Introduction to IKEA’s Mobile Initiative
IKEA, the Swedish home furnishings retailer, has taken its 2010 catalog to the subsequent level by launching an augmented reality application for Apple’s iPhone. This modern move is a component of the corporate’s efforts to extend its presence within the mobile market. The application, developed by Mobile Dreams Factory, allows users to pick a chunk of furniture from the catalog and place it anywhere of their room, changing its size to suit the angle using the phone’s camera.
How the Application Works
The application is free and might be downloaded from the App Store. It contains a unique augmented reality feature that allows users to check out furniture before buying it. This feature serves as a branding tool, driving consumers into bricks-and-mortar retail stores. The application also provides users with a shopping assistant, making it easier for them to navigate and buy products.
Target Demographic and Marketing Strategy
The goal demographic of the applying is identical as IKEA’s generally, mainly women ages 25-44. However, the app has found that fans of IKEA will not be limited to this demographic. The company’s marketing strategy includes leveraging the mobile platform to succeed in consumers via advertisements, contests, a customer-relationship management program, coupons, and a WAP shopping site.
Mobile Dreams Factory and Its Services
Mobile Dreams Factory, the agency behind the IKEA application, has two business divisions: Brand Services and Operator & Media Services. Brand Services focuses on providing mobile marketing services, similar to strategy, creativity, technology, purchasing, and planning of media, in addition to application development. Operator & Media Services provides promoting platforms to carriers, media corporations, and content providers. The agency’s clients include Mini Cooper, Vodafone, BBVA, Grupo Mahou, and Sony Ericsson.
Success of the Application
The IKEA application has been an enormous success, with over 200,000 downloads and becoming the second most downloaded application in Apple’s App Store in its first week of release. The mobile marketing campaign developed by Mobile Dreams Factory won the Golden Lion on the Cannes Lions International Advertising Festival for best promoting campaign on mobile devices.
IKEA’s Mobile Initiatives
IKEA realized the importance of mobile marketing a number of years ago and has since launched several initiatives, including a mobile loyalty program, a text-to-enter loyalty program, and a WAP shopping site. The company’s Seattle store has been running a monthly mobile contest, giving opted-in consumers the prospect to win a $500 IKEA gift card. The store also contains a mobile club, offering customers savings and special offers to encourage loyalty.
Augmented Reality Feature
The augmented reality feature of the IKEA application is its unique selling point. It allows users to check out furniture before buying it, making it easier for them to make purchasing decisions. The feature has been an enormous success, with a whole bunch of hundreds of downloads in only a number of months. The application’s success might be attributed to word of mouth, blogs, and media coverage.
Conclusion
In conclusion, IKEA’s mobile initiative has been an enormous success, with the applying’s augmented reality feature being a game-changer within the furniture retail industry. The company’s efforts to extend its presence within the mobile market have paid off, with the applying becoming one of the vital downloaded within the App Store. As mobile marketing continues to grow, with Gartner estimating an 80% growth this 12 months alone, IKEA is well-positioned to benefit from this trend and increase its retail sales.
