Kmart turns to entertainment industry in latest marketing move

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Posted 1:19PM on Monday, April 29, 2002

DETROIT - Kmart Corp. is turning to entertainment in its latest effort to lure customers. The Troy-based retailer on Monday announced that has hired Creative Artists Agency to provide entertainment-related marketing. The agency will look at ways Kmart can use entertainment -- like television shows, films and video games -- to promote itself. Nothing specific has been announced, but some of the ways Kmart could market itself under this program include sponsorships, product placement and co-branding initiatives, such as sponsoring a video game tour, Kmart spokesman Dave Karraker said Through the agency, Kmart will be able to look at every marketing opportunity "inside and outside of Hollywood," Karraker said. Creative Artists is a major talent and literary agency based in Beverly Hills, Calif. It represents some of the biggest names in Hollywood. Kmart has launched several marketing campaigns since filing for bankruptcy, though it says some were planned prior to the Jan. 22 Chapter 11 filing. Kmart is airing television ads directed by Spike Lee. The 30-second spots are fast-moving montages of families talking about and doing everyday things. The ads are intended to have an emotional appeal to consumers. In March, Kmart announced a campaign targeting black and Hispanic shoppers. The retailer filed for bankruptcy protection after lower-than-expected holiday sales, downgrades by several credit rating agencies and a slumping stock price. Kmart has struggled to compete with less expensive Wal-Mart Stores Inc. and trendier Target Corp. in the discount market. With all of Kmart's new marketing efforts, it's not clear what the future of its BlueLight promotions will be. Kmart currently does not have ads dedicated to highlighting its famous BlueLight Special, Karraker said, although the promotion continues and may be the focus of future campaigns. After Kmart filed for bankruptcy, Kmart's chief executive called on company officials to examine all aspects of the retailer's business and see what attracts customers. In early afternoon trading on the New York Stock Exchange Monday, Kmart shares were down 5 cents at $1.30. ------ On the Net: Kmart Corp., http://www.kmartcorp.com