Bic, the pen company, has ignored newsagents with their latest TV advertising. Their Brand Power ads promote supermarkets. Newsagents have been tremendous supporters of Bic. It is a pity the company did not return the favour and promote our channel when deciding where to place their marketing dollars. See the Bic advertisements at the Brand Power website.
Took a look at the site and it all makes sense to me now, its just not Bic its various other products who are and will be using this kind of advertising method, its not traditional and it looks like its aimed at the big supermarket chains etc. I copied a bit of what this kind of advertising means.
Why Brand Power?
What makes Brand Power appealing to manufacturers and their advertising agencies is its ability to provide detailed explanation to shoppers. In particular, Brand Power draws shoppers’ attention to facts that weren’t previously known. We like to think that Brand Power treats shoppers with respect by providing useful information that helps when it comes time to decide which product to take from the supermarket shelf.
Who is behind Brand Power?
Brand Power is an advertising service owned by Buchanan Group. Buchanan Group also has created other Informative advertising services. They are Infotalk, Great Chef’s Show You How, MediFacts and Zoot Review. Each of these advertising services sets out to provide viewers with information to help them make purchase decisions across a variety of product categories.
Once again it is small business and in this case Newsagencies that are taken for granted and cheated of customers therefore upsells and the list goes on.
It is right that Mark and Jarryd and the many others who I see contribute to this site be ever so proactive, be non traditional and find ways to compete, it is hard enough to compete with the big bullies like supermarkets but its a kick in the teeth from the suppliers because of this type of biased advertising.
If it is true that Newsagencies buy from a group called GNS it is now a good opportunity now no yesterday to do a thorough and rapid review of the whole operations independently I suspect to maximise exposure and maximise relationships with the Newsagency channel, hard decisions have to be made, just look at what Australia Post distributes in letter boxes and Newsapapers in advertising, unity means going forward, something has to be done to get Newsagents in peoples minds beside buying lotto etc. The question is who and how in unity.
Just a quick add to my above post, some suggest there are 4500 actual newsagencies.
Lets say there are 800 Government owned post offices. They as a “group” buy as one “group” government owned or not.
The same as Supermarkets, they buy as one group.
It is beyond me that 4500 newsagencies cannot get it.
Derek,
Supermarkets don’t buy as one group much more than newsagencies. Nearly all supermarkets buy from the Metcash warehouse, just as newarly all newsagencies buy from the GNS warehouse.
Buying power and specials come from the marketing groups (of which there are a nuber). They do direct deals with suppliers and from this also get rebates that fund the marketing group itslef. They are able to do such deals because the marketing groups provide a level of consistancy – consistancy that can’t be achieved with just a buying group.
But supermarket retailers are a much less submissive bunch than newsagents. They learned that to be treated like business people they had to act like business people – the change in mindset has payed off significantly.
Thanks Jarryd, the mindset quote was most appropriate! would or does GNS do marketing, for example I get as we all get the Aust Post catalogue, office works etc in the letterbox or inserted in the paper.
If Newsagencies buy from GNS I am wondering why I have never seen (please correct me if I am wrong) a GNS marketing flyer directing them to Newsagencies. To me it is obvious there is an opportunity to highlight and remind them of the Newsagency channel by doing this.
In NSW there are brochures you can order from GNS especially during back-to-school,mid-yr that you can use for letter-drops. they are specials available which you can get at promotional prices from GNS.
I presume it’s the same for all other states.
Derek,
Helen is right. GNS do produce brochures. Unfortunatly its not the right approach.
GNS is a warehouse – it can’t controll consistency amongst stores. Marketing groups (if they do things right) can get a level of consistency. Suppliers are far more willing to work with marketing groups for this reason.
Metcash (and I emphasise this this point) never ever do marketing.
Thanks guys, it is good that they are availiable and I am sure some newsagencies do order and deliver in their areas, at least the Newsagent gets a look in but unfourtunately I dont think it is a common practice. I am sure people use the GNS brochures and slip it into the local & home delivery papers.
I am purposely challenging the Newsagency channel in this thread and i am sure you know what I am trying to get at.
I guess you must start in small steps for example I am sure NewsXpress have or are trying to as a group get a consistant price via a trade agreement or similar for all their stores.
My comments are only born front reading with frustration how competitors are “out there” exposing their product and in the Newsagency stationary product areaI think they are not “out there” I am sure there maybe people who disagree with me.
Jarryd sound as you really know first hand about Metcash…….
Derek keep challenge. Debate is healthy. We get dudded and we go back for more and more. We are our own worst enemy. Mark
Derek,
Im been involved in the independant supermarket industry (directy and indirectly) over the past 5 or 6 years. I find it valuable (and more often than not frustrating) to experience the differences between the two industries first hand.