Kmart Integrated Marketing Communications Plan KMART INTEGRATED MARKETING COMMUNICATIONS PLAN S T E P HA N I E B . M A R C HA N T WEST VIRGINIA UNIVER SITY IMC Plan Page |1 EXECUTIVE SUMMARY Contained in this paper is an Integrated Marketing Communications plan for Kmart. The target audience of female shoppers between the ages of 18 and 45 is the focus of the proposed campaign and a great deal of research has been completed to identify and utilize Kmart’s strengths, weaknesses, opportunities and threats to prepare a plan most beneficial to the organization. Objectives and tactics have been designed to fall in line with Kmart’s mission and values. This detailed plan includes marketing, creative, media, and public relations strategies, as well as direct marketing and sales promotions suggestions. A comprehensive budget and media plan flowchart map out the campaign and the proposed measurement and evaluation plan will assess the campaign upon completion. IMC Plan Page |2 TABLE OF CONTENTS Background Information 3 Target Audience 6 SWOT Analysis 7 Marketing Strategies and Objectives 9 Integrated Creative Strategy Statement 11 Media Objectives and Strategies 15 Public Relations Objectives and Tactics 18 Direct Marketing Ideas 20 Sales Promotion Ideas 22 Measurement and Evaluation Plan 24 Conclusion 25 References 26 IMC Plan Page |3 BACKGROUND INFORMATION Kmart was founded in 1962, but its roots go back to the five and dime store days when they were originally called S.S. Kresge. Founder Sebastian Kresge started his retail career working for a local five and dime stores in the late 1800’s and then transitioned into a traveling salesmen, as so many did in those days. A chance encounter with Frank Woolworth motivated him to start his own version of a five and dime store, S.S. Kresge. The Kresge stores grew to 85 stores by 1912 and annual revenue of over $10 million.1 Kresge stores rode the war and subsequent depression wave by providing home goods and jobs. As the economy grew, Kresge store prices rose to respond to the cost of supply and demand. Print advertising started, which grew in to radio and television as technology advanced in the 1960s. About this time, the first Kmart was opened to address the need to revamp the retail organization. By the end of 1962, there were 18 Kmart storefronts generating over $483 million in revenue and, by 1966, they reached $1 billion. Slow and steady growth followed the economy as Kmart introduced its signature logo and blue light specials. The corporation shifted their focus in the 1990’s and acquired retailers like Sports Authority, Waldenbooks, Builders Square and OfficeMax ,rather than investing in the Kmart brand. 2Kmart filed for Chapter 11 in 2003 and hasn’t really recovered. Their focus is disjointed and the brand has lost its value with the consumer. The public perception is that the stores are disorganized, under stocked, unkempt, poorly staffed, and overpriced compared to the competition in the area. With the purchase of Sears the brand continues to spiral into insignificance by failing to establish a cohesive and consistent experience for the consumer. What is interesting to note is when Sam Walton started Walmart, he looked to Kmart as the example. Since then, Walmart has continuously trounced Kmart. Walmart strategically placed stores in small, rural towns where the competition didn’t exist and concentrated on reaching the blue collar audience. Another competitor, Target, went after the middle class, and everyone else fell to Kmart. Once Walmart started opening super centers, the gloves were off and Kmart couldn’t find its niche. 3 Kmart identifies their primary competitors as Walmart, Target, Kohl's, J.C. Penney, Macy's, The Home Depot, Lowe's, Best Buy and Amazon. Home Depot and Lowe's are major competitors for 1 Kmart Corporate History. (n.d.). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/about/kmart/history.htm. 2 Kmart. (n.d.). In Wikipedia. Retrieved July 22, 2013 from http://en.wikipedia.org/wiki/Kmart. 3 English, Linda. (2009). Kmart: A Capstone Case. In Henderson State University. Retrieved July 22, 2013, from http://www.hsu.edu/uploadedFiles/Faculty/Academic_Forum/2009-10/WilliamsSumner.pdf. IMC Plan Page |4 home appliances, which accounted for approximately 15% of 2012 reported revenue. 4 Kmart is "… committed to improving the lives of our customers by providing quality services, products and solutions that earn their trust and build lifetime relationships." 5However, in my small rural town, the Kmart customers are few and only out of necessity. The transition from generation to generation of Kmart shoppers has phased out and now you find everyone at either Walmart or Target. The Kmart is only convenient, not a destination, and lifetime relationships no longer exist. They offer the conveniences of layaway, shipping and store pickup available through its kmart.com website and provide customers the option of buying through a mobile app or online and picking up their merchandise in a convenient Kmart location. Yes, you can find most everything you need for your home at your local Kmart, including well known and respected brands like Craftsman, Kenmore, and Diehard. But if your customer doesn’t want to go into a Kmart to begin with, so what? In an attempt to capture the tween and teen market Kmart chose to partner with Nicki Minaj and Adam Levine. You can follow either celebrity through the Shop Your Way membership portal, where Twitter feeds from each reinforce their relationship with Kmart and how cool it is to wear their iconic apparel. Fortunately, Kmart recognizes the importance of using social media to draw in consumers, if for no other reason than brand awareness. The CEO states in a letter to shareholders, “The retail industry is changing rapidly. The progression of the Internet, mobile technology, social networking and social media is fundamentally reshaping the way we interact with our core customers and members.” 6 states, “Tracking, anticipating, answering, and connecting with shopper behaviors through the purchase journey is more critical than ever.” 7 Kmart has ramped up its Shop Your Way membership program to take advantage of multiple channels to reach members with email promos and making recommendations based on previous purchases. 4 Lampert, Edward. (2013, February 28). Sears Holdings Reports First Quarter 2013 Results. In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/. 5 What Is Kmart Mission Statement. (n.d.). In WikiAnswers. Retrieved July 22, 2013 from http://wiki.answers.com/Q/What_is_Kmart's_mission_statement. 6 Sears Holdings 2012 Annual Report. (2013, February 2). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/docs/SHC_2012_Form_10K.pdf#pagemode=thumbs&page=1&zoom=100,0,0. 7 Chovet, Bertrand. (2012). You Are What You Wear. In Interbrand. Retrieved July 22, 2013, from http://www.interbrand.com/en/best-global-brands/2012/sector-overviews/you-are-what-you-wear.aspx. IMC Plan Page |5 Financially Kmart is still bleeding, but online sales were up 20% over the previous year and if they continue embracing technology to connect with consumers through all channels there may be hope. The Facebook and Twitter feeds for Kmart tie in seamlessly with the website and the brand is starting to gel. They are trying to be relevant again and making strides with clever ad campaigns and the Shop Your Way reward program. Is it too late, though? Rebranding a company does not happen overnight. IMC Plan Page |6 TARGET AUDIENCE Meet the Beans from Canton, Georgia. Canton is small, rural town 45 miles north of Atlanta. The average household income in the area is $75,000, higher than the Georgia average. The primary employers for Canton include the construction industry, retail, and education.8 Carol Bean is a school teacher, married to Tommy, an independent insurance agent. Combined, their income is in the low 70’s. They met at Reinhardt College in the 90s, dated for four years and married after graduation. They have two children, Elizabeth (Liz) and Tommy, Jr. (Junior), who are in high school. Liz works part time at DSW Shoes, drives a Honda Civic and shops at Kohl’s because the clothes are more fashionable for a teen girl. Junior is a football player, drives a Toyota pickup truck, and doesn’t really care about clothes; he wears whatever is clean. Carol drives a Honda Pilot SUV and Tommy drives a Nissan Altima. The family doesn’t watch much television because they aren’t inside often, although they do have Comcast. The men in the family hunt and fish. For vacation the Beans go to the beach or the lake, wherever they get the best deal for a vacation rental. They have never left the United States. Liz and Junior are plugged in to social networks and Liz, in particular, uses Twitter to follow friends and celebrities such as Adam Levine from Maroon 5. They both have laptops for school and are active on Facebook. Growing up in a small town, Liz and Junior learned to be responsible with their money and rely on coupons and sales from their favorite retailers. They both have apps on their mobile phones that alert them to deals from loyalty programs with Kmart, Starbucks, Target, Groupon, and so on. Carol and Tommy rely on their kids to keep them posted on all the social media updates because they just don’t understand it all. Carol’s parents are loyal to Kmart because it was the only place to shop when Carol was growing up so this influences Carol’s shopping decision when it comes to basic home goods. The Beans live near the local Big Kmart and shopped there when the kids were younger because they grew out of clothes quickly, which they would donate to the Goodwill located right next to Kmart. As a family of four with active teenagers, they buy groceries wherever the best deal is, usually Walmart or Kroger. They shop at Home Depot or Lowe’s for garden and home improvement items – the prices are about the same and they don’t have a preference for one over the other. The Beans live modestly because they want to be able to send their children to college. Every Sunday they eat dinner as a family at one of the local restaurants rotating between O’Charley’s, Longhorn, and Red Lobster. They belong to the YMCA, go to church regularly, are involved in community programs and Tommy is active with the Chamber of Commerce to grow his insurance agency. People in the community know the Beans because their kids are active in sports, Tommy is a successful business owner, and Carol has taught most of the children in the area. The Beans adopt a family every Christmas and buy most of the presents at Kmart because of the sale prices during the season. 8 Canton, GA Livability. (n.d.). Retrieved July 22, 2013 from http://www.areavibes.com/canton-ga/employment/. IMC Plan Page |7 SWOT ANALYSIS Over the last few weeks I have visited Kmart and its competitors to reacquaint myself with the store and experience shopping there. There is a great deal of insight into the orb of Kmart in a recent letter to the Shareholders from the Chairman and Chief Executive Officer, Edward Lampert, dated February 28, 2013. Mr. Lampert addresses the need for improvement, "Our recent financial performance has not been acceptable, although we have seen some positive momentum as sales per member increased and our online business grew 20% in the quarter.” He goes on to identify the focus on growing their loyalty program by saying, "During the quarter, we have accelerated our activity to transform Sears Holdings into a leading Integrated Retailer that fosters relationships with members through our SHOP YOUR WAY platform.” 9 From here I started to develop a SWOT analysis and marketing plan. Fortunately, Mr. Lampert sees the need to evolve. In his February 28th letter to Shareholders he states, “… if we don't change, and if our talent can't adapt to that change, we won't be successful.” 10 9 Sears Holdings 2012 Annual Report. (2013, February 2). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/docs/SHC_2012_Form_10K.pdf#pagemode=thumbs&page=1&zoom=100,0,0. 10 Lampert, Edward. (2013, February 28). Sears Holdings Reports First Quarter 2013 Results. In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/. IMC Plan Page |8 Strengths Weaknesses SHOP YOUR WAY Rewards program Rural locations Association with Sears Introduction of Craftsman, Kenmore and DieHard brands into stores Use of social media, to include YouTube, Facebook and Twitter Ability to shop online and pick up in store Layaway program Inventory is frequently low In store shopping experience is lackluster Store employees are disengaged Pricing is higher than competitors Opportunities Threats Growth in e-retail through website and loyalty program Recovering economy Partnerships with iconic figures such as Adam Levine and Nicki Minaj Use of social media Walmart is larger and offers more household items Target appeals to upper middle class demographic Amazon.com Overall environment for retail industry Diminished value of brand Relationship with Paula Deen IMC Plan Page |9 MARKETING STRATEGIES AND OBJECTIVES MARKETING OBJECTIVE The primary objective is to revitalize brand equity for Kmart through an integrated marketing plan (IMC) designed to create interest, excitement, and favorable shopping experience. By driving shoppers to their SHOP YOUR WAY (SYW) website, consumers will see the broad variety of items available through the online store. According to the February 28th Letter to the Shareholders, online business on sears.com and kmart.com grew 20% over the prior year first quarter and SYW members generated over 60% of their revenues. 11 This plan seeks to increase online sales for Kmart by 30 percent among target audience of 18 to 45 year old females beginning in September, 2013 and ending 12 months later. As online sales improve, exclusive opportunities for SYW members will be made available in an effort to keep sales volume consistent during the promotional run between September and May. Promotion will be built around the launch of a clothing line by Adam Levine to motivate the audience to join the SYW loyalty program for exclusive offers, contests, and access to items associated with the Adam Levine collection. Sales for items from the Adam Levine Collection are anticipated to be 40 percent of the overall revenue generated from online and retail locations. Additionally, the plan expects an increase membership in SYW loyalty program by 30 percent over the next 12 months. As the membership grows, Kmart will be able to better segment direct response marketing as they identify who their target audience is and their shopping patterns. MARKETING STRATEGY Associate the Kmart brand name with being convenient by creating messages to distribute through social media channels and engage consumers to shop online because of the convenience. This will allow them to take advantage of the entire Sears family of products rather than limit them to just Kmart. As consumers come to Kmart to pick up their order they will be able to shop within the store as well, allowing for additional revenues to be generated. The in store shopping experience will improve in kind. The perception will be that products are always available and employees are helpful and engaged because they fulfill the orders placed. 11 Sears Holdings 2012 Annual Report. (2013, February 2). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/docs/SHC_2012_Form_10K.pdf#pagemode=thumbs&page=1&zoom=100,0,0. I M C P l a n P a g e | 10 The channels appeal to the Gen X and Y audience who will, in turn, become reacquainted with the Kmart brand and the message will go viral. As a distribution center in rural locations the possibility to capture home appliance, home goods, electronics, grocery, and bulk order items allows Kmart to compete with Amazon and Walmart in these markets. Retail pricing will need to be more competitive to encourage consumer to consider ordering online versus going to Walmart, Target, or discount shopping club (like BJ’s or Costco) for items that can be picked up a day later. The opportunity for name brand items available through Sears, such as Land’s End, opens up the possibility for consumers in areas not serviced by convenient locations to purchase items they would not normally consider. MARKETING TACTICS Improve receipts that are generated in stores to be consistent throughout the Sears family and reinforce loyalty program and online shopping opportunity through shopping experience surveys and database growth. Create promotional offers with Adam Levine to distribute through Facebook, Twitter, Instagram and Pinterest to go viral. Create videos of Adam Levine as a personal shopper for Kmart and distribute through social media channels. Bring back the in store Blue Light Special and create contests around the promotions. Develop retail catalog of all Sears family items and distribute to SYW members. Offer chance to opt in via printed receipts and website. Promote through Facebook and Twitter to collect additional prospects to add to database. Consolidate all Sears family websites into one central SYW website with clear navigation for categories. Extensive media promotion during select times of the year to coincide with appearances by Adam Levine on television and in print. Generate interest and sales of items in the Adam Levine collection through television, print and social media promotion to increase online and in store revenue for SYW and Kmart. I M C P l a n P a g e | 11 INTEGRATED CREATIVE STRATEGY STATEMENT REJECTED CREATIVE STRATEGY STATEMENTS Women can buy tools for their husband or father online instead of going to a building supply store where they might be intimidated because they don’t know anything about tools. Consumers like to be able to shop using their smart phone. People like the convenience of shopping online and picking up at a nearby retail locations rather than paying for shipping costs. Being able to buy items designed by someone famous is important. The more social channels you use, the more relevant you are. INTEGRATED CREATIVE STRATEGY STATEMENT Loyalty program members buy more, spend more, and visit more often when the experience is engaging. OBJECTIVE Expand awareness of SYW loyalty program to generate more online sales. I M C P l a n P a g e | 12 AUDIENCE Females aged 18-45. BENEFIT /CLAIM SYW is a social shopping experience where members have the ability to earn points and receive benefits across a wide variety of physical and digital formats through ShopYourWay.com. 12 SUPPORT Online business on sears.com and kmart.com grew 20% over the prior year first quarter. PROMOTION / MEDIA Print ads, Facebook, Twitter, YouTube, Instagram, Pinterest, SYW website, SYW email blasts. SIGNIFICANT FACT Members of SYW Rewards program exceeded 60% of transactions and sales 12 Sears Holdings 2012 Annual Report. (2013, February 2). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/docs/SHC_2012_Form_10K.pdf#pagemode=thumbs&page=1&zoom=100,0,0. I M C P l a n P a g e | 13 CREATIVE BRIEF CL IEN T: T YP E: KM AR T M AGAZ IN E AD D AT E: J UN E 3 , 20 1 4 WHY ARE WE ADVERTISING? We are advertising to increase sales through Kmart’s SYW loyalty program. WHO IS OUR AUDIENCE? We are concentrating on devoted female social media users between the ages of 18 and 45. They shop online and use channels like Facebook, Twitter, Google+, Instagram, and Pinterest to share their thoughts and experiences. The younger audience would be fans of popular music and want to emulate their idols. The older audience will value the ability to earn rewards for purchases they can redeem later. WHAT DO THEY CURRENTLY THINK? Kmart is not cool or hip or relevant in popular culture. WHAT WOULD WE LIKE THEM TO THINK? Through SYW, Kmart offers a variety of items they need at competitive prices with the convenience of shopping on their schedule. WHAT IS THE SINGLE MOST PERSUASIVE IDEA WE CAN CONVEY? People can create a personalized shopping experience that rewards them through the SYW program. WHY SHOULD THEY BELIEVE IT? SYW offers a way to discover new products, seek advice from friends, and stay updated with popular trends. ARE THERE ANY CREATIVE GUIDELINES? Four-color, full-page magazine ads will run monthly in People, US, and InStyle magazines featuring Adam Levine as a designer and personal shopper. Profiles will need to be created on YouTube, Google+, and Pinterest. I M C P l a n P a g e | 14 CREATIVE EXECUTION This ad will feature Adam Levine as a clothing designer with the headline, “Get Your Hands on Adam Levine” with the subheading “Available now through Shop Your Way.” Smaller text will direct consumers to the SYW Facebook, Twitter, Google+, and Pinterest pages. The ad serves two purposes: (1) to drive visitors to the SYW social channels and (2) initiate promotion of items designed exclusively for Kmart by Adam Levine. I M C P l a n P a g e | 15 MEDIA OBJECTIVES AND STRATEGIES MEDIA OBJECTIVES REACH: Reach the target audience during the period of highest buying decision to include back to school, holidays and spring break and increase awareness of Kmart’s SYW loyalty program within the target market by 30% by June 1, 2014. FREQUENCY: Broadcast advertising seasonal during The Voice. Social media feeds weekly. Print advertising will coincide with broadcast. Initial advertising will be heavy in September, tapering off during the remainder of the year with the exception of social media, which will be consistent. ALLOCATION: Media to be weighted 40% in September, 10% in December, 20% in January, and 30% in May. MEDIA STRATEGY Use a combination of broadcast (television), social (Facebook, Twitter, YouTube, Google AdWords and Facebook advertising) and print (magazines) media to reach the target market. MEDIA TACTICS Targeting females between the ages of 18 and 45 through broadcast, social media, and magazines will allow Kmart to promote their SYW loyalty program. This group relies heavily on social media for decision making and opinion sharing amongst friends, which is why the social media and internet advertising will target them well. The magazines chosen for advertising are focused on popular culture and style. Advertisements in each medium will be designed to show SYW as a convenient, one stop shopping website where they can find stylish clothing, accessories and body care products branded by well-known celebrities such as Adam Levine. Television advertising will run during The Voice to associate the SYW program with Adam Levine. Contestants on Team Adam will wear items from Adam Levine’s collection and social media updates will be displayed on screen during select broadcasts. Videos will be created featuring Adam Levine as a personal shopper for contestants and posted on Facebook and YouTube with Twitter feeds to direct visitors to the SYW website where they have to register or log in to view additional videos. Google AdWords will be utilized with a $100 per day budget for the initial launch in September through the end of the campaign. This method will better identify how the target audience searches for products available through SYW. They rely on social media to request and share opinions from I M C P l a n P a g e | 16 peers about items being purchased; therefore, placing advertising on Facebook will be likely to reach a high number of the target market. Social media use and advertisements will be phased in over the period of September 1, 2013 to July 1, 2014. Accounts on Facebook, Twitter, YouTube, Instagram, and Pinterest will be created, if needed, and monitored to distribute information on behalf of Adam Levine. The SYW program will update members about sales on similar items previously purchased, notify about upcoming reward levels, and offer sweepstakes for opportunities to win autographed items and VIP concert tickets. The three magazines selected for print media are People, Us Weekly, and InStyle. The demographic profile of People readers shows that the median female age is 43 and the median household income is $68,000. 13 The demographic profile of Us Weekly female readers’ median age is 35 and median household income is $71,000. 14 The median age for InStyle Magazine female readers is 38 and household income is $80,000. 15 The median age for these magazines represents the mothers of the teenagers also being targeted with this campaign; therefore focusing the campaign around the clothing line from Adam Levine will appeal the full range of the target audience. Specific issues will be selected to tie in to promotions for The Voice, The Grammys, Sexiest Man and Most Beautiful (provided Adam Levine is chosen). Digital versions of ads will be available on websites for the publications with links directing visitors to SYW. All communication channels will link back to the SYW page which will have enough content and activity to keep interest. ESTIMATED BUDGET Medium Google Ad Words TV Ad Production Video Production Print Ads Social Media Ads 13 Plan Cost $100/day for 300 days $30,000 :30 ads during The Voice $500,000 3 minute video $250,000 10 ½ page ads in People $3,000,000 12 ½ page ads in Us Weekly $1,400.000 4 ½ page ads in InStyle $450,000 Facebook, Twitter, etc. $3,000 Total Estimated Expenses $5,183,000 People Magazine Media Kit. (2013). People [Media Kit]. Retrieved July 22, 2013 from http://www.people.com/people/static/mediakit/ 14 Us Weekly Magazine Media Kit. (2013). Us Weekly [Media Kit]. Retrieved July 22, 2013 from http://srds.com/mediakits/UsWeekly-print/. 15 InStyle Magazine Media Kit. (2013). InStyle [Media Kit]. Retrieved July 22, 2013 from http://www.instyle.com/instyle/static/advertising/mediakit/instyle/ (Source) (Google, 2013) (Steinberg, 2012) none (People, 2013) (Us Weekly, 2013) (InStyle, 2013) (Qwaya, 2013) I M C P l a n P a g e | 17 FLOW CHART I M C P l a n P a g e | 18 PUBLIC RELATIONS OBJECTIVES AND STRATEGIES PR OBJECTIVES Create mass media exposure through ten million media impressions for Kmart and their SYW website through release of clothing line designed by pop star, Adam Levine. As a result of mass media exposure, in store and online sales increase not only of the Adam Levine clothing line but other items available from Kmart and Sears. PR STRATEGY TARGET AUDIENCES: Primary audience: Females aged 18-28 who are fans of Maroon 5, The Voice, and American Idol. Secondary audience: Females aged 30 to 45, with emphasis on the mothers of the primary audience. KEY TARGET MEDIA: Lifestyle print publications, radio talk shows, morning TV talk shows, television and radio entertainment news, Twitter, YouTube, and Facebook. All communication channels will link back to the SYW page which will have enough content and activity to keep media interested in promoting the story of Adam Levine as a designer and partner with Kmart. Capitalize on the popularity of Adam Levine, Maroon 5 and The Voice by directing fans to SYW website to shop for clothing. Public appearances by Team Adam contestants wearing clothing from Adam Levine’s collection at Kmart and The Grammy’s will be scheduled and promoted using Twitter and Facebook for the press to cover. Adam Levine to be scheduled on national television shows his designs and direct people to join SYW to access exclusive information about the collection and shop. Local news stations will pick up on the stories to promote local appearances. Stories and photos from appearances will be shared with entertainment news magazines with tie in to SYW website and social media sweepstakes. Specific issues will be selected to tie in to promotions for The Voice, The Grammys, Sexiest Man and Most Beautiful (provided Adam Levine is chosen). Digital versions of ads will be available on websites for the publications with links directing visitors to SYW. Twitter feeds will direct members of SYW to view videos of Adam Levine as a personal shopper. Contests sponsored by Kmart and SYW will be created on Facebook to “like” their pages for a chance to win VIP tickets to Maroon 5 concerts. I M C P l a n P a g e | 19 PR TACTICS Create contests sponsored by Kmart – be a stylist for Adam Levine for the day, be a stylist for Team Adam finalist, win VIP tickets to Maroon 5 show, and be a runner on The Voice. Schedule interviews for Adam Levine to promote clothing line with Today Show, Jay Leno, Late Night with Jimmy Fallon, and morning news shows on NBC affiliates in Top 10 media markets. Provided he is featured in People’s Sexiest and Most Beautiful issues schedule interviews for Adam Levine. Promote Adam in Sexiest and/or Most Beautiful issues through social media channels with tie in to his SYW page. Promote Adam Levine Personal Shopper videos on YouTube through social media channels and lead in to scheduled interviews. Schedule interviews for Team Adam to wear clothing by Adam Levine the following week after Adam Levine to keep momentum of interest by media. Schedule appearances with Saturday Night Live, Fashion Star and the Grammys for Adam Levine to promote clothing line and SYW. Schedule appearances for Team Adam in Kmart in Top 10 media markets. Create content for social media sites to post as Adam Levine and Team Adam on Facebook, Twitter, Pinterest and Instagram. Distribute press releases to promote contests and appearances for Adam Levine, Team Adam and Kmart through social media, NBC and its affiliates, and People, In Style and US Weekly magazines. I M C P l a n P a g e | 20 DIRECT MARKETING IDEAS DIRECT MARKETING & SALES PROMOTION OBJECTIVES Target specific audience of female shoppers aged 18 to 45 beginning in September and ending in May. Sales through SYM exceeded 60% of transactions in 2012. 16 It is the goal of this plan to continue this trend by increasing sales of the products featured in promotions by 40% through SYW website during the promotional run. Build database of prospective shoppers through SYW loyalty program membership. This will help identify shopper segments. The ongoing management of this database will allow for stimulus of repeat purchases and cross sell opportunities through promotions, membership discounts, direct mail, and contest sign ups. Increase followers on Facebook, Twitter, Instagram and Pinterest by 60% during the promotional run through contests, promotional offers, and contests. Increase membership in SYW loyalty program by 30% during the promotional run. DIRECT MARKETING & SALES PROMOTION STRATEGY In conjunction with our PR plan, we will capitalize on the popularity of Adam Levine and his partnership with SYW by creating consumer-oriented promotional offers featuring his products and music. Promotions will be heavier during select times of the year to coincide with media coverage during The Voice, People’s Most Beautiful and Sexiest issues, and The Grammys. In all media promotion there will be direction to the SYW website for contest information, promotional offers, event announcements, and so on. These promotions will be distributed to the consumer through the use of targeted direct marketing in the form of direct mail using the existing database of Sears, Kmart, and Land’s End customers. Email blasts will be sent to registered members of the SYW website. It is recommended to also use the database from Amazon.com if available. Social media outlets will promote offers Facebook and Twitter. Print media will feature the SYW loyalty program and contests for its members. TV spots featuring Adam Levine as a personal shopper will be created and broadcast on NBC and social media channels. 16 Sears Holdings 2012 Annual Report. (2013, February 2). In Sears Holdings. Retrieved July 22, 2013 from http://www.searsholdings.com/invest/docs/SHC_2012_Form_10K.pdf#pagemode=thumbs&page=1&zoom=100,0,0. I M C P l a n P a g e | 21 In store promotions at Kmart will be used to encourage participation in SYW. These offers will be also distributed through the media in our PR plan. All promotions are designed to grow the database for Kmart with like-minded consumers who are more likely to return to the SYW website, retail locations, and share with friends of similar disposition. Advertising to this audience will expand its reach exponentially. I M C P l a n P a g e | 22 SALES PROMOTION IDEAS SAMPLING: Samples of perfume and cologne created by Adam Levine available in Kmart stores and as bonus to purchases made through SYW. This will increase traffic to and purchases from Kmart and SYW website. PREMIUM OFFERS: Provide Maroon 5 music downloads from the SYW website. This will provide additional entries in the target audience database for continued promotion of the Adam Levine collection to fans of his music. CONTESTS AND SWEEPSTAKES The following contests will be promoted through the SYW website, Facebook, Twitter, email blasts and direct mail to registered followers of these channels. The goal is to increase traffic to the SYW website where consumers must register first to have access to these promotions, thereby adding to the database of the target audience for additional marketing opportunities. Submit design ideas through the SYW website for the chance to win an autographed guitar from Maroon 5 Win a complete wardrobe from Adam Levine’s collection Be a stylist for Adam Levine for the day Be a stylist for Team Adam finalist Win VIP tickets to Maroon 5 show Be a runner on The Voice PRICE-OFF DEALS Throw Back Thursday Blue Light Specials in all Kmart locations to attract females in their 40s who will recall previous Blue Light Specials with nostalgia and visit the stores to share the experience with their families. Discounts will be made available on select Adam Levine items, as well as other items in the stores at the discretion of the manager to move merchandise slated for clearance. I M C P l a n P a g e | 23 LOYALTY PROGRAMS The SYW Loyalty program will expand its membership through the promotion of contests and sale items only available to registered members. The growth of this database will ensure that Kmart will have a dedicated list of targeted consumers to continue marketing not only its merchandise but providing word of mouth by offering additional entries for contests and loyalty points for sharing the SYW with friends. EVENT SPONSORSHIP Create Runway Events at Kmart locations in Top 10 markets featuring the Adam Levine Collection and hosted by Team Adam contestants to encourage attendance by the target audience and sales of items from the collection, as well as keep the consumer in the store to shop beyond the event. I M C P l a n P a g e | 24 MEASUREMENT AND EVALUATION PLAN The objectives in this IMC plan all revolve around two basic elements: increasing sales and increasing interest, both in the brick and mortar stores as well as online. These elements are the measurable criteria on which the plan will be evaluated. There will be testing throughout the year to gather information about the specific aspects of the plan as well as pre- and post-testing to evaluate the plan as a whole. The measurement and evaluation plan will include a variety of methods and will gather both qualitative and quantitative data. As a pretest, Kmart will gather people into focus groups to show rough art, copy and commercial testing from the campaign as well as the direct marketing and sales promotion ideas to collect feedback. Is the message clear? Do the direct marketing and sales promotions motivate the consumer to shop with Kmart? Which ideas are preferred? This data will be primarily qualitative. Intercept surveys will be used after purchases, with links to online surveys being printed on the cash register receipts and emailed to SYW loyalty club members. The questions will focus primarily on why the consumer visited the store that day, how soon they plan on returning, how content they are with various aspects of the shopping experience, and how likely they are to recommend the experience to friends. The data collected through this method will also be primarily qualitative. Social media metrics will be used throughout the campaign. Measuring the reach, engagement, acquisition, and retention of consumers will be particularly useful given that a majority of the campaign will be delivered using social media channels like Facebook, Twitter, Instagram and Pinterest. Not only with the data collected provide insight into who the consumer is, but how many of them exist and where they are. In all three examples the following questions will be answered: How fast did that fan or follower move through the sales funnel? How much money did they spend? How often did they return? How active are they in sharing the message? This will allow Kmart to make any necessary adjustments to future campaigns. I M C P l a n P a g e | 25 CONCLUSION A true integrated marketing communications plan is the development of marketing strategies and creative campaigns that weave together multiple marketing disciplines such as paid advertising, public relations, promotion, and social media that are selected and then executed to suit the particular goals of the brand. This plan integrates all forms of external contact into one message that will help Kmart grow over the course of the period between September 2013 and June, 2014. The objectives included in this plan can be efficiently measured and the tactics are well researched, thought out methods to improve the branding and positioning of the company. Objectives and tactics have been designed to fall in line with Kmart’s mission and values. Many of the strategies to be implemented accomplish more than one goal, making the plan more cost efficient. 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