IKEA communication policy: Advertising

Автор: m*************@mail.ru, 24 Ноября 2011 в 18:06, реферат

Описание работы

IKEA is multinational company, which offers 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 them. This is the idea at the heart of everything IKEA does, from product development and purchases to how they sell products in IKEA stores globally.

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The IKEA Way 4
The IKEA marketing strategy 4
The IKEA communication policy 5
Advertising 7
Conclusion 9
References 10

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IKEA communication policy advertising by Evgenia Boyko.doc

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University of Hamburg

St. Petersburg State University of Economics and Finance

MiBA - Master of International Business Administration

Final assignment for International Branding 
 
 
 
 
 

IKEA communication policy:

Advertising 
 
 
 
 

                                                                                  Tutor: Prof. Dr. Dr. h. c. Bodo Abel

                                                         Author: Evgenia Boyko                                                                                                              

                                                                     Date: 31.01.2010

                                                                      Place: St. Petersburg 

Content: 

Introduction  3

The IKEA Way  4

The IKEA marketing strategy  4

The IKEA communication policy 5

Advertising  7

Conclusion  9

References 10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Introduction

     IKEA is multinational company, which offers 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 them. This is the idea at the heart of everything IKEA does, from product development and purchases to how they sell products in IKEA stores globally. 

     The IKEA vision, business idea and market positioning statement provide a framework for all IKEA marketing communication worldwide.

     The IKEA vision is "To create a better everyday life for the many people."

     The IKEA business idea is "To 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 them."

     The IKEA market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money."

     These 3 statements is basis for IKEA communication policy and advertising particularly.  What IKEA does, what they say, the products they offer, the price they offer them at, the presentation of range and the information they provide their customers all contribute to the image. The overall task of IKEA marketing communication is to build the IKEA brand and inspire people to come to the stores.

     The target group of IKEA is very fuzzy or in other words can be said wide. The target group consists young students, young families with babies or without them, usual families with low or middle income. There is a big group of people, which have different needs, wants, tastes, dreams, aspirations and wallet sizes; but all these people want to improve their homes and their everyday lives.  In this situation the company tries to do ads for all groups of their target consumers using not only cognitive learning and reasoning, but also classical conditioning + ironic rote learning.  And this is very thorny way, to get more consumers. 
 
 
 
 
 
 
 

     The IKEA story began in 1943 in the small village of Agunnaryd in Sweden, when founder Ingvar Kamprad was just 17. Since then, the IKEA Group has grown into a major retail experience with 128,000 co-workers in 24 countries/territories generating annual sales of more than 21.1 billion euros.  

The IKEA Way

     IKEA offers 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 them. This is the idea at the heart of everything IKEA does, from product development and purchases to how they sell products in IKEA stores globally. 

     These words (which we can find at official site of IKEA) describe the way of IKEA properly: Anybody can make a good-quality product for a high price, or a poor-quality product for a low price. But to make good products at low prices, you need to develop methods that are both cost-effective and innovative. This has been the focus of IKEA since its beginnings in Småland, Sweden Maximizing the use of raw materials and production adaptation to meet people's needs and preferences has meant that their costs are low. The IKEA way of doing things is to pass these cost savings on to customers.1 

The IKEA marketing strategy

     The IKEA vision, business idea and market positioning statement provide a framework for all IKEA marketing communication worldwide.

     The IKEA vision is "To create a better everyday life for the many people." Most of the time, beautifully designed home furnishings are usually created for the few who can afford them. From the beginning, IKEA has taken a different path. The company has decided to side with the many. That means responding to the home furnishing needs of people around the world: people with many different needs, tastes, dreams, aspirations and wallet sizes; people who want to improve their homes and their everyday lives. 

     It's not difficult to manufacture expensive fine furniture: just spend the money and let the customers pay. To manufacture beautiful, durable furniture at low prices is not so easy - it requires a different approach. It is all about finding simple solutions and saving on every method, process or approach adopted - but not on ideas.

     The IKEA business idea is "To 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 them."

     The IKEA market positioning statement is "Your partner in better living. We do our part, you do yours. Together we save money."

     By communicating the content of this framework and encouraging customers to experience the IKEA concept, the company is building the IKEA brand. The IKEA brand is the sum total of the emotional and rational values that consumers associate with the IKEA trademark and the reputation of the company. The brand image is the result of over 50 years work by IKEA co-workers at all levels all over the world.

     To sum up this chapter IKEA has 3 bases, which the company uses in its marketing strategy. There are principles about IKEA vision, IKEA business idea and IKEA market positioning statement. 

The IKEA communication policy

     What IKEA does, what they say, the products they offer, the price they offer them at, the presentation of range and the information they provide their customers all contribute to the image. The overall task of IKEA marketing communication is to build the IKEA brand and inspire people to come to the stores.

     The IKEA concept builds on a relationship with the consumer. Nine key messages are used within the IKEA marketing communication to build this relationship and give an understanding of how IKEA can fulfill customers’ needs. These are described below.

     The IKEA concept is based on the market positioning statement. "We do our part" focuses on commitment to product design, consumer value and clever solutions. By using inexpensive materials in a novel way and minimizing production, distribution and retail costs, customers benefit from low prices.

     The IKEA product range is developed to be extensive enough to have something that appeals to everyone and to cover all functions in the home. The products are modern not trendy so they are practical enough for everyday use.

     IKEA is the home furnishing specialist. IKEA products are functional and appealing, and enable many people to improve their home life through practical solutions to everyday problems.

     Low price is not appealing unless it represents good value for money. This is where IKEA is able to make a real difference. IKEA is committed to having a good relationship with suppliers and so they are able to purchase good quality, economically produced designs that are bought in bulk to keep costs down. By making all furniture flat packed they cut down on transportation and assembly costs.

     Function. IKEA products are based on a functional approach to design. IKEA design means products that are attractive, practical and easy to use. They don't have unnecessary features, they give genuine solutions for specific home furnishing needs and are made of the most suitable materials for their purpose.

     The right quality. The quality of a product must be appropriate for the intended use. For example there is no need for an expensive back panel on a bookcase if a less expensive alternative does a good a job as long as the bookshelf is used for the purpose it was intended for. IKEA products are subjected to rigorous tests to make sure that they meet national and international safety standards.

     Convenient shopping. The IKEA store offers "everything under one roof", most of it available for immediate take-away. IKEA offers service where customers need it, but allows customers to make most of the decisions themselves. This means that the company needs to make it easy to choose the right products by displaying them correctly, describing them accurately and having a simple returns policy.

     A day out for the whole family. IKEA aim to look after customers by planning for their needs. Not only do the company provides inspiration and ideas, but also encourage people to touch, feel and use the products on display to see how they would fit into their own home. IKEA has new products arriving all the time, seasonal themes, play areas for children, special events and a great value family restaurant.

     Swedish IKEA. The key IKEA messages all have their roots in the Swedish origin of IKEA. Swedish furniture is light and fresh yet unpretentious. The warm welcoming Swedish style has become a model of simplicity, practicality, and informality that is now world renown.

     To sum up this chapter the communication policy of IKEA has nine key messages are used within the IKEA marketing communication to build this relationship and give an understanding of how IKEA can fulfill customers’ needs. There are such aspects as low price, functionality, swedish spirit, good quality, appropriate for the whole family etc. 
 

Advertising

     IKEA uses high involvement strategy in the communication policy and in advertising particularly. That means in advertising of the company there is complex message, which consist of nine key messages, which are described above. Also advertising contains information about directly products benefits, emotional and information appeal, product differentiation, maximization of desired benefits etc. IKEA use not only cognitive learning and reasoning (think, consider, be reasonable), but also classical conditioning + ironic rote learning (feel, sense, experience). To cognitive learning refer such aspects as low costs, modern ideas, convenient boxes, catalogues, big variety etc. To emotional aspects relate love, babies, pleasant moment of bliss, fun, comfort. Also there are some aspects, which include 2 of these approaches: emotional and cognitive. There are on the point of intersection of these two approaches: learn to be designer, learn to do by yourself, better the standard of living. The company tries to combine two these approaches to reach the best outcome. IKEA presses at all aspects of a person.

     The target group of IKEA is very fuzzy or in other words can be said wide. The target group consists young students, young families with babies or without them, usual families with low or middle income. There is a big group of people, which have different needs, wants, tastes, dreams, aspirations and wallet sizes; but all these people want to improve their homes and their everyday lives.  In this situation the company tries to do ads for all groups of their target consumers. IKEA uses principles of uniqueness and ubiquity, reduction of content, simplicity and clearness, humor and provocation. At first the company planned to use also the principle of continuity, but how it can be seen now the company moved away this idea. Nowadays IKEA is in collaboration with 43 advertising agencies around the world. Every year these companies implement 3-7 new slogans and 3-7 new advertising campaigns for these slogans. There are international campaigns for all countries, where are situated IKEA’s stores, but of course sometimes advertisements differ from each other depending on country and aims of local campaigns. There are some slogans of the year 2008: IKEA: Long Live Diversity; IKEA Bigger Storage Ideas; IKEA Furniture: The XXS Room Mailing; IKEA Sleeping Rooms: Dream Bubble; IKEA: Sliding Wardrobe; IKEA: Apartment In A Box; IKEA: Brooklyn Bridge; Interior; IKEA: Beauty lies within. IKEA uses normal, fashion, reasonable advertisings, but also humoristic and provocative ads, which excite strong feelings in society and sometimes are more effective than normal ads.  Examples of humoristic and chocking style ads:

    • UK: “Stop being so English”;
    • Switz.: “Stop being such snobs“;
    • USA: “America is a big country, someone has to furnish it”;
    • FR: “The French need more space, more love, more well-being and more purchasing power. For all those reasons, vote IKEA”.

Provocative ads of IKEA can excite positive feelings of society, but recently there are often banned because of rudeness and crudity. The last trend is that it’s hard to understand if it ad of IKEA or just work of person, who doesn’t work with the company at all. These ads crossed with guerilla marketing and not always bring good result.

     To sum up this chapter advertising campaigns of IKEA include different sorts of ads, which implement 43 advertising agencies around the world. There are normal, fashion, reasonable, provocative, choking and humoristic ads, which pursue one aim meet the case of consumers, surprise them and stay in their memories to gain trust and loyalty of the customers, improve relations with middlemen and as a result reach higher profits.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Conclusion

     Our days the importance of accurate communication policy processes and advertising particularly is growing all over the world. IKEA offers 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 them. And the target group of IKEA is very fuzzy or in other words can be said wide. The target group consists young students, young families with babies or without them, usual families with low or middle income. There is a big group of people, which have different needs, wants, tastes, dreams, aspirations and wallet sizes; but all these people want to improve their homes and their everyday lives. And this is very important for such big company, in which work 128,000 in 24 countries/territories to check its communication policy every time and try to better it. By turn advertising campaigns should meet the case of consumers, surprise them and stay in their memories to gain trust and loyalty of the customers, improve relations with middlemen and as a result reach higher profits.

References:

  1. Elen Lewis  “Great Ikea!: A Brand for All the People”, 2005
  2. "Ingvar Kamprad and IKEA". Harvard Business School Publishing, Boston, MA, 02163. 1996
  1. Inter IKEA Systems B.V. November 2008
  1. Owens,Heidi, IKEA: A Natural Step Case Study. Oregon Natural Step Network, 1998. Retrieved on: April 6, 2008.
  1. http://franchisor.ikea.com/showContent.asp?swfId=facts1
  1. http://www.ikea.com

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