Brief Explanation

THE IKEA CATALOGUE The IKEA catalogue is an institution. For IKEA, it sets the commercial tone for the whole year. It contains the key IKEA range of new and existing products, the prices (which are set for the entire year) and is distributed via letterbox drop to 100% of deliverable households in the metropolitan area in Perth and Adelaide over a two-week period in August. It is the cornerstone of IKEA’s marketing program. It is the distillation of the IKEA brand and fundamental to driving IKEA’s annual business performance. A successful catalogue and catalogue launch is vital and supports a successful sales year for the international retailer. Further, historically research has clearly demonstrated the link that recall and retention of the catalogue correlates directly to increased store visitation as well as spend per visit. Hence, it is vitally important that people not only receive the catalogue, but keep it, interact with it and are inspired by it. CATALOGUE RECALL ON THE SLIDE However, IKEA’s annual Global Brand Capital Research was showing that in Western Australia and South Australia recall of the IKEA catalogue had been in steady and significant decline over the last 4 years, slumping to an all time low in 2010. OUR BRIEF WAS CLEAR Get the catalogue into homes and get people to keep it there for a whole year. STRATEGIC IDEA 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?’ What if IKEA paid people for the space the catalogue takes up in the home? And, the longer people let the catalogue stay, the more they could make. STRATEGIC EXECUTION We told West and South Australians that they would get paid ‘rent’ if they gave the catalogue a home and would continue to pay them rent for each month they kept it there. IMPACT After 8 weeks Perth sales were +13.8% against a goal of +3.8% on the previous year’s budget. Adelaide +7.0% against a goal of -0.7% on the previous year’s budget. RETURN ON INVESTMENT The campaign spend was $1.3 million. After 8 weeks, IKEA had a return of $39.5 million in sales representing a ROI of $30.38 for every $1.00 spent. Or over 3000%.