Introduction to Digital Marketing
Digital marketing has emerged as an essential tool to deploy in the growth strategies of brands worldwide. As access to the internet has been increasing for people, their internet usage is also rising. Marketers have strategically leveraged this increasing trend of smartphone and social media users to advertise their products and services on social media platforms such as Facebook, Instagram, TikTok, Snapchat, LinkedIn, Twitter, and more. Similarly, these marketers utilize various digital marketing methods such as Search Engine Optimization (SEO), pay-per-click advertisements, email marketing, social media marketing, affiliate marketing, influencer marketing, and conversion rate optimizer. One of the global brands which have well understood and recognized the importance of digital marketing is IKEA, as it utilizes all digital marketing strategies in its marketing campaigns.
Traditional and physical marketing strategies are slowly fading away in the eyes of marketers as internet marketing helps to engage the target audience as there will be two-way communication, unlike traditional offline marketing techniques such as billboards and magazine advertisements. Similarly, marketers can personalize marketing campaigns in alignment with their target audiences. Traditional marketing methods did not allow marketers to create such personalized and targeted marketing campaigns and content. Internet as a marketing tool can help drive quality traffic as it helps target the targeted audiences directly. For example, when using billboards, we cannot choose whom to show the billboards; using online marketing, we can choose which groups to show our advertisements. This will help to drive directed and quality traffic ending up in high conversion rates. Using the internet as a marketing tool is relatively cheaper compared to traditional marketing tools. This will provide companies the flexibility to run more advertisements at a lower cost. Since a majority of the customers have access to the internet, they have unlimited 24/7 access to the company’s online marketing networks such as social media and websites. Therefore, online marketing helps businesses to gain more visibility all the time. Marketers can edit the content quickly and easily than traditional offline marketing methods, allowing them the flexibility to mold the contents according to changing consumer behaviors.
Introduction to IKEA
IKEA is globally renowned furniture reselling brand founded in 1953 in Sweden (IKEA, 2021). It specializes in crafting and selling Scandinavian and minimalistic furniture style, which is supposed to be assembled by the customers, adding customer engagement with the end product. As of 2020, the brand has 445 retail stores worldwide and sells its products through its e-commerce site (Statista, 2020). The brand’s vision is “to create a better everyday life for the many people — for customers, but also for our co-workers and the people who work at our suppliers” (IKEA, 2021). The brand also believes in creating a positive and sustainable impact in the local communities by offering a wide range of functional home furnishing products at low prices so many people can afford them. It refers to its designs as “democratic design” since everyone can afford it (IKEA, 2021).
IKEA E-Commerce Strategy
The brand’s most significant competitive factor is the customer experience from its stores. In 2001, IKEA started its e-commerce sites in Sweden and Denmark, later expanding its online supply chain in other countries where its stores were located (IKEA, 2021). IKEA established its food courts with its famous Swedish meatballs and a maze-like store layout coupled with affordably priced products (Hensel, 2020). The primary challenge for the company to establish its e-commerce site was the inherent limitations that the digital platform presented as their store design could not be replicated. The app that the company rolled out to establish its e-commerce website has been designed to aid customers in navigating through the IKEA stores. The company incorporated an innovative technology called Augmented Reality (AR), so customers can witness the products in their homes and the ease of ordering online through their apps.
A good e-commerce website should have a good design, smooth functionality, be mobile-optimized, and be accessible to search engines worldwide. IKEA’s website has a good design that reflects the minimalistic image of the brand. Since a website reflects its image, product, or service, it can act as a window to viewing its quality. Therefore, it is crucial to ensure that the website has a good design. IKEA has been successful at portraying its products well on its website through professional photography.
Similarly, if a website is not easy to use for the end-user, they are unlikely to return. IKEA’s website and mobile app have successfully created a smooth functionality that has helped bring in e-commerce sales. A smooth functionality helps to clear the confusion of the users as an exemplary user interface and experience help them navigate through the website effortlessly. According to Hensel (2020), IKEA’s e-commerce sales comprised only 11 percent of its total revenues in 2019; similarly, this figure has increased to 16 percent in 2020 (Hensel, 2020). Its share of e-commerce sales will surely increase due to the COVID-19 movement restrictions in 2021.
Due to the company’s smooth functioning and user-friendly website and app, it has increased its sales, and the growth is likely to continue in the future. The company has incorporated a mobile-optimized site which is significant to drive e-commerce sales. The company is also focusing on establishing a multichannel e-commerce strategy as it has announced that it will be selling through Alibaba’s Tmall (Hensel, 2020). This gives the company significant leverage in expanding its online distribution network since Alibaba is a well-known platform used by millions of users worldwide for online shopping. The company keeps its contents fresh and curated, which keeps the customers and users engaged. According to Erkilic (2019), “the brand catches the attention of potential customers and gives current customers a new incentive to check new products and opportunities. With events, promotions, and community outreach campaigns, IKEA permanently keeps people’s interest alive” (Erkilic, 2019). Therefore, IKEA has successfully presented its products on its website using various ways to attract potential customers.
The brand has utilized its banner placements well on its website and kept it clean by using innovative banners. Erkilic (2019) believes that by placing a banner in its innovative way, the brand conveys that IKEA successfully provides creative solutions with its products even in small living spaces (Erkilic, 2019). Lastly, it is very significant to have an easy, and smooth payment method as a lack thereof can increase bounce rates for the company. IKEA has facilitated its target customers well by incorporating card and PayPal payments as their customer groups are technologically literate. Therefore, IKEA’s website has a smooth and easy payment system well-calibrated to the needs of its customers.
IKEA Social Media Strategy
Brands need to establish their social media accounts as it helps them to communicate their messages and engage with their customers. IKEA has leveraged its accounts in various social media platforms to inform its customers and followers by posting their latest discounts, promotional campaigns, news, and giveaway alerts (Erkilic, 2019). It is also vital for brands to maintain responsive social media platforms, and IKEA does well by responding to customers’ complaints quickly.
One of the traditional marketing strategies used by IKEA was its aesthetically designed catalog magazines that stand out from their competitors. The brand has successfully incorporated content marketing in its social media strategy by replicating its physical catalogs onto its social media platforms. They post their products as if they are displayed on their catalogs and also put price tags. The company stays true to its mission and vision of creating products for local customers as it maintains separate social media accounts depending on the country. Although the brand maintains a standard global Instagram page which has more than 500,000 followers; it has also maintained an IKEA USA page with more than two million followers, IKEA India page with more than 400,000 followers, IKEA UK with more than one million followers and more (Instagram, 2021).
The brand has established a common theme on all its accounts from various nations; however, it posts curated content and designs that best fit the customers in that nation. For instance, the brand’s global Instagram page has only posted aesthetic content with attractive photography focused on branding, while the USA account has also focused on direct sales by placing the price of the products directly on the posts to inform their customers. Similarly, the brand has posted some quirky posts on their IKEA India page as the Indian users are more interested in quirky and fun posts. Therefore, the brand has successfully communicated with the local customers of various nations through their social media platforms.
The brand has utilized social media influencers wisely by creating fun and exciting content instead of directly asking them to endorse their products. For instance, the brand has partnered with the international pop sensation Zara Larsson to create a video of her trying various foods from IKEA to attract viewers to their retail stores (O’Neill, 2021). Mixing influencers in social media strategy helps brands widen their networks and gain followers easily and quickly, which has been well utilized by IKEA.
Conclusion
In conclusion, digital marketing has evolved as an essential marketing strategy and tool for brands with the rise of internet penetration and smartphone usage. As digital marketing evolves, it provides numerous advantages over the traditional and physical marketing avenues for brands. One of the brands which have leveraged the digital network for marketing and sales is IKEA which has established its e-commerce website and social media accounts for various countries to engage and communicate with its customers. The brand has incorporated minimalistic content reflecting its brand image and products on its website design and social media content. It has successfully used content marketing to highlight its product catalogs through aesthetic photography and designs in its social media strategy. Similarly, the brand posts contents of its products as if they were already in the customers’ living spaces, which increases customer engagement and conversion rates.
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References
Erkilic, G. (2019). IKEA’s Digital Marketing Strategy: 8 Things to Know About the Company’s Success. Retrieved from Digital Agency Network Web Site: https://digitalagencynetwork.com/ikea-digital-marketing-strategy/
Hensel, A. (2020). Inside Ikea’s e-commerce strategy. Retrieved from Modern Retail Web Site: https://www.modernretail.co/retailers/ikea-is-launching-an-e-commerce-app/
IKEA. (2021). About Us. Retrieved from IKEA Web Site: https://www.ikea.com/gb/en/this-is-ikea/about-us/
Instagram. (2021). IKEA .
O’Neill, M. (2021). IKEA Marketing Strategy: 7 Tactics and Takeaways. Retrieved from Brafton Web Site: https://www.brafton.com/blog/strategy/ikea-marketing-strategy/
Statista. (2020). IKEA’s number of stores worldwide from 2013 to 2020. Statista Corporation. Retrieved from https://www.statista.com/statistics/1060053/number-of-ikea-stores-worldwide/
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