Online Marketing Plan for

IKEA in Vietnam

By Amila Perera

UWL ID: 21462334

 Introduction
Selected company: IKEA

• Background: A Swedish multinational company founded in 1943 which

specializes in manufacturing and selling home furnishing appliances.
IKEA.com, (2020)
• Products: Furniture and home appliances
• Operating: in 52 countries IKEA.com, (2020)
• Largest furniture retailer in the world with record sales revenue of EUR
$41.3 billion in 2019 O'Connell, (2019)
• New country to be proposed
Aim: To introduce IKEA brand and lifestyle for the new market and
build a potential customer base.
 Introduction

Overview of presentation:

Market entry method

Digital marketing Framework: SOSTAC
• Situational analysis
• Objectives: SMART objectives based on 5S
• Strategy: STP, Ansoff’s Matrix
• Tactics: Marketing mix (7Ps)
Implementation
• Action: Who, what and when?
• Control: KPIs and measurements
 Ethical aspects
 Conclusion
 Market Entry

Market Entry

Already operating in Thailand, Malaysia, Singapore, Philippines, Indonesia

Proposed country: Vietnam
Population: 97 Million (3rd in South East Asia) worldometers, (2020)
Economic growth rate of 7.31% recorded in 2019 Locus, (2019)
Consumer spending power: Moderately high macrotrends, (2020)
E-commerce users: 40 Million Techcollective, (2020)
E-commerce market: $8 Billion nhandan.com, (2019)
E-commerce market for furniture & appliances: $367.90 Million trade.gov, (2019)
 Market Entry

Method – Intermediate mode

-Direct franchising
• Franchisor – Inter IKEA systems B.V.
• Franchisee – IKANO (Proposed)

E-Commerce strategy
Sell side
Through IKEA website
Partnering with a third party online retailer
Partnering with a third party delivery service provider
Buy side
Automate and Integrate with IKEA suppliers in Vietnam
Link with IKEA distribution centre in Malaysia
 Digital marketing Framework - SOSTAC
Situational Analysis Millions
14
Market structure and demand
12
Furniture industry: 10
7.7 Million customers in 2019 8

13.26 Million customers by 2024 (Expected) Source: 6

4
statista.com, (2020)
2
  0
2017 2018 2019 2020 2021 2022 2023 2024
Opportunities:
• Anticipate new business opportunities in emerging
markets
• Demand for western lifestyle brands.

Threats:
• More western furniture brands expected to invest in
Vietnam
• Retaliation from furniture companies already
operating
• Global economic crisis due to covid-19
 Digital marketing Framework - SOSTAC
Strengths and Weaknesses - Competitors
BAYA (Previously UMA) JYSK AKA Furniture Group
Strengths • 14 years of experience in • Danish company with 5 • 20+ years experience with
Vietnam with Swedish roots Years experience in Vietnam. Nha Xinh and Managing
• 85% of products are • Decent quality, Nordic Danish brand Boconcept.
produced by local style products • Good quality. Targeting high-
manufacturers • Value for money end market
• Mid pricing • Strong brand perception

Weaknesses • Less selection of quality, • Brand is less popular • Expensive pricing

high-class products outside urban areas • E-commerce website is non
• Customer services are • Low product range standardized
weak • Social Media presence is • Social Media presence is
• social Media presence is moderate moderately high
low

Sources: baya.vn (2020) , Thuy, (2017) , akafurniture, (2020)

 Digital marketing Framework - SOSTAC

Objectives
• Acquire 700,000 Followers on social media platforms (Instagram, Facebook, twitter and
Youtube) by October 2021
• Achieve 4 Million visits to IKEA website while having a sales conversion rate of 2% by
December 2021
• Achieve 10% return rate of new customers by February 2022

KPIs

O1 - Social media analytics

O2 - Conversion rate
O3 - Return visits
 Digital marketing Framework - SOSTAC

Strategy
Segmentation
• Geographic - Urban population (Hanoi, Ho Chi Minh)
• Income – Upper middle class
Targeting
• Newly married and starting a family
• Independent youngsters with increased preference
towards western lifestyle brands
Positioning
• Lifestyle brand with Scandinavian design
• Great quality
• Affordable and cost effective
 Digital marketing Framework - SOSTAC

OVP - “Largest selection of quality Scandinavian design, home furnishing products at lowest price”

Ansoff’s Matrix – Market Penetration (To increase users)

 

Promotional mix – Advertising, Sales promotions, Direct marketing, public relations.

 Digital marketing Framework - SOSTAC
Tactics
Marketing Mix (7 P’s)
Product – Scandinavian design, Ready to assemble, Swedish named, diverse product range (9500+)
 Digital marketing Framework - SOSTAC

Price
Value for money, Affordable prices, need to be competitive against competitors prices.

Place
IKEA website, Lazada
 Digital marketing Framework - SOSTAC
Promotion
Social media content, discounts and special offers in special seasons such as Vietnamese New Year,
Mid-Autumn Festival and Christmas, Pay-per-click channels, guerrilla marketing, SMS alerts,
Influencers,
Video
 Digital marketing Framework - SOSTAC

People
Automated web service, Marketing team, Customer service

Processes
streamlining ordering process, online payment method or Cash on
delivery, assembly service, Curbside Service or home delivery- GHN
Express

Physical Evidence
Website design and layout needs to be standardized with easy
navigation, Language selection, content and listings must be clear,
searchable, up to date and fresh.
 Implementation

Action (Gantt Chart)

Who, what and when?
 Implementation

Control

Objectives KPI Metrics Tools Team member assigned

Build brand Social media reach and

awareness engagement – likes,
shares, followers.
website traffic, Keyword Google analytics,
search volume
Social media
analytics Data analysts
Generate No. of orders, conversion (under the purview of
qualified leads rate, Bounce rate Customer
surveys, Chief marketing officer)
and acquire
customers Net promoter
score (NPS)
Build customer Repeat visits, Retention
loyalty rate, Churn rates
 Ethical Aspects

Ethical Aspects
Data protection
Personal information obtained from users must be protected. (e.g: Credit card details, name,
address, phone numbers)
 
Privacy policy and transparency
IKEA website needs to be transparent and provide all the information the customer requires.
 
Ethics in Advertising
Must adhere to Vietnam advertising law
 Conclusion

Conclusion
• Aim of IKEA to enter into Vietnam market has been justified
• Method of entry is intermediate mode franchising method
• Expected growth of E-commerce and furniture industry in Vietnam and possible external threats
highlighted.
• Main competitors in Vietnam being BAYA, JYSK, AKA Furniture group
• 3 SMART objectives proposed
• Relevant tactics aligned with the OVP needed to achieve the objectives were discussed.
• Objectives are linked to KPIs providing the relevant tools needed to measure the results.
• Tasks to be done, persons assigned and the timeframe of the marketing plan illustrated in Gantt chart
• Total budget - $290,000
• Online marketing plan and activities will be under the purview of Chief Marketing Officer
 References

References
• akafurniture.com. (2020, August). Retrieved August 2020, from akafurniture:
http://www.akafurniture.com.vn/gioi-thieu-aka-363128.html
• baya.vn. (2020, August). baya.vn. Retrieved August 2020, from https://baya.vn/ve-baya.html
• ikea.com/us. (2020). Retrieved July 2020, from IKEA: https://www.ikea.com/us/en/ideas/home-
visit-a-relaxed-scandinavian-family-home-puba6a15951
• Ikea, “Say Hej to IKEA Place” online video clip, youtube, youtube, (2017, September). Retrieved
August 2020, youtube: https://www.youtube.com/watch?v=UudV1VdFtuQ
• Locus. (2019, December). Locus Bulletin. Retrieved August 2020, from
https://locus.sh/resources/bulletin/vietnams-economic-growth/#:~:text=A%20recent%20GDP
%20growth%20statistics,%25%20and%206%25%20CAGR%20respectively.
• macrotrends. (2020, August). Retrieved August 2020, from macrotrends:
https://www.macrotrends.net/countries/VNM/vietnam/consumer-spending
• nhandan.com. (2019, September). nhandan.com. Retrieved August 2020, from
https://en.nhandan.com.vn/business/item/7948902-vietnam%E2%80%99s-e-commerce-market-hits-
us$8-billion-in-2018.html
 References

References
• O'Connell, L. (2019, October). Statista. Retrieved August 2020, from
https://www.statista.com/statistics/264433/annual-sales-of-ikea-worldwide/#:~:text=In%202019%2C
%20the%20global%20revenue,amounted%20to%2041.3%20billion%20euros.&text=IKEA%20is%20an
%20internationally%20known,recognized%20for%20its%20Scandinavian%20style.
• statista.com. (2020, August). Statista. Retrieved August 2020, from
https://www.statista.com/outlook/255/127/furniture-homeware/vietnam#market-users
• Tech Collective. (2020, August). Tech Collective. Retrieved August 2020, from
https://techcollectivesea.com/2020/04/24/vietnams-booming-ecommerce-market-emergence-of-a-
rising-tiger/
• Thuy, B. (2017, May). vietnam investment review. Retrieved August 2020, from Vietnam
investment review: https://www.vir.com.vn/jysk-expands-scandinavian-quality-and-style-in-vietnam-
48986.html
• trade.gov. (2019, October). trade.gov. Retrieved August 2020, from
https://www.trade.gov/knowledge-product/vietnam-ecommerce
• worldometers.info. (2020, August). worldometers. Retrieved August 2020, from
https://www.worldometers.info/world-population/vietnam-population/
Thank you

By Amila Perera

UWL ID: 21462334