IMC 610: Intro to Integrated Marketing Communication Class Final Project (Kmart)
By Colin Haas
October, 21, 2013
In 1899, Sebastian Spering Kresge opened his first store and continued to grow larger and larger
in the retailing landscape. Kresge offered people two benefits, affordable goods and jobs and
that continued throughout Kmart’s history. Kmart led the retailing space for many years over its
competitors and still remains in the top four of retail giants. However over the years, Kmart has
lost its focus and lost its consumers to other retail competitors.
Our goal in the campaign is to redefine the target market and in turn build positive brand
perception and increase market share. Kmart has a vast portfolio of exclusive brands and a
member-centric platform in “Shop Your Way” that brings value to the newly defined target
demographic of urban female mom shoppers, ages 25-45.
At the present time, the target demographic audience sees Kmart as outdated and out of touch
with customers. Through our IMC campaign we anticipate changing customer’s perception to
Kmart has everything they need and want in one store, that allows them to shop for the family
and themselves with Kmart’s vast portfolio of brands and exclusive to Kmart brands. We set out
to accomplish four key IMC campaign objectives that will create positive brand awareness and
take back market share from Kmart’s direct competitors of Target and Walmart. Below are those
four campaign objectives:
• Increase Kmart’s social media likes/follows by 50% over the next 12-months.
• Increase comp store sales in children’s clothing by 35% over the next 12-months.
• Increase daily sites visits to kmart.com by 15% over next 9-months.
• Increase “Shop Your Way” membership by 20% over.
Creative strategy statement for this campaign is, “Less time shopping means more time making
memories with those you shop for.” We really want to drive this statement home throughout the
campaign with our target market. We will focus paid media efforts on television commercials
ran through primetime TV in the Fall and Spring on some of the networks most heavily viewed
shows. To drive home the social element of our campaign, our Facebook URL will be
incorporated in the ad and Twitter handle on bus ads in 15 the country’s top urban markets where
Kmart has a presence. To go deeper in our digital presence, we will use Google AdWords and
Yahoo Search Marketing to drive traffic back to kmart.com in an effort to drive up daily visits
and ultimately online sales. Kmart will also be promoted in traditional media, like Oprah’s “O”
Magazine to carry our message throughout the Summer with our audience as well.
Going a step further and really building our creative strategy statement into our DNA, we will
develop a blogging platform that delivers helpful content to Moms. Crossing platforms we will
use one of social networks most highly female traffic platforms in Pinterest. Create and execute
highly visual pictures and videos that drive traffic back to the blog, giving Moms a help by
using shortcuts or “lifehacks” in the home.
Following our brand personality of family-orientated and caring, Kmart will partner with Bridge
of Hope, a nonprofit that helps single parent homes. Another organization that we found and
really excited about is right in your backyard of corporate. Fellowship Housing, who helps
single mothers that are homeless or in a crisis. We see this being a great way to help and give
back by hiring 25 of their clients that will help drive positive PR mentions and gain great
positive earned media.
Our sales promotional efforts will focus on delivering a price-match guarantee that gives an
additional 10% off to shoppers who find the product in another competing store and to grow our
Shop You Way program we will incentivize them with an additional 5% off for a total of 15%.
Another sales promotion we want to execute is a sweepstakes across Kmart’s regions that enters
people into a $1,000 Kmart shopping spree. Allowing us to build excitement and in the end
promote what they got with that $1,000.
Growing our social media base, we will target Walmart and Target Facebook “likes” through
social login, a newer more personalized way of reaching people. But directly promote to those
two specific pages and acquire 1% of the 56.25M combined “likes” of those two pages. A great
ongoing and growing social customer base that will allow Kmart to promote too. We found that
people sign-up for multiple newsletter and blogs and clutter up their email inboxes and in some
cases delete before opening the email. Our plan is to push oversized coupons in the mail around
our store locations that drive traffic in-store.
This campaign will really drive home Kmart’s caring and compassionate side to our newly
defined target audience and not only drive direct sales to this audience, but bring broader
audiences that love the new Kmart. Our plan is that our integrated marketing campaign will
make Kmart integrated into the urban family-life.
Kmart’s Early History
Sebastian Spering Kresge opened a modest five-and-dime store in downtown Detroit that would
change the entire landscape of retailing. The store that Kresge built has evolved into an empire
of more than 1,500 stores and an Internet presence that reaches millions of customers (Sears
Holding Corporation). When Kresge opened his first store in 1899, he sold everything for 5 and
10 cents. The low prices appealed to shoppers and allowed him to expand to 85 stores in 1912,
with annual sales of more than $10 million (Sears Holding Corporation). When war and
financial depression hit America over the next few decades, Kresge’s stores were always there to
offer families the products at prices they could afford (Sears Holding Corporation).
While Kresege had the corner on discount retailing, many other discount retailers were coming
into the picture during the 1960’s. Walmart open it first store in Rogers, Arkansas in 1962
(Walmart). Also up in Minneapolis, the four grandsons of George D. Dayton were making a
transition of their grandfather’s business and entering the discount retailing in 1960. It became
official on May 9, 1961, when they would transition from a family-run department store chain
into one of the nation’s largest discount store chains (Target corporate). While the discount
retailing space was heating up, Kresge was ahead of his time with launching a newspaper-
advertising program to entice shoppers to its stores (Sears Holding Corporation). In 1959, Harry
B. Cunningham became Kresge President who was developing a new strategy for the Kresge
organization (Sears Holding Corporation). The very first Kmart discount department store
would open in 1962 in Garden City, Michigan and then an additional 17 Kmart stores would
open later that year. The new addition of stores would lead to corporate sales of more than $483
million that year (Sears Holding Corporation).
Kmart’s Later Years
As part of new plan, Kmart would open the very first Kmart Supercenter in Medina, Ohio in
1991. It would offer a full-service grocery along with general merchandise 24 hours a day, seven
days a week (Sears Holding Corporation). 1996 would also bring out new changes for Kmart, by
the launch of a complete redesign of the Kmart store. Making them cleaner, brighter, and easier
to shop (Sears Holding Corporation). Fast forward to 2013, Kmart has fought back from
bankruptcy and today Kmart has 1,221 stores across 49 states, Guam, Puerto Rico, and the U.S.
Virgin Islands. With 1,196 discount stores, averaging 94,000 square feet, and 25 Super Centers,
averaging 168,000 square feet (About kmart).
Kmart Multicultural Initiative
Kmart’s workforce is highly diverse, with almost 32% representing multicultural minorities
across all associates. Kmart is located in 283 of the 331 metropolitan statistical areas within the
U.S., which are considered urban markets. Kmart is also working with minority-owned vendors
and striving to achieve store-specific merchandising to become the “store of the neighborhood
"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." (Farfan)
On August 22nd
, Sears Holdings Corp. reported their second quarter numbers. Shares fell over 8
per cent to close down $3.55 at $39.72 on Thursday. The stock's now back near the 52-week low
of $38.40 that it hit at the end of 2012. (D'Innocenzio & Chapman, 2013) Kmart also saw a 2.1%
drop in comp store sales for Q2. (Sears Holdings Corp., 2013, Revenue: Q2 comp store sales)
Kmart Business Analysis
Kmart carries products in various merchandise categories, including consumer
electronics, seasonal merchandise, outdoor living, toys, lawn and garden equipment, food
and consumables and apparel. Kmart also carries exclusive brands like Kardashian
Kollection, Jaclyn Smith, Joe Boxer, Sandra by Sandra Lee, Sofia Vergara, Nicki Minaj,
Adam Levine, and the newly added John Cena line. (PRNewswire, 2013)
1. Appliances & Vacuums: Kitchen, home, laundry & garments
2. Automotive: Batteries, parts, and accessories.
3. Baby: Baby & toddler clothing, baby gear & car seats, baby essentials, baby & toddler
furniture, bedding & décor.
4. Beauty & Health: Beauty & personal care, mobility, healthy living, fragrances,
cosmetics, and medicine.
5. Bed & Bath: Bedding and bath accessories.
6. Books & Magazines
7. Clothing: Women’s, men’s, kids’ and baby clothing.
8. DIY & Tools
9. Electronics: TV & home theater, cameras & camcorders, video games, car & portable
electronics, computers, phones, and office products.
10. Fitness & Sports: Outdoors, wheeled sports, fitness & exercise, sports equipment,
family recreation, and water recreation.
11. For the Home: Kitchen & dining, storage & organization, crafts, window treatments,
home décor, and furniture & mattresses.
12. Furniture & Mattresses
13. Jewelry & Watches
14. Lawn & Garden
15. Music, Movies & Gaming
16. Outdoor, Living & Patio: Patio furniture, individual pieces, patio accessories, outdoor
cooking, outdoor entertaining, and outdoor utility products.
17. Pharmacy & Health
18. Pet, Food & Grocery: Dog supplies, cat supplies, pet prescription medications, general
19. Shoes: Women’s, men’s, junior’s, infant’s, girl’s, boy’s, toddler boy’s and girl’s
20. Toys & Games
Shop Your Way Loyalty Program
Kmart offers a free loyalty program to their shoppers, that allows them to earn points for
shopping and using the social-based shop your way program. They even went as far as to create
a completely separate website at “shopyourway.com” and allows them to follow other “shop
your way” members and brands. A shopper can gain 10 points for every $1 spent, whether that
be online or in-store. (Shopyourway.com)
Kmart’s target audience, the low to mid-income families when matched against it’s competitors
came out in third place. Cheapism.com conducted a comparison test of 30 identical and like
items, including clothing, electronics, groceries, health and beauty supplies, home goods, and
toys. The bill came to $1,776.15 at Walmart, $1,866.10 at Targer, and $2,092.82 at Kmart.
Marketing Communication Strategies
Kmart like many of its competitors still send out the traditional print ad in the local and Sunday
papers. While stepping into the digital arena with an iPhone app that allows you shop via your
phone and pick-up at your local Kmart store. Kmart has another app in the iTunes store with
their Kmart Pharmacy App. The app allows a customer to manage their prescriptions and keep
valuable info within the app like their identity card and means of pay. YouTube has been
another great source of marketing to those who watch their commercials through Kmart’s
specific YouTube channel. Most notably Kmart’s “Ship My Pants” commercial, which has
garnered 19,493,805 views at the time of this writing. (Kmart, 2013) Kmart has pushed to make
online an important piece to their toolbox is still behind Walmart and Target on monthly visitors.
See the below table from Quantcast on Page 9.
In reviewing Kmart’s social media accounts and comparing to Walmart and Target, the numbers
spoke for themselves and shows the national sentiment towards these top three discount brands:
Social Media Following
Store Facebook Twitter
Kmart 1,253,705 24,551
Walmart 32,951, 493 363,670
Target 22,116,702 757,728
Note: As of 6:23pm, Sept. 2, 2013.
In the big discount retail space Kmart has two main competitors in Walmart and Target. Both
which have been successful in their strategy. On the Harvard Business Review blog, authors
Paul Leinwand and Cesare Mainardi explain Walmart’s niche for the customer, as you know
you'll save money and still feel welcome. With Target’s niche that, you know you'll get
fashionable products at prices that feel reasonable. What, then, is Kmart's niche? (Leinwand &
For this campaign we want our demographic focus to be on the urban mother, age 25-45 with
children in the home and own their home. The Kmart mom has some college and is one who has
the buying power for the home and makes the choices of what her children will wear or buy.
The annual household income ranges between $15K to $40K.
The Kmart mom, shops mainly in the store, but in some cases will shop online. They are
achievers and take care of their children first. They get their news from the internet and their
interests are watching TV shows like Modern Family, Dancing With the Stars, and American
Idol. A few magazines they may tend to read would be Oprah and Women’s Health.
Campaign Marketing Objectives
1. Increase Kmart’s social media likes/follows by 50% over the next 12-months.
2. Increase comp store sales in children’s clothing by 35% over the next 12-months.
3. Increase daily sites visits to kmart.com by 15% over next 9-months.
4. Increase “Shop Your Way” membership by 20% over
Campaign Marketing Strategies
1. Develop an integrated social media campaign.
2. Run print ads in family-orientated magazines that promote and show children’s clothing
brands featured at Kmart.
3. Implement and promote the kmart.com website into all mass media vehicles.
4. Use paid online advertising to grow the membership of “Shop Your Way”.
Final Creative Strategy Statement
Less time shopping means more time making memories with those you shop for.
Why are we developing an IMC Campaign?
Raise awareness to our target audience of mothers, ages, 25-45 that Kmart shopping is
convenient and gives moms more time with their family through one-stop-shopping.
Increase positive brand perception among our target audience by 15% over the next 12-
Moms, Ages 25-45, with children, Hispanic and African American, urban areas.
Pre-Campaign Views (What it is)
Kmart is outdated and not ‘with it’ on what consumers want.
Post Campaign Views (What we would want them to think)
Kmart has everything I need and want in one store, that allows me to shop for the family
and myself with all their vast portfolio of brands and exclusive to Kmart brands.
Why should they believe it?
Kmart has done an amazing job at attracting some of the biggest names in clothing to
offer exclusive to Kmart shoppers. Kmart has also made it convenient to save and shop
through their “Shop Your Way” social platform and app for your smartphone, which
allows you to plan out your shopping to get in and out conveniently.
Are there any creative guidelines?
Brand Personality: Sincere, down-to-earth, wholesome, family-orientated, joyful.
Tone: Light-hearted, kind, loving, thoughtful.
1. Color -
2. Font – Helvetica Neue (85 Heavy); (75 Bold); (55 Roman); (53 Extended)
Logo – (minimum size: measure no less than .4” in height.) (Clear space: the area 1x
surrounding the signature that should be free of competing visual elements.
Print Ad: Promoting Kmart’s Shop Your Way App for Android and iPhone.
Kmart Paid Media Objectives
1. Reach 75% of target audience through television commercials at least 6 times during a
2. Increase Kmart’s Twitter followers by 75% through social integration into transit
advertising over the next three months.
3. Buy promoted post for Facebook, that will be distributed three times every other week
through pulsing media scheduling that increases Kmart’s Facebook page from 1.26M to
2M over 52-weeks.
4. Increase our online reach by 35% over the next six months through PPC.
5. Run continuous print ad April through November magazine editions that reach 25% of our
Kmart Paid Media Strategies
1. Run Kmart TV commercials during primetime television time slots.
2. Use outdoor advertising on sides of public bus transit to promote Kmart’s online Twitter
presence. Incorporating a hashtag campaign of #KmartMom.
3. Run promoted Facebook posts three times a week, over next 52 weeks through Facebook
4. Use PPC (pay per click) program of Google AdWords and Yahoo Search Marketing to
build high visibility of Kmart website through keyword searches.
5. Use print media to promote benefits of the “Shop Your Way“ app in a one-page ad.
Kmart Paid Media Tactics
1. Run Kmart 30 second ad commercials during the Fall TV lineup for ABC’s Modern
Family, September through early December. Then starting in January, ABC’s ‘The
Bachelor’ on Monday nights and then on Fox network’s ‘American Idol’ on Wednesday
nights. The allocated budget for all commercials during primetime television totals
2. Buy King Kong (Ultra Super King) public transit bus ads from Blue Line Media to run in
15 urban markets from June through August (Back To School Prep). These are highly
visible buses that run through heavily traffic areas that will promote our Twitter account
with the Twitter hashtag, #Kmart Mom. Allowing us to track those who are engaging us
from the bus ads. We have allocated $132K for the outdoor media budget.
3. Buy promoted posts on Facebook over twelve months, with a twice-weekly frequency, as
we don’t want to turn people off from the Kmart brand. Posts will consist of the ease of a
one-stop shopping experience that makes it easy on Mom.
4. Using Google AdWords and Yahoo search marketing we use keywords that will only be
paid per click with a budget of 250K for each with a buffer of $50K (only if needed). Key
words like retail, retailing, back to school, shopping, family, mom, productive.
5. Run an eight-month (April to November), one full page, four-color ad in O Magazine.
This ad will promote the Kmart app that is on Android and iPhone and increase the
downloads over that same eight-month period by 25%. Increasing Android downloads
from 680K to 850K and iPhone from 450K to 562.5K downloads. O Magazine
demographics matches our target demo of W25-45 with their readership being 56.1% of
our target demo and a 55.2% HHI of $60K.
Public Relations - Objective #1
Gain a positive sentiment of 55% with mom's of kids in first 12-months of implementation.
Build and utilize a Kmart blog platform that delivers content to helping Moms
1. Create blog posts that contain how-to videos that use products found in the Kmart stores
2. Make sure blog platform has a "Pin It" button to pin post to Pinterest and drive higher traffic.
3. Infographics are very helpful and resourceful and will be incorporated at least once a week.
4. Will always have an image for non-video and non-ingraphic blog post to create more
engagement whether through Pinterest or other social sites.
Public Relations - Objective #2
Increase Kmart’s employee community volunteer participation by 35% in 6-months.
Implement and develop a weekly-newsletter that will covered about local nonprofits and
charities by store management to all employees at some point in the week.
1. Newsletter will consist of organization and non-profits that Kmart is teamed up with and how
they are making a difference.
2. Give incentives to full-time employees who donate a day to a charity by giving them a day off
to give of their time.
Public Relations - Objective #3
Generate at least twelve positive national press mentions from Kmart’s partnership with Bridge
of Hope of twelve months.
Host first annual 'Kmart Kares' week that is open to public and allows locals to use to Kmart as
the drop-off for gently used clothing for kids and moms to give to those single moms in need
through Bridge of Hope.
1. Promote ‘Kmart Kares’ on Facebook as a Facebook event that allows people to respond that
they are attending and is seen by their friends and team up with Bridge of Hope’s Facebook
page to gain even more exposure.
2. Develop a pitch deck that will go to all local Kmart stores to be sent to local newspapers and
Public Relations - Objective #4
Partner with Fellowship Housing in Hoffman Estates, IL to hire 25 FH clients in 7-day period
into our HQ store that gains at least 10 press mentions in over the next 10-days.
Work with Fellowship Housing to hire 25 of their clients.
1. Work with FH’s PR team to coordinate press releases to all local news stations and radio
2. Run tweets, Facebook post, and create a YouTube video that highlights Kmart’s involvement
in our home town of helping these needy people and single, homeless moms.
Sales Promotion - Objective #1
Gain a 5% redemption rate of Kmart’s price match promise with additional savings of our
targeted market from our competitor’s customers over a three-month period.
Offer a price match guarantee with an additional 10% off. The 10% has the potential to be
increased to 15% with the sign-up of Kmart’s Shop Your Way program.
1. Run promoted post in Facebook and choose our Facebook audience as Target and Walmart’s
likes on Facebook. Directly promoting to their total 56.28M likes that Kmart is offering a price
match guarantee with additional savings of 10% off and possible extra 5% with the sign-up of
Kmart’s Shop Your Way loyalty membership program.
2. Run a 30 second TV commercial during primetime television promoting Kmart’s price match
with up to 15% off total purchase. Maximize impact by choosing shows like Dancing with the
Stars in early/late Fall and American Idol during Winter/early Spring. Stretch our ad $ by using
flighting to attempt to maximize impact at peak times of the shows.
Sales Promotion - Objective #2
Gain a coupon code redemption rate of 30% over a 4-week period.
Using a coupon code to redeem 10% off their purchases of $50 or more, total bill.
1. Promote the coupon through Kmart website with a banner ad and a sidebar on each section of
the site as they browse products.
2. Promote in stores with promotional signage. Signage will be white, with red bold lettering to
attract the eye.
3. Using current Kmart app, users will have the code saved in their account within the app to use
in-store. Utilize push notification to alert Kmart shopper.
Sales Promotion - Objective #3
Acquire at least 5,000 sweepstakes entries per region over a 6-month period.
Incentivize current Kmart shoppers that don’t use the Shop Your Way program with
sweepstakes. Every new sign-up enters them into a regional $1,000 Kmart shopping spree.
1. Promote across all channels: stores, Shop Your Way website, Facebook Page, Twitter
Account, weekly sales ad, and Kmart website. To be consistent we want to create a visual with
an urban mother and her kids celebrating and holding a cardboard Kmart over-sized check for
$1,000 shopping spree. Post and tweet twice per week and utilize a tool like Buffer or Hootsuite
to push out at optimal times. Will go out weekly onto the printed sales ad and be posted on main
page of kmart.com
2. Incorporate a share button that allows users to alert their friends with a special code that give
them another entry into the sweeps.
Direct Marketing - Objective #1
Target our moms, ages 25-45 and acquire a 1% conversion rate from the “Likes” on Walmart
and Target Facebook pages through 12-months. 1% of the total 56,252,948 likes would give
Kmart 562,529 coming from personalized marketing of social data-trigger.
Utilize deep identity data through social login to deliver personalized, relevant direct marketing.
Utilizing social login that will flow back to our CRM software allowing us to deliver
personalized marketing to each new like in a personal way that delivers authentic brand
perception from Kmart.
Direct Marketing - Objective #2
Achieve a redemption rate of 2% over a 4-week period through direct mail marketing via The
U.S. Postal Service (zip code list).
Utilize direct mail coupon postcards for $25 off $75 or $50 off $100 for all clothing departments
targeting Moms, ages 25-45.
Due to postal mail returning low redemption rates, we want to utilize bright, vibrant coupon
postcards that catch the eye. We will use zip code database list to mail out coupon postcards to
households of moms of children around our stores of a 35 miles radius.
Direct Marketing - Objective #3
Achieve an email response rate of 3% over a 6-month period.
Utilize email list to deliver personalized content marketing off previous shopping trends of the
user and build the Kmart brand equity to each individual user.
1. Use digital marketing software, ExactTarget to build content that adds value to the email
recipient’s likes, wants, and needs. Start with our “Shop Your Way” customers as the foundation
of our email list. Deliver a weekly email, as to not inundate the user’s email inbox.
Use readability test, with the Gallup & Robinson’s Impact System to effectively measure our
finished print ad. With anticipated outcomes of 70% positive brand rating and 80% ad liking in
the test will equal a successful print ad campaign.
For a television commercial, we will use theater testing with a sample size of 400 participants in
four urban cities. Our successful measurement for success TV ad will be a 35% Kmart brand
preference over the competition.
Use scanner market testing over a six month period that we will run in Pittsburgh, PA and
Detroit, MI to compare Kmart brand sales against it competitors from the brand impression
established through our primetime TV frequency.
The campaign really drives home the message of urban mom’s saving time and being able to
shop in one store to get everything they need for the ones they love. This message will be
communicate across all mass media: print, outdoor, television, and digital. Sales promotions
would run across coupons, sweepstakes, and price-match guarantee offers. The overall
campaign will run nationally in print and television, but also focus on our core urban
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