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marketing tip

Marketing tip: How to promote VALUE and compete with the perpetual SALE mentality

Shoppers could be forgiven thinking that many retailers appear to have lost their way … judging by the number of retail outlets running SALES for months on end.

It seems to me that many shops have had one long sale since Christmas. While the colour of the signs may change, they all scream SALE and often have a a percentage discount. I have seen shops offering up to 75% for more than six months.

There was a time when retailers stood for value reflected in a particular range, unique services or rewards in return for loyalty. These are other differentiators appear to have been lost as retailers appear to lost faith in anything but promoting a SALE.

With so much of what we sell in our newsagencies at a pre-marked fixed price, it is a challenge for us to engage in the perpetual sale game. While I see this as a good thing it is also a challenge because it feeds into the consumer perception that newsagencies are expensive.  We are kind of damned if we do and damned if we don’t.

To counter the consumer perception and to swim in waters away from the bloody ocean filled by retailers who are forever running sales, newsagents could consider these ideas for promoting value:

  • Genuine reward for genuine loyalty. Look at what your most common shoppers purchase and offer a valued reward if they purchase just a bit more. For example, why not a discount on a second greeting card if the majority of your card shoppers purchase one card? Or why not a discount on stationery purchases over $10 if the most common stationery sale is under $10. You could call this an instant rewards offer.  I have seen this work extremely well in newsagencies.  One newsagency I know of gained an extra 75 card sales in one day running this promotion.
  • Promote local. Why not hang signs throughout your business which say LOCAL jobs and profits for the local community. Implied in this is the added value of what you do through your business for the local community. Where some nearby business is promoting a SALE, you are promoting LOCAL. You are not in the same waters as them. You can’t be compared to them.  Just the difference in promotional signage and making it NOT about price will generate discussion.
  • Run a DO GOOD campaign. Connect with a local charity and offer percentage of sales to them – either of all sales or based on growth. You could also offer a reward based on purchases by members and friends of the community group. Promote the campaign as a do good for the community campaign. This also pitches your offer differently to any competitor running a sale.
  • Embrace SERVICE as a value proposition. review your shop floor customer service. Make it the best in the area. Reward your employees for growth and service. Promote your employees to your customers.
  • Promote their connection to the local community. Once you do have the best customer service, promote this – put up SERVICE signs or some other collateral which shows off your commitment to customer service.
  • Chase different products. In every case where you have products which other retailers nearby also have, find ways to differentiate your offer. Make it clear to shoppers that it is more rewarding and valuable to them to shop for that commonly available item in your business. This is challenging but vitally important. You want to win the customer on your value proposition and get them coming back to you.

This list is by no means complete. I have created it to get people thinking about what else you could do to promote value which is unique to your business.

Next time you go to put up a SALE sign, make sure that it is for a limited time, that you are offering a genuine discount and that there is considerably more value on offer than simply a price differential.  A discount by itself is no longer perceived by shoppers to be valuable.

As David Jones, Myer, Target and others have discovered, promoting a retail business only on price is risky and not likely to deliver the long term rewards necessary to support the business.

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marketing tip

Marketing tip: How to run a MY FAVOURITE MAGAZINE promotion

The range of magazines available in newsagencies is the one point of difference all newsagents in Australia share.  While there are other points of difference in individual newsagencies, magazine range is the one national point of difference.

Despite the challenges with the magazine distribution model, the migration of some print traffic to digital devices and other challenges around the print model I am confident that magazines will continue to play an important role in newsagency businesses for at least some years yet.  This is why I am always looking for and thinking about different ways to promote magazines in my newsagencies.

So, to my marketing tip for today, why not run a magazine focused shopper engagement promotion in your  newsagency…

MY FAVOURITE MAGAZINE

I see this as a very simple yet engaging in-store promotion.  It is unlike anything you would or could see in any other magazine outlet.  It is too customer engaging and too local to be of interest to supermarket, petrol and convenience outlets.

No, this promotion is designed for people who think about the magazines, people who have a relationship with the titles they purchase.

The idea is to engage with your shoppers about the magazines they like and through this to attract more shoppers to engage.  The subtle narrative I would hope for from such a promotion is: what a wonderful range of magazine titles there is in this newsagency and what a passionate group of regular and local shoppers who love these titles.  That has to be the goal for the more shoppers who realise the range and who connect with a regular visit the better.

Here is how I see a MY FAVOURITE MAGAZINE promotion.

  1. Set aside a fixed time for the promotion: two weeks, a month.  You decide and stick to this period.
  2. Before you start, review your magazine department, make sure that the layout is fresh and easy to navigate.  Also make sure that each section is anchored around a good strong title for that niche. your magazine department needs to sparkle!
  3. Find a space near the front of the newsagency for a whiteboard or a wall of paper on which you can post customer entries / notes.
  4. Headline the promotion space: MY FAVOURITE MAGAZINE and note some simple rules like:  Tell us your favourite magazine and let others share your passion.  You could a $50 worth of current issue magazines of your choice. Get your most creative team member to make this space look professional.
  5. Work out your own prize package.  While I’d recommend it be free current issue magazines, you choose the value, the frequency of the prizes and how many.
  6. Create a A5 entry form where they write: the title of their favourite magazine, some notes about why it is their favourite magazine and their name.  On the back have them put their phone number for contact purposes – maybe an email address to build your email database.
  7. Kick off the promotion with entries from every employee and their family members.  I think that a white board or a wall with notes already will look more interesting.
  8. Let the local newspaper know.  It could be a photo opportunity for them.
  9. Get your team to hand entries to every shopper … drive engagement from the counter out. This is not something o do just once, do it through the week to engage with difference shoppers you see.
  10. Offer pens for shoppers to fill the entries in then and there at the counter.  Encourage this with your team.
  11. Send entry forms out with you customer accounts, with a note explaining the competition.
  12. Keep a running total of the top five magazines by popularity of entries.  maybe augment this with a list of the top five selling titles.  This is where a white board can help as you can change it daily – butcher’s paper is just as good.
  13. Encourage your team to hand out entry forms to browsers, yes even those who browse and never purchase. Who knows, getting out onto the shop floor and into the magazine department may lead to engagement which drives purchases.

That’s pretty much it.  As I said, this is a simple and local campaign designed to show off an important point of difference between your newsagency and other non-newsagency magazine outlets nearby.

I have not run this promotion as described.  It’s only something I have thought about in this format this week. I have run promotions where customers vote and others where we focus on top sellers in categories – but nothing like this where customer opinion and feedback for the magazine titles about which they are passionate is so vital.

If you try this marketing tip please share with us your experiences.  Also, let your magazine distributors and key publishers know.

Magazines are vitally important to the newsagency channel.  The value we harvest is up to us.  Local engagement around our point of difference is vital over the next couple of years.

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magazines

Maybe a pull model would work for magazines

Magazine publishers who want to extract cash from old stock which did not see the first time around might want to consider the retro market.  Given the interest in all things retro at the moment, go into the warehouse and find your oldest stock (it would need to be ten preferably more, years old) and consider packaging this for newsagents as a retro offer.  This would not work with all categories.  I’d see it working best with: food, fashion, home and living.

Given that fashions change quickly in some areas, retro items could be just a few years old.  Take food. Given the current interest in this category, driven by many new readers, there may be a market for five year old food titles.

Likewise there could be an interest in return visits of other titles.

The way I would do this if I was in a publishing business is that I would create a website of my inventory and invite newsagents to directly order.  Proactive newsagents building a point of difference would use the website to help drive their pint of difference.

The current magazine supply push model encourages newsagents to not engage in expanding their range and specialising in certain categories.  If only publishers and distributors would realise that there are some proactive newsagents out there who would use a pull model if it was made available to them.

I don’t know if my retro idea would work or even if enough stock is in warehouses to make it work.  What I do know is that a radical re-thinking of the magazine push model could deliver a better publisher / newsagent relationship and help newsagents reinstate their position as the local magazine specialists.

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magazine distribution

Sunday tip: put tape with wrap

frank_wraptape2.JPGThe team at our Frankston store is driving more valuable wrap sales with a good display os wrapping tape displayed with Christmas wrap.  Talk to the experts at Scotch (3M) and they will tell you this works for the majors.  Every newsagent should copy this idea.  You can display whole panels as at Frankston or clip-strips of tape if you have less room.  We do this in our gifts shops too with good success.  This is an easy way to extend the basket and sell across product categories.

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marketing tip

Huge drop in US consumer magazine ad pages

Folio reports a 29.5% drop in consumer magazine ad pages in the United States in the second quarter of this year.  Erck Sass, writing at MediaPost comments about how 2009 looks:

At this rate, 2009 is shaping up to be the worst year for consumer magazines since 1932, when total revenues dropped 30%.

Ad revenue is crucial to the magazine model.  A sustained decline will see more closures.

While analysts continue to say that Australia has dodged a bullet in terms of economic performance, I don’t think we can be certain about this for magazine sales.  Sales are rocky – across all channels from what I understand.

The best operations tactics for newsagents in this tough magazine market are:

  • Keep the display fresh.
  • Use high traffic areas to offer titles customers are less likely to look for.
  • Play to your key points of difference – magazine range and service.
  • Engage with a value proposition.  The Magazine Club Card I created in 2004 continues to drive customer loyalty in the magazine category.
  • Embrace change.
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magazines

Brilliant marketing idea

Shayne and Roslyn Clarke of newsXpress Cooma showed me a brilliant, cost effective and simple marketing idea.  They sponsor the drink coasters at a local club.  This shows their support for the community and puts their brand in front of plenty of people outside their shop – a few hundred dollars well spent.

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marketing

Making the most of the OzLotto $50 million jackpot

With OzLotto jackpotting last night to $50 million, we have an excellent opportunity to leverage the bonus traffic.  Here are some initial thoughts:

  • Set a goal.  Decide now the growth you want on last week’s OzLotto sales.  Track this daily.  The growth target ought to be at least 50% up on last week.  Offer a reward for achievement.
  • Use the counter.  Make sure that you have compelling impulse opportunities at your lottery counter.  Set a goal for sales of impulse products and track this daily.  Too often, newsagency counters are cluttered and block impulse opportunities.
  • Engage your team.  Ensure that everyone has their upsell pitch – make sure that newspaper, magazine and card customers are offered a ticket in the $50 million.  Obsess about this at non-lottery counters.
  • Promote.  Pitch the jackpot at high-traffic points in-store such as at the newspaper stand, with weekly magazines and at your photocopies.  But make the pitch specific – promote syndicates or a particular ticket type.
  • Make the opportunity your own.  Give people a reason to buy from you.  Maybe a chance to win a lottery ticket hamper, or a special second chance draw.  Separate your OzLotto jackpot opportunity from others.

Smart suppliers should use the jackpot traffic to offer trials of their products.  For example, a booklet of crossword puzzles from Lovatts, a booklet of a popular review from Top Gear, a booklet of recipes from Gourmet Traveller or Delicious, a booklet of room make overs from Real Living. I have pitched this idea to publishers before and should get it that they don’t like it or cannot justify the cost.

Newsagencies will see a considerable traffic lift this week – this is an opportunity to introduce magazine titles to this one-shot traffic.  Smart suppliers will help us leverage this.

How we leverage the bonus traffic for this week and beyond is a test for our businesses.  We ought to share ideas and challenge each other.  This is a rare opportunity.

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Lotteries

Home and Away magazine a runaway success

home_and_away.JPGThe Home and Away magazine, celebrating 21 years of the TV show, has been a runaway success for newsagents with many reporting selling out within 24 hours this last week. We could have easily sold two or three times the quantity we received in our newsagencies.

The success of the Home and Away magazine says something for the success of the show. It also shows nostalgia sells – the magazine covered the 21 years of the show.

The success also set me thinking about other one-shot titles which could be successful:

  • A Neighbours retrospective. (Obvious suggestion I know)
  • Great Woman’s Day or New Idea cover stories from the 1970s. If successful go with the 1980s etc.
  • When royals visit – a retrospective of royal visits to Australia.
  • Where are they now – there could be several issues and themed.
  • Sports hero nation – great sporting moments when heroes were made.

The (incomplete) list of titles I have in mind are those which can be culled from existing content held by publishers (and their associated entities) and on topics which are highly commercial and could easily sell as low cost entertainment.

It would be easy to come up with a list of twenty or thirty titles from which a top list could be developed.

The key with one-shots like this is to lock newsagents as the retail channel (of course I will say that), to promote the title heavily on TV and to ensure there is stock to meet the demand. How newsagents could make this work is through pre-orders. We have the capacity in our technology to take orders in advance and these could guide the size of the print run. Some software systems already advise magazine distributors of pre sales so there are mechanisms in place to help everyone make the most from the opportunities smart one-shot publishing offers.

I, and I am sure others, would be thrilled to work with a publisher on this.

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magazines

Promoting crosswords and instant scratch tickets

double_crossword.JPGWe are promoting instant scratch tickets and crossword magazines at the counter this week in our Double Your Crossword Fun promotion.  We have used an oversized copy of the $5.00 Intralot crossword scratch ticket as the backdrop for latest issue of Lovatt’s Colossus crossword magazine.

We will change the feature crossword title several times through the week.

We are not offering a special price or a package deal.  The call to action under the headline connects the two products: Buy a crossword scratchie and a crossword magazine.

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magazines

Selling pigs on Valentine’s Day, Marketing Tips for newsagents

valentine_pigs.JPGValentine’s Day is a short yet intensive season for Australian newsagents and retailers more generally.  Making the most of the season means planning a multi-faceted attack well in advance.  Here are some left-field marketing tips you could consider to supplement the traditional approach around greeting cards, plush and chocolates.  It is not too late to engage and pushthe boundaries this Valentine’s Day:

  • Heart wall.  Get customers to submit heart themed art.  Stick it all up on a wall.  Have a small prize for the winner.
  • Romance graffiti wall.  Put up a white board or butchers paper have invite customers to write anonymous notes of romance on the wall.
  • Romantic poetry competition.  Invite your customers to submit a romantic poem.  Invite the local school English department to adjudicate.
  • Papier mache heart competition.  Newsagents are the best place to source what you need to be creative at home.  This idea is about creating a worthwhile activity and connecting with the season.  Put them on display and award a prize.
  • Romance vouchers.  Create a sheet of vouchers which could be given with a Valentine’s Day card.  The vouchers could be for a home cooked meal, a back rub or a day at the beach together.  This idea connects with a do-it-yourself approach for the cost conscious.
  • Have good gifts.  Don’t rely just on cards.  Create a good gift offer beyond the usual chocolates, flowers, plush and balloons.  Consider cuff links for men and a gift voucher to a local spa for women.
  • Do some good.  Connect with a local charity and offer donation to them from each Valentine’s Day sale – promote the connection.  Charity cards do well at Christmas so why not Valentine’s Day?

There are plenty of other ideas.  Keep thinking.  The keys are to have fun, engage with your customers and be unique.

Click here to see the tips I published last year.

And the pigs?  They are part of the Valentine’s Day range we have for our Sophie Randall businesses.  They are different and something different is what gift customers like to find.

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marketing tip

Red packets for Chinese New Year

fhn_cny09_packets.JPGIt is not too early to put red packets (or red envelopes as they are known in some places) for Chinese New Year at the counter.  We did this Friday, at our main lottery counter.  Given that the tradition has a lot to do with luck, it is worthwhile remembering that the preference for the value of what is inside the packet ends in an even number.  A lottery syndicate ticket would be a good idea – printed on red paper and with a Chinese New Year theme.

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Lotteries

Great party resource

If you are into the party goods check out the Kids Birthday Parties blog. It is an excellent resource with ideas for customers planning parties. Its tips are also useful for visual merchandising around themes. While the content is skewed to the US marketplace, I have found plenty of ideas which translate to the Australian marketplace.

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marketing tip

Driving stationery sales

fh_scotch.JPGIn the sales benchmark report I released a week ago, I outlined some ideas for addressing the decline in stationery sales. I have added to that list to provide newsagents ideas worth considering. Our stationery sales ought to be growing, not declining. From what I can see we let ourselves down. We don’t understand the key measurements of stock turn and return on investment. We are happy to leave stock sitting on the shelves and underperforming for too long. This lack of attention to the department rives customers elsewhere. Here are some suggestions:

  • Make a decision as to what you stand for when it comes to stationery. If you stand for quality, buy accordingly. If you stand for price, buy accordingly. From what I see, our best opportunity is to stand for convenience. This means trusted brands are a fair price.
  • Ask your staff what they think you stand for in stationery.
  • If you or any of your staff cannot say what you stand for quickly then you’re in trouble. If you don’t know then your shop will reflect this and customers will see it.
  • The convenience pitch is, in my view, more closely aligned with how consumers would see newsagents.
  • Print a report of when an item last sold. If it has not sold in six months and if the sales for the previous six months were less than the value of the stock on hand quit the item. Be ruthless – get it out now!
  • Have a massive sale to quit this dead stock. Getting, say, ten cents in the dollar is better than getting nothing from stock which is otherwise not selling.
  • Draw a layout of the stationery department as it is today, marking off key categories. Note down the annual revenue by category. Inf you can work it out, note the profit generated by each area – if you cannot do this, ask yourself why.
  • Create a new layout based on how you think the stationery department should look – based on your business plan.
  • Take every stationery item off, clean the shelves, clean the stock and put it back up, blocking by brand as you go.
  • In rebuilding stationery, embrace change. Range for the customer you want. This is likely to be different to the customer you thought you had.
  • Create an in-store promotional calendar, ensure you have a feature, large or small, on stationery at the counter and or at the front of the shop each week.
  • Choose stationery items to feature in other categories – pens with crossword magazines, paper near ink, a hot deal next to newspapers etc.  If people will not visit your stationery department, take the stationery department to them.
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marketing tip

Displaying kids magazines

kidsmags.JPGKids magazines are a challenge to display since they usually come bagged with several free items and do not easily fit into traditional fixturing. At our Watergardens store, using deep pocket Kleerex fixturing, it is easier – we can display kids magazines efficiently and professionally.

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magazines

Pens with crossword titles

crossowrds_pens.JPGWe display pens with crossword titles at our Watergardens store. The pens are changed regularly to give coverage to different brands. The clip on bin for the pens as shown in the photo is what makes this easy. We can use the bins in other magazine categories to promote similarly appropriate product. This is all about basket building – getting customers to spend as much as possible, not by being push but by putting offers in front of them for a subliminal pitch.

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magazines

Choosing to shine for Father’s Day

fday_2008.JPGFather’s Day is a season around which newsagents can choose to shine. I know from Hallmark market research that our the newsagent retail network is a popular destination Father’s Day and other seasonal cards. We need to make the most of this popularity, not only in the card category but in allied categories.

Father’s Day 2008 is our opportunity to shine. Here are some tips which can help you make the most of the season starting from today:

  • Set a performance goal, a sales increase on last year. I’d suggest a goal of an increase in the number of Father’s Day cards sold in your newsagency of 8%. Let your staff know about the goal.
  • Get your Father’s Day cards our ASAP. We know from our own newsagencies that Father’s day cards are selling already.
  • Create some theatre around the card display. Just having the cards out is not enough.
  • Train your staff on the various captions you cover, there is more to Father’s Day than cards for dad.
  • Introduce a range of gifts which can be easily bought with the cards – gifts which make sense like albums, a desk set, a photo frame, journals, street directory, books, a magazine pack or a prepaid gift card.
  • Display the gifts near the cards. Make sure you have compelling, easy to understand display.
  • Create a small DL size flyer to promote your Father’s Day cards and gifts and give one to every customer.
  • Consider giving over a power end in your magazine area of a Father’s Display. You could create this around a theme which works to your demographic: fishing, car racing, gardening, handyman or dad relaxing in the sun. It is important to promote Father’s Day away from the main card display as well as with the display.
  • In the week before Father’s Day, change your gift display around and label it Last Minute Father’s Day Gifts. Sometimes, contextualising an offer like this can really drive sales.

It is not enough to replace some lifestyle or other cards with Father’s Day and hope for the best as newsagents often do. This season is an opportunity for us to choose to shine and chase sales growth. Newsagencies which outperformed others last Father’s Day were those where the season was actively promoted.

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Greeting Cards

Marketing tip: Christmas in July

There are a few magazines out now with Christmas in July cover themes so I thought it would be a good time to offer some in-store retail and marketing tips for Christmas in July. Santas Warehouse has some good information on the history of Christmas in July.

  • Check with your local council or business association as to what they have on. A quick search online shows plenty do.
  • Choose a day to celebrate and focus your attention on having fun. Dress the team and the store.
  • Have a competition for the kids around the theme.
  • Display any spare Christmas stock from last year.
  • Create a giant Christmas stocking which one lucky customer can win.
  • Use the event to discount slow moving items – try and create a real sense of bargains.
  • Promote the event using a flyer to houses around your location – it is a great way to draw people into your shop. On the flyer, promote the activities and any specials.
  • Play Christmas music.
  • Call the local paper and get their attention.

Events like this are all about giving people a reason to visit your shop. Making the event fun and relevant to the season (winter) should make it a winner for you.

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marketing tip

Marketing tip: use the Bill Express screen

bxp_scr.JPGThe now dark Bill Express advertising screens are a marketing opportunity for newsagents.

While some newsagents have connected them to DVD players and other devices for use in store, I suspect that most newsagents will not venture that far. Given that most of the screens are in excellent highly visible and high traffic locations, here are some in-store marketing uses for the screen which you could consider:

  • Feature a poster or cover display of your Magazine of the Week. Promote a title most customers would not see at the front of the shop.
  • Promote lottery jackpots – OzLotto is $40 million this week. Hopefully it will not go off and next week you’ll have a $50 million jackpot to promote.
  • Invite a local charity to provide a poster to be stuck over the screen for a week or two.
  • Cover the screen with white board material and make your own Specials Board. Be sure to change the specials at least weekly.
  • Put up a poster supporting your a local sports team.
  • Talk to your merchandiser about creating a greeting card display to go over the screen – something around the Kung Fu Panda themed cards and bags from hallmark would work.
  • Create a simple product based display. For example, AFL footy cards are still hot in our newsagency. We could blow up a footy card pack to the size of the screen so it really stands out when people see it.

All of thse ideas are designed to add to the theatre of retail. With the screens up high and in a great position whatever you promote ought to get a good lift as a result of your efforts. Have a crack.

If none of these ideas excite you, go out to the front of the shop and look at your screen and dream up some ideas which will fit your business. Leaving it dark helps no-one, you might as well use the excellent location to your advantage.

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Bill Express

Rising petrol prices can help newsagents

petrol.JPGThe higher price of petrol climbs, the greater the opportunity for newsagents. People will think before they get in the car and drive to shop. If they can get what they want locally they will walk or at least drive a shorter distance. This is where the high petrol price is an opportunity for newsagents. We are the quintessential local business. We ought to seize the opportunity. Here are some ideas:

  • Local Marketing. Reconnect with households and businesses around your newsagency and remind them that you have locally what they might otherwise drive for – or that you can get it in for them.
  • Improve convenience.  Look at how you can make shopping at your newsagency even more convenient and appealing.
  • Comparative pricing. Make it your business to beat a major competitor on some popular items. For example, at our shop, our printer ink prices are better than Big W, Australia Post and Officeworks. While customers discover this and are thrilled, a small sign near the category could people not in the market for ink to trust us for other categories and shop locally more often.
  • Delivering value. Offer a free delivery service for purchases above a certain value.
  • Save money. Do deal with a local independent petrol outlet. Offer coupons for discount petrol which they provide in return for them handing out discount coupons for use in your newsagency.
  • Talk it up. At your next team meeting share some ways they can let customers know that shopping locally reduces what they spend on petrol.
  • Offer deals for volume. In some areas people will shop less frequently. Drive a deeper shopping basket by offering deals for a bigger spend.

While rising petrol prices present serious challenges for newsagents, they also present opportunities worth exploiting.

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marketing tip

Marketing tip: coupons

coupon1.JPGA good way to promote your newsagency is to offer something of value to another business to giveaway. Using Microsoft Word it is easy to create coupons tailored to your business. These could offer a free gift with a purchase, a discount off, say a magazine, a two for one deal or some other offer available only through your business. The right coupon with a compelling offer handed out at a neighboring retail store should drive additional traffic. You can do the same for them from your business.

The keys to success with coupons are:

  • The offer provides real value.
  • It is only available at your store.
  • You target people who are less likely to visit your shop.
  • There is a time limit on redemption.
  • The retailer you partner with, to hand out the coupon, believes in the offer.
  • The coupon itself is simple – the value proposition has to be “got” immediately.

Many newsagent suppliers will work with you on this type of marketing by providing giveaway items if one of their items is purchase or a discount on incremental sales. The key is to ask.

Coupons are an easy and cheap marketing opportunity. I’d suggest newsagents engage in three or four such campaigns a year. If nothing else they get the name of your business in front of other shoppers and other businesses.

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marketing tip
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