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STRATEGIC PR PLAN
Prepared By: Lily Tao April 12, 2012

BACKGROUND
IKEA is a leading home furnishings retailer with 325 stores in 40 countries worldwide, which are visited by 734 million people every year. IKEA Canada has 11 stores which are visited by over 25 million people every year. Last year the IKEA.com websites attracted 904 million visitors. Founded in 1943, IKEA's business philosophy is to offer a wide range of products of good design and function at prices so low, the majority of people can afford them. Ikea is a successful global brand with varying presence in geographical markets. Ikea's success is overwhelmingly due to the company's innovative product offering and the large market it serves. Ikea stores provide a common experience to customers in all of their locations: a giant warehouse, thousands of furniture goods and accessories, products that are stylish yet affordable and functional. Ikea's target market of the global middle class has demonstrated that it strongly shares buying and spending habits, despite any cultural differences. The leading models of furniture purchased and even the average amount of money spent per store visit is a market trend. IKEA in Winnipeg IKEA Winnipeg will be the first IKEA store in the Canadian province of Manitoba and will be the largest Canadian IKEA store at an estimated 32,516 m. The site is 27 acres and will expand Winnipegs Active Transportation routes (read bike routes) and extend the bus route to include a stop at IKEA. IKEA Canada Stores (by size) 1. IKEA Winnipeg (32,516 m) 2. IKEA Vaughan (31,375 m) 3. IKEA Vancouver (31,000 m) 4. IKEA Etobicoke (29,594 m) 5. IKEA Calgary (29,052 m) 6. IKEA Boucherville (29,000 m) 7. IKEA Edmonton (28,700 m)

3 8. IKEA North York (24,550 m) 9. IKEA Ville St. Laurent (24,245 m) 10. IKEA Burlington (19,385 m) 11. IKEA Richmond (18,600 m) 12. IKEA Ottawa (10,948 m)

Situation Analysis
Ikeas huge opportunity in select Winnipeg which is in the middle of Canada,and locally-based furniture retailers will have to work hard to compete with Ikea, This portion of the marketing strategy allows IKEA to continuously cut costs for the consumer and keep pricing competitive,and it also shows the company as socially responsible because of the efforts made to keep the operation as eco-friendly as possible. Environmentally,this is a very consistent goal becasue IKEA offers ecofriendly products seeing as being environmentally friendly and reducing carbon footprints is a current cultural trend in Canada.

SWOT analysis

Strengths - Flat packaging reduces costs and makes it easier for people to transport - The company culture matches its external image pragmatic, cost-saving sensibilities - Product design sleek, minimalist design is popular in Europe and North America - Strong in-store experience unique, experiential, modern theme parks - Brand reputation in America, people lined to get into newly opened stores - Environmental friendly company

4 - Charitable company Weakness - New to Winnipeg market - Imported goods - Niche market the minimalist design doesnt appeal to everyone - Too strong of an emphasis on cost-saving could lead to cutting corners and negatively affecting safety Opportunities IKEA Winnipeg will be the first store in the Canadian province of Manitoba and will be the largest Canadian The budget shopper market is growing, especially among college students and in metropolitan areas

- Demand for greener products

Educated Single Young mi

Threats Comparably new in Winnipeg Market Many local competitors, The furniture retail segment is highly fragmented and IKEA is flanked by competitors in high-end specialty retailers and lowend discount retailers. Traffic transportation Reluctance to part with old furniture

Target analysis

Educated Single Early to Mid 20s, well educated and has just started working. Most of them living in apartments or rented property. May look for style rather than function and have limited expense allocation for household goods.

Young Family Late 20s to early 35s of age, they own their homes, have 0 to 2young children. Practicality and style is important for customers in this segment. Balance between style and value is important, may expect assembly service.

Mature Family Middle aged adults and 2 or more teenage children, usually live with extended families . Looking for functional furniture is their priority. Also, the adults in this family are in the peak of their income.

Business Customers Using furniture for working offices.

Description

Other characteristi cs

Expect services such as assembly and after sales service. Need personal contact.

Objectives

Raise awareness to Manitoba market Establish the brand to Manitoba market Boost sale,store visits,product trial,website visits Win the market share Preheat publicity Currently IKEA aims to penetrate the Manitoba market.

STRATEGY
Concentrate on urban areas, where apartments are smaller and the population more transient Concentrate on university areas with the budget-focused students first time homeowners and new immigrants . low cost products of a wide variety, that meet the needs of their modern lifestyle Better to use a younger target market strategy to build customer loyalty to the brand, they are fun to be with ,they like DIY and they have an active lifestyle. Internet ads, since that is likely the main communication vehicle for the target demographic in Winnipeg. Continue clever advertising to create demand. We are going to choose a strong media mix including television, outdoor and online websites specific to our target market.

TACTICS
1. We are offering free playing area for kids at our store. Also, We are raising $500 funds for orphanage kids on our every $10000 sale. 2. GRAND OPENING IKEA Foundation IKEA Foundation was formed in 2005 to address the companys commitment to investments in social programmes on a global level. What once started as IKEAs fight against child labour in the supply chain has developed into a broad commitment to create a better everyday life for the many children. IKEA Foundation mission is to improve the rights and life opportunities of the many children - creating substantial and lasting change. Our main partners are the two leading global organizations for children's rights, UNICEF and Save the Children.

Book Fund

The IKEA Edge Building Global Growth and Social Good at the World's Most Iconic Home Store By Anders Dahlvig McGraw Hill, 191 pages, $29 In addition to raising the number of media with the lineup, we are also providing the famous book The Ikea Edge (building social growth and social good at the worlds most iconic home store) by Anders Dahlvig, the former CEO of IKEA for 50% of the original price. The fund generated through this book sale will be given to the IKEA Foundation. 3. We are promoting go green campaign at our stores and helping the nature and our surrounding.

8 4. We are using wooden products and recycled plastic materials products at our stores. 5. We are in the making of largest recycling plant with the help of provincial government of Manitoba. 6. We are offering installments plans for purchase of more than $500. We will not charge additional fees for the same purchase for an year. 7. We are offering discounts for community events and for university students. 8. We are offering plan for the house buyers/builders where they can get every item customised for their new house at very affordable price.

Media: We are using Television News channels, Radio, University radio, News Channels, Newspapers, University magazines & newspapers, Social media (Facebook, Twitter, LinkedIn, Blogs, emails), Coupons, discount offers, membership cards, Press release for my PR campaign. Social Media: We have created Facebook and Twitter pages and updating the launch of our store. We are also using Blogs to post the schedule of our launch. We are posting our virtual videos and the customised technology for every customer. Website: We will ask our customers to visit our virtual designed bedrooms, living rooms, kitchen design. The customer can customize the look including colour and size of their apartment. We are treating each customer as special one. The same will be promoted through videos, animated artificial intelligence where customer can feel it. Print and video News: IKEA is a well-established global brand, we will hammer the worldwide success stories through print, video news two week before the grant launch.

MEASUREMENT

Distribute survey asking audiences at the grand opening asking them how do they know IKEA and how well do they know the company. Send emails to registered members asking for their feeling s toward IKEA after the grand opening. We will disclose the fundraising through sailing the popular book by press release three day prior to the launch and get the feedback at the store, through email, phone calls, Twitter, Facebook. We can check the likes on our social media. We are shooting B rolls after the launch and taking feedback from the visitors and sending them on our website, social media, and news channels.