IKEA–How a Focus on the Everyday Built a Wonderful Future for IKEA

Executive Summary

At face value IKEA is a household name, popular within culture, and with a long record of creative marketing. But in the UK in 2013 a different story was emerging. Sales growth had halved; penetration was declining and IKEA UK looked out of step against the backdrop of rivals angling to claim its market leadership.

Objective

A new goal from IKEA global management created a real sense of urgency; stem the decline. And grow the business by at least +8% YoY to meet 2020 targets.

Scale of the Task

With growth slowing, no new stores opening for 3 years, no plans to hike prices, or to alter an already bountiful range strategy, IKEA focused on marketing communications. The task was to refresh the role IKEA plays in customers’ homes and hearts; changing perceptions from an infrequent destination store out of sync with changing trends in British home life to one culturally tuned-in to all kinds of everyday needs.

The Campaign

The answer was a culturally-resonant brand platform: The Wonderful Everyday. A new brand articulation that went back to IKEA’s founding purpose, delivered with creative excellence and which didn’t just meet the business target set, but beat it.

Key Results

Since its launch in January 2014, and with no shift in media share of voice, The Wonderful Everyday has helped IKEA UK to deliver at least +8% YoY sales growth for three consecutive years running. It has done this by reimagining the brand; putting IKEA back in the heart of British homes; attracting more people to shop more often across a wider range of IKEA products and delivering the highest incremental sales IKEA has ever experienced from marketing communications. Furthermore, a 240% Profit ROMI has delivered an estimated £167m (€199m) to the bottom line; and continues to deliver over the longer-term.

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