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

Author: Mark Fletcher

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

Valentine’s Day chocolate and endorphins

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Valentine’s Day is an opportunity to shine around the Darrell Lea brand. These boxes of chocolates work very well next to the card display. I especially like that the folks at Darrell Lea have provided the range with a slim stand – to enable it to fit with greeting card and other Valentine’s day displays.

While those in young love will go more for plush or similar, dare I say, soppy, gifts, the more mature in love will go for an exquisite box of chocolates – to release those endorphins. Hmmm, endorphins reduce the eaters sensitivity to pain. Now I understand why chocolate works on Valentine’s Day!

We dohave balance in our Valentine’s Day offer: cards, choloolate, mugs, plush and books.  All categories are performing well for us.

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confectionary

Take 5 promotion held back

Take 5 is one of two magazines ACP Magazines wants us to promote this week as part of their Connections program.  They have sent an excellent in merchandising kit.  The magazine itself comes with a free make-up compact – a compelling offer.

While I expect the ACP marketing team are hoping for an increase in sales.  I suspect that their allocations team don’t hold the same hopes – they cut our supplies by 10%.  It seems a sell through hovering at 80% is enough of a reason to cut supply and cause this promotion to probably not reach its full potential in our newsagency.

Magazine publishers amaze me sometimes.

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magazines

Australia Post expensive for HP, Canon, Epson ink

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The latest catalogue promotion from Australia Post, running Jan. 28 through Feb. 17, is a rip off in my view.  Take page 5 (see photo) – HP 56 + 57 twin pack.  The Australia Post price is $69.95.  The price in my newsagency is 10% less yet I don’t have the buying power of thousands of stores nor do I have a government protected monopoly pulling people in.

Australia Post will charge you $22.95 for a Canon BCI-24BK twin pack.  Our price is 13% less.  Australia Post will charge you $43.95 for a HP 21 + 22 combo pack whereas at newsXpress Forest Hill you’ll pay 8% less.

Australia Post is clearly not the place to be buying printer ink and toner.  We beat them on price.  We also beat them on service – at Australia Post you have to stand in the conga line for ages to have your question answered.

It is bad enough that a government owned and protected retail channel competes directly with a small business like mine.  That they rip their customers off as they are with their current printer ink specials is appalling.

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Australia Post

Off to the Producivity Commission

I’ve been invited to participate in one of the public hearings of the Productivity Commission next month. This is in response to the written submission I made on behalf of newsXpress and newsagents in shopping centres more generally. I am grateful to have an opportunity to comment on the draft report and provide further information on challenging retail tenancy situations newsagents find themselves in.

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Newsagency challenges

Newspaper relevance in the UK

If the future of newspapers is on your mind, read the sobering column by Roy Greenslade writing at The Guardian about a recent study which showed that of those who did not read a newspaper regularly only 3% consulted a newspaper website regularly.

The competition for eyeballs if fierce – not only for news content but across a range of areas well served by magazines and other media outlets.

Our challenge as retailers is how we configure our businesses so they are flexible to cope with changes forecast in the study to which Greenslade refers. For many newsagents, there is no option as these issues are not being canvassed sufficiently by newsagent shopfitters and designers.

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Newspapers