With Bollywood being a large source of entertainment in India, product placement could help raise awareness and interest in IKEA. For example, working together with actors or actresses as brand ambassadors or with film directors to film on location. Market penetration pricing may attract buyers in this case to draw attention away from competitors and focus only on IKEA. This would help IKEA stand out from the crowd and create a “buzz” using Bollywood.
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'Product Placement and Endorsements of IKEA in India'
Referring to the previously mentioned geographic issue, where India has different geographic terrains and thus also temperatures, their products may have to be localised to fit the needs of the Indian market. For example, housing standards or sizes may differ by state which then changes the criteria for household items, as well as household products like bedding catering to different temperatures. IKEA may use bundle pricing, selling multiple products together at a lower price, to attract customers as this entices first-time customers that would like to improve their home. This helps IKEA to move unsold items taking up space in the warehouse, as well as be used as a promotional strategy by selling complimentary products. This promotional strategy would be successful at the start of market penetration and once there is an increase of awareness and customer flow, this publicity would not be needed. This strategy would be, however, expensive, and thus preferably not the first choice.
Advertisements with large pictures and colourful advertisements would impact high-context cultures more, due to the visual and ambiguity to the advertisement. Unique promotional strategies would have to be used in India due to the different urban and rural areas involved in its geographical location. This can be in the form of advertisements on public transportation like trains and buses in urban areas, and banner signs in rural areas.
As advertisements would be aiming for a large audience, economy pricing would be the best strategy to use here. This would attract price-sensitive customers and thus minimise unwanted costs as products in the advertisements would be generic, keeping product costs down.
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Online advertising and social media allows IKEA to approach promotional strategies in a more relaxed environment, connecting to a different set of demographics, which is most probably a younger audience. This also allows IKEA to test campaigns and is inexpensive (Ahmed 2018). This strategy would be successful as it builds a relationship between IKEA and the consumers, making it seem as though IKEA is always in touch with their audience, while promoting their products and increasing awareness to a wide range of audiences.
