MKTG8002

MKTG8002

Marketing Communications

SCENARIO 1

IKEA Jewellery

Name: Sanskruti Tandon

Student ID: 47703105

Word Count: 765

Consumer Insight Report

The target audience for IKEA Jewellery is fashion-conscious men and women aged 18-35 who are looking for affordable yet stylish jewellery options and who are value-conscious and interested in unique, modern, and sustainable products.

Introduction

IKEA is a Swedish multinational company that has become synonymous with affordable, functional furniture. However, the company has also ventured into other markets, such as home goods, kitchenware, and textiles. For this report, we will be exploring the feasibility of IKEA Jewellery, a new line of jewellery that will be targeted at Australian women aged 18-35 who are increasingly interested in sustainability and affordability. The brand aims to target this market in Australia by offering stylish and sustainable jewellery at affordable prices.

Market Overview

Based on a report by IBISWorld (2022), the Australian e-commerce market is projected to grow at an annualized rate of 7.7% over the next five years, reaching a value of AUD 43.7 billion by 2027. The growing trend of minimalism and self-expression has been driving the demand for fashion jewellery among young consumers, particularly those aged 18-35. The preference for affordable yet stylish jewellery has also led to the rise of direct-to-consumer brands such as Mejuri and Alex and Ani in the Australian market.

Moreover, the Australian market is known for its strong focus on sustainability and ethical sourcing. According to a survey (Nguyen and Dsouza), 53% of Australian consumers are willing to pay more for sustainable and ethically sourced products. Therefore, Ikea Jewellery must also prioritize these factors in its supply chain and marketing strategies to appeal to socially conscious consumers in the target audience aged 18-35.

Target Audience Analysis

IKEA Jewellery, a new brand in the Australian market, is aiming to target consumers aged 18-35, both men and women, who are interested in fashion and accessories. This target audience represents a significant segment of the Australian population, with a diverse range of interests and behaviours that can influence their purchasing decisions.

Demographic Profile

The target audience of IKEA Jewellery is highly diverse, but some demographic factors can help in understanding their behaviours and preferences. According to Euromonitor International (2021), the Australian population aged 18-35 is highly diverse, with 29% of the population being born outside of Australia. This segment is highly urbanized and tech-savvy, with a high proportion of social media users. In terms of gender, there is a relatively equal distribution of males and females, with women being slightly more likely to purchase jewellery items than men (Household Expenditure Survey, Australia: Summary of Results, Australian Bureau of Statistics).

Psychographic Profile

The psychographic profile of the target audience of IKEA Jewellery is equally important in understanding their needs and preferences. Millennials and Gen Z are known to be highly conscious of their brand, which includes their fashion choices and accessories (The State of Fashion 2021). This target audience values authenticity and sustainability, and they are more likely to purchase from brands that align with their values and beliefs.

Behavioural Profile

The behavioural profile of the target audience of IKEA Jewellery can be influenced by their online behaviour and purchasing patterns. Social media is a significant factor that influences the purchasing decisions of this target audience. According to We Are Social (2022) 83% of Australians use social media, with Instagram being the most popular platform among young adults. This target audience is also highly price-sensitive, with a preference for affordable and high-quality products (Consumers in Australia).

Additional insights

Social Media

According to a study (GWI), 84% of Australians aged 16-24 follow social media influencers. The report also states that 63% of Australian social media users have purchased a product or service based on an influencer's recommendation. This highlights the significant influence that social media influencers have on the purchasing decisions of younger generations in Australia.

Personalization

This group also values self-expression and individuality, with 91% of Gen Z and millennials in Australia preferring brands that offer personalized products and experiences, according to a survey by Accenture (2020). Additionally, this audience is highly price-sensitive, preferring affordable and high-quality products.

Conclusion

In conclusion, IKEA Jewellery can effectively target the age group of 18-35 by creating a sustainable and fashion-forward product line, building a unique brand identity that resonates with this demographic, leveraging social media to drive engagement, and designing versatile pieces that cater to the practical needs of this audience. By understanding the preferences and values of this target audience, Ikea Jewellery can position itself as a brand that is both trendy and socially responsible. By understanding the target audience and their preferences, IKEA Jewellery can create a successful brand in the Australian market.

References

Consumer Lifestyles in Australia | Market Research Report | Euromonitor. Euromonitor.com, 2018, www.euromonitor.com/consumer-lifestyles-in-australia/report.

IBIS World. IBISWorld - Industry Market Research, Reports, and Statistics. Www.ibisworld.com, 7 May 2020, www.ibisworld.com/au/industry/online-shopping/1837/.

Nguyen, Hoang, and Rishad Dsouza. Global: Consumer Willingness to Pay for Environmentally Friendly Products | YouGov. Yougov.co.uk, 29 Apr. 2021, yougov.co.uk/topics/consumer/articles-reports/2021/04/29/global-willingness-pay-for-sustainability.

Household Expenditure Survey, Australia: Summary of Results, 2015-16 Financial Year | Australian Bureau of Statistics. Www.abs.gov.au, 13 Sept. 2017, www.abs.gov.au/statistics/economy/finance/household-expenditure-survey-Australia-summary-results/2015-16.

The State of Fashion 2021. cdn.businessoffashion.com/reports/The_State_of_Fashion_2021.pdf.

We Are Social. DIGITAL 2022 AUSTRALIA: ONLINE like NEVER BEFORE. We Are Social Australia, 8 Feb. 2022, wearesocial.com/au/blog/2022/02/digital-2022-Australia-online-like-never-before/.

Consumers in Australia. Statista, www.statista.com/study/108694/consumers-in-australia/. Accessed 26 Mar. 2023.

GWI. Latest 2019 Social Media User Trends Report - GlobalWebIndex. Globalwebindex.com, 2019, www.globalwebindex.com/reports/social.

Accenture | Let There Be Change. Www.accenture.com, www.accenture.com/_acnmedia/PDF-107/Accenture-GenZ-Millennials-Research.pdf#zoom=50. Accessed 26 Mar. 2023.