Kmart names agency to target African-Americans - Burrell Advertising

Discount Store News, July 22, 1991

Kmart Names Agency to Target African-Americans

TROY, Mich. -- In another step in its continuing trend toward niche marketing and identification of core consumer groups, Kmart has appointed Chicago-based Burrell Advertising as its agency for the African-American market.

According to Kmart vice president of advertising Gerald Habeck, Burrell "brings a high level of expertise in focusing Kmart's advertising toward the African-American consumer market, which is very important to our future growth."

Habeck said the search for an agency with expertise in the Hispanic market continues, and one is expected to be named "early next year."

Burrell, which was founded in 1971 and expects to bill $59 million this year, has other key accounts for which it develops advertising campaigns and programs aimed at African-Americans. They include Coca - Cola, McDonald's, Procter & Gamble, Ford, Polaroid, Stroh's and Quaker Oats.

"We are pleased to be a part of the Kmart team," Burrell's president and chief operating officer Charles Curry said. "This relationship underscores Kmart's commitment to addressing the needs of this large and growing consumer segment. We look forward to working with Kmart to further establish the discounter as providing the preferred shopping experience for all of their customers."

Burrell is a full-line agency, and initial plans call for the company to produce print, radio and television advertising, as well as supervise media buying, according to spokeswoman Leslie Cole.

Bill Parker, Kmart vice president of sales, marketing and promotion, discussed the company's marketing strategy in an interview last fall in which he foreshadowed the addition of Burrell.

"Kmart is changing rapidly, but the customer's perception of us isn't changing as quickly," he said. "The organization must be nimble, quick and responsive to the marketplace."

In large part, that responsiveness is meant to address various core constituencies in Kmart's consumer base. "We look at how we can best serve the black consumer, the hispanic consumer," Parker added. "We're putting in large print signage for older shoppers and expanding handicapped parking. Most of all, we're trying to signal a cultural change to all of our customers."

PHOTO : Bill Parker, Kmart vp sales, marketing and promotion.