IKEA Digital Marketing Strategy
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IKEA's digital marketing strategy aims to increase online sales by 5% over one year. It will launch an interactive blog promoting home improvement projects for Millennials aged 25-40. Users can share stories and photos for a chance to win a $5000 monthly shopping spree. The blog, social media, Google ads, and SEO will drive traffic to the online store. The $10 million budget will be split between these channels, with performance tracked through Google Analytics.
IKEA Digital Marketing Strategy
- 2. ABOUT IKEA IKEA is a privately held, Dutch company that designs and sells ready-to-assemble furniture, appliances & home décor. Three-step business model • Our product range • Our low prices • A better everyday life
- 3. CURRENT CHALLENGES In the United States market, IKEA faces one major challenge: Store Location: • IKEA location stores are spread out across the US, but mainly in urban areas. People maintain very busy lives, make full shopping days difficult and out of the way.
- 4. TARGET MARKET Segment of Millennial generation: ages 25-40 • Looking to purchase new, affordable furniture • Have considered online shopping • Aware of the IKEA brand These consumers are hoping to start a home improvement project, but aren’t able to take advantage of the retail store due to location.
- 5. INTERACTIVE BLOG COMPETITION This digital campaign will push consumers to the IKEA online store, promising a monthly $5000 shopping spree to the most-voted personal story created on the platform about one’s project. • Blogging platform • Social Media • Google AdWords • SEO
- 6. BLOG FORMAT Blog will be the primary location of where to drive consumers from other mediums. Interaction will then lead to purchase from the online store. Online platform will include: • Story-sharing community • Product Suggestion • Photo galleries • Voting Poll
- 7. SOCIAL MEDIA Facebook should be the primary discussion creator for social media, directing viewers to the blogging platform and online store Strategy: • Limit tweets to allow for Facebook discussion • Link hashtags to blogging platform • Keep users informed and interested throughout period
- 8. SEARCH ENGINE OPTIMIZATION Tracking specific keywords like “Home Renovation”, “DIY” and “IKEA” and providing Google Ads in the search will drive people to blogging platform and online store. Strategy: • Traffic Estimation based on keywords • Assess effectiveness in Google Analytics mid-campaign
- 9. KEY FACTORS TO SUCCESS We hope the combination of incentive, conversation and motivation to buy will increase ecommerce sales by 5% after 1 year. Additional Pros: • Recognition of an opportunity (for all) • Engagement of a community • Inspiration to take action • Similar digital campaign gained success
- 10. BUDGET & TIMELINE The timeline for this campaign is one calendar year, with higher advertising and promotion during annual peaks and holiday seasons. • Blog: 30% ($250,000 monthly) • Social Media: 30% ($250,000 monthly) • Points Per Click: 12% ($100,000 monthly) • SEO: 20% ($166,666.67 monthly) • Content: 7.4% ($61,666.67 monthly) • Prizes: 0.6% ($5,000 monthly) • TOTAL: ($833,333.33 monthly) • (10 million yearly)