Target jazzes up promo attack; new marketing VP taps celebrities for store opening, special events - Target discount stores

Discount Store News, April 24, 1989

Target Jazzes up Promo Attack

MINNEAPOLIS -- Demonstrating the style of its new vice president for marketing, John Pellegrene, Target is using The Judds, a country music duo singing their hit song, "Shop Around," to promote the reopening of its former Gold Circle stores in the Southeast.

In addition, the $6 billion discounter will feature the name of Antarctic explorer Will Steger on a signature line of winter sports gear, much like K mart took on Martha Stewart for domestic products and Jaclyn Smith for apparel. Target is also co-sponsoring Steger's 1990 expedition to the Antarctic.

Among recent celebrity promotions, Target last month featured The Jets, an MCA recording group, in radio and TV spots (see apparel marketwatch, page 32). In a promotional tie-in, the seven singers in the group wore Gitano clothing in the TV spot, filmed in Hawaii to resemble a music video.

Last Christmas, Target featured rhythm and blues singer Aretha Franklin in its radio and TV spots (see DSN, Nov. 21, 1988, page 1). For print advertising, Target used Keshia Knight Pulliam, who plays Rudy on "The Cosby Show."

That is the kind of promotional image Pellegrene has been stamping on Target since he transferred nine months ago from its parent company, Dayton Hudson.

"I brought some new things," he acknowledged. "We're using a number of profile people and events."

Another of his promotional ideas was to create a brand new position in Target's advertising department, director of special events and publicity. Teresa Peterson, previously special events manager at D-H, came aboard last October.

To promote the grand reopening of 30 former Gold Circle stores in the Southeast, Target is using the country music of The Judds, mother and daughter, in a month-long campaign that breaks this week. They will sing their hit single, "Shop Around," in a series of nationwide radio and TV spots, with an emphasis on Target's new Southeast market. A photo of The Judds will appear on the cover of Target's April 30 circular, with a reach of 26 million readers.

Steger's name will appear on a line of outdoor equipment and winter apparel that Target is developing for its Greatland private label program. The high-end merchandise will include camping equipment, cross-country skis, polar fleecewear for boys and girls, Nordic-styled sweaters and snowjogger boots.

The line of some 100 products will make its debut in time for back-to-school, Pellegrene said. In August, Steger will begin promoting the line with a series of three TV spots. They will include footage shot at "The Homestead," Steger's training base in Ely, Minn. Target circulars will feature photos of Steger and other expedition members.

Beside using Steger's name on a new line of merchandise, Target is co-sponsoring his Antartic dog sled expedition set to mush off in July, 1990.

Steger, a native Minnesotan, will lead a team of five explorers in a six-month trek across the Antarctic to the South Pole. The men hail from France, Great Britain, China, Russia and Japan.

In addition to developing Steger merchandise, Target will produce the expedition's official grade school curriculum package designed to encourage youngsters to follow the expedition and learn more about the Antarctic region. Target will distribute the materials, including maps, to schools in all k0 states.

Target's use of The Judds, Steger, The Jets and Aretha Franklin underscores that the chain has skewed its ad outlays toward radio and TV at the expense of print.

In 1988, 20 percent to 25 percent of Target's ad outlays went for broadcast. That represents about a 35 percent increase from what it was three years ago, Pellegrene said. He declined to disclose Target's ad budget for 1989.

As of May 1, after Target reopens the 30 Gold Circle units, the chain will operate 379 stores. By October, store count will rise to 400 following the opening of 21 new units.

Sales in 1988 gained 19.9 percent to $6.3 billion from $5.3 billion, making Target the nation's third-largest discounter. Operating income increased 5.6 percent last year to $341 million from $323 million in 1987.

PHOTO : Ceo Charles White comes out swinging on opening day at K marths Sports Giant.