Kmart to Unveil New Ad Campaign

Kmart Corporation announced today it will be unveiling a new advertising campaign focused on establishing a clear brand positioning for the company. The campaign will first be seen February 24th during the closing ceremonies of the Olympics through television commercials directed by Academy Award nominee Spike Lee.

Culminating 18 months of consumer research, Kmart's new corporate brand positioning focuses on establishing Kmart as "The Store That Understands What Really Matters in Life." The print ads and broadcast commercials will be the first step in communicating this clear, differentiating position in the marketplace. The campaign will build the corporate brand by focusing on demonstrating how Kmart, along with its products and brands, understands what values are important in everyday life; things like putting family first, value for money, and practicality. The advertising showcases how Kmart fits into the fabric of its shoppers' lives.

"Kmart's goal with this campaign is to build an emotional bond with the consumer by re-establishing the role Kmart plays in its shoppers' lives," said Steven Feuling, svp of marketing at Kmart. "By showing how Kmart is relevant to its shoppers' emotionally and rationally, the advertising aims to drive consumer loyalty."

The tagline for the print and broadcast advertising will be "Kmart. The Stuff of Life," which further emphasizes Kmart's role in American family life by having a unique blend of products that meets the consumer's daily "needs," while still offering top-name and exclusive brands, such as Martha Stewart Everyday, Disney and Sesame Street, that meet consumer's aspirational "wants."

The 30- and 15-second commercials supporting Kmart's new corporate brand positioning are produced by Kmart's agency of record TBWA\Chiat\Day and are directed by critically acclaimed Spike Lee, through his 40 Acres and a Mule Filmworks production company. The ads, featuring people of all ages and races dramatize their wisdom on, insights into, and cherished moments in everyday family life. Kmart meets the needs and wants of this consumer by understanding how they live and what matters to them.

"Helping Kmart build a differentiating, emotional brand identity through advertising was a unique opportunity," said Spike Lee, director of such lauded films as Malcolm X, Do The Right Thing, and an upcoming HBO feature-length documentary film on legendary football great Jim Brown.

Kmart's exclusive brands will be featured within the corporate brand positioning advertising. The first ads will be seen in national print publications and on broadcast and cable television. The advertising will launch during the closing ceremony of the Olympics on February 24. Images and messaging from the ads will also be integrated synergistically in-store, online and in Kmart's weekly advertising circular. The new Disney children's apparel line will be the first to be featured in commercials dedicated to this important new exclusive apparel brand. The Disney spots begin airing February 28.

Kmart's multicultural advertising agency of record, Don Coleman Advertising, also will be developing a corporate brand campaign targeting the African-American and Hispanic communities. The campaign aligns with Kmart's corporate brand message and creative executions.

"Our research showed that our African-American and Hispanic shoppers are among Kmart's most-loyal customers," continued Feuling. "It is especially important for us to strengthen the emotional bonds with these critical shoppers."

Kmart's multicultural advertising campaign is scheduled to launch shortly after the general market executions.

Kmart Corporation operates more than 2,100 Kmart and Super Center retail outlets.