The commercial marketing campaign pitched as an olympic fundraiser – for which newsagents are the fundraiser
Newsagents will earn 10c for each official Olympic scarf sold on redemption of a coupon from a participating News Corp newspaper. That is 5% gross profit from a $2 purchase price. 10c to store the stock, collect the coupon, reconcile coupons, process sales and return unsold stock.
News Corp will argue this is a fund raiser for the olympic team. I disagree. This is a Swisse marketing campaign designed to get punters to pay money to newsagents to hand to News Corp to hand to Swisse for them to make a donation, maybe a tax deductible donation? Read this from the News Corp. communication to newsagents:
Swisse are an official Australian Olympic sponsor and as part of that sponsorship they raise money that goes directly towards supporting our Olympians. Newsagent commission and GST will be deducted from the $2 price point and any remaining profit will be returned to Swisse to donate directly to Australian athletes.
Swisse is not directly raising money here. Newsagents are. We collect the money from the punters.
But lets look at the mechanism for the fundraising. It is a scarf with the Swisse brand. We are selling a marketing product for them, they are the key beneficiary. We have to police it too by collecting coupons, to ensure News Corp. gets its newspaper sales. News Corp. is a key beneficiary of the campaign. Not so much newsagents as people wanting a scarf can get their newspaper from anywhere.
So, while Swisse gets its brand further out there and News Corp sells its papers newsagents get nothing from this campaign. This is why I say we are the ones doing the real fundraising.
News Corp. owes newsagents an explanation about their commercial terms with Swisse. Newsagents need to be told how much News Corp is charging Swisse so we can better understand the request that we do our bit for 5%. Without this, it is open to speculation that small business newsagents are being exploited by News Corp. and Swisse, that our contribution is greater than either News Corp and Swisse in terms of the value being delivered to the olympic team.
It is unfair to couch this as a fund raising campaign. Swisse and News Corp are in this to make money for themselves. It seems to be that newsagents are the ones making the real donation here yet News Corp and Swisse have set the campaign so they get all the glory and the knock-on commercial benefits.
I like the idea of the scarf and that it is a fundraiser. I just wish the terms on which our small business channel is engaged with the opportunity were more transparent and fair.