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by Dan Perkins
A
lot of things are jingling this holiday season -
especially the cash registers at Kmart - thanks
in part to a "brother" who loves to dance
around in nothing but JOE BOXER underpants.
The young buff actor who boogies in Kmart's JOE BOXER
commercials is Vaughn Lowery, although he prefers
to use his first name only.
Vaughn's
BOXER dance is putting smiles on a lot of faces -
especially the faces of Kmart executives. With strong
appeal across broad demographics, Vaughn is one of the
faces of diversity in advertising today.
He first appeared in a Kmart commercial this
summer - in a spot called BOXER BOOGIE, which quickly
exploded into a pop phenomenon.
The
wildly successful commercials are compelling example of
how diversity can enable organizations to achieve their
strategic objectives. Any company considering ways to
strategically position diversity would do well to look
at how Kmart has embraced diversity and how that embrace
has bolstered company sales and strengthened its bottom
line.
Kmart
has seized upon the momentum of BOXER BOOGIE with two
holiday commercials featuring Vaughn and his boogie. The
first holiday commercial - called ANTLER BOOGIE - has
Vaughn and four women dancing and mimicking reindeer in
their JOE BOXER apparel.
The other commercial - called UNWRAP – features
Vaughn unwrapping a large gift box that conceals a very
special pair of JOE BOXER underpants.
The second spot is fun, but also the naughtiest
of the bunch. In
fact, the entire campaign has a "Oh, no they
didn't" quality to it, which is in keeping with the
JOE BOXER brand of marketing.
"Since
its inception, the JOE BOXER brand has always stood for
irreverent, fashionable fun," said Steve Feuling,
Senior Vice President of Marketing for Kmart Corporation.
"We are bringing that special feeling into
our advertising and, ultimately, into our stores with a
brand that has something fun for everyone."
Vaughn's
success is an example of the ripple effect that can
occur when an individual with the right stuff is in the
right place, at the right time.
The magical alignment has yielded winning
scenarios for Vaughn, Kmart and JOE BOXER. But the
picture hasn't always been so bright for Kmart.
The success of the JOE BOXER commercials is a
high point
in Kmart's yearlong effort to rise out of Chapter 11
Bankruptcy.
A
YEARLONG RECOVERY
In
many ways, Kmart's JOE BOXER commercials embody the
company's twin approach to rebuilding - through
partnerships and an embrace of diversity.
Despite bankruptcy, Kmart continues to establish
brand awareness through strategic partnerships with key
vendors including JOE BOXER.
On the diversity front, Kmart employs creative
talent within minority communities to help develop and
execute marketing campaigns - Vaughn is a compelling
example of that talent.
In addition to this approach, Kmart is serious
about honoring the exceptional loyalty of minority
consumers.
In
the aftermath of September 11th, Kmart experienced a
disappointing fourth quarter that depleted it of cash
needed to meet operating expenses.
The company was also buffeted by intense
competition from rivals in the discount retailing
industry. Adding
to Kmart's misery was a continuing recession, volatility
in capital markets, and erosion of supplier
confidence.
On
January 22, 2002
, Kmart Corporation and 37 of its
U.S.
subsidiaries filed voluntary petitions for
reorganization under Chapter 11 of the U.S. Bankruptcy
Code. The
company stated that it would reorganize on a fast-track
basis and get out of Chapter 11 in 2003.
Within a week of the filing, the company received
interim court approval for a $2 billion
debtor-in-possession credit facility and assurances from
many of its key vendors to deliver merchandise under
normal terms. These
developments enabled Kmart to continue operating without
disruption.
Restructuring
with Minorities in Mind
By
February of 2002, Kmart had reorganized its store
operations and field organizations, and unveiled its new
corporate branding campaign - "Kmart.
The Stuff of Life."
The
new corporate campaign debuted February 24th
during the closing ceremonies of the Olympic Games, and
it continues to tell consumers that Kmart is "The
Store That Understands What Matters in Life."
Kmart's agency of record, TBWA\Chiat\Day of New
York, produced the initial supporting television
commercials. Spike Lee directed them
through his 40 Acres and a Mule Filmworks
production company.
Kmart
was one of the first retailers to seek an African
American director to develop the look of its national
campaign.
Kmart's
campaign emphasizes family, values money, and stresses
practicality in an attempt to position Kmart stores as
places where consumers can purchase their daily
"needs" and still satisfy their
"wants" with top-name and exclusive brands.
Kmart’s
intent was to target those who were already favorably
predisposed to its brand.
Extensive research - designed to determine who
Kmart shoppers are and what they value in their lives
– revealed that minorities not only make up a
significant portion of Kmart's consumer base, but they
are loyal as well. "Our research showed that our
African American and Hispanic shoppers are among Kmart's
most-loyal customers," declared Feuling.
"It is especially important for us to
strengthen the emotional bonds with these critical
shoppers," he noted. African American and Hispanic
shoppers reportedly account for 32-percent of the nearly
30 million people who shop at Kmart each week.
March
2002 brought more promising changes to Kmart.
The company closed 283 stores in 40 states, and
appointed and promoted several senior officers to help
guide it through the reorganization.
Kmart also received court approval to assume its
licensing agreement with several key brand partners
including Martha Stewart Everday®, Jaclyn
Smith®, Kathy Ireland®,
Disney and JOE BOXER®.
At
the end of March, Kmart launched its multicultural
advertising campaign - aimed at African American and
Hispanic shoppers. The
campaign consisted of radio and television commercials
featuring original music by Chaka Khan, BeBe
Winans, and Jose Feliciano.
Kmart's multicultural advertising agency of
record, Don Coleman Advertising (DCA) developed
the campaign. DCA
develops corporate brand campaigns targeting both the
African American and Hispanic markets.
"With our exclusive brands, value pricing
and store locations, no mass discount retailer can match
Kmart's reach and appeal to the multicultural
marketplace," said Feuling.
Kmart's
Partner Adds a Little Fun
In
the second half of 2002, Kmart concentrated on
increasing sales and reducing costs. The company looked
to the critical "back-to-school" season to
provide ivital information and higher sales.
In July, Kmart's Chairman and Chief Executive
Office, James B. Adamson, said, "We believe the
information we gain from this year's back-to-school and
holiday season will be invaluable as we develop a
long-term strategic business plan and plan of
reorganization for Kmart."
The next day, Kmart unveiled new advertising
dedicated to back-to-school shopping and the company's
newest exclusive brand, JOE BOXER.
Kmart's
partnership with JOE BOXER - a wholly owned division of Windsong
Allegiance Group – was officially announced in
2001. The partnership is a long-term commitment that
reportedly holds exciting growth potential for both
companies.
The
JOE BOXER brand includes apparel, accessories and
footwear for the whole family, plus fun home furnishings
for the students returning to school.
"Our relationship with Kmart allows JOE
BOXER to finally realize its true potential as one of
America
's leading lifestyle brands," said Nicholas
Graham, JOE BOXER Founder and Chief Underpants Officer .
"The prices, quality and value developed by
Kmart, combined with the JOE BOXER sensibility of humor
and great design, will let the consumer literally laugh
all the way to the check-out registers."
A
multi-faceted media campaign including television, print
and direct mail supported the JOE BOXER launch.
A series of four television commercials began
airing July 28th on primetime, syndicated and cable
television programming.
TBWA\Chiat\Day of New York produced the
commercials - one of which featured Vaughn, who is
personally responsible for creating the now famous
"Boxer Boogie."
Vaughn's
exuberant little dance was the most memorable of the
four spots, and he is now the icon of the JOE BOXER
campaign. According
to Dave Karracker, Director of Marketing
Communications for Kmart, the "Boxer
Boogie" commercials constitute one of the company's
most successful campaigns. The dance itself has evolved
into a sensation, which Vaughn calls "Boogie
Mania."
HATS
OFF TO AN ENTERPRISING ACTOR
Vaughn
Lowery deserves credit for having considerable marketing
savvy at such a young age.
He not only authored the "Boxer
Boogie," he also developed a website (www.aboutvaughn.com)
where fans can access his personal information and see
the three commercials that feature him doing various
"boogies" in JOE BOXER apparel.
The website, which claimed to have over 150,000
hits as of December 2002, constitutes a triple win for
Vaughn, Kmart and JOE BOXER.
As
the year 2002 winds down, it is exciting to report on
how the creative talents and loyalty of minorities are
enabling Kmart - a $32 billion corporation to rise from
bankruptcy. Adding
to that excitement is the fact that an African American
male used his wit and charm to lead a highly successful
national marketing campaign.
The
next time an executive questions their organization's
need for a diversity program, he or she had better be
prepared for the answer, which just might come in the
form of someone dropping their pants and dancing their
own version of the "Boxer Boogie."
THE
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