It's Kmart, with something extra - discount retailer's new low-price marketing strategy

Discount Store News, Nov 7, 1994 by Teresa Andrioli

TROY, MICH. -- As promised, Kmart's October circulars gave something "extra" to both consumers and manufacturers.

In the month prior, the No. 2 retailer announced its latest marketing strategy called "Low prices and Extras you won't find anywhere else."

In order to underprice the competition and offer consumers the freshest product possible, Kmart set out to encourage suppliers to come to Troy first with price breaks and new and innovative merchandise.

As part of an incentive to manufacturers, Kmart now rewards its most cooperative partners by spotlighting special products with a green, servicemarked "extras" label and by pasting a green frame around select photo boxes.

Floor care was a ripe testing ground earlier in the month. Kmart splashed an "extra" seal on a Bissell promotion in which a consumer could purchase a one-cent Bissell Featherweight electric vac when he or she bought a $139.99 Powerlifter carpet cleaner.

Similarly, Hoover got the green light in its offer to "buy a Steam Vac for $179.97 and get 64-fl.-oz. (bottle) of carpet cleaner for a penny."

Ladies' denim 3-in-1 jackets ($34.88), the Jurassic Park home video ($14.95), fine-gauge ladies' sweaters ($11.88), childrens' Mighty Morphin Power Rangers sneakers ($9.99) and a free emergency road kit with the purchase of four Michelin tires were other "extra" programs.

But the green box treatment doesn't exclude store brands and generic products. A bonus creamer and sugar bowl was granted with the purchase of Kmart's 16-piece "Lyrics" dinnerwear set. Also, a 16-oz. container of generic saline solution priced at 88 cents earned the big green "X."

Kmart's plethora of sweepstakes also falls under the "extra" umbrella. Positioned in the same green-margin box as $55.24 NFL Troy Aikman video game cartridge is a promotion for a trip for four to Super Bowl XXIX.

Another sweepstakes features a chance to see and meet country music singer Faith Hill in Orlando, or win six country music CDs, or an autographed Faith Hill CD.

The Faith Hill promotion was part of Kmart's Salute to the Country Music Awards, and was an interesting choice considering country music in general--and Hill's following in particular--may not necessarily be consistent in all the markets Kmart serves.