The work is the first to come out of agency DDB Melbourne, which was appointed to help market the troubled operator in the middle of this year.
Change has been on the cards for Kmart since last year when its advertising review first began as part of a widespread review of the non-food operations of parent Cole Myer.
For many years prior, the Kmart assignment had been in the hands of Cordiant Communications-owned Ad Town.
The new look is built around an iconic branding device of a pair of scissors and a perforated line, symbolising Kmart's commitment to slashing prices.
The television, press, billboard, catalogue and internet ads carry the tagline: 'Cutting the cost of living'.
The campaign - part of Kmart's annual $20 million spend (about US$10.9 million) - is intended to convey an understanding of Australian families and their values, such as the importance of family life and value for money. The advertising is pitched to highlight how Kmart fits into its customers' lives.
Kmart managing director, Hani Zayadi, said the new campaign actively promoted Kmart's business strategy to reduce costs within the business and pass on lower prices to customers.
"We have lowered our prices significantly over the past year and we are seeing a positive response from our customers to the changes, Zayadi said.
"This campaign is focused on telling our customers that Kmart offers the lowest prices on an extensive range of known brands."
Kmart is not the first big brand retailer to take the low price approach.
One of its competitors, Big W, launched a new campaign in July aimed at reinforcing its image of a low price, honest operator.
The Big W advertisements feature the company's staff celebrating over the savings they have made on their purchases while dancing around a Big W store.
