Ikea Case Study:

IKEA is a conglomerate that designs and sells ready-to-assemble furniture, kitchen appliances and

home accessories, among other goods and home services. Founded in Sweden in 1943 by  Ingvar
Kamprad, IKEA has been the world's largest furniture retailer since 2008. As of March 2021, there
are 378 IKEA stores operating in 30 countries and in fiscal year 2020, €35.2 billion euros worth
of IKEA goods were sold.

Marketing Strategy:

The marketing strategy of Ikea is to make everyday life better with affordable solutions, IKEA's
primary marketing strategy is to create good relationships with their consumers. The company is
committed to providing a low-priced product of the best quality. IKEA also maintains a good
relationship with their suppliers for which they can buy cost-effective products in bulk to keep prices
down. 
Now let’s see how big data helps Ikea increase its revenue.

In the year 2013, IKEA launched a feature for image recognition and augmented reality in their
app. The customers scan the items they like with their phone, directly from an IKEA catalog or
from the store itself. The advanced analytics enable them to place virtually the furniture they liked
in their own homes and see how it looks, as well as to change the colour, sizes, and models.

Another use of big data is in terms of item recommendations. Ikea retailer suggests related or
complementary products to the items, which the clients viewed on the website, added to cart, or
highlighted as favourites.

With such a personalization feature, IKEA is enabled to provide high-grade CX and satisfaction
not only in-store, but in their web shop and app.

Promotion strategy:

The promotion strategy of Ikea is

 High Profile advertisement campaigns.

 Spending 70% of annual marketing budget in printing catalogs.
 Online shopping.
 Online advertisements.

Now let us see Ikea Re-marketing Campaign:

This campaign was introduced in Finland as a membership program to find the behaviour
patterns of the members with the help of ID identifications.

According to the behaviour they gathered different pools like

1. Those who clicked the kitchen campaign letter.

2. Those who answered the monthly poll (I am going to remodel my kitchen).
3. The prognosis model based on buying history (I am going to buy a kitchen).
4. Those who visited the Ikea.fi kitchen site.
5. Those registering for the kitchen seminar.
6. Those who indicated that they are interested in kitchens in their own member profile.
The results were great, still there was wide difference between the pools.
On the average:
Opened the letter, over 50 %
Of those opened, clicked, 30 %
Clicked the banners, open rate 71 %, clicked 11 %