South Australian newsagents are being asked to run another Christmas promotion by News Corp. in addition to the promotion I mentioned yesterday. Customers are required to purchase four newspapers, cut out tokens, hand these in with $8.00 in return for the bag.
Inside the Christmas bag is a Santa sack, actually this is the bag itself, colouring book, pencils, reindeer hat, snowflake, Christmas card kit and wrapping paper.
The items in the bag do not look like $8.00 worth to me. However, I am not the customer. Maybe some mms and dads here could comment on the perceived value of the promotion.
If I am right and considerably more that $8 in value is not obvious, this promotion will not work.
Newsagents in regional locations will be hit hard if the promotion failed as they will be required by News to freight unsold bags back to Adelaide, most likely wiping out any margin on the bags sold.
This promotion feels wrong: poor selection of products, poor value, wrong time of the year, high compliance cost – all to support low margin product when smart newsagents are primarily focused on other product categories from which they easily make 50% and more.
$1 payment for each bag at this time of year is a complete joke.
The contents are what newsagents sell normally at a much greater margin so Santa can have them back!