A blog on issues affecting Australia's newsagents, media and small business generally. More ...

Author: Mark Fletcher

Magazine KPIs

The Australian Newsagents’ Federation has asked for input on magazine KPIs for their discussions with magazine publishers and distributors. Here are the suggestions I have submitted for consideration:

TECHNOLOGY

1. Implementation of appropriate systems in supplier offices to enable scale out decisions based on current data and not data 13 weeks old as happens today.

2. Provision of free XchangeIT access for newsagents who provide compliant on time data consistently for 3 months.

3. Mechanism for advance warning of problems/issues with data and other IT challenges which impact on newsagent operation.

SUPPLY

1. Scale out to reflect title performance in that outlet with supply to be no more than 25% above recent sell through rates except in exceptional circumstances where the additional product is expected to sell due to cover feature or special promotion. With higher scale out to be accepted for an additional fee.

2. Offering of a carrying fee for titles which do not meet minimum performance criteria so that the newsagent is paid to carry the title.

3. Newsagent to be able to easily and electronically alter order quantities (i.e. without having to call a call centre and wait on line for too long)

4. Changed supply figures not to be altered without reference to newsagent unless such change absolutely supported by sales data.

5. No cut of supply below current recorded net sales.

6. No reissue within six months of last issue of a title.

RETURNS

1. Online returns to be implemented ASAP.

2. Returns to be credited within 48 hours of provision of electronic returns data or 7 days of provision of physical returns form.

3. Returns to be called no later than the date of the next issue of the same title going on sale.

4. Agreement of record keeping requirements for returns form and immediate acceptance in the event of a distributor losing a form and the newsagent proving local store compliance with standard practice.

ACCOUNTS

1. The threat of cutting off of supply to cease in cases where there is a legitimate dispute over the amount owed.

2. Agreement in independent arbitration in the event of a credit dispute – similar to an ombudsman approach. This could be something the distributors all fund like the telecommunications Industry Ombudsman.

I appreciate that some of these points will be contentious to distributors. I’d expect that newsagents, the people carrying an unfair portion of the financial cost of the magazine distribution model, would think the suggestions are fair, probably even too soft.

Hopefully there will be healthy debate around this issue. I am pleased to see it on the ANF agenda and newsagents being consulted.

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magazines

Prince kiss-a-lot

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Prince kiss-a-lot is a hit for Valentine’s Day at two of our newsagencies where we have stocked him. So much so that we’ve organised extra stock. Squeeze his foot and he sings My Girl. He sways along to the song too.

We have extended our range of plush following success over Christmas. Beyond Valentine’s Day, we are focusing on other card giving occasions – thank you, get well, new baby etc. We’re finding good quality plush sells well with a card – that’s why we have it located near cards.

I appreciate it’s not new, newsagents stocking plush, it’s our card-giving focus which I think is new. Oh, and that we’re playing at the high end of plush.

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Gifts

Promoting TV Week

tvw_0402_1.JPGWe have taken a different approach to promote the start of Logies voting in TV Week this week.

Rather than one big display we have gone for two smaller ones. TV Week as an impulse purchase so a counter display makes sense (see photo).

This location has been successful in promoting a range a of product – a different ‘story’ every week from stationery to lotteries to magazines. It works because regulars are not blind to the promotions, since they change.

The other display we have done for is above the Herald Sun and The Age on our main newspaper stand. This is also a successful magazine promotion location for us.

In each case we’re promoting outside what we’re told to do by the publisher. The key will be whether our approach drives the sales expected. While the displays themselves are not pretty, all that should matter is the sales result.

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magazines

Promoting Valentine’s Day messages

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Just as they did with the free light globe giveaway on Saturday, the folks at the Herald Sun have provided us with excellent point of sale and electronic marketing collateral for Valentine’s Day.

By getting this material early we are able to appropriately dress the store to drive sales. We’re also able to load the content into the software managing plasma screens at out Watergardens location.

Getting electronic content from other newsagent suppliers is not as easy.

We have a structured approach to using newspaper promotional material. Given that it’s usually a one-day event, we like to skirt the counter several days before and also set-up A4 posters at each register – reminding people of what’s coming. We also brief the sales team well in advance. On the day, we boldly dress the store the day of the promotion. By getting the material electronically we are able to print additional copies as needed.

Nothing special in all this activity – except that it takes a forward thinking supplier to help one achieve all this. This is why I’m so happy with Saturday’s globe offer and Valentine’s Day in the Herald Sun.

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Newspaper marketing

Valuable magazine display

Since we took over Quayside Newsagency in Frankston we have introduced two additional magazine promotional spaces. The photo below shows how we are currently using one of the display. A check of sales data today shows its value. We have sold 34 copies of Melbourne Wedding and Bride since it went on sale on January 18. Over the sale number of days following on sale for this title last year the newsagency sold 14 copies.

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What I especially like about the display is that Rhonda made it about more than just the Wedding and Bride guide. She added bags, ribbons and other wedding related items we sell.

In newsagencies limited to display space it is hard to support one off titles like this. ACP and Pacific titles get first bite at the good space because they have the top sellers. This is why in each of our newsagencies we have created space for our use alone, to promote titles and categories which say something about value proposition.

We measure the success, or otherwise, of each display and learn from the results. There is no point in a pretty display unless it works commercially for the business. This is business after all.

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magazines

A partworks conversation

I was pleased to have an opportunity to meet a week ago with Dorian Watkins, Sales Director for DeAgostini UK. DeAgostina is one of the largest partwork publishers in the UK.  It was good to talk about the UK magazine marketplace and the newsagency channel in particular and compare Dorian’s perspective with what he had seen on his latest Australian trip.

We also talked about the challenges of certainty of supply for newsagents who actively support partworks.  Dorian was with Peter Bissett, his Australian distributor, and a senior management representative of Gordon and Gotch, distributor to newsagents.  I know there is some good work being done between all parties to improve the supply model of partworks and better support newsagents who get behind new releases.  I am grateful to have had the opportunity to add to the conversation.

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partworks

Borders takeover scrutinised

The Sunday Age has an excellent report about the possible implications approval for the Angus and Robertson takeover of Borders bookshops operation in Australia.  The ACCC has delayed its decision to mid February.  Depending on how this  plays out, there could be an opportunity for newsagents.

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Newsagency challenges

Oversized Harpers Bazaar

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Check out the size of this special edition of Harpers Bazaar. It takes double the usual space and looks out of place in our traditional magazine fixturing. The price is also a concern: $39.95. Some newsagents will not put the title out because of fear of theft.

I don’t mind carrying titles such as this but I’d like a means to do it professionally and to be rewarded for the additional space and risk.

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magazines

Heath Ledger cover collectible

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I’d expect the latest issue of Empire magazine to sell out quickly given the Heath Ledger cover showing him in full costume from the new Batman movie.  Inside there is an interview done on the set.  One only has to look at the activity on eBay to understand the interest from collectors in Ledger.  I’m sure Empire will sell out.

We have been opportunistic and placed Empire in our high traffic women’s weekly section as well as with film titles.   We’ve done this because some Ledger fans will not browse the film section.  I figured we’re better off putting it where they shop and selling out early.

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magazines

Free energy saving globe offer

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The free energy saving globe with today’s Herald Sun (see coupon – left) is a good offer. Good for the environment and good for newspaper sales.  It;s a smart giveaway which will hlp the newspaper brand as well as the brand of those businesses which embrace the offer.

The folks at the Herald Sun have been helpful in ensuring we have enough globe stock for the give away and good point of sale materials. As retail-only newsagents this can be a challenge.

While redemption is available from newsagencies or Bunnings Warehouse, I’m okay with this given the nature of the offer, it fits with the Bunnings message.

We have gone hard and printed additional materials to dress the store and really embrace the offer.  We felt it was important to make more of this than the usual newspaper giveaway.

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Newspaper marketing

Steal a kiss

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We have dotted our floor with these stickers, leading to our Valentine’s Display. It’s part of the newsXpress Valentine’s Day marketing collateral. Steal a kiss it says. I haven’t seen many kisses stolen – maybe closer to the big day.

I like the idea of the floor sticker because it encourages interactivity. The stickers make a nice difference from t-shirts and other traditional seasonal marketing.

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Greeting Cards

Promoting old stock

An ad on Melbourne radio station Gold 104 last night was promoting the Australian Women’s Health Diary.  This is a title which newsagents were asked to return today.  Even more odd is that a call to Network Services, the distributor, reveals that stock is not available for two weeks.   Odd that.

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magazines

Paper, Online, Mobile

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The masthead at the website for The Sun in London makes their distribution model clear. The masthead is a message for the Australian newsagents who say that print newspapers will be as important to their business in ten years as today.  I love newspapers and will continue to actively promote them in my newsagencies.  however, I am not blind to what’s happening around me.

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Media disruption

Free Bear drives Valentine’s

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We’re giving away a thirty six inch tall Hallmark bear valued at $499.95 to one lucky customer as part of our Valentine’s Day promotion. Just about every newsXpress location has this fantastic promotion – newsXpress organised it nationally. It is supported with good point of sale and other merchandising material.

You know you’re on a winner when people of all ages from little girls through to grandmas walk over and look at the bear – often stroking its arm. I saw first hand yesterday that the prospect of winning the bear resulted in sales.
Giveaways like this are an important part of seasonal promotions. A walk around Forest Hill and Frankston tells me our bear giveaway is the best offer.

Beyond the prize, the bear is part of retail theatre, demonstrating that we are not set-and-forget retailers and making shopping more enjoyable.

I’ve been involved in promotions where there is a national or state based prize as well as promotions like this where the prize is for a customer in the store. I like a local prize better since one of your customers wins. You win too.

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newsagency marketing

Starving for Take 5

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As I predicted a couple of days ago, the cut in supply of Take 5 in the same week they are doing a major marketing push has backfired. We’re just about out of Take 5 and therefore not able to perform to our potential. A frustrating outcome forced on us by shortsightedness by the publisher.

This matters because newsagents are only short supplied on popular titles which are sold elsewhere. It’s the unpopular titles where we’re over supplied.

Starvation can be terminal folks.

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magazines

Pop Princess, a nice look

Completely off topic, I love the look of this shop at Forest Hill Chase. See for yourself:

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From the outset it is visually appealing to its target market. Girls light up when they see it. Shopping looks like fun, certainly not a chore.

In newsagencies we tend to focus on shopping being a chore. The newsagency of the future has to be, in part at least, a pop princess type business, something completely fresh and appealing. yes, it will date. But, hey, good retail is about fashion.

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Newsagency challenges

Hair magazine cover-up

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Whoever is responsible for the packaging of the latest issue of Hair Now must not know much about how customers buy their magazines. It’s all about browsing folks. To browse, customers need to be able to open the package. Sealing the magazine in a plastic bag is nuts. To see this in a sea of magazines makes it stand out and look like an adult title.

While I was wondering what do do, a customer picked up a copy off the shelf, looked at the plastic and dropped it. I asked her about the magazine and she explained that she’s not going to buy it unless she can see the magazine. I am surprised that the people at Hair Now don’t get that.

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magazines

Lovatts Valentine’s promotion

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I noticed the Valentine’s themed Lovatts crossword title so decided to place it with one of our Valentine’s displays.   People buy all manner of gifts for Valentine’s Day so why not a crossword title?

I’ll take every opportunity I can to promote several categories of products at once around a them.  It makes sense.  For Valentine’s Day we can pitch cards, bags, plush, the Lovatts Crossword title, journals, books, albums, photo frames, even pens.

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magazines

Publisher leads customers from newsagents

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Thanks to Steven Denham’s blog, I found this image of an ad from The Sun from London last weekend.  The free DVD promoted in the newspaper can only be redeemed from one of three major retailers.  This reminded me of the promotions run in Adelaide by News Ltd’s Adelaide Advertiser where redemption was through BP.

Newsagents, here in Australia and in the UK, are an important channel for newspaper publishers.  They need to nurture and support the channel at every opportunity and not drive people away.

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Newsagency challenges

Free music downloads with newspaper

PaidContent reports that the New York Daily News is to offer free music downloads for readers.  Inside the newspaper on two consecutive Sundays will be a code which provides access to three downloads from a library of 120,000 songs.

This is quite different to the launch and distribution last year in the UK of the new Prince CD with one of the newspapers.

The Daily News offer looks to me about two challenged distribution models testing to see if teaming up can make them stronger.  It will be interesting to see the results.  Personally, I prefer a promotion with an in-store redemption – this respects the retail network.  However, given the lack of a strong single retail network for newspapers in the US I can understand why they are taking this approach.

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Media disruption

The team behind newsXpress

I’ve owned my newsagency at Forest Hill in Victoria since February 1996 and over the twelve years have been independent, with Newspower and with Nextra – before joining newsXpress in mid 2005. What I looked for in a group was business building strategies as well as excellent commercial terms. While I am biased about newsXpress, since I’m now a shareholder, my relationship with this brand has been the best for my business.

While any of the marketing groups can negotiate brand based deals, it’s the team behind the brand which drives the point of difference. Below is a photo of the full-time team behind newsXpress. From the national merchandise team to the in-store Business development Managers, this team represents an exceptional resource for my business and the businesses of all newsXpress members.

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As with any of the marketing groups, newsXpress is not for everyone. It’s for entrepreneurial newsagents who want to redefine their newsagency and fish for new customers and a build a more valuable shopping basket. Chasing above average growth is hard work and not for everyone. But, then, good rewards do take hard work.

I’m glad to have good relationships with many Nextra and Newspower newsagents. Those groups, too, are not for everyone. I am sure their members would be equally complimentary of them.

Key in assessing a newsagency marketing group is to look at its goals for members and the people who will help you achieve those goals. Finding the right group backed by the right people can make your newsagency a truly valuable investment. The team behind newsXpress is a good mixture of hands-on newsagency experience as well as experience from outside our channel which benefits the brand.

The days of the independent newsagent are coming to an end. Without a well-managed brand behind your business it is easy to get lost in the rush to lure new customers.

Disclosure: I am a shareholder in and Director of newsXpress Pty Ltd.

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newsagency marketing

Counter stationery pitch

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We are repeating the counter pitch for the social stationery in the photo. Regulars here will recall we first tried this product late last year. It was a roaring success. These attractive pads work a treat with card customers. It’s great seeing someone come to the counter with a bithday card and pick one of these without a second thought.

This is exactly what the counter ought to be about – placing the best pssible up-sell product in the best possible location. The only way to achieve this is through change. Newsagents who focus only on a confectionery offer at the counter or some other set-and-forget category miss some excellent business.

I like this social stationery because it better connects with other categories we carry.

While some marketing gurus tell newsagents to ask for the up-sell or use a challenge – if I don’t offer you this then its free – I’d prefer to structure the shop and the counter to work in a less intrusive and, hopefully, more successful way.

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retail

The price of stationery

I have received considerable private correspondence about my comments here on the price of stationery in newsagencies. There is little consistency in the views expressed. They range from: all newsagents should sell stationery for the same price, to: we should always undercut the majors when it comes to price.

It is impractical for our channel to act as one on the issue of pricing of stationery just as it is impractical for us to act as one on range. These things are better left to be managed through the brands under which we operate pricing is part of the brand value proposition after all.

Establishing the price of an item requires careful thought and requires consideration of a variety of factors.  Those with whom we compete have back rooms filled with people who manage such things.  For national brands it is easier since they exert more control over the brand.  In the newsagency world brands exert less control – hence the challenge at the local store to determine the right price for the business.

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Stationery

Monopoly is coming

One of the most successful newspaper promotions I can recall is coming again. Monopoly starts in a few days in the Herald Sun. We are going to actively support the promotion and use the opportunity to leverage add-on sales around the promotion.

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Uncategorized