The Brief

The IKEA catalogue is an institution and a cornerstone of IKEA’s entire marketing campaign. However, • IKEA’s annual Global Brand Capital Research showed recall of the IKEA catalogue had been in decline for the last 4 years, reaching a low in 2010 • 2011 was the toughest economic and retail climate in over a decade • Consumer confidence was low • Unaddressed mail and letterbox distribution was at an all time high Our brief: Get the catalogue into homes and get people to keep it there for a whole year.

Describe how the promotion developed from concept to implementation

The concept was to pay IKEA consumers ‘rent’ for the space the catalogue occupied in their homes. Key to the campaign was the creation of a simple mnemonic device that tied everything together. A dotted outline representing the catalogue size. We used print, television, radio, outdoor, online and instore to tell consumers about the promotion. When the catalogue was delivered, consumers registered it online and got ‘rent’ cheques’ for each month the catalogue stayed in their home. The ‘rent cheques’ used the mechanic of a money-off coupon, but redesigned as beautiful ‘rent cheques’ they had a much greater perceived value.

Describe the success of the promotion with both client and consumer including some quantifiable results

-Visits to IKEA.com.au up 30%, setting a new record. -During the first week Perth sales went up 59% -50,000 sign ups in the first 3 weeks. -Store visits increased 9.8% in first 8 weeks -Rent cheques to the value of $2.2 million have been mailed. -Volume of product sold: After 8 weeks, +18% against a goal of +8.5% previous year. -As at 1st May 2012 over 10% of households have signed up for ‘Rent’. -IKEA have rented 5km2 worth of space -The campaign spend was $1.3 million. After 8 weeks, IKEA had a return of $39.5 million in sales

Explain why the method of promotion was most relevant to the product or service

IKEA is all about clever use of space. It’s a fundamental truth about the IKEA brand and IKEA products. It was even the theme for the 2012 catalogue. The IKEA catalogue is big with over 370 pages of inspiration, and it takes up space. Space that, in today’s tough climate, is worth something. What if the catalogue ‘paid its way’ - for the space the catalogue takes up in the home? And, the longer people let the catalogue stay, the more they could make. The ‘Rent’ promotion was relevant to the brand, the catalogue, the products and the consumer.