KMART'S TOP MARKETING OFFICER SACKED

Steve Feuling Managed TV Advertising Campaigns

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SAN FRANCISCO (AdAge.com) -- Steve Feuling, Kmart Corp.'s senior vice president for marketing, was terminated due to corporate
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downsizing, according to executives familiar with the situation.

Formerly chief marketing officer at Kmart's Bluelight.com in San Francisco during the dot-com boom, Mr. Feuling moved to the Chapter 11 retailer's Troy, Mich., headquarters in the fall of 2001.

A Kmart spokesman confirmed that Mr. Feuling's position "was eliminated." Reached by phone, Mr. Feuling declined to comment.

'Stuff of Life'
Most recently Mr. Feuling broke a branding campaign with TV work directed by Spike Lee under the "Stuff of Life" theme. He later oversaw the hiring of actor Vaughn Lowery, who dances in Kmart's ads for its line of Joe Boxer apparel. He also made a push for multicultural shoppers.

Mr. Feuling's duties, centered on TV advertising, are expected to be assigned to Barbara Firment, senior vice president for advertising, who had been in charge of print and in-store advertising.

TBWA/Chiat/Day
Mr. Feuling was the prime client for Omnicom Group's TBWA/Chiat/Day, New York.

Kmart, which announced it was closing 326 additional stores in January, launched a promotion earlier this month dubbed: "Savings Are Here to Stay" developed by its print production shop, Meridian, Troy, Mich., and designed to redirect customers to stores remaining open.

The discount chain, with a new CEO Julian Day, has told the courts it plans to complete reorganization on or about April 30 and remain a high-low retailer emphasizing its proprietary lines such as Joe Boxer and Martha Stewart.

Kmart spent $267 million in measured media during 2002, according to Taylor Nelson Sofres' CMR.

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