Monthly Archives: December 2016

Ikea Designs Refugee Shelters

ikea

Ikea is known for showing its customers how to have great design in small spaces. Many of its stores feature small footprint rooms and apartments that are beautifully and inexpensively furnished. That’s great for a large portion of the world, but what about people who lack even basic necessities in housing and care?

Recently, Ikea has taken to the small space format to highlight the challenges faced by Syrians living in a 25 square meter room of cinder block walls, with few furnishings and possessions. Based on a real home in Damascus, the room tells the story of the difficulties faced by people living in a civil war zone.

Ikea’s flagship store in Norway built the exhibit to draw attention to the Syrian crisis. In the room are posters and tags that tell the story of a typical Syrian family, including their struggles around the lack of food, medicine, and clean water. The price tags serve as donation slips and are part of a fundraising effort with the Red Cross.

The installation ran for several weeks in October and was seen by more than 40,000 visitors weekly, raising 22 million euros for the Red Cross efforts in Syria. It was an effort by the Ikea Foundation, a separate for-profit enterprise that is part of the Ikea stores.

Group Activities and Discussion Questions:

  1. Discuss social responsibility of businesses.
  2. Show the Ikea video: https://vimeo.com/190261411
  3. Discuss how important shelter is for all people in a crisis situation. Bring up the Web site for Better Shelter: http://www.bettershelter.org/
  4. Another video detailing shelters designed by Ikea: https://youtu.be/krBzZ2A57o4
  5. Have students work in teams to look up the social responsibility actions of some of their favorite brands. What are these companies doing? What more could be done?

Source:  Ad Week, Brandchannel.com, other news sources

 

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Lamborghini SUV Targets Female Buyers

suv

Quick: What comes to mind when picturing a Lamborghini sports car? And, who comes to mind as the ideal customer for the Lamborghini cars? Most likely, you said the customer is a wealthy male. After all, Lamborghini uses a bull as its brand. But, consider what would have to change if the company were to refocus its efforts to attract a new customer base – females.

Lamborghini is doing just this – the company is working on a new SUV model which is due to the marketplace by 2018. It hopes the new SUV will attract women and families as primary customers. This is a big switch for Lamborghini – currently only 5% of its global buyers are female. Money isn’t the main issue for women – the issue is that women don’t think the manufacturer understands the needs of female buyers.

Women are a large and valuable percentage of the SUV market. According to J.D. Power & Associates, women buy 53% of all small SUVs, and 48% of all small premium SUVs. And, for the single woman market, sales of premium small SUVs grew by 177% from 2010 to 2015. Plus, two-thirds of female buyers report that their vehicle purchase decision is entirely their own.

So, what do women want? Well, it sure isn’t a “shrink it and pink it” answer. In order to gain female buyers, Lamborghini is going to have to show that it understands the needs of women and families. The new SUV will need to be one that women can use often, and in comfort.

Group Activities and Discussion Questions:

  1. Visit Lamborghini’s Web site and view several of the car models: https://www.lamborghini.com
  2. Ask students to describe the target market for the company.
  3. Also, have students develop a positioning map for Lamborghini cars.
  4. Now, talk to students about changing the target market.
  5. Divide students into teams. Have each team prepare a re-positioning map for Lamborghini to reflect a new target market of women.
  6. What happens to the marketing mix when the target market changes?
  7. Have students develop the 4Ps for the new SUV: product, price, place, and promotion.

Source:  Bloomberg News

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