Kenny’s Cardiology yesterday sent an email to some newsagents encouraging them to rebrand their business as Kenny’s Cardiology as a solution to crisis. I’m not sure how many newsagents were sent the email – I received copies from several newsagents. It was an odd communication to get out of the blue from a company not in direct regular communication with newsagents.
Kenny’s Cardiology is using fear in their brochure by including headlines like BREAKING NEWS: DON’T LOSE YOUR BUSINESS, UNDER THREAT and GOING OUT OF BUSINESS. The brochure claims that the solution to what they label as a crisis is to rebrand as Kenny’s Cardiology.
The brochure also runs some headlines about digital print, lotto moving online, newspaper sales declining and while these things may be true, many newsagents are responding to these challenges by embracing them as opportunities for change.
I wonder if one motivation for the Kenny’s promotion to newsagents is that there are some newsagents doing well in the gift space Kenny’s has occupied for many years. I don’t include cards there since newsagents sell more cards than any other channel. It’s possible that newsagents who have moved into the gift space have taken sales from Kenny’s. If that’s the case this campaign from Kenny’s could be their way of fighting back, addressing, maybe and I am only speculating here, a crisis for them or some of their branded stores.
Think about it, newsagents account for considerably more gift sales today that even three or four years ago. Some of the gift sales have been won from other retailers, maybe some from Kenny’s stores.
The brochure says that rebranding as Kenny’s Cardiology would give newsagents – the brochure is squarely aimed at newsagents – brand recognition and card and gift credibility. Many newsagents have card and gift credibility today. As I have noted here over the years there are many newsagents doing excellent business with gifts and cards already and achieving great year on year growth.
Newsagents wanting to research Kenny’s can find out more at their website.
Footnote: I am a Director of newsagency marketing group newsXpress. I mention this as the pitch from Kenny’s appears to place them in the newsagency marketing group space, competing with Newspower, nextra, news extra and newsXpress.
Talk about “The Pot calling the Kettle Black” from where I sit Kenny’s Cardiology seem to be the model in crisis, they must be really desperate to try and keep their model going, their stores from a customer perspective seem to have lost their way over the last couple of years. Maybe they are worried by seeing the success of Newsagents increasing their Gift space, doing it better and driving better deals with suppliers. If I was looking a Kenny’s franchise this type of desperate plea would certainly make me think twice about their head-office vision for growing sales into the future.
They’re still around? Used to be in a ton of Westfields – thought they had crashed. Plot thickens…
We got this email and my first thought is that it would be detrimental to a newsagents core lines. Foot traffic walking past a Kennys is not going to think to pop in for a paper, a magazine, a lotto ticket.
Ken the group fell on hard times and was purchased a couple of years ago by the current franchisors.
Ken I agree I remember a couple of years ago when Kenny’s Cardiology branched into New Zealand from memory they had around 50 stores. I think they are rapidly declining and would be lucky to have 20 stores in Australia now. That is what I would call a crisis.
looks like they are aiming at the customer awarness of their brand which could increase the lines you mention in newsagency of the future strategy
never heard of them, sounded like a medical clinic before I clicked the link.
Good, fair and honest blog Mark.
And I’m just going to be the persnickety one who points out their spelling mistake: “don’t LOOSE your business” instead of LOSE. They’ve got a good eye for detail then!
Hey Megan don’t check my blog posts as I make plenty of spelling mistakes. hehe.
Sounds to me like card/gift shops might be in a bit more trouble than newsagencies are.
Surely the very people they are targeting (the ones who can’t get their business to grow, change etc) are the very people they wouldn’t want trading under their brand name?
Fear marketing is an interesting one. Brand marketers have been doing it successfully for years (fight the 7 signs of ageing for example). Create the fear and sell the solution.
My Mum used to be regular shopper at Kenny’s Cardiology years ago and has many fond memories of their stores when they were in their prime. It is sad that these stores have lost their way and appeal over the last couple of years. I guess in a small way she and others like her are responsible for their decline as she now buys her cards and small gifts from her local Newsagency, which has certainly revitalized their card and gift section. I suppose the lesson to be learned is been able to adapt with the changing times.
There seems to be a smell here that’s going to outlast religion.
I’m not against Kenny’s inviting newsagents to join them, my issue is with the negativity of their material. It kind of makes them look scared.
Mark – I do notice the typos in your blog posts, but I put them down to trying to blog on an undersized keyboard and screen – from a phone or iPad. The Kenny’s flyer looks like it has been thrown together by the company receptionist, who has no idea about graphic design and doesn’t know how to proofread. Not good enough for marketing collateral that is designed to attract potential new business. To me, it looks amateurish and does the opposite of inspiring confidence in the Kenny’s brand.
today asked customers if they heard of Kennys Cardiology and was surprised that most of them knew of that brand,those then said good things so i am going to seriously consider whats on offer
I agree very negative advertising that does not good for them at all. I am selling more than $100,000 in gifts a year now and reckon I will grow this by $20,000 at least this year. I suspect kennys want newsagents to replace what they have lost.