SUSAN SULLIVAN

Kmart IMC Plan IMC 610

Susan Sullivan

7/22/2013

This document is a final project for West Virginia University’s Integrated Marketing & Communications 610 class, taught by Prof. Bonnie Harris, completed by Susan Sullivan during the Summer 2013 semester.

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Executive Summary

Kmart, a mass-merchandising company and retail store owned by Sears Holdings, is a name that’s been around since the turn of the 20th century. Its standard for the last 50 years has been to offer department store quality at discount prices, including housewares, garden centers, electronics, apparel, and also features a pharmacy and grocery. These goods and services offered are still very relevant today – and with a new image and coordinated Integrated Marketing & Communications plan, Kmart will be the go-to store for urban families everywhere for the next 50 years, as well.

The business is managed by Sears Holdings, Inc., which also owns Sears, Craftsman, mygofer, Kenmore, PartsDirect, and Lands End. Because it has been purchased by a bigger company, it in some ways is victim to umbrella marketing that applies to all of Sears Holdings’ companies. With an organized Integrated Marketing & Communications plan specified to this retailer, Kmart can build a brand based around young, urban families and build its customer base by playing on key ad campaigns it already is using, saving money and reaching those already-created fans who can jump on Kmart’s established customer service, employee benefits programs, and focus on minority and Latino demographics. By catering to minority moms between the ages of 18-35, as well as their children, Kmart will pull in entire families, and allow those young Americans to build the brand themselves by word-of-mouth marketing, one of the strongest

Kmart has preexisting campaigns and tactics that, with a little reorganization of objectives and strategies aimed specifically at the Kmart brand, will turn the company around with outstanding results at a surprising low price:

- Run a bold new :30 commercial & live-tweet campaign during Season 5 of The Voice, encouraging conversation and including advertisements for the Adam Levine & Nicki Minaj lines of apparel for Back-to-School Season, as well as a concurrent sweepstakes for a 3 day, 2 night trip to meet Adam Levine at the Season 5 Finale Results Show of The Voice

- Run an in-store Kmart Voice contest at 150 lucky locations, complete with local participants and local celebrities, including reporters, business owners, and officials

- Stimulate Back-to-School sales by making it easier to create and share Shopping Lists on ShopYourWay.com & the Shop Your Way app.

- Capitalize Back-to-School sales by featuring Kmart’s French Toast & Dickies Uniform sales with ShopYourWay.com choices

…all for a budget that runs just 30% of your allocation for marketing, promotions, advertising and PR.

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By following the simple changes in this complete IMC Plan, Kmart can regain footing with young shoppers and families alike, charging the company up for two-three generations of lifelong shoppers who know they can always find whatever they need for all members of their household at their local Kmart.

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Table of Contents Background Information ............................................................................... 5

How it Started .......................................................................................... 5

Its Mission ............................................................................................... 5

Financial Health ........................................................................................ 5

Products & Pricing .................................................................................... 6

Distribution .............................................................................................. 6

Marketing Strategies ................................................................................. 6

Competitors ............................................................................................. 7

Target Audience .......................................................................................... 7

SWOT Analysis ............................................................................................ 9

Marketing .................................................................................................. 11

Creative .................................................................................................... 12

Integrated Creative Strategy Statement ................................................... 12

Creative Brief ......................................................................................... 13

Creative Execution .................................................................................. 15

Digital Media ............................................................................................. 16

Public Relations ......................................................................................... 18

Direct Marketing & Sales Promotion ............................................................ 21

Measurement & Evaluation Plan ................................................................. 24

Conclusion ................................................................................................ 27

Appendix ................................................................................................... 28

Campaign Timeline ................................................................................. 28

The Voice: Episode List for Season 5: Sept 9, 2013 – December 3, 2013 ... 28

Weekly Social Media Plan for #KmartVoice Campaign ............................... 29

References ................................................................................................ 31

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Background Information Kmart (NASDAQ: SHLD), a mass-merchandising retail company, is a wholly-owned subsidiary of Sears Holdings Corporation (NASDAQ, 2013; Sears Holdings Corporation, 2013).

How it Started

Kmart began as a five-and-dime store, opened by Sebastian Spering Kresge in 1899. His signature low prices earned him a solid customer base which earned the S.S. Kresge Company annual sales of $10 million in 22 years. This strong start led the brand through success to reorganization in 1962, when Kmart was born as a “discount department store.” Four years and 144 Kmart stores later, S. S. Kresge was a billion dollar company. The company changed its name to Kmart Corporation ten years later when Kmart was bringing in 95% of the annual sales. After selling its remaining Kresge stores in the late 80s, Kmart reinvigorated its stores in 1990 with a new image, and opened the first Kmart Supercenter, which offered the same great home, work, and play products, apparel, and general goods, with the addition of a grocery, around the clock. In 1996, new “Big” Kmart stores were updated with a brighter, fresher atmosphere, frequently purchased grocery items near the checkout counters, and a focus on children’s and home fashions.

As internet connections were installed in homes, Kmart created what is now known as www.kmart.com, and was successful in registering a record number of users in its first few months in 1999 (SHC, 2013). It merged with Sears Holdings Corporation in 2005, and currently has 1,300 stores in almost every state and U.S. Territory.

Its Mission

Since its inception, the Kresge/Kmart brand has been one built with the American family in mind. Its pillars include low prices for working families and employment opportunities for the urban area in which it resided. S. S. Kresge felt that customers knew they can rely on Kmart to offer quality service, great value, and in-demand brands – the same he himself upheld (SHC, 2013).

Financial Health

Kmart enjoyed the rich success of profit for many years. However, it filed for bankruptcy in 2002, and reemerged from Chapter 11 in 2003, reorganized by President Julian C. Day. The company resolved a great deal of its debt, saw marked improvements in its budget, and developed a better way to operate.

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The company feels a renewed sense of dedication to its demographic after coming out of bankruptcy.

However, the successes have been few and far between since then. More than 250 Kmart stores have closed due to poor sales since it merged with Sears in 2005. Recent news reports weaker-than-expected first quarter earnings for 2013, and is likened to a Jenga game, “on the brink of collapse,” with its owner removing sections of the franchise for a quick profit (Associated Press, 2013). However, it is important to note the difference in tone from the Company’s top leader.

In a February 2013 letter to shareholders, associates, and members, Chairman and Chief Executive Officer Edward S. Lampert noted that the performance of the company was not on a constant decline, although significantly less than hoped (Lampert, 2103). Reports to investors reported a changing trend in shopping method: Sears’ recent news states that online business at sears.com and kmart.com grew 20% over the first quarter of 2012 (SMH, 2013).

Products & Pricing

Kresge capitalized on his discounted goods. He offered quality products at a value that one could magnify with coupons and offers. This continues today, but with a modernized flair: shop in the store, get help from a fashion concierge, or go mobile between classes as you create an outfit in the smartphone app that you can have shipped to your home, or even sit and peruse at work and earn massive member rewards with Shop Your Way (Lampert, 2013).

Distribution

Sears manages all distribution to Kmart stores. It provides “physical flow of all apparel, appliances, hardware, consumables, household goods, automotive and general merchandise” to 1,300 Kmart stores (SHC, 2013). Kmart’s distribution facilities employ 10,000 workers, many of which are Latina or Latino, and are earning scholarships as they work (Weaver, 2011.) Sears Holdings advertises Distribution jobs on its website.

Marketing Strategies

In the late 1930s, Kresge realized that his was no longer the only mass-merchandising retail company, and began to use newspaper print to advertise his specials and sales, followed by radio ads 20 years later, and then television ads in the 1960s. Kmart circulars reach millions of homes every week, solidifying it as a top print promotion company (SHC, 2013). It took an opportunity in 1990 to reshape its image, hoping to regain momentum after selling its remaining Kresge stores. In 1999, it started BlueLight.com,

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which initially offered internet service (SHC, 2013), but was incorporated into a marketing campaign which is still used in the Morgantown location.

In his early 2013 Corporate Letter, Lampert reported that sales Sears & Kmart Apparel were improving, and that performers Nicki Minaj and Adam Levine will be joining Selena Gomez and Sofia Vergara in late 2013 with their own celebrity clothing collections to promote the new Shop Your Way online membership loyalty program, bolstered by lower inventory the year before to demonstrate solidity to stakeholders (Marzilli, 2013; Lampert, 2013). Lampert said ShopYourWay.com changes the way companies involved do business by implementing a “social and engaging platform” that personalizes shopping experiences, earns shoppers rewards and prizes, and members-only coupons.

He also expressed the importance of integrated retail and equipped employees with technology to help associates more readily help shoppers get what they needed, even if it was to ship their pants (to their homes). Recent successes include two video ads released in 2013 by ad agency DraftFCB from Chicago (Nudd, 2013). DraftFCB has been Kmart’s lead agency since 2007. Draft FCB was also able to pick up other notable clients including the U.S. Census Bureau, Qwest, and Sharpie at the same time. Since WalMart pulled its account due to an industry scandal, Kmart was a perfect fit for the agency. The same seems to be said vice versa. DraftFCB won an open bid for new advertising in January 2013 (Parekh, 2013). Shop Your Way’s wildly popular YouTube ad, #ShippedMyPants, came out in the Spring of 2013 and netted 17 million views, and was followed up with the equally popular #BigGasSavings ad (Marshall, 2013).

Competitors

Kmart’s top competitors include Target and WalMart Stores, both of which have rich online and in-store experiences, with integrated marketing strategies that include phone apps to encourage shoppers. Food became the uniting competitive point, and WalMart thrived with Supercenters distributed across the country. Target and Kmart chose to group their stores in select metropolitan areas. All three sell large quantities of discount goods for a low profit margin, driving competition (Graff, 2004).

Target Audience Kmart’s demographic lies between its two major competitors. WalMart targets the blue-collar worker, while Target caters to the middle class (Graff, 2004). While Kresge’s stores really began to thrive when he expanded to shopping plazas in urban areas, the company has kept to that model to capitalize on

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population, even through the last eight-years’ store closures. Valassis gives insight into top retailers’ most frequent shoppers (2013). The strongest showing of age for Kmart’s shoppers fell between 35-65, and are considered the Baby Boomers, the Silent and G.I Generations. Younger shoppers may be drawn to Target’s higher quality products, or WalMart’s availability and price. Forbes reported in February that despite Kmart’s attempts to “be cool,” it still isn’t grabbing hold of the X Generation. In this effort, Kmart.com maintains a fashion blog and an outfit designer to appeal to the younger generation that shops from their phones (Marzilli, 2013). Black and African American shoppers outnumber White and Caucasian shoppers, followed in second by Hispanic, and third by non-Hispanic/other shoppers (Valassis, 2013). Hispanics have been loyal to the Kmart brand, and it responded with $25,000 in scholarships for Latinas (Weaver, 2011). For this reason, we aim to market to minority groups in urban areas. Families in these areas are more likely to shop at Kmart the more kids they have, and we will aim to reach those families with a “everything for everyone” approach. More women shop at Kmart than men, so it makes sense that Kmart would aim to appeal to the maternal member of the family. This average shopper is interested in good design, can recognize “value & quality,” is admittedly loyal to the company – and is happy to see their trusted favorite doing well. A stroll through the typical path in our local store reveals the attitudes and habits of the average shopper. The Morgantown Kmart store hits shoppers with the outdoor furniture first, and if you follow the store to the right, electronics, and gardening, which all seem to say DROP MEN HERE. While they peruse mulch and tech toys, the ladies can take the kids and continue through women’s apparel, children’s apparel and accessories, men’s apparel (smaller in area than the other two), toiletries and care, home fashions, then to the grocery. After that, toys are placed in front of the checkout approach and seem to give moms a chance to treat their children for sitting well during the shopping experience. They reunite with Dad at the checkout, and the trip is wrapped up with impulse buys of that one thing they forgot they needed, like nail files, candy & refreshments, or batteries.

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SWOT Analysis Strengths

Kmart's commitment to urban areas within the United States, which don't often have many shopping choices, sets it up to be the "store of the neighborhood" in any of its 283 of the 331 metropolitan statistical areas nationwide.

It aims to reach to both the blue- and white-collar workers. New Online Rewards Program that spans Sears Holding, Inc. Company. The more kids a family has, the more likely they are to shop at Kmart.

Weaknesses

The Kmart Corporation has had a rocky start to the new millennium and filed for Bankruptcy in 2002. It was purchased in 2005 by Sears Holdings Company and has closed additional stores since then.

Not all stores have the most current marketing material or theme in their facilities.

Its grocery prices are higher than its competitor, WalMart. Opportunities

Target the mom market, who can find everything they need for their families at Kmart.

Reach out to Nicki Minaj’s and Adam Levine’s fan base to draw them in through apparel.

Since recognizing the need for a successful online presence, it has developed strong Internet/Mobile/Shopper Rewards Programs in place, including ShopYourWay, which allows customers to use a rewards app both in-store and shopping directly from the device. This increased sears.com and kmart.com sales up to 20% of its total revenue (80% store sales).

Its network of partner stores under Sears Holdings Corporation allow it to pull in those other customers in ShopYourWay, which rivals Target’s online price-match guarantee.

Kmart’s new ad push includes attention-grabbing verbage that incorporates hashtags and humor that toes the line, drawing in new customers and expanding its shopping experience to include anywhere a mobile phone can get signal.

It has recently reinvigorated its apparel and housewares selections with celebrity influences.

Kmart currently has no brand recognition with 2013’s generation, so it can draw from celebrity affiliations.

Threats Walmart Supercenters offered more selection and lower prices in the

grocery department and also specifically targeted the blue collar Target’s metropolitan location next to Kroger situates the company in

malls and shopping meccas, reaching the white collar families and their wallets.

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Kmart must overcome the slow deterioration that has happened over the last 10-15 years and really grow an enthusiastic customer base quickly.

ShopYourWay may be overwhelming to the first-time app user, so it needs to be easier to use.

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Marketing Objective

Continue success of recently implemented marketing changes and increase online sales and shipping programs to 40% of total revenue in the next year.

Become retailer of choice among minority mothers and in one year, 50% of hispanic market identifies Kmart as favorite retailer.

Draw in both young shoppers and moms during Back to School season (Third Quarter) and increase Back to School apparel, electronics, and office supplies by 20%.

Reach 10 million people in 3 months. Strategies

Continue to utilize mobile technology and rewards programs to increase repeat customers

Increase the mom market with customizable auto-ship grocery lists and mobile app capabilities

Market directly to kids to draw in moms during Back to School season Buy TV ads to reach Nicki Minaj & Adam Levine fanbase.

Pull in community with local contests. Tactics

Offer short Blue Light specials through push notifications in the ShopYourWay App that incite impulse buying on multi-item discounts, reduced sale prices and free shipping with, of course, extra rewards points

Give customers the ability to create non-perishable grocery, toiletry, makeup, and paper products auto-ship grocery lists in kmart.com and ShopYourWay so they don’t have to use gas to drive there – above a certain amount ships free; instant delivery checklist in app to use to take things off the next delivery that they have enough of.

Bring community into Kmart with local contests centered around new Voice Season.

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Creative

Integrated Creative Strategy Statement

Rational: Everything on grocery list in one store Shipping Convenience Savings on Gas thanks to money spent in store Low impact on wallet Family needs covered without going out of the way. Emotional: Rewards make shoppers happy Funny advertisements make me want to shop there. Finding a deal is exciting Wearing clothes by Nicki Minaj and Adam Levine make me feel accepted Tech friendly shopping makes me feel smart and is in tune with my go-go-go lifestyle Where do these cross? I want things my way. This store offers that. Everything I need in one store Price that is affordable Statement: We are the best retailer for young, urban moms & their families. Tagline: “Kmart – the quality I need, at the price I deserve.”

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Creative Brief

Client: Kmart Corporation Date: 06/17/13 Type: TV Ad Pages: 1 _________________________________________________________________ Why are we advertising? To bring past shoppers back to experience surprisingly low prices, shopping convenience both in the store and online. Whom are we talking to? New, Young, impressionable shoppers; urban mothers, those who shop for the whole family, past customers What do they currently think? Kmart’s prices aren’t as low; old stores make me enjoy shopping less, and nobody wants to look like that old jailbird Martha Stewart What would we like them to think? Kmart has surprisingly low prices – check them out online to see for yourself! What is the single most persuasive idea we can convey? Kmart is the best place to shop for everything your family wants. Why should they believe it? Kmart’s prices are lower than shoppers expect, and they can find everything in any department either in the stores or online. Are there any creative guidelines? Television ad, in-search banner ads, social media campaign, in-store contests, circular *Adapted

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KEEP IN MIND:

The brief consistent with Kmart's mission and services. o I think right now, all anyone in America wants is to be able to fit in

on their budget, without having to work harder to earn the money it takes to buy quality products. I think this Creative Statement can help guide any ad to an audience that Kmart has long focused on: minorities, urban families, and (most recently, and only to revive the franchise, I think) young shoppers who want to look awesome without having to steal too much from Mom’s wallet, because shopping at the mall is super expensive.

The brief outlines an approach that will be compelling to the client's target market.

o I think it focuses on several things that Kmart can capitalize on as appealing. In the Australian ad “1000 Mums,” Kmart showed how excited Moms can get by realizing that Kmart is a heck of a lot cheaper than they realized. They were so excited they changed pants right in the aisle, and jumped on a trampoline! That ad alone made me want to go price-guess at our local Kmart just to see how much pleasure I’d get out of incorrectly guessing shoe and soap dish prices.

This brief fits within the competitive set and helps separate Kmart from others in the category.

o WalMart shoppers are pretty focused on getting their grocery list for CHEAP. They’re not there to get something that everyone needs – a smart dress for work, fantastic support garments, or THE shirt that’s gonna get all the ladieeees. Target customers are willing to pay just about anything to get what they went to the Almighty Target for. (Even the University Towne Centre here in Morgantown is affectionately called “Mount Target” (that’s Tar-jay, like fancy French) because, I mean, thank goodness it’s finally here.) But Kmart reaches out to those who want a quality product that isn’t out of their price range, as well as to those who love EARNING a good deal by purchasing from the same family of stores.

This idea carves out a unique position for the client. o I think WalMart would lose that blue-collar base it so strongly

needs. I think people would get a bad taste in their mouth if Target suddenly went to a “every day low prices” format – eew, I don’t want to shop there; cheaper prices means lower quality. I think that Kmart really nabs its customer base by showing them awesome products at an awesome price.

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Creative Execution Ad: Shots single, straight on, different backgrounds but the same “camera just interrupted them in the middle of something” look. Mom (in kitchen): I do it to keep my family healthy. Dad (getting into bed): I do it to make my wife happy. Son (with headphones): I do it to ROCKKK Daughter (sneaking out): I do it...if Mom lets me. Another Dad (in yard, grilling): I do it to make my neighbors jealous. College Girl: I do it on my phone! College boy: I do it in class...to impress the ladies. Tired mom: I do it because I'm on a budget. Tweens (on bed, reading magazines): We do it because we need it, like, yesterday! Model (on a runway): I do it - because I deserve the finer things. Four of these characters in a quartered screen (all in Kmart): I do it - I Shop my way. (walk away from camera back into the grocery, the apparel, the electronics, the toys) Voice over: Right now, more people are doing it than ever. Shop Your Way - in stores or online - to earn rewards to keep doing it where ever you go. Voice Over: Kmart: the quality I need, at the prices I deserve.

Total Commercial Cost: $10,000

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Digital Media Digital Media Objective Build community within 2 primary social media networks, with the ultimate goal of increasing online sales and shipping programs to 40% of total revenue in the next year. Rebuild Kmart brand with minority customers by increasing reach and becoming preferred retailer in 50% of urban communities that have a Kmart. Digital Media Strategy: Create social media live tweet campaign on Facebook, Twitter & Instagram to promote Adam Levine line and Shop Your Way. Create online live social media campaign during [high-rating prime-time reality tv show] that is popular with young, urban moms to promote Shop Your Way App, & Rewards Digital Media Tactic: Create contest to win meet and greet with Adam Levine from The Voice at Season 5 Finale of The Voice: Cost: Celebrity Appearance: $35,000; Flight & Accommodations: $1,500; Transportation: $1,000 (LALimos.com). Cost: (roughly) $38,000 Kmart is in need of a big attention getter. I’m suggesting that we draw new shoppers by appealing to urban minorities who are drawn to today’s celebrities, styles and fashions by targeting men and women ages 18-34 and teens 12-17, which make up much of American family demographics in Kmart’s urban communities (Halperin, 2012). Create :30 television ad to promote contest during season 5 of The Voice. Cost: The Voice: $239,866; The Voice Results: $225,337 (Steinberg, 2012). Talent & Production: $30,000. Total: $495,203 Kmart is on a roll with its bold new commercials. This third was featured in my Creative Strategy – “I Do It Because…”which encourages viewers to ‘Shop Your Way’ at Kmart – the quality you expect, at the prices you deserve.” Create banner ad to promote contests, hashtags during the show’s regular season. This banner ad will appear after a user searches for “Kmart,” “Voice,” “Adam Levine,” or “home.” Cost: $12,000

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I did this to reach anyone whose interests might lean in Kmart’s direction and get them to watch for the live twitter feeds and contest entries to vote during the shows. To clarify, anyone can participate in the weekly like contests, but a randomly drawn sweepstakes winner will be chosen from registered entrants (with a like on FB gate to enter) Use hashtag #kmartvoice. Cost to promote on Twitter: $500 To encourage live tweet participating about the performances on the shows and to encourage others to vote for each other. Create Social Media Plan to engage viewers and followers during The Voice each Tuesday and Wednesday evening, and keep promotions for Kmart going throughout the week. Cost: $5000 (See this in Include ad similar to banner ad for web in current circulars (and budget) Total Digital Media Cost: $550,703

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Public Relations PR Objectives Increase Brand Awareness in young, urban moms to earn Kmart a top-3 spot in Back to School Retailer Sales (3rd Quarter Sales) across discount department stores (i.e. Target, WalMart, etc.). Increase apparel brand awareness with teen and young adult shoppers to raise apparel sales for 9th straight quarter (Sears Holdings, 2013). Increase brand awareness for Shop Your Way and Kmart brands by raising overall impressions 10% during the 3rd Quarter. PR Strategies Send easy-to-organize event packets to Kmart stores for each one to set a date and hold its own local in-store Kmart Voice contests to complement the ones we’re doing on Instagram and Twitter. These will be judged by local reporters (facing away from the singers) and feature community members in a karaoke-type contest. At the end, each reporter will “choose” their “voice” and the ones with the most votes will win. Create avenues on ShopYourWay.com for kids to be able to make their own Back to School lists, including a starter list that kids and add and delete from with popular supplies with multiple-buy deals applied that would appeal to Mom. Make local school lists readily available in-store for those who don’t have mobile capabilities. PR Tactics

1.) Media Kit for The Voice Red Carpet Sweepstakes. Cost: $2,500 a. Press Release with Kmart, Voice logos outlining Sweepstakes b. The Voice Red Carpet Sweepstakes rubber armband c. Gets you ability to VIP RSVP to local Kmart Voice Contest, able to

be selected to be a judge – In my experience as a local tv news personality, I was asked to judge pageants, wave in parades, throw out the first pitch, taste test at new restaurants – all in the name of free publicity for the TV station. Recognition without having to sponsor events for non-profits, for example. I think that, also, with the number of fashionistas there are in the newsroom, that there will be at least one reporter, anchor, meteorologist at each tv station in major MSAs who would participate, whether on the clock

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or off. I say we max each station at 2, so we let them assume everyone else will be paring down their top 5 prospects to send instead of not specifying a number and having them just send one free person. If they go, they’ll of course get VO or maybe a SOT to go with it to put on the evening news, too – so it’s even more incentive for them to put the Kmart Voice on the news. Plus, it’s a showcase for the community members, and it can create that “Kmart loves its community” feeling.

d. 25 random media kits include Adam Levine cardboard cutout e. Emailed: all this, with printable Voice Red Carpet pass exchanged

for rubber armband, and printable Adam Levine Paper Doll with ability to cut out Kmart apparel and dress him yourself.

2.) Event Kit for local in-store Kmart Voice Contests. Cost: $25 per store, top

150 MSAs (with attention paid to minority and urban demographics): $3,750.

a. The Kmart Voice red backdrops (vinyl, on roll) with cardboard frame curtain assembly as set for in-store contest

b. Easy-to-fill-out forms for i. when the reporters call in to VIP RSVP to be a judge or to

cover the event ii. printing when the online registration deadline has passed iii. participation certificates

c. “Velvet Rope” assembly kits to mark VIP sections for media and judges

d. Banner with letter-sized paper space to post picture and name of local Kmart Voice in-store

e. Press Release template for local winner for day after contest f. Awards

i. Kmart Voice – [MSA Name]: 500,000 Kmart Shop Your Way Rewards Points ($500 to spend at ShopYourWay, expires 12/31/2013

ii. Kmart Voice Runner Up: 100,000 Kmart Shop Your Way Rewards Points

iii. Participation: Certificate, Back-to-School gift basket

3.) In-Store Back-to-School promotions. Cost: Already budgeted as annual event.

a. On ShopYourWay.com – make it easy for kids to create their own Back to School lists and email to mom from the app or online

4.) Build on social media campaign from Digital Media for The Voice online

live tweeting to include winner announcements as the contests commence throughout the Voice season. Include ways to earn bonus ShopYourWay

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rewards each week, or maybe a random 100 Facebook followers who have ShopYourWay linked get 500 ShopYourWay rewards points.

Total Public Relations Cost: $6,250

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Direct Marketing & Sales Promotion Direct Marketing & Sales Promotion Objectives Increase Back to School Sales to raise technology, apparel, and office supplies revenues during the third quarter of 2013. Sears Holdings is doing well to increase apparel and housewares, but losses in electronics and garden continue to cancel out the additional revenue. The objective is simply to sell more in back-to-school apparel and supplies than is lost in electronics & garden center sales with awesome discounts on teen apparel, school uniforms, and electronics. Be the store of choice for French Toast & Dickies school uniform apparel for 50 % of minority communities who attend schools with strict uniform dress codes. Increase number of new ShopYourWay app rewards accounts with even deeper discounts if Yo Mama shops on ShopYourWay.com. Boost numbers of new accounts by 10% in the third quarter of 2013. Have 5% of all coupons redeemed in Third Quarter. Direct Marketing & Sales Promotion Strategies Pinpoint shoppers who have purchased apparel, housewares, office supplies or electronics using the Shop Your Way Rewards program and send them coupons for school uniforms, teen apparel, and electronics. Create avenues on ShopYourWay.com for kids to be able to make their own Back to School lists, including a starter list that kids and add and delete from with popular supplies with multiple-buy deals applied that would appeal to Mom. (Week 7) Catch attention of minority school-aged children with hilarious Yo Mama Shops at Kmart commercial to get social media buzz started about Back to School sales promotions. (Already budgeted and currently being executed.) Continue to market teen apparel by Adam Levine & Nicki Minaj though September to boost third quarter apparel sales. (PE.com suggests holding off on teen apparel purchases until after school starts so that kids can see what other kids are wearing.) Direct Marketing & Sales Promotion Tactics

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1.) Sunday Circular “Maxification” Cost: $1000 for extra sheet insert (4 additional pages in typical 8 page Sunday Circular)

a. Front Page banner: Yo Mama shops at Kmart! #yomamashopsatkmart

b. Coupons for School Uniforms – specific to French Toast & Dickies i. Buy 2 Polos, get 3rd 50% off ii. 20% off French Toast Uniforms (actual 2013 sales

promotion) iii. Earn Double ShopYourWay points on apparel

c. Similar Coupons for Back-to-School Fashions (different coupon on different page, so that each demographic feels they are equally catered to as far as discounts and that neither is an afterthought. Due to the rising number of school uniform rules in large cities with mostly minorities (Sears Holdings, 2012), Kmart can capitalize by having the largest selection for local schools.

2.) Event Kit for local in-store Kmart Voice Contests. Cost: Already budgeted

in Week 7. a. Awards

i. Kmart Voice – [MSA Name]: 500,000 Kmart Shop Your Way Rewards Points ($500 to spend at ShopYourWay, expires 12/31/2013)

ii. Kmart Voice Runner Up: 100,000 Kmart Shop Your Way Rewards Points

iii. Participation: Certificate, Back-to-School gift basket

3.) In-Store Back-to-School promotions. Cost: Already budgeted as annual event (Week 7).

a. On ShopYourWay.com – make it easy for kids to create their own Back to School lists and email to “Yo Mama” from the app or online

b. Have dress codes available for local schools c. Offer Free Shipping for apparel – if we don’t have the shirt you

want in your size, or the school uniform colors you need are sold out, we’ll ship it to you free of charge.

4.) Yo Mama Shops at Kmart social media campaign.

Cost: Already budgeted in Week 6. a. Special Codes sent on Twitter for 10% off

entire Online order b. Special Codes sent on Facebook for 20% off

Fashion Shoes

5.) ShopYourWay Rewards Members get in-app bonus points for qualifying purchases of French Toast,

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Dickies, Chuck Taylor, Adam Levine, Nicki Minaj, and Hanes (or) Fruit of the Loom emailed 5 days after their purchase – doubled if they order online. (This gives them 2 days before their regular shopping day to find a use for the new points.)

Total Digital Media Cost: $1000

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Measurement & Evaluation Plan MARKETING

Continue success of recently implemented marketing changes and increase online sales and shipping programs to 40% of total revenue in the next year: Measure the effectiveness of the newest Kmart/Shop Your Way Commercial “I do it because…” by comparing current online sales and shipping programs starting at the beginning of the Third Quarter 2013 with online sales & shipping programs at the end of the Second Quarter 2014. Tracking studies that monitor these numbers quarterly and periodically providing IMC team with direct-marketed Customer Satisfaction Survey results can ensure that Kmart doesn’t go a year without noticing its approach is failing. Additionally, conduct laboratory test to determine ease of use of ShopYourWay.com website and app. Further, conduct on-air and recall tests to determine “boldness” and effectiveness of new commercial, compared to on-air and recall tests for ShipYourPants, BigGaSavings, Yo Mama commercials.

Become retailer of choice among minority mothers and in one year, 50% of Hispanic market identifies Kmart as favorite retailer: Start with a posttest to determine the baseline results. Ongoing results can be monitored with Tracking studies on a monthly or quarterly basis using Direct-marketed Customer Satisfaction Surveys, as well as a year-end survey sent to everyone who made at least one purchase at a Kmart in the last year. Better results can be found by emailing just those who completed the Shop Your Way Rewards membership.

Draw in both young shoppers and moms during Back to School season (Third Quarter) and increase Back to School apparel, electronics, and office supplies by 20%: Check numbers for Third Quarter 2013 to see if 20 % increase was achieved. Additionally, compare with top 5 Back to School Retailers.

Reach 10 million people in 3 months: Compile online diagnostics & analytics to determine social media/web 2.0 reach and its effect on the Kmart brand.

DIGITAL MEDIA

Build community within 2 primary social media networks, with the ultimate goal of increasing online sales and shipping programs to 40% of total revenue in the next year: Note current Twitter and Facebook community numbers. Reorganize social media approach and create a more interactive, community feel with discussions, live tweeting during The Voice, and sales promotions only put out in

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certain areas – on Twitter, or hidden on Facebook. Measure numbers quarterly and compare numbers from Second Quarter 2013 to the numbers from Second Quarter 2014 to compare social media community growth. Conduct Tracking study week to week during The Voice to track growth, as well as Voice viewership. Additionally, compare percent of total revenues due to online sales & shipping programs at the end of Second Quarter 2013 with revenues of the same for Second Quarter 2014.

Rebuild Kmart brand with minority customers by increasing reach and becoming preferred retailer in 50% of urban communities that have a Kmart: Conduct PACT evaluate research of commercial before running it on live television to gain reaction from different ethnicities. Compare to current “Yo Mama” commercial reaction from different ethnicities to judge effectiveness. Also run Comprehension & Reaction test to assess responses and see if it is worth running during Kmart-sponsored Voice. Conduct ongoing Tracking studies & evaluation of Direct-marketed Customer Satisfaction Surveys & Customer Surveys to gain insight into urban families’ preferences for discount department store retailers.

PUBLIC RELATIONS

Increase Brand Awareness in young, urban moms to earn Kmart a top-3 spot in Back to School Retailer Sales (Third Quarter 2013 Sales) across discount department stores (i.e. Target, WalMart, etc.): Compare Third Quarter 2013 Sales in top 5 stores to evaluate effectiveness. Glean information from Direct-marketed Customer Satisfaction Surveys & Customer Surveys to get an understanding of what the Kmart Brand means to young, urban moms.

Increase apparel brand awareness with teen and young adult

shoppers to raise apparel sales for 9th straight quarter (Sears Holdings, 2013): Conduct field tests by collecting information as someone watches The Voice. Conduct a post-field test survey to gain an understanding of how Kmart stacks up against competitors who also advertise Back-to-School sales promotions and online rewards programs. Additionally, compare Third Quarter 2013 sales against Second Quarter 2013 sales to see if apparel revenues have again increased.

Increase brand awareness for Shop Your Way and Kmart brands by raising overall impressions 10% during the 3rd Quarter: Sponsorship of The Voice can be measured with media equivalency (how much the sponsorship would be worth if it was a commercial), but not by media coverage of the sponsorship.

DIRECT MARKETING & SALES PROMOTION

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Increase Back to School Sales to raise technology, apparel, and office supplies revenues during the third quarter of 2013: Compare revenues from technology, apparel, and office supplies revenues during Third Quarter 2013 and compare to Second Quarter 2013. Surveys prior to the start of Back to School season, as well as after, can help to bolster the results of this particular objective.

Be the store of choice for French Toast & Dickies school uniform

apparel for 50 % of minority communities who attend schools with strict uniform dress codes: Conduct post-Third Quarter 2013 customer survey to monitor those brand recognitions. Also, collect data on Kmart stores in minority communities, which of those have schools with uniform codes, how much French Toast & Dickies apparel was sold, and compute a percent result for how many students in that school district are clothed in French Toast & Dickes school uniforms.

Increase number of new ShopYourWay app rewards accounts

with even deeper discounts if Yo Mama shops on ShopYourWay.com: Boost numbers of new accounts by 10% in the third quarter of 2013: Compare numbers of ShopYourWay.com rewards accounts at the end of Third Quarter 2013 with numbers from Second Quarter 2013. Additionally, evaluate how many of these were used by measuring how many were reached with these discounts, and how many actually used them.

Have 5% of all coupons redeemed in Third Quarter: Compare # of coupons disseminated vs. number of coupons redeemed in Third Quarter 2013.

Success in this IMC Plan will be measured by meeting at least 80% of these objectives with successful or positive results. Total Testing Cost: $26,060 Total Marketing Plan Cost: $594,013/$2,000,000

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Conclusion Kmart’s first step in implementing this holistic approach to marketing, PR, sales, and the digital frontier will be to take on an Integrated Marketing & Communications method. It’s a process for planning, executing, and monitoring the brand messages that create customer relationships. The strongest influence in a person’s perception of a brand is word-of-mouth feedback from customers’ peers. By focusing on building excitement with already-established fanbases the likes of The Voice, NBC, Adam Levine & Maroon5, Nicki Minaj, and ShopYourWay, Kmart can reinvigorate their brand by simply getting the conversation started in social media outlets like Twitter and Facebook, and integrating these embeddable profiles with the ShopYourWay.com website and app. Instead of coming up with a few sales ideas or new commercials and bolstering why they will work, IMC will start by evaluating Strengths, Weaknesses, Opportunities & Threats, then creating objectives that build on the strengths, turn weaknesses into footholds, craft grand brand-building opportunities, and disseminate threats. This plan implements many of Kmart’s already-implemented campaigns and sales promotion ideas, and therefore minimizes costs, as estimates come in at just 29.7% of the allotted budget. There is a gap in this campaign that we feel other brands in the Sears Holdings, Inc. company can fill. For instance, Craftsman tools are a big draw for men in both Sears, Lands End, Kmart, and ShopYourWay. Craftsman is not a big draw for men specifically at Kmart – sales trends show that the biggest revenues come from apparel and housewares, with dwindling interest in the garden center, tool department, and electronics. By aiming both traditional and digital marketing at ¾ of a 4 person family – the mom and kids – Kmart gains a great deal of clout with those who make the most purchasing decisions in the family. Most importantly, Kmart will need to be more active in measuring the effectiveness of its campaigns, marketing, and sales. This will help Kmart to avoid costly mistakes (like the Butler in a Box commercial), evaluate alternative strategies and see how the IMC Plan approach works for the company, increase the efficiency of advertising, and determining if these objectives are met.

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Appendix

Campaign Timeline

2013 2014

July August September October November December January

Print in Circulars

TV Ads during The Voice

Social Media Campaign

Early Promo During Show Winner's Trip Post Campaign

Local Kmart Voice Contests

Back to School Sales Promotions Holiday Sales Promotions

The Voice: Episode List for Season 5: Sept 9, 2013 – December 3, 2013

Week Episodes Dates

1 1 Blind Auditions 9-Sep-13 Monday

2 Blind Auditions, Pt. 2 10-Sep-13 Tuesday

2 3 Blind Auditions, Pt. 3 16-Sep-13 Monday

4 Blind Auditions, Pt. 4 17-Sep-13 Tuesday

3 5 Blind Auditions, Pt. 5 23-Sep-13 Monday

6 Blind Auditions, Pt. 6 24-Sep-13 Tuesday

4 7 The Battles 30-Sep-13 Monday

8 The Battles, Pt. 2 1-Oct-13 Tuesday

5 9 The Battles, Pt. 3 7-Oct-13 Monday

10 The Battles, Pt. 4 8-Oct-13 Tuesday

6 11 The Knockouts 14-Oct-13 Monday

12 The Knockouts, Pt. 2 15-Oct-13 Tuesday

13 The Road to the Live Shows 16-Oct-13 Wednesday

7 14 The Live Playoffs, Pt. 2 21-Oct-13 Monday

15 Live Playoffs, Results 22-Oct-13 Tuesday

8 16 The Live Rounds, Pt. 1 28-Oct-13 Monday

17 The Live Rounds, Results 29-Oct-13 Tuesday

9 18 The Live Rounds, Pt. 2 4-Nov-13 Monday

19 The Live Rounds, Results 5-Nov-13 Tuesday

10 20 Top 8 Perform 11-Nov-13 Monday

21 Top 8 Results, Completed 12-Nov-13 Tuesday

11 22 Top 6 Perform 18-Nov-13 Monday

23 Top 6 Results, Completed 19-Nov-13 Tuesday

12 24 Live Semi: Final Show 25-Nov-13 Monday

25 Live Semi: Results 26-Nov-13 Tuesday

13 26

Live Final Perform Last

Two 2-Dec-13 Monday

27 A Winner is Revealed 3-Dec-13 Tuesday

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Weekly Social Media Plan for #KmartVoice Campaign

Subject of Social Media

Sunday Upcoming Voice

Monday See below

Tuesday See below

Wednesday Apparel

Thursday Home

Friday Grocery

Saturday ShopYourWay

MONDAY

Twitter Instagram Facebook

7:50

p.m. Before Tune In

Infographic with Kmart logo, post

your videos

Ready for the Voice? (Include details about

contest & Sweepstakes)

8 p.m.

First

Break Reaction

Second Break Reaction

Bottom Reaction

Fourth Break Reaction

Fifth Break Reaction

9 p.m. After

Who do you

think won tonight's

challenge?

Post Your best Voice

impersonation - and vote for

your favorites!

10 p.m.

Stay with us tomorrow for

the results

show!

Stay with us tomorrow

for the results show!

Goal: Get viewers to post videos on Instagram & Twitter of themselves singing and “like” others’ videos.

30

TUESDAY

Twitter Instagram Facebook

7:50

p.m. Before

Tune into the

Voice and use

#KmartVoice to share your

reactions!

Sweepstakes entry info - win

a 3 day/2 night

trip to meet Adam at the

Voice Finale!

Join us for the results show and our Live

Tweets!

8 p.m.

First Break Reaction

Second Break Reaction

Bottom Reaction

Fourth

Break Reaction

Fifth Break Reaction

9 p.m. After

Reaction - did Adam's team

win/do well?

Announce

video with most likes from night

before

.--> Share on

Facebook

10 p.m.

Tune in next week

to see what songs

are most popular - and participate in

our #Kmart Voice contests in your

city!

Goal: Announce videos with most likes from previous night.

Sample Wednesday Message: Sweepstakes

Get your Adam Levine on with his

signature apparel at Kmart this school year! #kmart #kmartvoice #thevoice

Sample Thursday Message: Sweepstakes

Moms: Spruce up your home without

spending like a celebrity! #ShopYourWay #kmart #home

Sample Friday Message: Sweepstakes

Make your grocery lists the easy way - on

the ShopYourWay app - and find special rewards! #shopping #shopyourway

Sample Saturday Message: Sweepstakes

Looking for supplies for that summer project? If they aren't at Kmart - Ship

Your Toolbox!

Sample Sunday Message: Sweepstakes

Will Adam's team win this week's

challenge? Put YOUR #Kmart Voice to the Test!

31

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