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

Author: Mark Fletcher

Women’s Health kicks

womens_mens.JPGWomen’s Health, the new magazine launched by Pacific Magazines on Monday this week is kicking some huge goals based on sales data I am seeing. Sell through rates of 50% and above for a launch title not even seven days is fantastic by any measure. I have seen plenty of copies sold at the counter, as an impulse purchase – demonstrating the effectiveness of the Pacific marketing and advertising campaigns.

What is also fascinating is the kick Men’s Health is achieving as a result.

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magazines

The Form racing insert/newspaper launches in Vic

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The Age last week rebranded its Friday sports section as The Form. As I have blogged here previously, The Form could be the start of a new free newspaper offering from Fairfax. While it is included in The Age in Melbourne, In Sydney it is a separate free publication with the Sydney Morning Herald and presents distribution challenges for newsagents.

Victorian newsagents ought to talk with their NSW colleagues to understand more the impact of the launch of The Form as separate from the newspaper.

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Newspapers

The charity christmas card pitch

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Boxed Christmas cards have changed considerably in Australia over recent years. This year, more than ever, it is a charity story with each of the major publishers embracing charities centrally in their pitch. The charity brand pulls focus from the brand of the product itself.

What was a point of difference for one or two card companies in 2005 is now me too. Card companies will need to find other ways to distinguish their offering since there must be considerable competition for charity endorsement.

In London last November I noticed that every boxed card offering from major publishers had a charity connection. That is true here this year for the first time. While I support the charity contribution, it makes for a noisy marketplace. I wonder if we ought to do more at the retail level to engage beyond selling the product.

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Greeting Cards

G magazine for the green lifestyle

g.JPGWe received our first issue of G magazine Wednesday. Looking through it, I see an opportunity to create a new display category, bringing together titles around the climate change theme. Some titles such as G and Renew will anchor the category and others, such as this month’s National Geographic will make appearances based on their cover story.

The problem with creating an environmental category is where to put it. Of the six to eight titles I see as fitting in currently, only two are in the same MPA category. We’ll sort it out and have a crack.

I am glad G has been launched – it could help us carve out a new niche.

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magazines

Lying reps say anything for a sale

A rep visited my Frankston store on Tuesday telling Simon, the manager, that I had asked them to visit to discuss putting their stock into the business. I had made no such request. I am tired of reps turning up without an appointment and lying to get an order. Newsagents deserve better.

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supplier arrogance

Bookmarks drive magazine sales

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What did you notice first in this photo of magazines? Hopefully it was the four yellow tags. They are a bright yellow arrow pointing to a title as being just in. These bookmarks are our latest innovation in magazine promotion which we are going to be rolling out exclusively through newsXpress locations.

I have had the idea for some time but creating the high quality form cut bookmarks was too expensive for one store. Rolling it out across 150 stores is more viable. It also provides newsXpress an excellent opportunity to demonstrate again its credentials in innovation in magazine marketing.

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Vogue Living is a good example where these bright bookmarks can work well. Being monthly it is easy for consumers to forget when the next issue is in – especially if they do not purchase every issue. By being selective in our placement of the bookmarks and limiting the number in use at any time, they become a beacon to eyeballs.

With so much visual noise in a newsagency it is easy for regulars to become store blind. This is a real problem for poster displays. I think a small number of the bright just in bookmarks could do more for the selected titles than a poster display stuck someone on a wall in the newsagency.

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Slimming and Health is another good example of where our bookmark strategy will work – even if we get two or three extra glances a day that will lead to impulse purchases.

Just as others copied the magazine club card I developed in 2004, I’d expect other marketing groups to copy this innovation. There is more to this than printing a bookmark and sticking it in a few titles. The bookmarks have been painstakingly designed, the colours carefully chosen and the research undertaken on the number to use at any one time and the titles on which to focus.

While publishers focus attention on newsagents who do aisle end and other poster displays, our view, arrogantly, is that innovation like these bookmarks is far more valuable as drive drive systemic change in the management of magazines in newsagencies.

There were skeptics in 2004 when I created the magazine club card – newsagencies which have embraced this are delivering considerably above average magazine growth primarily because of the loyalty offering.

The newsXpress just in bookmarks won’t deliver a retirement size cash bonus but they will help drive above average magazine sales. They provide practical evidence of the newsXpress point of difference and further support our brand over individual product brands.

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magazines

John Howard’s small business credentials

Take a look at the latest Annual Report from Australia Post and see how successfully this wholly government owned and government protected enterprise has leveraged its monopoly brand even more successfully this year to take revenue from Australia’s family owned newsagencies. Mr Howard and his team have permitted and even encouraged the 846 Australia Post corporate stores to go after newsagencies in the areas of stationery, bill payment, phone recharge and other areas. They hide behind the legislation and conveniently forget that they can change this. yes, they care about small business.

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Australia Post

The Cult Times copy

cult_times.JPGCult Times magazine and the TV Zone Inter Special title (right) are the same – certainly a read of the text of the cover suggests as much as does the photo. To really check I’d need to open the sealed bag of the title on the right. Customers won’t notice. The bagged magazine is more expensive.

They appeal to the same demographic so why duplicate copy and put it under a different masthead? Unless there is substantial difference in content this repackaging ought not be permitted as unsuspecting consumers could be ripped off. My benchmark would be that a title would need to have at least 50% unpublished content. I suspect that is not the case with Cult Times and its sister publication.

I am annoyed because customers who been ripped off will complain to us as the retailer.

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magazines

For Pavarotti collectors

limelight_abc.JPGLimelight magazine which came out yesterday is an opportunity for newsagents to shine. While we have put a couple of copies in the usual location, we have put more stock in our high traffic women’s weeklies area. With the Pavarotti cover and the bonus CD of Paravotti and Dame Joan Sutherland it is bound to be of significant impulse interest.

Every Monday, Wednesday and Friday we look for magazines with covers which will attract impulse purchase – it’s a low hanging fruit opportunity.

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magazines

Naughty schoolboys

We were mystery shopped by Tattersalls a week ago and failed – no up-sell, no query as to whether they had a Tatts Card and no good luck at the end. While we should have done these things, we were busy and the failings are the exception and not the rule at our newsagency.

I wish the mystery shopper reported on Tattersalls products up-sell promotions away from the Tattersalls counter, the promotion of Tattersalls products outside our shop in our widely circulated newsletter, our entertaining house syndicate campaign and our above network average sales growth.

I guess these above average activities don;t matter to the examiner who has been asked to measure all outlets by common, average, criteria.

The report card from Tattersalls makes us feel like naughty schoolboys as it focuses only on getting us to be average while ignoring where we are exceptional.

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Lotteries

R rated Penthouse slip up

Oops. R rated Penthouse arrived in newsagencies today without a plastic bag – meaning anyone could browse the porn title. The distributor advised newsagents late today that they are sending out plastic bags for us to stick Penthouse in and seal.

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magazines

Oversupplied Derriere

Is it just my newsagency or are others overloaded with Derriere magazine. We have three different issues on our shelves at the moment. None selling – chewing up cash, space and labour. The porn magazine market is dead.

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magazines

Private label strategy

private_label.JPGPrivate Label Strategy by Nirmalya Kumar and Han-Benedict E.M Steenkamp is an excellent book for anyone involved or interested in the use of private labels (house brands) in retail. This book has specific application for Australian newsagents given the use of a private label (Sovereign) to combat the private label strategies of our competitors: Australia Post, Big W, Coles, Safeway, K-Mart and Officeworks. The book also helps us understand the place of private labels net to branded product.

Too often in the newsagency channel we copy others without thinking the strategy through or researching whether it may be appropriate to our situation. I suspect our approach to private label stationery is an example of this. Take the Sovereign private label stationery offer from GNS. This appears to be all about price – it is certainly not a quality proposition. Sovereign doesn’t provide better margins so on price it fails.

As Private Label Strategy documents, private labels are about much more than price.

With a potential retail network of in excess of 4,000 newsagents, I would hope that those involved in developing the Sovereign strategy for newsagents take time out to read this book – it is the first of its kind. I am finding it inspirational and challenging.

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Stationery

Canon beats other brands

ink_wg.JPGCanon is outselling the other major ink brands at our Watergardens location three to one. This is different to the mix we are seeing in other locations.

Maybe it says something about the demographic? Who knows? All we know is that it will affect our stock holding mix if this trend continues.

Canon might be the first printer offer we carry.

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Stationery

Bags over wrapping paper

bags_tissue.JPGBag sales are hot in newsagencies – talk to any of the car and wrap companies and they will tell you it is so. Year on year growth is excellent. But for bags to work, we need new designs regularly.

I was in a newsagency yesterday where they are tapping into the bag opportunity with discounted product. While the price point is low, the quality is too. This is false economy. I think people want to be proud of a gift they are giving and this means they want a nice bag. The cheap bags don;t cut it.

I really like the Hallmark range which came out with the bag of tissue paper on the outside – this gives the sense of a value add and makes the bag even more appealing.

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Wrapping paper

$30 million reasons to engage

With OzLotto jackpotting last night, we can look forward to around a 15% to 20% kick in lottery generated traffic and a bigger kick in sales. We’ll drive that with some major in-store moves starting today as well as dressing the lottery counter to maximise up-sell opportunities.

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Lotteries

Do you recognise him?

person.JPGMaybe you recognise this person? He visited one of our shops on Sunday, took four items off the shelf, put them in a bag, went to the counter and convinced a team member and a manager on the phone that he had bought them earlier in the week and found they did not suit and asked for a refund. We have the video footage from several angles showing the scam from the moment he takes the items off the shelf to when he pockets the ‘refudn’ we provide. If you recognise the person please let me know.

It’s easy to get scammed when you’re busy, the key, as we have been reminded, is to have clear simple rules in place to stop the scam from the outset.

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theft

Emerging new IT standards

We are actively engaged with four key newsagent suppliers on technology enhancements which will evolve into new IT standards for newsagents. What is exciting about these exclusive projects is that the resulting new standards can be easily and quickly deployed across the network of 1,400 newsagents using the Tower software.

One enhancement which really excites me will drive a more commercially valuable magazine supply model – I am seeing a magazine distributor actively engaged in understanding each newsagent’s business in a way I have not seen before. To be exclusively engaged in this project an honor – I can’t wait for the outcome for all newsagents.

I expect we will see more newsagents involved in trials of new standards in a matter of weeks.

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Newsagency challenges

Demonstrating faith in newsagencies

quayside.JPGWe settled yesterday on the purchase of Quayside Newsagency in Frankston.

My purchase of this business is evidence of my faith in newsagencies and my commitment to serve newsagents as they (we) navigate complex challenges. Yes, I complain about these challenges newsagents face – I still like the channel and am glad to have this opportunity to extend my investment.

Quayside Newsagency is a retail only newsagency is in an excellent location outside Coles in the busy Bayside centre. Currently badged as Newspower, we will replace this with newsXpress branding externally and internally – hopefully prior to Christmas.

The settlement process has taken twice as long as expected but we’re in now and pleased to have an opportunity experience a different demographic and work with a new team of people. Most of all, we are thrilled to have another newsagency location where we can experiment on our mission in search of the newsagency of the future.

Simon Frost has moved from the Tower Systems Help Desk to manage this business. While such a step is a considerable challenge, Simon was keen for the change. I am glad to extend the Tower / newsagency bridge through Simon’s experience.

Having spent time in the business yesterday I have noticed considerable differences between Frankston and Forest Hill and while some differences are demographic, others are not and may well lead to new opportunities for each location being uncovered.

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Newsagency challenges

Ink upsell

A chap who only came in to buy some ink from us purchased three items on impulse at our counter: a wine magazine; a bag of Darrell Lea liquorice; and, a copy of Great Walks magazine at the counter. We didn’t offer any of these, our counter displays did the work for us.

Now if only we could have a customer like this chap every half hour or so.

We put a lot of effort into using our shop to up-sell for us. We know from our own experience in petrol outlets how frustrating it is to be offered some deal when all you want to do is pay for petrol and leave. With our approach, customers choose to be up-sold and they walk out more satisfied ads a result.

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Customer Service

Early calendar sales strong

cal_dogs.JPGWe went out early with calendars this year compared to previous years and it is paying off with weekly sales of more than $1,000 at full price. In our location, these are good numbers. The dog calendars are working the best – I can see us ordering backup stock to tide us through Christmas. I am glad we have none of the magazine company offerings.

Diaries are equally as strong as calendars this year compared to last.

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Calendars

Vic. newsagents stirring over lottery decision

Newsagents in Victoria are starting to ask questions about the probable loss of scratch lottery products. It’s a bit late, the time to ask questions and take action was February this year. Inaction by newsagents is part of the reason the Government has got away with this anti small business decision. Here is what the petition said:

We, the undersigned, are concerned citizens who urge the State Government of Victoria to ensure that lottery ticket and scratchie games are sold only in independent small businesses in Victoria to protect jobs and to ensure these tickets are sold by well trained staff committed to ensuring responsible gambling and, specifically, not in big supermarkets such as Coles and Safeway / Woolworths.

To sign this petition, click here.

In a more practical sense, my software company, Tower Systems, is offering free help to newsagents to quantify the potential knock-on impact of the loss of scratchies on their business.

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Lotteries

Walking customer’s shoes

Roy Peter Clark has written an excellent essay published at Poynter exhorting journalists to read newspapers – for the future of newspapers. Clark says journalists are probably out of touch by not engaging with the product they help create.

I wonder if this is true with newsagencies. How much do we engage with our channel as a customer? With the hours newsagents work it can be difficult but it is essential. This experience of shopping other newsagencies might be what we need to navigate our own future.

Clark writes about spending 15 minutes a in the morning reading newspapers and more time in the afternoon on feature articles. If we are to engage with our channel, as a customer, it needs to be as structured.

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Newsagency challenges

Misfiring the Women’s Health launch

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We received plenty of stock of the launch issue of Women’s Health today but no promotional material. Our plan was to put up an aisle end display in a high traffic areas but we have used that for another title due to lack of material to support Women’s Health. What we did get was a red counter unit but that’s hardly enough to make a display.

I’m not impressed with this launch. Publishers need to understand that proactive newsagents plan their displays and need material when a title arrives – not days later.

So, without publisher support, we have engaged in a co-location strategy. We have Women’s Health inn our weeklies area (see photo), in the health area and as the feature magazine on our busiest lottery counter.

UPDATE: I was at another newsagency today and they received free standing stand on which to display Women’s Health – so, I am not sure what happened to his for Forest Hill.

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magazines

Magazine City

The Sunday Age ran an interesting article for magazine lovers yesterday. Magazine City is about Melbourne’s independent magazine boom, covering titles you’re unlikely to see in newsagencies. It’s interesting to see Sahil Merchant, founder of Mag Nation quoted – this respects Mag Nation’s unique offering in the magazine space and demonstrates their business as the category leader it is.

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magazines