IKEA uncovers PHP 576 million potential in Philippines with geospatial analysis

Targeting online sales growth before selecting new store sites

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The challenge

Despite performing above budget, IKEA Philippines needed a user-friendly and effective, data-driven methodology to reveal hidden sales opportunity in a still untapped, evolving Philippines market.

With only one store (the world’s largest) in Pasay City, significant potential lies in online sales growth, as well as evaluating store site locations.

They were looking to understand customer behaviour, both within and outside their Primary Market Area (PMA), specifically:

  • where the greatest value and growth potential lie
  • to track changes over time
  • to optimise marketing spend and maximise ROI

The solution – geospatial analysis

Area Prioritisation Engine is a geospatial intelligence tool already used by IKEA Malaysia and IKEA Thailand, which enabled us to map and quantify potential across the Philippines at a highly granular level.

  1. We sourced and integrated third-party data to build detailed profiles of each city and municipality
  2. A custom prioritisation model was deployed to group neighbourhoods, identify patterns and predict market potential
  3. A dynamic, user-friendly dashboard delivers self-serve insights – highlighting exactly where to focus acquisition efforts and where to deprioritise

Through this approach, we empowered IKEA to benchmark performance across cities, draw meaningful links between locations, and uncover high-value areas previously overlooked.

IKEA Philippines geospatial analysis 1

The outcome

576

million PHP untapped revenue located

376

million in just 10 target areas

94

% potential in 1 customer profile type

The analysis revealed a huge untapped market opportunity and gave IKEA a roadmap to precisely target sales growth:

  • ₱576 million in untapped potential was identified
  • 94% of this potential was concentrated in one specific neighbourhood type
  • 65% (₱376M) was found within just 10 priority areas, reducing the targeting list from 1,641 to 10
  • ₱180 million of that was located in just 5 areas – enabling laser-focused action
IKEA-Batu-Kawan-customer-value-growth

The impact

By delivering precise, data-led recommendations, we empowered IKEA Philippines to:

  • Set measurable and strategic growth objectives
  • Clearly define their high-value target audience
  • Craft tailored, location-specific marketing campaigns
  • Track and optimise performance with confidence

With the Area Prioritisation Engine, IKEA Philippines now has a focused, actionable plan to expand market reach and unlock growth in the areas that will deliver highest.

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