Analyzing IKEA's Digital Marketing: Project, Strategies, and Impact

This project report examines the impact of digital technology on IKEA's marketing activities, aiming to understand how digital strategies enhance sales and profitability. The project includes an introduction outlining the significance of digital technology in today's business environment, especially for multinational companies like IKEA. Task 1 defines the project's aims, objectives, and project management plan, including cost, time, scope, communication, and risk assessments. A work breakdown structure and Gantt chart are also presented. Task 2 details the research methodologies, employing both qualitative and quantitative methods, along with data collection techniques like questionnaires. Task 3 analyzes the research findings, presenting data on the concept of digital technology, the importance of digital marketing, and challenges faced by IKEA. The analysis includes frequency distributions and interpretations. The project concludes with recommendations for IKEA to improve its profitability through digital technology, alongside a reflection on the research process and its outcomes. The report uses references to support the findings and recommendations.

Managing a Successful
Business Project

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Project aims and objectives....................................................................................................1
P2 Project management plan.......................................................................................................2
P3 Work breakdown structure and a Gantt chart.........................................................................3
TASK 2............................................................................................................................................5
P4 Small- scale research by applying qualitative and quantitative research methods.................5
TASK 3............................................................................................................................................7
P5 Research and data using appropriate tools and techniques....................................................7
P6 Research recommendation....................................................................................................15
TASK 4..........................................................................................................................................16
P7 Reflection.............................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
As per today's scenario, digital technology has changed the way of live, communicate and
work. In context of organization, it makes all the process and activities of the company ore
smoother as it can improve the profitability, market for products and leverage customer
satisfaction into loyalty towards the company products and services (Čuček, Klemeš and
Kravanja, 2012). With the use of digital technology company may improve their working style
and also improve their performance level at market place. In addition of this, it also includes in
different business activities such as operations, marketing, HR, finance and many more. It has
improved the overall process of delivery of the business organization and at the same time also
reduced the cost of sharing information (Dawson, Hirt and Scanlan, 2016). This is the main
reason that company easily enhance their profitability level at market place.
Present research is based on IKEA, is a Swedish founded multinational group that design
as well as sells ready to assemble furniture, kitchen appliances and home accessories in over the
world. Company use digital technology to make their brand image strong and competitive at
market place. Report cover its aims and objectives which help in attaining end positive
outcomes. Along with this project management is also mentioned in this report. At last different
research methods also discussed here which help in gathering relevant data and information.
TASK 1
P1 Project aims and objectives
Background of the project
Today’s era is largely found to be influenced by digital technology as every day
awareness of advantages associated with remaining aligned with the latest tools and techniques is
enhancing. Every activity of business is affected by digital technology as modern and dynamic
business environment offer opportunities for organisations to effective make use of digital
strategies in order to build a healthy relationship with clients (Camisón and Villar-López, 2014).
By maintaining effective customer relations, businesses strive to gain the loyalty and trust of a
large base of customers through which they then persuade the people to make a purchase of their
products and services. In context of IKEA, this company belongs to furniture industry and
operates its business functions largely within UK. The main of purpose of this research is to gain
an understanding of the impact of digital technology on enhancing the sales and profitability of
1

this organisation. It can be further said that this organisation offer its product and services within
international markets which urges the company to adopt digital strategies. In this context,
researcher has formulated relevant aims and objective so as to identify the impact of digital
technology over marketing function of IKEA which enhances the profitability of enterprise.
Aim
“To identify the impact of digital technology on marketing activities in increasing
profitability level. A case study on IKEA.”
Objectives:
 To understand the concept of digital technology.
 To identify the importance of digital technology for marketing activities of IKEA.
 To determine the challenges faced by IKEA while implementing digital technology in
marketing activities.
Questions:
 What is the concept of digital technology?
 What is the importance of digital technology for marketing activities of IKEA?
 What are the challenges faced by IKEA while implementing digital technology within the
marketing activities?
P2 Project management plan
A project management plan is a written and formal documentation of structural sequence
of activities which undermine the way in which a project is successfully executed, evaluated,
monitored as well as controlled. In general terms, it is a brief summary of events that takes place
as a part of the project and indicates the key activities which will be a part of it such as planning,
documentation, management plan etc. In context of project of IKEA, the summary of its project
execution is given below:-
Cost: Fund are usually considered as the most crucial element for a project without
which a project can not be initiated or executed. This contributes significantly towards the
successful implementation of project in an optimum manner (Frishammar and et. al., 2018). In
context of this project on IKEA, researcher has fairly estimated the amount to be around 8K for
carrying out the research in a manner which assists in collecting relevant information. The cost
for company will be around 80K Euros.
2

Time: This is considered to be yet another essential aspect which ensures the success of
project implementation. It is essential for a researcher to effectively conduct planning of each
and every activity so as to decide the time frame for these activities. In this regard, researcher has
evaluated that research will take approximately 3 months. Also, IKEA will take around 4 months
to successfully adopt a digital strategy.
Scope: This is also one of the most essential factors of project planning and execution
which defines the future prospects of project. It has been acknowledged post conducting this
research that IKEA will easily be able to formulate digital strategies which ensure increment of
organisational profitability levels (Epstein, 2018).
Communication: This is yet another essential aspect for company to effectively
communicate the necessary details associated with project to employees and other key related
persons. In relation to this research, researcher will deliver each and every essential detail to their
team members so as to ensure execution of an effective research.
Risk: Every business organisation has to undergo a number of hurdles or barriers which
act as hindrances for company in becoming successful in global marketplace. In context of this
project, the main risk faced by researcher is inadequate or negligible response of respondents
against the questionnaire, lack of funds, time etc. (Jones, 2013). The risk for company while
using digital strategies for conducting marketing activities can be shortage of funds, human
resources, technology etc.
P3 Work breakdown structure and a Gantt chart
Work breakdown structure:
It is a key project deliverable which used to organise the team work into small sections.
Mainly, it is a project management system that help in managing as well as completing entire
activities of the project in an effective way. In this context, project manager play a significant
role in executing project activities in order to attain positive end results. The main advantage of
using this method is to estimating time, cost and risk of the project by which project manager can
easily accomplishing project objectives in allotted time frame.
Gantt chart:
It is consider as a horizontal chart that provide graphical representation for coordinating
as well as tracking all the task and activities of the project (Hakansson, 2014). In this project
manager set project activities along with specified time frame. With the assistance of this, project
3

manager can easily complete the project activities and attain positive outcomes in stipulate time
frame.
4

TASK 2
P4 Small- scale research by applying qualitative and quantitative research methods
Research consider as an important aspect through which investigator can test all the
theories and methods for attaining positive results. Mainly, it is ongoing process for developing a
correct project. Thus, it is important for investigator to select an appropriate method to undertake
the research activities. In this context, there are two types of research methodologies such as:
Qualitative
It is consider as an exploration which used for understanding of reasons, reason of
specified area. By using this, research maker can easily develop new ideas for addressing the
research issues in systematic manner. With the assistance of this, investigator easily gathers
relevant data and information by understanding different views and opinion of the respondents.
Quantitative
This type of method includes emphasize objectives measurements and mathematical,
numerical analysis of collected information by using surveys, questionnaire, polls and many
more (Kim and Peterson, 2017). With the assistance of this, researcher easily gathers relevant
information towards the specified research topic. By this, research maker can draw a valid
conclusion and attain positive outcomes.
Data Collection
It is an important process of collecting as well as measuring information on variables of
interest. Mainly, it is a statistical requirement which includes series of numerical data that help in
attaining reliable information. Along with this, it includes two types of data collection methods
which used by investigator to carry out the research activities in systematic manner:-
Primary
It is the method which includes information that is gathered for the first time. For this,
investigator includes views and opinion of the respondents towards the particular topic and area
as well. With the assistance of this method, investigator easily collects valid and correct
information that may contribute in attaining positive outcomes. Primary method includes various
sources such as interviews, questionnaire, survey and any other to gather data.
Questionnaire
Name:
5

Age:
Contact no.:
Email address:
Q1) Do you have any idea about the concept of digital technology?
a) Yes
b) No
Q2) What is the importance of digital technology in marketing activities of IKEA?
a) Improve communication
b) Promote company products
c) Enhance productivity level
Q3) Is digital technology help IKEA in promoting their services in market?
a) Yes
b) No
Q4) What are the main challenges faced by IKEA while implementing digital technology?
a) Lack of talent
b) Limited budget
c) Lack of strategy
Q5) As per your point of view, is use of digital technology is beneficial in promoting brand
image at market place?
a) Yes
b) No
Q6) What are the ways by which IKEA can easily overcome from the issues associated
with digital technology?
a) Skilled workforce
b) Proper planning
c) Enough financial resources
Q7) What are the main reason behind using digital technology within marketing activities
of IKEA?
a) For communicating with customers
b) For promoting products
c) For developing positive relationship
6

Q8) Is digital technology help in attracting customers attention towards IKEA products?
a) Yes
b) No
Q9) Provide recommendation for IKEA in enhancing their profitability level by using
digital technology.
Secondary
This type of method includes information which is already published in various sources
such as books, journals, articles, newspaper and many more. Mainly, it includes different authors
views and opinion who has proper knowledge about the research topic.
Sampling
It is an effective process which used for selecting sample members from the whole
population with the aim of gathering information towards the research topic. In this, research use
random sampling method for collecting data in systematic manner. By using this method
researcher select 30 respondents through which research maker can easily gather valid
information towards the particular topic and area as well.
TASK 3
P5 Research and data using appropriate tools and techniques
Theme 1: Concept of digital technology.
Q1) Do you have any idea about the concept of digital technology? Frequency
a) Yes 20
b) No 10
7

Interpretation: Digital technology is a concept of computer based products and solutions
through which company can easily share as well as store all the data and information. With the
assistance of this, company easily make their brand image more competitive. In this, 20 out of 30
participants are agree with this statement as they think that digital technology help business
organization to connect with their potential customers. On the other side, 10 respondents are not
aware about the concept of digital technology.
Theme 2: Importance of digital technology in marketing activities of IKEA.
Q2) What is the importance of digital technology in marketing
activities of IKEA?
Frequency
a) Improve communication 10
b) Promote company products 10
c) Enhance productivity level 10
8
20
10
a) Yes
b) No

Interpretation: Implementation of digital technology is important for business organization in
capturing larger market share from its rivals. In this, 10 respondents think that digital technology
help in improving communication with its potential customers. Along with this,10 participants
are said that it help in promoting company products in market place. On the other side, 10 are
give their views that digital technology aid in enhancing overall productivity level of the
business organization at market place.
Theme 3: Digital technology help IKEA in promoting their services in market.
Q3) Is digital technology help IKEA in promoting their services in
market?
Frequency
a) Yes 25
b) No 5
9
10
10
10
a) Improve communication
b) Promote company
products
c) Enhance productivity
level

Interpretation: As per above mentioned graph it has been analysed that digital technology play
a significant role in promoting company products and services. By this company easily enhance
their market share and established their competitive brand image. In this, 25 participants are
agree with this theme and on the other side, 5 people think that sometime company does not
promoting services because they fail in analysing the market trends and platform as well.
Theme 4: Lack of talent is the main challenges faced by IKEA while implementing digital
technology.
Q4) What are the main challenges faced by IKEA while
implementing digital technology?
Frequency
a) Lack of talent 15
b) Limited budget 9
c) Lack of strategy 6
10
25
5
a) Yes
b) No

Interpretation: At the time of implementing digital technology company face various issues that
negatively impact on the overall performance of the company. In this 15 respondents said that
lack of talent is major issues in front of company due to this company fail in attaining benefits of
digital technology within the business activities. 9 participants think that limited budget is a
challenge for company while implementing digital technology. Furthermore, 6 people give their
views that lack of strategy is also a challenge for the company.
Theme 5: Use of digital technology is beneficial in promoting brand image at market place.
Q5) As per your point of view, is use of digital technology is
beneficial in promoting brand image at market place?
Frequency
a) Yes 19
b) No 11
11
15
9
6
a) Lack of talent
b) Limited budget
c) Lack of strategy

Interpretation: From the above mentioned graph it has been evaluated that digital technology
help in promoting brand image of the company at market place. By using this, organization can
easily share their information with customers and make them aware. In this, 19 people are give
their views that implementation of digital technology help in increasing positive image. On the
other side, 11 respondents are not aware about this theme.
Theme 6: Skilled workforce is an effective way by which IKEA can easily overcome from
the issues associated with digital technology.
Q6) What are the ways by which IKEA can easily overcome from
the issues associated with digital technology?
Frequency
a) Skilled workforce 12
b) Proper planning 10
c) Enough financial resources 8
12
19
11
a) Yes
b) No

Interpretation: While using digital technology company face various issues as it is important
for business organization to use effective ways to overcome from the issues. In this context, 12
respondents said that skilled workforce is effective for implementing digital technologies in
successful manner. 10 people think that proper planning is also appropriate for overcome from
the digital technology issue. Furthermore, 8 respondents give their views that enough financial
resources help in reducing issues related with digital technology.
Theme 7: Main reason behind using digital technology within marketing activities of
IKEA.
Q7) What are the main reason behind using digital technology
within marketing activities of IKEA?
Frequency
a) For communicating with customers 10
b) For promoting products 10
c) For developing positive relationship 10
13
12
10
8
a) Skilled workforce
b) Proper planning
c) Enough financial
resources

Interpretation: It is important for business organization to use digital technologies within their
marketing activities as it helps in improving overall performance level at market place. In this 10
out of 30 people think that, the main reason of implementing digital technology is communicate
with their potential customers. 10 respondents said that by using digital technology company
easily promote their products at market. On the other side, 10 people give their views that it help
in developing positive relation with customers.
Theme 8: Digital technology help in attracting customers attention towards IKEA
products.
Q8) Is digital technology help in attracting customers attention
towards IKEA products?
Frequency
a) Yes 20
b) No 10
14
10
10
10
a) For communicating with
customers
b) For promoting products
c) For developing positive
relationship

Interpretation: As per above mentioned graph it has been evaluated that, digital technology is
an effective way to invite large number of customers by communicating with them. In this
context, 20 out of 30 respondents said that by using digital technology company can easily grab
customers attention towards its products and services. On the other side, 10 people are not agreed
with this statement.
P6 Research recommendation
From the above mentioned research, it has been recommended that IKEA should make use
of effective digital technology by employing digital strategies to carry out marketing activities.
This will render a strategic edge to company over rival firms within the same industry and across
the global marketplace. Further, it has been suggested that company should invest handsome sum
of money in Research & Development department in order to identify and evaluate the strategies
being used by rival firms. This will help IKEA to adopt a better and more effective strategy
which ensures healthy relationship with customer and excellent product delivery. Besides this, it
is advised to IKEA to hire a local marketing expert within international market so as to gain an
easy understanding of the consumer psyche within market. All these will be beneficial for
company and significantly contribute towards the enhancement of organisation’s profitability
levels.
15
20
10
a) Yes
b) No

TASK 4
P7 Reflection
While conducting research, I felt that the time provided for this research was inadequate
and insufficient to collect information on such a vast topic. Further I experienced that while
collecting response by using questionnaire, many respondents were not responding in a positive
manner which may have affected the validity and reliability of data. In addition to this, primary
method of data collection provided assistance to me as owing to it, I was able to interact with a
large quantum of people who allowed me to collect adequate, valid and significant knowledge on
the subject matter. As a result, I was able to successfully complete and execute this research
within the stipulated time frame in the best possible manner.
CONCLUSION
From the above mentioned research report, it has been analysed that adopting digital
strategies for conducting marketing activities have numerous benefits for the organisation
provided that the entity takes into account the associated constraints. Also, it has been analysed
that primary method of data collection provides assistance to researcher in collecting valid and
reliable information for successfully formulating the business project. Here, questionnaire has
been utilised in order to gain information associated with topic from 30 respondents.
16

REFERENCES
Books and Journals
Camisón, C. and Villar-López, A., 2014. Organizational innovation as an enabler of
technological innovation capabilities and firm performance. Journal of business research.
67(1). pp.2891-2902.
Čuček, L., Klemeš, J. J. and Kravanja, Z., 2012. A review of footprint analysis tools for
monitoring impacts on sustainability. Journal of Cleaner Production. 34. pp.9-20.
Dawson, A., Hirt, M. and Scanlan, J., 2016. The economic essentials of digital
strategy. McKinsey Quarterly. 3. p.45.
Epstein, M. J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
Frishammar, J. and et. al., 2018. Digital strategies for two-sided markets: A case study of
shopping malls. Decision Support Systems. 108. pp.34-44.
Hakansson, H., 2014. Corporate Technological Behaviour (Routledge Revivals): Co-opertation
and Networks. Routledge.
Jones, G. R., 2013. Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.
Kim, Y. and Peterson, R.A., 2017. A Meta-analysis of Online Trust Relationships in E-
commerce. Journal of Interactive Marketing. 38. pp.44-54.
17