Short Essay 1_NIU Yunyi (1155219825)

Enhancing Brand Competitiveness through Shared Media in PESO: The Case of IKEA

PESO is a media model utilized in brand communication and marketing strategies. It encompasses paid media, earned media, shared media, and owned media, each playing a crucial role in a brand’s development. Among these media forms, shared media is particularly pertinent to the bidirectional flow of communication between the brand and its audience. The following sections provide a detailed analysis of how a brand can enhance its competitiveness through this aspect, using IKEA as a case.

(1) Interaction and Engagement

Social media platforms such as Instagram and Facebook serve as channels for multiple brands to compete for customer attention, rather than being limited to a single brand. Understanding the importance of user-generated content (UGC) is crucial for every brand. UGC not only amplifies a brand’s marketing efforts but also does so without incurring additional costs, thereby effectively reducing overall expenses. Consequently, it is vital for brands to actively engage users in online discussions about their benefits and attractions. By fostering such interactions, brands can leverage the power of UGC to enhance their visibility and credibility in the marketplace. To encourage high-quality UGC, brands need to create innovative and engaging activities. In 2022, IKEA launched a UGC online program called “IKEA At Mine”. This program initiative invited IKEA consumers to post photos on social media platforms showcasing their use of IKEA products at home and to tag these posts accordingly. Additionally, IKEA selected some of the best content each month to feature on its Instagram account, thereby encouraging further engagement. Through this approach, IKEA not only gained substantial exposure on social media but also successfully created a vibrant brand community. During this period, the participation rate in the campaign increased by 2.7 times, the coverage of brand-specific content improved by 27%, and IKEA’s sales conversion rate rose by 3.54%.

Beyond hosting online activities, IKEA’s focus on user experience through various offline services also creates opportunities for exceptional UGC. In various regions, IKEA has established “Play Cafés” to encourage families to bring their children to experience IKEA products. The interactive environment of these Play Cafés naturally motivates families to take photos and videos and share them on social media. This UGC showcases genuine interactions with IKEA products, enhancing the brand’s visibility and authenticity.

(2)Win-Win Collaboration with Data Analysis

Strategic partnerships between brands often result in mutually beneficial outcomes, where the synergy created exceeds the sum of individual contributions. IKEA has engaged in numerous collaborations with various companies, which have significantly enhanced its product offerings and expanded its market presence. For example, the collaboration between IKEA and Sonos resulted in the SYMFONISK series, which successfully integrates high-quality audio with home design. This series includes innovative products such as a table lamp speaker and a picture frame WiFi speaker. This partnership not only expanded IKEA’s smart home product line but also captivated music and smart home enthusiasts. Market analysis reveals that these products have been particularly well-received by younger consumers. Similarly, the BYGGLEK series, born from the collaboration between IKEA and LEGO, merges toys with storage solutions, fostering creativity and organization within households. This series has garnered enthusiastic responses from families and children alike. Market data indicates a significant increase in BYGGLEK’s sales during the holiday season, highlighting its popularity. Through the market data analysis of collaboration effectiveness data, IKEA can make better choices when selecting partners for future marketing efforts.

(3)Brand Storytelling

When managing social media accounts, it is crucial for brands to convey their core values through effective storytelling. This strategy helps to establish emotional connections with the audience, differentiate the brand from competitors, communicate the brand’s values, enhance memorability, inspire consumer action, and foster loyalty. By leveraging storytelling, companies can stand out in the competitive social media landscape, earning the trust and affection of their consumers. IKEA introduced the concept of “The IKEA Effect”, which conveys the idea that people develop a deeper emotional connection to furniture they assemble themselves. By encouraging customers to participate in the assembly process, IKEA enhances customer loyalty and satisfaction. To support this notion, IKEA frequently publishes video tutorials and DIY guides on platforms like YouTube and Pinterest. These resources assist customers in completing the assembly process and inspire them to undertake new projects, thereby further strengthening their connection to the products.

In conclusion, IKEA’s strategic use of the PESO media model, particularly through shared media, has significantly enhanced its brand competitiveness. By fostering interaction and engagement through user-generated content, forming win-win collaborations, and leveraging effective brand storytelling, IKEA has successfully built a strong, loyal community and increased its market presence. Other brands can learn from IKEA’s approach by adopting similar strategies to boost their own visibility, credibility, and customer loyalty in the competitive market landscape.