Ikea likely to spend up to ₹180 crore on advertising in 2018-19
New Delhi: In its first India campaign, pegged at around ₹12 crore, Swedish furniture retailer Ikea has hit the nail on the head with two local insights - - big happy family living together and value for money products. The retailer, which is set to open its 400,000 square feet store in Hyderabad’s Hitech City on 19 July, highlights a variety of products starting at as low as ₹149 in the first television ad campaign ‘Make everyday brighter’.
Big on the India market, Ikea is likely to spend between ₹150 to ₹180 crore in 2018-19, according to media buyers estimates as it open doors to its second outlet in Mumbai next year followed by Bengaluru and Delhi-NCR.
Made by advertising agency Dentsu Impact, the minute-long film features playful moments between family members as they spend time together at home, baking, playing or simply lounging. The ad simultaneously showcases a range Ikea products like storage jars, cushions, stools and armchair highlighting the variety available as well as price points.
Noting that Indians have a big love for their homes where they prefer to celebrate and socialise, Ulf Smedberg, country marketing manager of Ikea India said that it was the right insight to highlight in the first ad. “Ikea shares common values of togetherness and family with Indians and that is what we have tried communicating through our first campaign. We want to position Ikea as a brand which provides affordable solutions for homes. For us it is important that all we do should be relevant yet aspirational and connects India and Ikea in a fun, distinct yet very unique way,” he said.
Apart from home furnishing solutions, Ikea will also unveil its restaurant which will be a part of the Hyderabad store. “I believe the first interaction that customers will have with Ikea in India will be through food,” Ulf added.
Amit Wadhwa, president, Dentsu Impact, said that the first Ikea ad has rich local insights while it maintains the witty and humorous tone associated with brand’s advertising globally. “The whole idea was to bring out how living at home is changing in India and how can Ikea help consumers create beautiful homes,” he said.
The brand’s communication is live on television and outdoor and will further be amplified by a series of digital films expected to released shortly. The company is also working on Hyderabad-centric on-ground activations.
Anita Bose, chief operating officer at media agency Madison Media feels that the concept of a store like Ikea does not exist in India.
“While we do have furniture and home decor retailers like Home Centre and Hometown, Ikea store is a mall in itself. Consumers, especially who have an Ikea experience from an international trip, will be excited for the store launch. If the company matches the price and quality expectations of Indians, they will do really well in the country including on e-commerce platforms,” she said.
From a communication perspective, Naresh Gupta, strategy head and managing partner at advertising agency Bang in the Middle feels that the television campaign will attract eyeballs because of competitive pricing. “I am not sure if this will get people to look at Ikea as a global brand, it will get people excited on prices for sure,” he said.
Gupta feels that Ikea can differentiate itself through its signature smart designs which is one element he wants to see in its future advertising. “I understand this is just the start and hopefully Ikea will add a lot more to its offering in India,” he said.