Extra: Stolen Idea?

In 2007, Ikea launched a campaign called 'Home is the Most Important Place in the World,' where they put up estate agent style 'For Sale' signs in London with the phrase 'Not For Sale.' These signs seemed very similar to Onis Living's campaign, who also used the 'Not for Sale' signs. Onis Living is a UK home improvement company, and was awarded the Interbuild 2006 Construction Marketing Award for best campaign under £25,000 (euros) for their 'Not for Sale' campaign. After a debate over originality, Ikea agreed to feature Onis Living on their campaign site (notgoinganywhere.co.uk) for one year. Onis was the only company to be advertised by Ikea. In that same year, Onis Living became Onis Homes Limited. Then in 2008, they went under voluntary liquidation only to be restructured as a franchise.

Week Eight: Advertising and Public Relations

Ikea is very creative with their advertisements. It isn't just another flat surfaced advertisement. Just like the reason they first made a store, Ikea likes their advertisements to be touchable. Ikea's biggest advertisement is through their free catalog. For this year's 2011 catalog, Ikea sent previews out to different blogs to hike up interest.

Just like sending sneak peaks of their catalog, Ikea's street advertisements are the same way. In 2008, Ikea was opening a new store in Brooklyn. To let people know, they built a 20ft x 20ft "Apartment in a Box," in Borough Hall Plaza, Brooklyn. The 'studio apartment' was complete with a sofa bed, coffee table, rugs, lamps, pillows, a media center, and bookshelves. The shipping container read, "Studio apartment flat-packed for your convenience. Ready for home delivery." Other advertisements around the word are designed the same way. Ikea spends around $300 million a year worldwide on advertisements.

Ikea's advertisements around the world. 

Last year, in Austria, Ikea used movies to advertise their newest catalog. When their items appeared on the screen, they launched a small projection of the item and it's price. Their product information projections were featured in movies such as Burn After Reading and I am Legend. After each movie, the Ikea catalogs were distributed outside. Five thousand catalogs were handed out, which was five times the amount that was estimated. In the same year, Ikea launched a campaign on Facebook. The company made a facebook page where they would upload a showroom, and the first person to tag an item in that picture would win it. It was a great way to interact with customers. 

In 2002, Ikea launched Unböring, which was a multifaceted, year long campaign that included the Clio Award-winning commercial Lamp, directed by Spike Jonze (who is known for directing Where the Wild Things Are and producing MTV's Jackass). It challenged people to break their attachments over old furniture and bring in new items, preferably from Ikea.

Ikea is a big believer in cause-related marketing. In 2005, Ikea formed it's Social Initiative to manage their social involvements throughout the world. They chose UNICEF and Save the Children as their main partners. One example of their involvement is through their solar powered SUNNAN lamp. Since June 2009, for every lamp that is sold, Ikea donates a lamp to UNICEF and Save the Children for kids who cannot read, write, or draw after sunset. So far, more than 500,000 lamps have been sold.

Extra: New Ikea Living Room Commercial

A new perfect living room made by the Johnsons, Designed by IKEA. 

Extra: New Ikea Mattress Commercial

A perfect night's sleep made by Kim and Adam, designed by IKEA.

Extra: New Ikea Kitchen Commercial

The perfect kitchen made by the Petersens, designed by IKEA.

Week Seven: Retailing

Ikea is the world's largest furniture retailer. There are chain stores around Europe, North America, Australia, and Asia. Ikea brings in it's sales through both in-store retailing and nonstore retailing. Ikea's catalog and online website are it's biggest and only nonstore retailing. Ikea's catalog is free of charge for whom ever wants to order one online. 


When it comes to store placement, Ikea is very careful in choosing where to open a store. They do lots of research on the city to determine whether their store with do well with sales in that location. Ikea's ideal store locations are around collages and metropolitan areas, and areas where people move frequently.


There are only two Ikea stores in New York, one in Brooklyn and the other in Hicksville. Both are open throughout the day, usually closing around 9pm-10pm. My preference is the store in Hicksville, Long Island. I've always gone there and it's a pleasure going there again for this class. As soon as anyone walks in, there's a self standing advertisement with pencils and pads for you to write down your list of products as you walk through the store. Throughout the store, you follow a pathway that takes you through rooms. It always tempts me to go check out the rooms and it's features. I suppose that is why they designed their stores to be this way. There is staff at each department, who are friendly and willing to help. The price tags are easy to read. And from past experience, in the warehouse, the service is excellent when it comes to locating the furniture you want. It's a really nice atmosphere. And you truly get to test out the products. There is no one yelling at you to get off the sofa.

Week Six: Consumer Decision Making

Ikea always has an eye out for the home decor trends, and makes it affordable for their consumers. The product range is wide in function and style, whether you're a romantic at heart or a minimalist. When you go to buy a product, you usually do the research and make a list of needs that the product should require. When Ikea creates their products, they pay attention to the function of a product, and make sure it's free from any unnecessary add-ons. They respond to the needs, tastes and incomes of people, rather than taking the easy way out and have consumers pay more for useless products that were made for larger incomes.

Ikea uses more of a marketing-controlled, than a nonmarketing-controlled, information source through it's catalogs and advertisements. Although, there is a nonmarketing-controlled information source, though word of mouth, for most businesses. Ikea's stores play a big part when it comes to consumer making because of the same reason they first opened one up: purely for consumers to experience their products. Just like their store, their catalogs are an inspiration for room ideas, aside from featuring their products. 

Week Five: Developing a Global Vision

Ikea opened it's first store in Sweden, and since then has expanded to over 300 stores in 38 countries. Ikea's splash global gateway page shows all the countries that sell it's products.

Ikea was one of the few companies that has done this, back in 2003. Language plays an important role when going global, so Ikea was careful to display each country in it's dominant language first. 


China plays a big part in global business. Ikea had to change their strategies when doing business with China. Ikea's known for their low prices and flat-packaging furniture, but, in China, they had to drop the prices about 10%. It worked out because sales were rising from 25% to 50%. And this was back in 2004. In present time, their stores are very popular now.


One of the countries Ikea has yet to open a store in is India. Ikea's catalog has already made it's way through the country though "magazine hawkers." India is next on Ikea's list. This year Ikea says it will spend about $163 million on grassroots development programs in India, and has been working with UNICEF and Save the Children on Ikea's Social Initiative Project. The Social Initiative Project is to improve the rights and life opportunities of children. Ikea claims that India could be as big and profitable as Europe has been. But the only way Ikea can sell in India is through a joint partnership, where a 49% stake of the venture is held by a local Indian firm, as said by BBC News. But Ikea's chief executive, Mr Ohlsson, says it's not an option. So India is on hold until they can figure out what can be done.