KMART’S Pilot IMC Campaign: Real Style Real People Kmart 1

Kmart’s Pilot New IMC Campaign

Karen Mulkey

West Virginia University

September, 2013

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 2

Executive Summary

The following is an integrated marketing communications (IMC) plan created for Kmart.

The plan includes: background information, target audience, SWOT analysis, marketing

objectives and strategies, integrated creative strategy statement, creative brief, creative

execution, media/social media/digital objectives, strategies, tactics, and flow chart, public

relations objectives and tactics, direct marketing ideas, sales promotion ideas, and, finally,

measurement and evaluation methods.

Kmart, a large discount retailer, was founded was founded in 1899 by Sebastian Kresge.

In its 103 year history Kmart was the number one large discounter known for its “Blue Light

Special.” Even Sam Walton commented how he wished his stores could follow Kmart’s lead. In

more recent times Kmart has lost its brand identity and is struggling in today’s market with

consumers having more choices.

This IMC plan consists of pilot campaign used in 20 Kmarts throughout Missouri,

Oklahoma, and Texas that targets particular consumer segment. The program takes an already

initiated program by Kmart, 2013 Money Can’t Buy You Style, renames and expands it to the 20

Kmarts. Given a number of variables examined, Kmart’s target market is single women of

modest means. This segment is looking for value and is budget conscious; however, women

enjoy individual style. If the campaign is successful then the campaign could be expanded

nationwide.

The overall marketing objective is to increase foot-traffic of the target audience to the

selected Kmarts stores by 5% over the next year to 30% in the next three months while reigniting

Kmart’s brand and implementing mission statement that states Kmart “engages and delights

members” (Kmart.com, 2013).

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 3

Table of Contents

Background 4

Target Audience 6

SWOT Analysis 9

Marketing Objectives and Strategies 10

Integrated Creative Strategy Statement, Creative Brief, and Creative Execution 11

Media/Social Media/Digital Objectives, Strategies, Tactics and Media Flow Chart 17

Public Relations Objectives, Strategies and Tactics 20

Direct Marketing Objectives, Strategies and Tactics 21

Sales Promotion Objectives, Strategies and Tactics 22

Measurement and Evaluation Plan 23

Conclusion 27

References 28

Appendix A 32

Appendix B 34

Appendix C 35

Appendix D 36

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 4

Background

Kmart, the creator of “blue light special discount,” now seems to be barely surviving

with fewer than 1300 stores left, apparently this down by 800 stores from 10 years ago (Business

Insider, 2013). At one point in its 103 year history, Kmart fulfilled is mission to customers.

Kmart’s mission statement: "We are committed to improving the lives of our customers

by providing quality services, products and solutions that earn their trust and build lifetime

relationships.” Walmart founder, Sam Walton, said while visiting a Kmart, “…if only we could

do something like this. Kmart was the king of the hills” (Farfan, 2013).

Today, consumers now have more choices with Walmart, Target, and even smaller dollar

stores. “Kmart has no reason for being” (Farzad, 2012). Kmart has been losing their shoppers,

especially middle class, to retailers such as Wal-Mart Stores Inc. and Target Corp. Sears

Holdings Corp.’s, Kmart parent company, same-store sales have declined for six years. In the

most recent year, Sears’ same-store sales fell by 1.6% and at Kmart by 3.7%, compared to the

year-ago period (Swanson, 2012).

Problem is who is Kmart? Kmart has lost brand identity. It isn’t a low cost leader and

certainly does have the perception of having quality goods. WSJ recently priced 5 out of 6 items

at Kmart and found them to be more expensive than Walmart and Target.

A recent visit to a local store clarified this point. This particular store hasn’t been

updated since it was built, upon entry there was a foul odor, no organization to store inventory,

employees barely said hello, and to make matters worse, checkout was unbelievable slow. Less

than 10 shoppers were in the 40,000 square foot store. Dana Mattioli, Wall Street Journal

reporter, found a similar scene at a Kmart in Manhattan, where she reported abandoned carts full

of merchandise, unevenly stacked towels and unfolded pajama sets lying about. "The tile floors

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 5

looked as though they hadn't been mopped in some time, and clothes were piled in the corners of

the dressing rooms," Dana Mattioli wrote (Mattioli, 2013). This doesn’t leave a good perception

of having quality merchandise.

Kmart went in too many different directions during the 90’s. While not showing the

complete history of Kmart, Kmart bought other brands. At the same time other larger discount

stores were working on their distribution channels, technology and their brand equity (Baseline,

2001). Kmart was divesting its brand. Kmart originally was founded in 1899 by Sebastian

Kresge (CNNMoney, 2002).

1918 - S.S. Kresge Co. becomes publicly traded on the New York Stock Exchange.

1966 - Sales top $1 billion. S.S. Kresge runs 915 stores, including 162 Kmart stores.

1972 - Company moves headquarters to Troy, Mich.

1977 - S.S. Kresge Co. changes its name to Kmart Corp

1984 - Kmart purchases Walden Book Co. and Home Centers of America.

1987 - Kmart starts relationship with Martha Stewart as spokeswoman and consultant.

1990 - Buys sporting goods chain The Sports Authority.

1991 - Acquires 90 percent of OfficeMax.

1992 - Buys book retailer Borders Inc.

1994 - Completes initial public offerings of 70 percent of The Sports Authority and 75

percent of OfficeMax

1995 - Spins off Borders Group Inc. and sells remaining stake in The Sports Authority

and OfficeMax.

2000 - Charles Conaway replaces Floyd Hall as chairman and CEO.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 6

2001 - Buys its BlueLight.com Internet service.

Jan. 22, 2002 - Kmart files for Chapter 11 bankruptcy protection.

Acquiring these additional stores that serve many markets diversified its own brand

causing a loss in its own defined attributes and benefits for its customer. What is it? To

compound the problem, Walmart and Target are outspending Kmart almost 3 to 1 as far

marketing expenses to reinforce and remind their target markets about their brand identity

(Schultz, 2012).

Kmart Current Financial

Kmart 1221 stores are spread in 49 different states. With only $39 billion in sales as

compared to its competitors, Sears Holding created a $930,000 loss in 2012. Kmart must do

something. Sears Holding most recent annual report lists many risk factors facing Kmart read

pages 6-12: http://www.searsholdings.com/invest/docs/SHC_2012_Form_10-

K.pdf#pagemode=thumbs&page=1&zoom=100,0,0

Kmart’s Current Mission

Kmart’s current mission statement: “Serve, delight, and engage our members while they

shop their way” (Sears Holding).

Kmart’s cultural beliefs: “Members first, Own it, Embrace Feedback, Show Pride, Learn

and Innovate, Earn Trust and Be Authentic” (Sears Holding).

Target Audience

Kmart “needs to find a differentiated position,” Morningstar analyst Paul Swinand told

Forbes (Thau, 2013). At this point the Kmart shopper is a woman searching for value (Thau,

2013). Kmart has to further segment this audience. Customer Growth Partners state that Kmart

shopper make less than Walmart shopper. Why? Most of Kmart stores are located where

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 7

household incomes are lower (socioeconomic variables) (Thau, 2013). Kmart should hold on to

this customer base and specifically target single women with modest incomes (Nielsen, 2013).

Demographics

A new pilot IMC campaign for Kmart, if successful could be rolled out to all Kmart

stores, would target females within the following segment groups based on Nielsen’s Claritas

stores in Missouri, Oklahoma, and Texas. Of the 35,896,011 living in these three states, more

than half are females. See the number of stores targeted in these states in Appendix A. The

specific target group within these states are females within Sunsets City Blues (41), 48 Young

and Rustics, 41 City Start Ups, and 35 Boomtown Singles. Common among all demographic

variables in these segment groups is modest incomes and are single.

41 Sunset City Blues “are scattered throughout the older neighborhoods of

small cities, Sunset City Blues is a segment of lower-middle-class singles and

couples who have retired or are getting close to it. These empty-nesters tend to

own their homes but have modest educations and incomes. They maintain a

low-key lifestyle filled with newspapers and television by day and family-

style restaurants at night” (Nielsen, 2013).

48 Young & Rustic “is composed of middle-aged, restless singles. These folks

tend to be lower-middle-income, high school-educated, and live in tiny

apartments in the nation's urban towns. With their service industry jobs and

modest incomes, these folks still try to fashion fast-paced lifestyles centered

on sports, cars, and dating” (Nielsen 2013).

47 City Startups are “young to middle-aged, multi-ethnic singles have settled

in neighborhoods filled with cheap apartments and a commercial base of

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 8

cafés, bars, laundromats, and clubs that cater to twenty somethings. One of the

youngest segments in America--with ten times as many college students as the

national average--these neighborhoods feature low incomes and high

concentrations of African-Americans” (Nielsen 2013).

35 Boomtown Singles use “affordable housing, have abundant entry-level

jobs, and a thriving singles scene--all have given rise to the Boomtown

Singles segment in fast-growing satellite cities. Single and working-class,

these residents pursue active lifestyles amid sprawling apartment complexes,

bars, convenience stores, and laundromats (Nielsen 2013).

Twenty eight percent of all households now consist of just one person- the highest level

in U.S. history. Only 51% of Americans are married. Eighteen million women between the ages

for 18 to 34 years old and more than 16 million between the ages of 35 and 64 years old live

alone. The U.S. Census graph to the right

shows the increase in single households

(Kleinberg, 2012).

Kmart’s $20 million new pilot IMC

campaign will take advantage of this growing

trend and target single females living in

modest housing based in targeted stores in

Oklahoma, Missouri, and Texas. Unlike its

competitors, Walmart and Target, who target

to a board audience, Kmart could focus its efforts on the growing number of signal households in

America and specifically females.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 9

Competitors

Walmart: Walmart has coherent and differentiated approach to its marketing. Its

unwavering message focuses on “always low prices” on a variety of products. The low-cost way

is supported by point-of-sale data analytics and seamless shopping experience by integrating

online, mobile and in store sales. Walmart spent $2.3 billion advertising its mission Save Money,

Live Better. Two hundred and 45 million weekly shoppers can shop at Walmart anytime,

anywhere in one of its 10,700 stores across the world. In 2012, Walmart generated $466 billion

in sales. Walmart’s operating budget increases by 4.7% to $27.8 billion (Walmart Annual

Report, 2013).

Target: Target’s $1.6 billion advertising differentiates exceptionally well its value

message with Expect More, Pay Less. Seventy two million in sales is generated by 1778 stores.

Similar to Walmart, Target is creating a seamless shopping experience expanding it online and

mobile shopping experiences. Target is expanding into Canada. Additionally, Target is

considered a good place to work making employees’ consumer friendly (Target Annual Report,

2013).

Kmart SWOT Analysis

Internal OriginStrengths Weaknesses

Name brands – Martha Stewart, Disney, Joe Boxer

Layaway plans Store locations in populated areas Kmart’s cultural beliefs Kmart’s Mission

Stores dirty, need updating Diluted – not many stores left Uncaring employees Checkout slow Unbalanced and unorganized inventory Inefficient ordering system Almost no promotional advertising Not a consistent logo

External OriginOpportunities Threats

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 10

Increase advertising budget Expand social media Target Audience/Market Segment

living around locations Refresh brand Use consistent branding Continue to use ethical diverse

spokesperson – Sophia Vergara Get back to basic pricing Focus on single households Value pricing Engage and delight customers Improve employee morale Improve technology including mobile

applications

Competitors: Walmart, Target Undifferentiated Image Loss of brand value and focus Cannot absorb product price increase

because smaller size Profits declining Recession

The SWOT analysis for Kmart was compiled from a number of sources listed under references.

Marketing Objective and Strategies

Marketing Objective

Increase foot- traffic from the target audience to the 20 selected Kmart stores in Missouri

(9), Oklahoma (4) and Texas (7) by 5% over the next year to 30% in the next three months.

Marketing Strategies

1. Create a new refreshed brand campaign for Kmart targeting single, budget conscious,

value-oriented single females.

2. Reignite and share Kmart’s mission and cultural beliefs internally and externally.

3. Use social media, direct marketing and public relations tactics to inform the target

audience about the campaign.

4. Uses promotional advertising such as coupons, mcoupons, and contest to increased traffic

flow into the stores.

Integrated Creative Strategy Statement, Creative Brief, and Creative Execution

Everyone can find something at KmartFreedom of style within my means

Dan, George and Xavier have in common - KmartFreedom in fashion

Real Style Real People Kmart Creative freedom – Kmart

Creative freedom for everyone – KmartStyle for less – Kmart

Find what you want at KmartFind it at Kmart

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 11

Integrated Creative Strategy Statement

ValueLow prices

Brand namesLayaway

Location – near singles

Designer –Rachel Antonoff

Family brand something for everyone

Inexpensive style

Independent styleIndividual style

Real peopleNot a lot of money

Don’t be afraidIf you need a lot of money to

good good then don’t have style

Style with a twist

Excited, happy, creative

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 12

Creative Brief

Why are we advertising?To increase foot traffic into Kmart stores.

Whom are we talking to?Unlike other ‘big box stores,” Kmart is focusing on single, budget conscious, value-oriented people with modest incomes.

What do they currently think?Kmart lacks style and is outdated.

What would we like them to think?Kmart is now a cool place to shop for fashion, and it costs less for the new look.

What is the single most persuasive idea we can convey?You can buy your independent style at Kmart for less.

Why should they believe it?Kmart has lower prices on clothes that allow you to create your own style.

Are there any creative guidelines?Make video with real people finding their real styleConsistent style and focus messageNew tag line for Kmart is:

Real Style Real People KmartRules for Tagline:

Font used for whole tagline is Bodoni MT Black Font size never less the 12 ptn Word/Name Kmart – always in dark red (color: RGB 222) Color of font for Real Style Real People is black or white

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 13

Creative Execution – Style Real People Kmart

Similar to Coke-Cola’s webisodes, The Style Series presented by Diet Coke, (Belch and

Belch), Kmart should expand its 2013 Money Can’t Buy Style campaign already started to Real

Style Real People Kmart. Expanding this campaign is a way to engage the target audience.

Real Style Real People Kmart, Kmart will use real women in the community. Kmart in

the 20 stores targeted (See Appendix A) will ask local females to shop its stores and model their

styles similar to the already in place 2013 Money Can’t Buy Style. Kmart will create online

content that is upbeat and fun to hear and watch, featuring the appeal to come shop at the

refreshed Kmart. The whole Real Style Real People Kmart experience can be done in one

afternoon at each of the 20 stores targeted.

Kmart will hold real “style” shows in these areas and invite the target audience using

direct mail, Facebook and Twitter to area shows. Kmart will add a personal touch seen in these

videos by saying real names and refer to the real location. Choose real people and tell what these

individuals do for a living – teachers, welders, waitresses, etc. Even have employees participate

to possibly reengage their enthusiasm for working in Kmart. Each site will have live radio

remotes, and send tweets and Facebook updates to generate enthusiasm.

If more than 30 people show up Kmart employees will use lottery system to pick about

the 30 that will participate in the show. Kmart could generate even more interest in “helping”

women with their style by bringing in regional designers and real make-up artists to offer tips.

Kmart will then take the raw video footage and hire superb videographers to put the videos

together for You Tube viewing and to send to the women that attended via email with coupons to

come shop.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 14

The goal is for Kmart to generate videos to post on its website. Once all the videos are

in, Kmart could use a panel of its spokespersons, Sophie Vergara and Nicki Minaj, and designer,

Rachel Antonoff, to select who at the best “style” for each of the states: Oklahoma, Missouri and

Texas. The three winners would receive an all-expense paid trip to that includes a $5,000

shopping spree at a New York Kmart with Rachel Antonoff.

Kmart wants to show it can be fun, sell quality merchandise but above all has value with

style for real people. As stated in Kmart’s mission, Kmart “engages and delights members.”

Below are some examples of “styles.”

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 15

Real People Real Style Kmart

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 16

Possible pictures from campaign

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 17

Media Objectives, Strategies and Tactics

Media Objectives, Strategies and Tactics

Objective 1: Use broadcast media specifically TV, radio, and print media coordinated with social

marketing to reach 60% of the target market (approximately 2,153,760 single/females) during

the three month Real Style Real People Kmart campaign. See Appendix B for specific

TV, radio and print selected for each city.

Strategy 1: Kmart will schedule continuous advertising to the target audience using TV.

Tactic 1: Create an ad.

Tactic 2: Buy time in the local markets. During three months, schedule

continuous airing of these ads announcing Kmart’s Real Style Real People

Kmart campaign.

Objective 2: Thirty people will participate at each style event in each city.

Strategy 1: Use ads to generate awareness about campaign push potential consumers to

website and Facebook to sign up to be part of shows.

Tactic 1: Video all events and post events. Create the Real Style Real People

Kmart webisodes and load series on YouTube to generate continuous interest for

other shows.

Tactic 2: Send out invitations via Facebook and Twitter to store events

Tactic 3: Buy print ads in local media with invitations.

Tactic 4: Buy Google banner ads about event in the specific markets.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 18

Media Flow Chart

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 19

“New brands or products need a very high level of reach since the objective is to make all

potential buyers aware of the new entry” (Belch & Belch, 2012). In this case Kmart is re-

entering the market and must energizing its brand by use of some mass advertising, TV, but

create consumer dialog using social media.

Ultimate goal is to increase foot traffic into the redesigned stores and increase monthly

visitors to Kmart’s website to shop online.

As far as traffic into the store, American Research Group estimated in 2012 in the Twin

Cities area 5.5% of people said they shopped at Kmart within the last 30 days as opposed to 69%

for Walmart and 25% for Target (Ewoldt, 2011). A total population for the cities targeted is

2,236,600 but more than 39 million live in these three states. Of the 2,236,600 in the targeted

cites approximately 50% are females with approximately 20% living alone (U.S. Census, 2013).

Extrapolating this for the three state areas targeted in this proposal means that only

123,013 people and approximately half were females have shopped in Kmart in the last 30 days.

This is the benchmark. Significantly only a small number of people in these areas have shopped

at Kmart.

“Looking beyond traffic data to engagement metrics, Kmart is actually fairing slightly

better. The average number of

pages viewed per visit to

Kmart.com is 7.53, about one

page per visit lower than

Walmart.com. See graph to the

left. Visitors to Kmart.com are

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 20

looking at more pages than visitors to Sears.com and Target.com” (Halpin, 2013). Kmart would

be wise to build on this.

Public Relations Objectives Strategy and Tactics

Public Relations Objective, Strategy and Tactics

Public Relations Objective 1: Have at least one TV, radio and print reporter participate in the

style event at each store to create excitement about Real Style Real People Kmart.

Strategy 1: At each store host a live style show and ask reporters to participate.

Tactic 1: Develop of list of female reporters at each of the media outlets described

in Appendix B.

Tactic 3: Include in the invitation a media advisory about event see example in

Appendix C.

Tactic 2: Invite them to attend to cover and participate in the shows.

Tactic 3: To encourage one participant from each of the media suggest holding a

contest among radio, TV, and print reporters as to the style at each show.

The targeted audience for the Real Style Real People Kmart campaign is single

women of modest incomes. Keep in mind public relations is “the management function that

establishes and maintains mutually beneficial relationships between an organization and the

targeted public.” (Cutlip, 2000) Inviting the media will give reason for the media to cover these

events. Creating a contest among reporters would encourage a bit of rivalry among the media

and could encourage more coverage.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 21

Direct Marketing Objective, Strategy and Tactics

Direct Marketing Objective, Strategy and Tactics

Direct Marketing Objective: Have 3% of the target audience, single females with modest

incomes; in the area attend the Real Style Real People Kmart style event. The 3% varies

depending on population of areas. Appendix A includes population for each city.

Strategy 1: Use a two-step approach that includes direct mail and newspaper inserts

followed by broadcast media, radio and TV, that will get the target audience to enter the

style show contest.

Tactic 1: Create a direct mail piece; see draft in Appendix D, which announces

events, contest rules, and prizes. This piece is an individual lottery ticket.

Included on direct mail will be a place for name, address, email, Twitter, etc. so

stores could can start a database (and begin using RFM, scoring method to track

purchases). In addition, direct mail piece will contain a percent off (coupon).

Use direct-marketing database companies, such as Axiom, to get labels to mail to

target audience. These will be mailed three weeks prior to the event.

Tactic 2: Create a TV and radio ad that includes a number that tells potential

participants to enter by going to website to find entry form. Play these ads four

weeks continuously at least five times a day during prime time prior to style

event.

Tactic 3: Include in the local papers, inserts of the direct mail piece every day for

three weeks prior to event.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 22

Sales Promotion Objective, Strategy and Tactics

Sales Promotion Objective, Strategy and Tactics

Sales Promotion Objective: During contest have 10% of the targeted populations where stores

exist redeem coupons during contest. The 10% varies depending on population of areas (See

Appendix A).

Strategy 1: Use consumer-oriented sales promotion including mobile marketing, contest,

and interactive website.

Tactic 1: Coupon mobile marketing leads to mobile purchasing. Push out

specifically on the day of event in the target areas. The day of the event the

coupons can be redeemed for $10 dollar off total purchases just that day.

Tactic 2: Hold style show and contest. Local videos will enter into a national

contest to be viewed by Kmart’s spokeswomen Sophie Vergara and Nicki Minaj

and, designer, Rachel Antonoff. This panel will pick three winners one in each of

the three states. Winners receive free all-expense paid trip to New York for two

and $5000 to shop with Rachel Antonoff at a New York Kmart.

Tactic 3: Create a Custom Web Page: Put URL on direct mail piece. Web page

would have different redeemable coupons each week. All videos would be loaded

on website at this time for viewing. Ask people to comment trying to create a

dialog.

The goal is to get consumers back in the redesigned stores. The stores need to be updated

and employees must be ready to help. Inventory and pricing must appeal to the consumer. Style

events in these three states should generate a buzz even a national buzz. Mcoupons are an

investment if foot traffic and mobile online sales increases. The infographic in Appendix E

explains the why mobile marketing is imperative that Kmart joins this effort (Easterday, 2013).

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 23

The mcoupons would include ten dollars off cost the company approximately 2,000,000 ($10 x

200,000) if only used by 200,000 females targeted in the three state area. Remember this whole

campaign is to generate an interest to shop with Kmart by segmented population.

Measurement and Evaluation Plan

The market plan is to increase foot traffic in the 20 Kmart stores identified with an

overall goal of re-energizing the brand name.

Pre-test:

Prior to campaign it makes sense for Kmart to employ pre-test methods to test ad

concepts given the expense in creating TV and radio ads for the Real Style Real People

Kmart campaign.

Using reaction testing, specifically focus groups, gives Kmart the ability to evaluate a

number of issues including awareness of the stores new look, shopping experience, quality of

merchandise, pricing, and merchandise style are important to know prior to this campaign.

Qualitative research is needed to fully explore the various attitude and perceptions related to our

objectives. These phases allows us to observe both verbal and non-verbal feedback

Truly, a quantifiable pretest is to simply count the number of people shopping in the

stores prior to the campaign. At this point Kmart can measure the number of customers in those

stores now.

Post-test:

After the campaign Kmart can simply measure foot traffic into the store again. At this

point we could evaluate how well the plan did.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 24

Kmart can count the number of website inquires, coupon redemptions (website and

mobile coupons), participation rate at each of the stores. Each store will have the number of

entries for the style show at each city.

Kmart should follow the campaign in each city with phone surveys to test recall of the

campaign. It would be extremely interesting to note if the campaign heighten area awareness.

This quantitative phase allows Kmart with projectable data determine if Kmart should expand

the style shows to other stores in the U.S. If the program garnered enough interest determined by

this objective measure, testing recall, it would behoove Kmart to make the investment to expand

the program.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 25

Budget for Real Style Real People Kmart

Common Budget

Creative

TV ads (one for each spokeswoman) 900,000

Radio Ads 100,000

Direct Mail 50,000

Print Inserts 25,000

Mcoupons 25,000

Banners for Social Media 25,000

Website redesign 350,000

Same on-site Videographers 2,000,000

(to maintain same look)

Post production videos 2,000,000

Celebrity Appearance Fees

Sophie Vergara (Final Judging) 500,000

Nicki Minaji 500,000

Rachel Antonoff 250,000

Contest Trip Costs

Flights, Food, Lodging 100, 000

Shopping Spree 15,000

Total for common budget: $6,840,000

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 26

Each Store Cost Budget (x 20)

Media Buy

TV ads 60,000

Radio Ads 50,000

Live Radio Remotes 10,000

Newspaper Inserts 20,000

Social Media Buy

Google 25,000

Facebook 25,000

Pandora 25,000

Mobile 20,000

Direct Mail

Direct Mail 300,000

(database purchase, printing and mailing)

Day of Event

Equipment Rental (e.g. stage, lights) 20,000

Regional Make-up and Designers 12,500

Evaluation and Measurement

Ad concept testing (pre) 10,000

Focus Groups (pre and post) 50,000

Counting (pre and post) 15,000

Survey (post) 15,000

Total per store budget: $637,000

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 27

Conclusion

American Association of Advertising Agencies first definition of IMC “is a

concept of marketing communication planning that recognizes the added value of a

comprehensive plan that evaluates the strategic roles of communication disciplines advertising,

direct marketing, sales promotion and public relations combined to provide clarity, consistency

and maximum communication impact” (Belch & Belch, 2012). The proposed plan for a pilot

campaign combines these disciplines to improve Kmart’s branding identity with a clear, concise

message, and to specifically increase foot traffic. The plan includes measurement and

evaluations concepts to effectively determine the success of this program while reigniting

Kmart’s brand and implementing mission statement that states Kmart “engages and delights

members” (Kmart.com, 2013).

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 28

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KMART’S Pilot IMC Campaign: Real Style Real People Kmart 29

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KMART’S Pilot IMC Campaign: Real Style Real People Kmart 32

Appendix A - Kmart Stores Targeted in Missouri, Oklahoma and Texas

All but two of the Kmart stores are located in cities with populations of more than

100,000. Two cities have more than 400,000. The two stores, Shawnee, Oklahoma and

Jefferson City, Missouri, are located within 40 minutes of two largely populated cities,

Oklahoma City and Columbia.

Missouri:

Independence (pop. 111,270):

16200 East US Hwy 24

4023 South Noland

Jefferson City (pop. 43,079 near University of Missouri, Columbia pop. 40,000)

2304 Missouri Blvd, Jefferson City

Kansas City (pop. 459,787)

2821 Vivion Rd NE

5615 Bannister Rd E

600 North East Barry

7100 NW Prairie View Rd

Springfield (pop. 159,498)

1930 E. Kearney Street

Oklahoma:

Lawton (pop. 93, 376 )

1050 NW 38th St

Shawnee (pop. 29,000 consider suburb of Oklahoma City with pop. 599,199)

2323 N Harrison

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 33

Appendix A - Kmart Stores Targeted in Missouri, Oklahoma and Texas (con’t)

Tulsa (pop. 393,987)

10131 E. 21st Street

3132 E. 51st Street

Texas:

ElPaso (pop. 672,538)

1120 McRae Blvd.

11330 Montwood Drive

411 Zaragosa Road

6375 Montana Blvd

655 Sunlard Park

9484 Dyer St.

Lubbock (pop. 236,065)

6501 University Ave.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 34

Appendix B – Specific Media for Real Style Real People Kmart

Missouri:Independence and Kansas CityTV: KMBCRadio: KMXVNewspaper: Kansas City Star

Jefferson CityTV: KJMORadio: KNCVNewspaper: Jefferson City News Tribune

Oklahoma:LawtonTV: KSWORadio: KLAWNewspaper: Lawton Constitution

TulsaTV: KOTVRadio: KMODNewspaper: Tulsa World

ShawneeTV: KOTVRadio: KGFF Newspaper: The Shawnee News - Star

Texas:ElPasoTV: KIVARadio: KPRRNewspaper: ElPaso Times

LubbockTV: JCBDRadio: 102.5Newspaper: Avalanche Journal

Suggestions to run frequently during drive times Monday through Friday one month prior to style show in the town.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 35

Appendix C – Media Advisory for Real Style Real People Kmart

Real Style Real People Kmart

MEDIA ADVISORY

Kmart Hold “Real Style Real People” Style Shows in Tulsa

What: As part of Kmart re-energizing its brand and showing its new store looks, Kmart is holding “Real Style Real People” style shows in 20 stores across Missouri, Oklahoma and Texas. Three weeks from this Saturday, Kmart will be holding this event in XXXX. Participants can win an all-expense paid trip to New York to shop with one of Kmart’s own designers, Rachel Antonoff. Local media will compete against one another for their Real Style Real People look . The event should be fun and festive.

When: XX until XX p.m.Saturday, XXX, XX, 2013

Where: KmartXXXXXXX, XX, XXXXX

Who: Kmart is asking females to come, select outfits, model and be videoed showing outfits they put together. Local media will participate in the events.

Why: Kmart wants to show off it new store looks while Kmart can be fun, sell quality merchandise but above sells value with style for real people. Kmart “engages and delights members.”

For more information, call XXXX at (xxx) xxx-xxxx, see kmart.com or #kmart.

KMART’S Pilot IMC Campaign: Real Style Real People Kmart 36

Appendix D – Coupon Draft for Real Style Real People Kmart