IKEA designs products for today and tomorrow

IKEA's UK FB page has more than 1 million likes, its Instagram account has more than 100k followers, its Pinterest boards have 31k followers, and some of its YouTube videos/adverts have more than 1 million views.

This is a highly social brand that earns the loyalty of customers worldwide through well-designed, reasonably-priced products, delivered with quality service and sourced with sustainability in mind.

The home page of IKEA's UK site tells visitors: 'Welcome to IKEA. We believe everyone deserves to have a beautiful home filled with well-designed furniture. And still have money left over for other things to enjoy in life. That’s why we offer our home furniture at prices so low as many people as possible will be able to afford them.'

To keep IKEA's products both fashionable and affordable, the company develops 2,000 new products every year. It also redesigns 2,000 products every year, refining the style or finding new ways to simplify the construction or cut costs to cut prices. As a result, IKEA must carefully manage inventory and product display within each department and each store, changing 'according to consumer behaviour' based on data analysis from buying patterns and ethnographic research in customers' homes.

Preparing for the products and designs of tomorrow, the company maintains a future living laboratory known as Space10 in Copenhagen. The website explains: 'Space10 investigates the future of urban living through a series of labs. Each lab sets out to tackle a specific challenge, and unfolds through a number of talks, workshops, pitch nights, design residencies, exhibitions, collaborative projects, and other formats.' Space 10 is open to the public and holds workshops for all ages, so visit the next time you're in Copenhagen.

Packaging--The view from the shelf

What does the package say about the product? It has to present legally required information, of course, and both protect and store the contents in a convenient size and shape, whether on the shelf or in the home.

Shoppers move through supermarkets at a fast pace and the package must attract attention and arouse interest quickly. As a result, marketing communication is one of the driving forces behind today's decisions about packaging. One study found that 64% of shoppers bought something new simply because the packaging caught their attention. In fact, 36% of the shoppers in this survey said they had actually changed brands because of packaging preferences.

So take a look at the packaging designs of the 1970s, recently in the news because a locked pantry was opened for the first time in decades. Heinz was recognisable, but Bold detergent looked dated (which makes sense, because it was updated in 2004). And that's part of the point: Marketers want their products to stand out on the shelf, make an instant connection with shoppers and represent the brand personality, not simply protect, store and inform.

A recent Marketing Week article mentions biomotive triggers designed into packaging--visual cues such as animals that will catch the eye and put a smile on your face. The packaging for Andrex toilet tissue features an adorable puppy that even has its own Facebook page (617,000 likes). The puppy is so much a part of the brand's personality that it's a convenient and positive shortcut for shoppers--see the puppy, recognise the brand and react by reaching for the product on the shelf, all in just a second or two.

Packaging changes can delight, intrigue, annoy, confuse or even anger shoppers, which is why marketers test and retest to understand possible reactions before rolling out new packages. In many cases, companies like Heinz post information to explain their packaging innovations so shoppers are aware and ready for new colours, shapes, sizes and materials. If new packaging is more earth-friendly, it can be a showcase for marketing sustainability, as well.

For more on design in packaging, browse the news in Design Week.

Dunkin' Donuts Returns to London as Coffee Culture Continues

US-based Dunkin' Donuts has been marketing doughnuts and coffee, with some menu additions, since 1950. Today, it has 10,000 franchised doughnut shops worldwide and also owns other brands, including Baskin-Robbins ice cream, that are popular beyond North America. The company has sales and profit momentum and big marketing plans for future growth.

During the 1990s, Dunkin' opened franchised doughnut shops in UK markets but closed them to concentrate on more profitable opportunities. It has expanded its Baskin-Robbins shops in the UK but, until now, has not marketed doughnuts again in the UK.

Very soon, Dunkin' Donuts plans to return to the UK with 50 new franchised doughnut shops throughout London. The timing is right, says Dunkin's management, because of the established strength of the coffee culture in the UK and because of Dunkin's expanded menu offerings, including breakfast and lunch sandwiches.

Specifically, the head of Dunkin' Donuts is targeting consumers who might otherwise go to Starbucks or McDonald's for coffee or breakfast/lunch. This time around, Dunkin' must carefully differentiate itself to effectively compete with Krispy Kreme, another US-based chain of doughnut shops that entered the UK a few years ago.

What role will mobile marketing play in Dunkin's strategy to return to London?

In the US, the company is promoting its easy-pay mobile app that not only speeds up transactions, it also gives users access to exclusive mobile offers (see ad).

Starbucks UK already has an easy-pay mobile app for iPhones and Android phones.

So it would make sense for Dunkin's London stores to offer mobile options when they open, don't you think?

Lego becomes world's #2 toymaker

Lego has just moved up in the toy world, passing Hasbro to become the second largest toymaker on the planet.

(US-based Mattel, maker of Barbie and American Girl dolls, remains the world's top toymaker.)

One big reason for Lego's continued increase in sales and market share: the global success of the best-selling Friends play sets for girls.

Another big reason: Lego's Chima sets, which feature animals--especially popular in China, a market being targeted for additional marketing attention. 'Asia has not been a major focus for us as a company up until this point, but we see now with the emerging middle class, more and more consumers that are really interested in our ... products', the Chief Financial Officer tells Reuters. Not surprisingly, Lego will be building a factory in China so it can meet growing demand for its bricks and figurines. 

Lego also has some highly popular brand licenses (Star Wars, for example) and marketing partners that have licensed its brand (such as Merlin Entertainment). The company's knowledge of customer behaviour, branding expertise, product development skills and distribution savvy have all contributed to its worldwide success.

In UK shops and online stores, Lego's products are often featured on special themed shelves and pages. Argos has web pages devoted only to Lego, as do Amazon and Toys 'R' Us. This allows display of the full Lego range and keeps the focus on the brand and its unique personality.

Coca-Cola's 70-20-10 marketing

In March, Coca-Cola's marketing chief explained Coca-Cola's marketing investments this way:

"We invest 70% of our resources in existing products, 20% in innovations related to existing products, and 10% in pure innovations."

As an example of the 70% investment, Coca-Cola introduced the new 375-ml "pocket size" bottle earlier in the year. Minute Maid Pulpy, created for China, is a pure innovation that has become a best-seller throughout Asia.

Coca-Cola retains the #1 position in InterBrand's ranking of 100 best brands. It's launched a number of sustainability initiatives in recent years, including the PlantBottle (recyclable, biobased packaging).

Most important, Coca-Cola is embracing social media to engage its brand advocates. The CMO says his thinking has changed over the years: "I used to think that loyalty was at the top of the pyramid of classic marketing awareness model, but now it’s advocates."

Coca-Cola is reaching out through Facebook and other social media to stimulate dialogue with brand fans and remain relevant to its target market. The company has more than 54 million Facebook likes, by the way, and 630,000 Twitter followers. It's on YouTube, Pinterest and Flickr as well.