having some of the most controversial television advertising cam-paigns in the UK, We have raised awareness of our brand; let

people know we are different to other home furnishing Companies and most importantly in retail sales.

The advertising department includes all

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aspects of advertising and brand communication from television advertising and sponsorship to magazine and radio

promotions. Advertising is used to support many different areas of the business including brand awareness, store themes, catalogue drops and

store openings.

Wal-Mart:Though Wal-Mart has traditional TV spots and magazine ads, word-of-mouth is their main reli-

ant. Instead of campaigning like it’s competitors, the company’s everyday low price philosophy is relied on. Wal-Mart relies on in store signs and rolls backs to market their promise and reputation.

Ashley Furniture:Ashley Furniture has mostly advertised locally, mailing local ads, buying local cable spots, etc. Recently, Ash-

ley Furniture has taken advantage of a more modern day source of advertising, SMS and email. Recently they have done sales on short day basis bringing in around $138,460, all marketing from digital messaging.

VI. Company Analysis:

IKEA was founded in 1943 by 17-year-old Ingvar Kamprad in Smaland, south of Sweden. IKEA formed its name from the founder’s initials in addition the first letters of Elmtaryd and Agunnaryd, the farm and village where he grew up from a farmer to a businessman. Ingvar sold whatever he found could plug with a product at a bargain price under the brand name of IKEA. When Ingvar Kamprad outgrew his ability to make individual sales calls in 1947, furniture was introduced into the IKEA product range. Local manufacturers in the forests close to Ingvar Kamprad’s home formed the furniture. The founder of IKEA soon saw the opportunity of becoming a furniture supplier on a larger scale and discontinued all the other products to focus directly on low-priced furniture. The conclusion is the IKEA that we know now.

One of Ikeas strongest strengths is their easily distributing system, flat packaging ready to build is so easily transported via car, taxi, and bus, even a bike if product is small enough. Their unique packaging is also easy on the cost so the price is half of what the norm would be for furniture containers. Ikeas culture is strength in itself with their intense staff commitment and loyalty in addition to its carefully mapped out interior layout. Ikea is very unique in their product cat-egory, with their Swedish chic designs they stay modernly ahead of their competition. As a result of it’s great and memorable shopping experience, Ikea has gained a recognized brand around the world; some even say the store is a modern theme park. Unfortunately, thought they are best known for their unique design, such a style does not gain the likes of everyone, making their demographic a smaller range. Another straining weakness is their lack of train-ing for using new software that help regulate and take care of basic business functions. Being a foreign brand is also difficult, both on a marketing level as well as manufacturing level.

Ikeas top competitors Worldwide include Ashley Furniture and Wal-Mart; Ashley Furniture is the only com-pany that only merchandises furniture. First characteristic that comes to mind about Wal-Mart is low price, a strength that can easily beat many competitors in today economy. Another great element of Wal-Marts

is their wide range of products, expanding from grocery to electronics. Wal-Mart is also an interna-tional brand, but under the name ASDA in the UK, training employs all over the world with their

known hospitality and friendly environment strategy. Thought Wal-Mart is a large and still grow-ing brand, having such a huge empire controlling itself can lead to weak quality in some

areas. Also, with such a wide range of departments, competing against too many indus-tries leaves Wal-Mart less flexible.

The other close competitor of Ikeas is Ashley Furniture, The number one ranked furniture manufacture in North America. Ashley Furniture is

mainly known for their in-house design, creating design that not only benefit themselves with no out sourcing fees, but

this advantage also caries on to the customer, saving them money. Ashley Furni-

ture also

has patent ownership on ornamental designs they have pro-duced themselves giving them another leg up in the industry. A down-

fall on Ashley furniture is their lack to distribute to other countries, they only market in the U.S. Another strain the Ashley Furniture name is the fact that they

have three lawsuits on their record, one for an environmental hazard and the others for plagiarism; unfortunately for them they lost all three.

VII. Brand Communications Strategya. Brand Name: Ikea

b. Category: Furniturec. Target

i. Demographic1. 20-35 year old

2. New Professional/ student. 3. Urbanities4. Tech Savvy5. 0-2 children6. Some College- BFA Degreeii. PsychographicThe Ikea customer is generally one who appreciates modern living and design. He/She lives in the Metropolitan areas either attending college or a recent alumnus still on a tight budget. We can find these Ikea fans recycling or even riding their bikes to the local farmers market hoping to give the Earth a friendly day. They’re also crafty, willing to put together their own furniture and place it in a way that make their home entertaining to come back to at the end of the day. d. Promise-Key Benefitsi. To create a better everyday life for many peopleii. Offer a wide range of well designed, functional home furnishing products at prices so low that as many people as possible will be able to afford themiii. A partner for better livingiv. “Your partner in better living. We do our part and you do yours. Together we save money.”e. Desired Promisei. At Ikea we offer a wide variety of Earth friendly products for everyone, beginning to finishing. f. Supporti. As part of our business idea, we insist on keeping costs low and always try to use resources wisely when designing our products. Before executing a designed product, materials are planned and adapted to minimize the negative impact on the environment. VIII. Media Planninga. Targeti. DemographicThe media demographics are the tech savvy student or newly hired professional living in the metro

area. He/She is environmentally sound and bringing home a median income approximately 40k-57k. He/She has had at least some college and is still fresh from the college life.

ii. PsychographicThe Ikea customer is generally one who appreciates modern living and design. He/She lives

in the Metropolitan areas either attending college or a recent alumnus still on a tight budget. We can find these Ikea fans recycling or even riding their bikes to the local

farmers market hoping to give the Earth a friendly day. They’re also crafty, will-ing to put together their own furniture and place it in a way that make their

home entertaining to come back to at the end of the day. iii. Geographic

Media for Ikea marketing will be introduced in four countries of the 38 that make up the majority of

Ikea’s sales; they include

Germany, the USA, France, and Italy. In the United States the following states will be targeted New Jersey, Florida, Pennsylvania,

New York, California, Texas, and Maryland. b. Medium

i. Dominant:1. Interactive

a. Banner Adsb. Email Newsletter

c. Networkingi. Interactive was chosen because of our targets demographic, the average 20-35 year old spends

no less than half their day in front of a computer screen. Whether this technology interaction is for work, school or play the World Wide Web is always a click away. TV, the most popular source of advertising was

not chosen mainly because of all the clutter, secondly because our target only sits down to watch the television for a scheduled event; soaps, favorite show, Emmy awards, reality Showtime, etc. when a advertisement comes

on our target usually uses this time to grab a snack, bathroom break, make a phone call, etc. or in today’s world he or she will just fast forward with DVR. ii. Secondary:1. Guerillaa. Our target has been around since VCR, cassette tapes, and when the word Google meant something flirty. TV commercials and newspaper ads are old news for our target, Guerilla marketing is something different and on a more shock value. A shock image just shocking enough to gain the consumers attention and ultimate loyalty.2. Magazine Printa. Magazines never get old, whether they’re in print or digital they are an activity convenient to anyone, especially for our target demographic. 3. Direct Maila. Our Ikea consumer is the average shopper in terms of income, they’re just starting out in the real world; either newlyweds, college graduates, or moving out of their parents house. Still on a pretty tight budget, any coupon, savings, or sale event is going to grab their attention when it come to products that fall into a necessity category. A direct mail with coupons, deal announcements, or promotions are attention grabber . 4. POP (located in Ikea Restaurants)a. If our target misses all media vehicles, an in store POP will grab their attention when they’re next to the product itself.c. Continuityi. Internet: 4 weeks on and 3 weeks off1. Internet, being the most promising to catch our targets attention is the best choice to have running the majori-ty of the time. The three weeks off are also important so that our consumers do not get overwhelmed and view Ikea in a negative way.ii. Guerilla: 4 weeks on and 112 weeks off1. The point of Guerilla marketing is it’s potential to grab eyes by its unique and surprising situation.

In order for Ikeas Guerrilla ads to be unique they have to happen less than normal ads. By having the guerrilla ads happen every three months they will grab attention from their bizarre and rare ap-

pearances. iii. Magazine: 4 weeks on and 4 weeks off

1. Most magazines run monthly, with this 4 weeks on 4 weeks off schedule Ikea will have a chance to gain the target demographics every other month, these are also

the months the interactive is off so demographics missed are hit with these ads. iv. Direct Mail: 1 week on and 4 weeks off

1. Targets are slowly checking their mail less every week, Mail is either negative or positive depending on its quantity of arrivals.

When consumers check the mail, which can be once or twice a week,

every other time would be too overwhelming. However we want to

gain awareness while the brand is still fresh in their mind so once a month is the right time to frame to send DMs to

targets.v. POP: Continuous

1. This is a chance to gain awareness by all the targets that were missed, and having it visual next to product at all times is promising to persuade the consumer.

d. Calendar

e. Budgetf. Interactive: $ 300,000,000g. Guerilla: $ 49,800,000h. Magazine Print: $ 90,000,000i. Direct Mail: $ 4,500,000j. POP: $ 5,700,000i. Total: $ 450,000,000

Magazine Rationale:To illustrate the nature taking its course as said in the tag, a couch manipulated to look like it has been made from trees and is positioned in place where a tree would be grown.

Most magazines run monthly, with this 4 weeks on 4 weeks off schedule Ikea will have a chance to gain the target demographics every other month, these are also the months the interactive is off so demographics missed are hit with these ads.

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Magazine Rationale:To illustrate the nature taking its course as said in the tag, a lamp manipulated to look like it has been made from a flower and is positioned in place where a flower would grow.

Most magazines run monthly, with this 4 weeks on 4 weeks off schedule Ikea will have a chance to gain the target demographics every other month, these are also the months the interactive is off so demographics missed are hit with these ads.

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Interactive Rationale:To illustrate the nature taking its course as said in the tag, curtains are manipulated to look like they are coming from a waterfall and are posi-tioned in place where water would flow.

Internet, being the most promising to catch our targets attention is the best choice to have run-ning the majority of the time. The three weeks off are also important so that our consumers do not get overwhelmed and view Ikea in a negative way.

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Direct Mail Rationale:To compliment the nature taking its course as said in the tag, a packet of “seeds“ will be sent out as the direct mail to potential consumers. In the packets will be “Ikea seeds.“ The seeds will be potentially “planted” in the home to help benefit the earth with the eco friendly products purchased with the 10%off coupon that is also inside the seed packet.

Targets are slowly checking their mail less every week, Mail is either negative or positive depending on its quantity of arrivals. When consumers check the mail, which can be once or twice a week,every other time would be too overwhelming. However we want to gain awareness while the brand is still fresh in their mind so once a month is the right time to frame to send DMs to targets.

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Guerilla Rationale:To compliment the nature taking its course as said in the tag, a eco- friendly couch from Ikea will be placed in highly trafficked parks; central park mail. The concept flows the same rate as the couch print ad with the couch. Walkers, runners, tourist, etc. Will remember the mo-ment as well as the Ikea brand for its unique placement.

The point of Guerilla marketing is it’s poten-tial to grab eyes by its unique and surprising situation. In order for Ikeas Guerrilla ads to be unique they have to happen less than normal ads. By having the guerrilla ads happen every three months they will grab attention from their bizarre and rare appearances.

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POP Rationale:To compliment the nature taking its course as said in the tag, a design display in eco- friendly section in the Ikea store will feature nature icons and life. bushes, flowers, twigs, etc. will also randomly leade shoppers too the display by a trail that gradually grows more and more of nature parts.

This is a chance to gain awareness by all the targets that were missed, and having it visual next to product at all times is promising to persuade the consumer.

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