Ikea in Australia

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IKEA

Table of content

Table of content2
Introduction3
Background3
IKEA and Advertising4
Advertising strategy5
IKEA Australia6
Ikea United Kingdom7
Conclusion9
Bibliography10

Introduction

As a part of International Advertising ADV301 we were assigned to research an advertising campaign for a product or brand that is marketed locally as well as internationally. To write a report comparing and contrasting the actual advertisements/commercials and campaigns taking various factors into account.

The following report will examine the world’s largest furniture retailer Ikea. By studying Ikea’s global strategy as well as the national strategies and the different advertisement internationally and domestically one will get a deeper understanding of their marketing and advertising executions. The advertisements that will be reviewed in this report are two TV commercial, one from Australia and one from the UK. I chose Australia and UK just to show that even countries with similar cultural preferences can have very different approaches. Background

A Swedish man named Ingvar Kamprad in a small town called Älmhult, Sweden, founded Ikea in 1943. The company distributes its products through its retail outlets located in over 39 countries. As of October 2010, the chain has 313 stores, most of them in Europe, North America, Asia and Australia (Ikea, 2010).

Ikea’s vision is to create a better everyday life for the many people (Ikea, 2010). Their business idea supports this vision by offering a wide range of high quality, well designed and functional home furnishing products to low prices so that as many people will be able to afford them as possible. Ikea has made this possible by using inexpensive materials in a novel way and minimizing production, distribution and retail costs.

IKEA and Advertising

IKEA’s positioning statement is “Your partner in better living. We do our part, you do yours. Together we save money”, referring to the ready-to-assemble furniture.

The brand image is the result of over 50 years work by Ikea’s co-workers at all levels all over the world. The actions done, things being said, the products offered, the low prices, presentation of product range and the information provided to customers all contributes to the overall image. Ikea has a long tradition of marketing communication and has upon till recently mainly focused on print media, which has shown to be successful. However in the last five years additionally media have been used to an extended degree including TV, radio and Internet (Wise, J., 2000)

During the years Ikea has had a number of controversial TV commercial, some have even been banned form certain countries throughout the world. However Ikea believes that their controversy is what makes them stand out and separate them from their primary competitors. The marketing department means that if you like it or not it engages people, it provokes conversation and debate, which successfully results in raising awareness of the brand and increasing sales (Wise, J., 2000). Ikea uses advertising to support many different areas of the business including brand awareness, store themes, catalogue drops and store openings.

Every year Ikea publish a free catalogue distributed both in stores and by mail. The catalogue is published in over 36 countries and translated into 27 languages worldwide. The catalogue consumes 70% of the company’s annual marketing budget and is considered to be the main marketing tool of the retail giant. 110 million catalogues were circulated last year - three times higher than that of the Bible, with 13 million of these being available in the UK (Ikea, 2010)

Advertising strategy

IKEA’s target audience is the same in each country they are situated in and is roughly described as “everyone” but mainly focusing on young families and couples starting out. “You have more ideas and ambitions than you have a thick...
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