PART 1: CASE STUDY (30 MARKS)
Two case studies about the same IKEA campaign are provided below.
Step 1. Read the two case studies
Step 2. Using the information from the case studies, answer the three questions that follow
NOTE: No more than 200 words for each question.
** If you do not follow this requirement, you can only score 30% marks for each question.
CASE STUDY 1: Ikea India launches 'Ikea On Wheels'
Swedish home furnishings retailer Ikea launched its first physical presence ‘Ikea On Wheels’ in India’s financial capital, Mumbai on November 26, 2019. Catering to the Mumbai market, Ikea India has launched two mobile trucks that aim to showcase its living room, kitchen and outdoor home products across the city.
While one truck is stationed in Utopia city, Worli (Kamala Mills), the other is set to travel around various locations between south Mumbai and western suburbs. For the next one and a half months, the brand will be hosting several engaging activities such as ‘Come and do some DIY with us’ as well as offering a chance to potential customers for gaining personalised assistance from Ikea’s Life at Home experts, travelling along with the trucks. Additionally, expect some festive season’s range displayed on the trucks.
Ikea’s investment in India has been a year marked at €1.5 billion. According to Jaxa Gohil, store manager, Ikea India, ‘Ikea On Wheels’ will help customers to touch, feel and experience the brand’s home furnishing solutions. Gohil also stresses that “Mumbai is a significant market for us, one of the top 30 cities globally and our biggest investment in India with warehousing, e-commerce, and stores. Ikea wants to reach many people with thin wallets. As it sets a goal to reach 100 million people in the next three years, the foundation for a strong and relevant offer is affordability and accessibility.”
Meanwhile, the brand is gearing up to open its flagship store in Navi Mumbai soon.
CASE STUDY 2: 'IKEA on Wheels' to cruise through Mumbai
IKEA has rolled out two trucks in Mumbai in their latest 'IKEA on Wheels' expedition. The trucks will also host a team which will introduce customers to their products and offerings.
IKEA has introduced two trucks in Mumbai in a bid to familiarise people with their new concepts for furnishing, terming it 'IKEA on Wheels'. The trucks will sport concepts such as 'Sustainable Living (with Kitchen)' and 'Living with children' — primarily focusing on affordability, accessibility and sustainability.
While one of the trucks will be confined to Utopia City, Worli, the other one will travel across the South of Mumbai and the Western suburbs. The brand intends to disseminate information about furnishing offerings and the upcoming Christmas range. IKEA had launched an earlier expedition in August of 2019, themed 'Create Space', which boasted four trucks.
We saw a similar campaign from Amazon titled 'AmazonFestiveYatra' a 'house-on-wheels' in Delhi, ahead of their 'Great Indian Festival’ sale, flaunting a series of trucks for their roadshow.
The 'IKEA on Wheels' trucks were flagged off in presence of IKEA co-workers and customers. While the trucks will display physical offerings, the products available can be ordered online as well. The exercise will also offer personalised assistance to customers looking for home furnishing.
In a press release, Jaxa Gohil, store manager, IKEA India said, “As a part of our one-market approach, offering IKEA solutions both online and offline is a priority. Mumbai is a significant market for us, one of the top 30 cities globally, and our biggest investment in India with warehousing, e-commerce and stores. While we launched our online store for Mumbai recently, ‘IKEA on Wheels’ will primarily help the many Mumbaikars touch, feel and experience our home furnishing solutions, they provide people with ideas and inspirations to reimagine their homes with a touch of IKEA!”
REQUIRED (each question is worth 10 marks):
Who is the target customer IKEA wants to get through this campaign?
**Use 4 variables of segmentation to answer this question
Ikea has their showrooms in many different countries all around the world, use your own words and explain why Indian market is different from the other markets.
** Use content from lecture 4 to answer your question.
What is the benefit Ikea expects to receive after launching this campaign in India?
PART 2: SHORT ANSWER QUESTION (20 MARKS)
Statista provides reliable business data. One market segment Statista focuses on is social media and user-generated content. The link below will take you to a horizontal bar chart created by Statista titled ‘Instagram accounts with the most followers worldwide as of June 2022’.
This bar chart ranks celebrities and athletes who are brand spokespeople generating personal income
through social media advertising and sponsoring. The ranking ranges from Instagram which is the account with the most followers worldwide to the Brazilian footballer Neymar Jr. The date of publication is June 2022.
In your group assignment, you were required to select and then build a marketing plan for a product/service. If you were the marketing manager for your company, who is the influencer in the list provided by Statista that you would want to select to advertise your product/service? Please explain your choice.
If you don’t want to use the influencers provided in the list, explain your reasons for not using them. And select alternative influencers you prefer, along with an explanation for your choice.
You must focus on using the product/service provided in your group report and the knowledge provided in lectures 11 and 12 to support your answer.
Note: If you did not submit a group assignment, you are required to select a product/service you know well and select an influencer in the list provided you would want to advertise your product/service.
END OF FINAL ASSESSMENT