As a brand operating in the furniture industry, specializing in providing semi-assembled furniture products, appliances and home accessories, IKEA wants to make their products and customers’ shopping experience easy. and interesting. Explore IKEA’s creative communication strategy, where everyone can find simplicity and warmth in everyday life.
1. Context of birth
Ingvar Kamprad, a legend in the field of furniture, had a rough start. Born into a poor family in Sweden, Ingvar began his difficult journey when he was in high school. From the first letter of his name (Ingvar Kamprad), the farm where his grandfather grew up (Elmtaryd) , and in his hometown (Agunnaryd), IKEA was born, becoming a symbol of the global furniture industry.
In the early days, when Mr. Kamprad’s first store opened, certainly no one could have imagined that IKEA would become so big. From personal efforts and passion for interiors, Ingvar has laid the foundation for a novel, economical and optimized shopping experience.
IKEA is more than just a furniture company. It is the world’s largest furniture retail group, with more than 392 stores in 48 countries. They have truly mastered the worldwide furniture market and are always on the list of the top 50 most valuable brands globally.
From a local business model, IKEA became a famous monument, and Ingvar Kamprad became the richest billionaire in Northern Europe with a fortune of nearly 50 billion dollars. The brand has truly affirmed its top position in the world’s furniture “village”, with impressive numbers:
- IKEA’s retail sales reach 44.6 billion euros in 2022
- 38 new IKEA sales locations were opened worldwide in 2022
- IKEA welcomes 844 million visitors in 2022 compared to 775 million in 2021
2. Analyze IKEA’s 7Ps Marketing strategy
When we think of IKEA, we not only think of furniture, but also of an experience of creating and upgrading living space.
Product: Elegant, sophisticated, simple but not out of fashion is what IKEA is aiming for. From furniture products, bathroom equipment, technology products to decorative items, all are influenced by Scandinavian style, with the perfect combination of functionality and aesthetics (neutral colors, design). minimalist design and neat lines). According to information from IKEA’s sales website, this brand has more than 12,000 product lines, and each year the company will develop about 2,000 new products, you can even buy a whole house with IKEA.
Price: IKEA’s products are associated with simplicity, consistent with the spirit of the world’s No. 1 furniture company: Design for everyone. With the goal of being able to “touch” all consumers, IKEA has products in both the high-end and affordable segments, anyone can choose for themselves the item they like, suitable for their budget. . Accordingly, the brand is pursuing the following 3 pricing strategies:
- Cost leadership: Competitive costs are placed at the core of IKEA’s pricing strategy . The company aims to provide products “at low prices so that the most people can buy them”.
- Psychological pricing: Brands attract customers’ attention emotionally rather than rationally. Accordingly, IKEA applies the “.99” price strategy, specifically 0.99 Cent instead of 1 USD for most of its products. For example, SOLVINDEN string lights cost $12.99
- Geographic pricing: In different markets, product prices will be priced differently, based on factors such as competitive environment, raw material costs, labor costs…
Location: IKEA’s store system is present in 48 countries. Typically, stores are located on the outskirts of town to provide a convenient environment for customers to shop. However, in recent years IKEA has changed its strategy and applied the new model to stores located in towns and busy streets. In these stores, a limited number of product types are displayed. Customers not only come to the store to shop but also to visit the showrooms, enjoy a lunch at IKEA’s restaurant or even relax in the outdoor garden.
Promotion: IKEA creates novelty for customers by regularly launching new and inspiring collections through prints (catalogues), promotional videos, KOLs and social networks (Facebook, Twitter, Instagram and Pinterest). Using social networks helps brands create a strong and loyal community. In addition, the brand also frequently appears as a sponsor in movies.
People: Employees at IKEA receive special technical training to help customers understand the products and guide them conscientiously. The sales team plays an important role in creating relationships and a friendly, close, and professional communication environment with customers. Training and development programs are also continuously implemented, thanks to which the number of employees staying with the company for a long time is also increasing. In addition, suppliers are also an important part of the company because they are the ones who come up with creative ideas and improvements for products.
Process: From design, production, packaging, shipping, to the in-store shopping experience, IKEA’s processes are always optimized. They focus on making things easy and convenient for customers, IKEA creates a convenient shopping model.
Physical Evidence: The IKEA store design has a Nordic style with the main colors blue and yellow. The large shopping space, natural light, and intuitively arranged showrooms and products make you feel like you’re entering your own home. The brand also deploys restaurants serving snacks, babysitting areas, or direction arrows along the floor to create comfort and an interesting shopping space for customers. Most Ikea stores have large spaces for parking.
3. IKEA & Flatpack (Flat Pack) – Revolution in the furniture field
Flatpack has become the symbol of the IKEA brand. With this model, instead of delivering assembled or disassembled furniture products from the factory, IKEA will divide the product into parts and pack them into flat boxes. This will make it easier for both the deliverer and the recipient to transport or carry the product with IKEA boxes that look like suitcases and bags.
After receiving the goods, users can assemble and complete the product at home. This not only brings convenience but also creates a feeling of excitement and pride when being able to complete any product yourself. Furthermore, this experience also promotes user creativity and discovery.
Not only does it bring value to customers, the “flatpack” model also brings many benefits to IKEA, such as helping to save transportation and storage costs, allowing for better prices than competitors and helping Reduce harmful emissions to the environment…
The idea of this form was born in the creative mind of Gillis Lundgren, one of the founders of IKEA, when encountering difficulties in transporting a table. In the 1950s, owning a piece of furniture was a challenge for many people because it was often bulky and difficult to transport, as well as time-consuming to assemble. The idea of “flatpack” has revolutionized the industry and to date, it has been adopted by many brands.
4. 7 marketing strategies that create success for the IKEA brand
4.1. Build your own brand identity
The brand creates a consistent theme, from product names to color schemes. Three colors: blue, orange and yellow are what people often think of when talking about IKEA.
Not only does IKEA convey Sweden’s cultural heritage with the three colors of blue, orange, and yellow, the cafeterias in the stores also serve meatballs, a typical and delicious dish of this country.
Indeed, IKEA knows how to express their uniqueness through recognizable colors, sounds, and experiences. This creates a unique and unmistakable brand that consumers will always remember and appreciate IKEA’s brand value.
4.2. Products are researched to suit consumers and promote sustainability
Products are researched to suit consumers
IKEA not only focuses on producing furniture products, but also sets a higher goal – creating products that are truly suitable for consumers. Each IKEA product is not only a piece of furniture but also a work of art that can coordinate with every space and style. The brand also creates diversity in style and needs of each customer. And it is important that the product must be suitable for the consumer’s ability to pay.
Can be designed by the customer himself
One special thing that IKEA has done to attract customer interaction is to encourage people to participate in the design process. At IKEA, not only people who understand furniture can be creative. Everyone, no matter who you are or where you come from, has the opportunity to get inspired and implement their own design ideas. IKEA creates engagement through events, design competitions, and online platforms to encourage people to participate. IKEA customers are not just product buyers, they are creators, active participants in shaping the brand’s development.
Easy to reuse
IKEA not only creates furniture products that excel in design and value, but also puts sustainability into consideration. Each set of their chairs, tables or even shopping bags is manufactured with quality standards, high durability and reusability. This is IKEA’s commitment to sustainable trends in the market, which creates the true value of the brand.
Regularly launch new collections
IKEA has revolutionized the way they keep their products fresh and eye-catching. Instead of simply making a sale, they turn shopping into an adventure. Every time a new product is introduced, it is like a new journey, awakening curiosity and desire to explore and experience in customers. In particular, IKEA products are never outdated.
In addition, IKEA doesn’t just stop at introducing new products, they also organize events, promotions and connect with the community. This creates a close interaction between the brand and the customer.
4.3. Diverse forms of online communication
Sponsorship activities and Influencer marketing
In addition to traditional advertising activities, IKEA sponsored the comedy film “Easy to Assemble”. Instead of simply introducing products, they created an entertaining film but still related to the world of furniture and interior design. shopping. This not only creates a new opportunity to interact with customers, but also creates friendliness and excitement around the brand.
Furthermore, the strategy of using influencers is also a smart way to reach consumers. More than just sharing basic information about the product, IKEA offers a realistic and up-close view of the product – a highly personal experience.
Advertising on social networks
IKEA is more than just a furniture group – they are the future of shopping and creative experiences. Leveraging the rapid growth of the internet, they have built a vibrant digital ecosystem to deeply engage with customers and create shopping experiences like no other.
Their website and mobile application are not only beautiful in terms of interface and user experience, but also promise a series of utilities, including chatbots ready to serve every need, or regular updates on offers and promotions. Latest discounts.
On social networking platforms, IKEA not only advertises products but also creates interesting associations. They are present on multiple platforms (Facebook, Twitter, Instagram and Pinterest), from videos in the Home Tour series to Pinterest inspiration boards, and interact with customers naturally.
4.4. Other forms of advertising
As the digital world expands, IKEA does not forget to keep a place for itself in the offline world. They implement traditional advertising strategies in an impressive and creative way, from advertising on television, print newspapers, magazines, catalogs to outdoor billboards (OOH). Simple but interesting images and subtle messages left a strong impression on customers. Maybe, you can’t remember all the ads you’ve seen, but you will remember the IKEA moving carts and the fun illustrations. Typically, the “Moving Day” campaign is held annually in Canada.
In particular, IKEA also publishes a catalog regularly every year. This has been an important corporate advertising tool for decades. Even though IKEA has shifted towards digital channels, catalogs are still essential to their marketing strategy.
Promotion
IKEA occasionally offers in-store promotions to promote sales and customer interaction, such as 15% discount on select sofas, sales on November 11…
Loyalty program
IKEA offers a loyalty program called IKEA Family, aimed at building long-term customer relationships. Members of the program receive exclusive discounts, special offers, and access to events that encourage purchases.
4. 5 . Create experiences for customers
The IKEA brand has proven that the experience includes not only the purchase of products, but also an inspiring and differentiated business model. IKEA not only “sells” products, but also opens a close, familiar space – where we can see and buy everything for our home. This model is not only unique, but also helps build customers’ trust in the brand, turning them into voluntary ambassadors. This feeling of closeness and familiarity helps IKEA become part of customers’ lives, even when they are not shopping.
On the other hand, IKEA is the leading brand in applying AR and VR in the furniture industry. The IKEA Place application, using augmented reality (AR) technology, has brought customers a unique experience, turning customers into talented interior decoration designers. Now, you no longer need to imagine, you can immediately see the furniture in your own home. Even thinking about how to arrange and coordinate furniture is easier than ever.
4.6. The stalls are arranged like a maze
The way IKEA arranges and designs the store like a maze truly creates a unique experience for customers. With only one path from the entrance to the checkout counter, buyers enter a space where they have to explore every corner. Similar to visiting a museum, customers no longer feel pressured by time but instead have the opportunity to observe and learn about each product one by one.
IKEA store design helps customers spend more time in the store, and this increases the opportunity to shop for multiple products, often buying more products than originally planned. In addition, the products in each booth are intelligently arranged, so buyers can easily imagine what the product will look like when placed in their home. IKEA has cleverly taken advantage of the store space to create connections, provide inspiration and promote diverse shopping among customers.
4.7. Tempting food right at the checkout counter
At the checkout counter, you cannot avoid a special temptation – delicious food. As you wait to pay, everyone will be captivated by the enticing scent of cinnamon rolls, fresh cream cakes, fragrant meatballs, and many other dishes that IKEA serves right at the checkout counter.
Every year, IKEA Food serves food to about 700 million customers. This is a unique feature of IKEA – not only a place to shop for furniture, but also a destination to enjoy delicious food. With IKEA, visiting the store is not just about shopping, but also brings a feeling of relaxation and comfort with beautiful furniture, comfortable sofas, and delicious food. Many families consider going to IKEA as a weekend entertainment activity.
Conclusion
IKEA’s success is not only based on providing quality furniture products, but also in its communication strategy and unique approach. The brand not only focuses on products, but also creates an enjoyable experience for customers. The combination of both online and offline helps IKEA become a great monument in the field of furniture.
