IKEA in Australia

As a part of Inter study Advertising ADV301 we were assigned to interrogation an advertisement campaign for a product or mail that is marketed loc anyy as head as internation aloney. To write a report comparability and contrasting the actual advertisements/commercials and campaigns taking various factors into account.The following report allow for examine the worlds largest furniture seller Ikea. By examine Ikeas spheric dodging as well as the national strategies and the several(predicate) advertisement internationally and domestically one will push a deeper understanding of their selling and announce executions. The advertisements that will be reviewed in this report are two TV commercial, one from Australia and one from the UK. I chose Australia and UK effective to show that level countries with similar cultural preferences can imbibe very different approaches. BackgroundA Swedish man named Ingvar Kamprad in a small t aver called lmhult, Sweden, founded Ikea in 194 3. The beau monde distributes its products through its retail outlets located in everywhere 39 countries. As of October 2010, the chain has 313 stores, some of them in Europe, due north America, Asia and Australia (Ikea, 2010).Ikeas imagination is to create a discontinue everyday life for the more people (Ikea, 2010). Their business idea supports this vision by offering a wide paradigm of high quality, well designed and functional home furnishing products to low prices so that as many people will be able to afford them as possible. Ikea has do this possible by using inexpensive materials in a newfangled way and minimizing production, distribution and retail costs.IKEA and AdvertisingIKEAs positioning didactics is Your partner in better living. We do our part, you do yours. Together we just money, referring to the ready-to-assemble furniture.The brand image is the result of over 50 years work by Ikeas co-workers at all levels all over the world. The actions done, things being said, the products offered, the low prices, presentation of product range and the in haveation provided to customers all contributes to the overall image. Ikea has a long tradition of selling communication and has upon till recently mainly foc apply on print media, which has shown to be successful. however in the last five years additionally media have been used to an extended degree including TV, radio and Internet (Wise, J., 2000)During the years Ikea has had a total of controversial TV commercial, some have even been banned form certain countries throughout the world. However Ikea believes that their controversy is what makes them stand out and detach them from their primary competitors. The market department means that if you like it or not it engages people, it provokes conversation and debate, which successfully results in raising awareness of the brand and change magnitude sales (Wise, J., 2000). Ikea uses advertising to support many different areas of the busine ss including brand awareness, store themes, catalogue drops and store openings.Every year Ikea publish a free catalogue distributed both in stores and by mail. The catalogue is print in over 36 countries and translated into 27 languages worldwide. The catalogue consumes 70% of the companys annual marketing budget and is considered to be the main marketing tool of the retail giant. 110 million catalogues were circulated last year third times higher than that of the Bible, with 13 million of these being available in the UK (Ikea, 2010)Advertising strategyIKEAs target audience is the same in each country they are situated in and is roughly exposit as everyone but mainly focusing on young families and couples first out. You have more ideas and ambitions than you have a thick wallet during that close of your life, we think Ikea fits in mostly there says Christer Granstrand, head of Ikeas international marketing department (Wise, J., 2000). However the target audiences differ from c ountry to country in terms of how they perceive or interpret symbols or stimuli, respond to wit or emotional appeals, as well as in levels of literacy and languages spoken.most of Ikeas ads are known to have a sense of simplicity, practicality, insubordination and the unexpected. Ikea has managed to maintain a kind of overall brand personality across the markets, even if the company is split by country into franchises operating with approximately complete autonomy, including setting its own advertising budget and developing its own marketing initiatives (Wise, J., 2000). This means that the decision process is centralized but the advertising approach is regional (Mueller, B. 2006). Campaigns are based around the unique marketing conditions and cultural sensibilities of each country. Ikea realized that to strengthen its presence in the global market it was necessary to localize. They have over the year worked with different advertising agencies to bring out some of the most creat ive and unconventional video spots across the globe.Ikea uses a standardized strategy with modified executions. in spite of appearance a homogeneous environment advertising standardization is recommendable. If, on the contrary, environmental variables across markets are heterogeneous, customized advertising should be favored (Oboulo, 2010). Some studies consider that a standardized advertising strategy is the most desirable filling when consumer needs are universal, while others argue that adaptation of the advertising strategy across boundaries is more appropriate due to differing consumer buying motives and flori refinings. Languages barriers, media limitation and culture diversity are three major factors that need to be interpreted in to consideration when developing a strategy.Language is one of the major barriers to effective communication through advertising. The problem involves different languages of different countries, different languages or dialects within one count ry. Communication is impeded by the bang-up diversity of cultural heritage and education which exists within countries and which causes varying interpretations of even single sentences and simple concept (Payne, N., 2009) Even the simplest and most interpreted for apt(p) aspects of advertising need to be carefully researched. Colors, numbers, symbols and images do not all translate well across cultures.Ikea sells home furnishing products, but not just products but also a way of life, they sell a life style. The lifestyle we have and the way we live differs enormously between cultures and that insight is something Ikea has taken into account not only by tailoring the product range depending on the market but also adapting the advertising execution accordingly. For example, European spots, particularly those in the UK, are more in your face than those in North America, which tend to be more comedic. However Ikea has in public over the last years moved towards idea advertising and past from product and price spots that define many of the chains competitors (Wise, J., 2000).A modestness for Ikeas international marketing success is that executives from Sweden are located wheresoever Ikea has a head office such as across Europe, North America, Asia and the Middle East, which helps to carry forward the companys corporate culture (Wise, J., 2000). The international marketing department develops common strategies during meetings with local marketing managers where they appear at common values, ideas and how they would fit with the traditional vision of Ikea.