Creative Strategy > Challenges & Breakthroughs

AL-FUTTAIM IKEA INFLATION-PROOF

MEMAC OGILVY, Dubai / AL-FUTTAIM IKEA / 2024

Awards:

Bronze Dubai Lynx
CampaignCampaign(opens in a new tab)
Case Film

Overview

Credits

Overview

Why is this work relevant for Creative Strategy?

This work is very relevant to the category because when a serious global problem such as inflation arises and affects hundreds of multinationals worldwide, companies have to have a ready response. The whole media is looking at them to know what position they are taking concerning inflation and that position is a creative strategy. In this case, IKEA's creative strategy was to focus on the positive side of not raising its prices: that those products instantly became more affordable. An excellent strategy that resonated with the media and changed consumers' perception of how inflation would affect IKEA.

Please note that the Jurors for Dubai Lynx will be coming from outside the region and may not be aware of the specific cultural nuances of your work.

The campaign focuses solely on the economic phenomenon of inflation, a global issue affecting various regions. It is anticipated that the jury will easily comprehend the context, considering the widespread nature of inflation worldwide.

Background

Situation: Inflation refers to a sustained increase in the general price level of goods and services in an economy over time. Currently, global inflation is being driven by various factors, including supply chain disruptions, increased demand, and government stimulus measures. In the Middle East, rising food and fuel prices have contributed to inflation, which is expected to persist in the near term.

Brief: Find an interesting way to say IKEA furniture is affordable.

Objective: Fight back the decline of the purchasing power given by inflation driving more sales. Remind our audience that IKEA provides affordable furniture solutions, without compromising on quality. The target audience for this campaign was current and potential IKEA customers who are price-conscious and value-driven.

The Interpretation of the Challenge

Inflation emerged as one of the major global challenges in the years 2022 and 2023. It has been a huge public relations concern for companies, and yet few have openly discussed it. Especially for retailers. However, IKEA has taken the bold step of addressing this issue head-on through a PR first. By doing so, IKEA demonstrated their commitment to transparency and their willingness to engage with their customers on the issues that matter most to them: the cost of living.

The target audience was the general IKEA target: middle-income individuals and families who are looking for affordable and stylish home furnishings and decor.

The desired outcome was to change the negative preconception that inflation had and that was affecting retailers in the region.

The Insight / Breakthrough Thinking

Inflation provides the disruption for this campaign. Given the global rise in inflation in recent years, this complex macroeconomic concept has become an everyday topic in the mainstream media. In the UAE, prices for the furnishing sector rose along with the country’s inflation rate.

Inflation has also emerged as one of the major global challenges in the years 2022 and 2023. It has been a huge concern for companies, and yet few have openly discussed it. Especially for retailers.

However, IKEA took the bold step of addressing this issue head-on. By doing so, the brand demonstrated its commitment to transparency and its willingness to engage with its customers on the issue that matters and disrupts most to them: the cost of living.

The Creative Idea

Affordability and simplicity are IKEA's fundamental values and reasons to believe in the brand’s target, that’s why the core creative idea was based on a simple message and visuals of the brand around the affordability topic, in moments of inflation.

A simple yet powerful message was designed to earn the attention of our audience through topics that were relevant to them: affordability and inflation.

Through simple visuals taken from IKEA catalogue images, the cost of the campaign was non-existent, while making the campaign as on-brand, easy and fast as possible to publish the campaign.

Helping customers quickly and effectively understand the brand's position on inflation at the same time that IKEA spread its mission: To create a better everyday life for the many people.

The Outcome / Results

According to our recent report, the Inflation-Proof campaign has achieved remarkable success, garnering 713 million impressions across various media platforms. The campaign's media coverage is estimated at 3.2 million Dirhams, reflecting its broad reach and impact on the market.

It has also effectively educated the audience on how IKEA maintained affordable prices amid inflation. Through strategic messaging and extensive media outreach, the campaign highlighted the prices of iconic products remained unchanged. Presenting a comprehensive price timeline, the audience gained insight into how IKEA products became more affordable despite inflation.

The campaign's impact on IKEA's business outcomes is evident, with a notable 26% increase in web traffic compared to February 2022. This surge has translated into a 5% rise in online revenue, indicating successful visitor conversion. Additionally, the campaign contributed to a 3% increase in brand reach, reinforcing IKEA's market position and enhancing its reputation. The "Inflation-Proof" initiative stands as a

Please provide budget details

For the creation of the assets, we used existing catalogue images of the products, making the campaign cost-free while speeding up the response to this consumer concern. The distribution of the message occurred across all of IKEA’s channels: social, out-of-home and insertions in the economy sections of regional newspapers.

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