KMART, WB MAKE MARKETING CONNECTION
BRANDWEEK.com, May 20, 2004
By Sandra O'Loughlin

NEW YORK -- Kmart and the WB Television Network, a unit of Time Warner,
have partnered in an integrated marketing campaign to launch five new Kmart fall
apparel collections and the WB's new season of shows.

TV, print, newspaper, online, outdoor, a sweepstakes, spot radio buys and in-
store promos featuring TV talent will support the effort. Creative is being
developed by Grey Worldwide, New York. Budget is estimated at $25-$30
million. The campaign will break July 25 and run through Sept. 16, during the
critical back-to-school buying period.

More than a dozen celebrities from returning shows "7th Heaven," "One Tree Hill"
and "Reba" and new shows "Summerland" (set to debut June 1) and "Blue Collar
TV" (to launch in August), will wear Kmart apparel in the retailer's back-to-school
TV campaign and in multiple episodes of the participating shows. The Thalia
apparel collection will be shown on "One Tree Hill;" Route 66 on "7th Heaven and
"Reba;" Joe Boxer on "Blue Collar TV;" Athletech on "Summerland;" and Gear 7
on "One Tree Hill." Kmart will receive a call-out during commercial breaks.

"This is a barter deal," said a Kmart rep. "Kmart gets its fashions on the
celebrities and the shows and the callout, and WB gets exposure to Kmart's two
million daily customers. WB is recognized for its younger demo, which is a
perfect match for Kmart's clothing lines and the Kmart brand."

The bulk of the media buy will spent outside of Time Warner properties. Outdoor
billboards will appear in Times Square in New York and Sunset Strip in Los
Angeles. In addition, Kmart and WB will jointly sponsor a "Look the part, get the
yart" contest in all Kmart stores. Contestants can submit photos of themselves
wearing apparel featured in the campaign to win a trip to Hollywood for a walk-on
role on WB this fall.


* Kobin Enterprises Ltd., in association with Grey Worldwide/Mediacom, created this deal for Kmart.

	WB Actors to Wear Kmart Fashions Campaign Ties Network And Retailer in Struggle For Ratings and Hipness THE WALL STREET JOURNAL, WSJ.com, May 20, 2004 By Brian Steinberg - Staff Reporter of THE WALL STREET JOURNAL Discount retailer Kmart wants to cash in on the WB network’s image as tastemaker for hip teens and cool young adults. Kmart Holding and the WB, a unit of Time Warner, are teaming up on a promotional campaign in which actors on several of WB programs will wear Kmart apparel in some episodes. The programs featuring Kmart apparel include "7th Heaven," "Reba" and "One Tree Hill." Both the WB and Kmart have something to fight for, Kmart, which recently emerged from bankruptcy protection, wants to boost proprietary clothing lines, which it says can help drive profitable sales and distinguish it from rivals. WB has had a disappointing season, as the once-hot network suffered sharp ratings declines. The network hopes to get more attention for its new program lineup – without spending too much money. The WB typically spends one-fourth to one-third of its marketing budget promoting its fall lineup, although it won’t disclose the size of its marketing budget. Part of the promotion is an extensive ad campaign, created by Grey Global Group’s Grey Worldwide, featuring WB actors getting dressed and heading out for fun. Ads will run on TV, in magazines, on billboards and movie screens and in promotions within Kmart stores. Kmart is spending between $25 million and $30 million on media for the campaign, according to a person familiar with the matter. The ad effort is expected to start around July 25 and last through Sept. 16. “The Kmart brand definitely needs to be revitalized,” says Paul Guyardo, Kmart Holding’s chief marketing officer. “This is our first bold move into the fashion business,” he adds. But it also isn’t Kmart’s first attempt at a TV tie-in, either. In 1989, the retailer developed a program with CBS to promote its fall schedule. Critics hooted that the upper-crust “Tiffany” network didn’t mix with middle-America Kmart. WB has built a following among younger people with programs that target 18-to-34-year-olds, whereas the big broadcast TV networks usually target a broader audience of 18-to-49-year-olds. Kmart may face an uphill struggle trying to win over younger people. “I shop there for things like outdoor stuff for the summer, but probably not clothes. Maybe if I were going to get jogging pants,” says Alana Rice, 26, who works in jewelry sales in Oceanside, N.Y., adding that she’s more of a Gap shopper. Using the right celebrities could motivate young consumers, according to a survey of employees under the age of 30 at Interpublic Group’s McCann WorldGroup conducted by TAG, a McCann unit specializing in marketing to young adults. Respondents were fond of established stars such as Brad Pitt, Jennifer Aniston, and Ashton Kutcher, among others. Initially, the WB was uncertain about Kmart’s fit, says Suzanne Kolb, the WB’s executive vice president of marketing. “We saw this as an opportunity to be with an entity that may not have been previously seen as hip and cool, and was going to reposition as being those types of things,” she says. “If we didn’t like the way our starts were going to look and the way the network was presented, we would have passed,” Ms. Kolb adds. The deal doesn’t call for Kmart to pay the WB any money above the cost of air time for commercials, says Mr. Guyardo. But it gives WB shows exposure on TV outlets owned outside the Time Warner family, including Walt Disney’s ABC and Viacom’s VH1. Neither Kmart nor WB expect there to be a problem getting rival networks to air ads featuring the WB’s fresh-faced stars. “Bart Simpson has been supporting Butterfingers for years, and everybody runs that,” says Ms. Kolb. * Kobin Enterprises Ltd. in association with Grey/Mediacom created this deal for Kmart.