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marketing

Spruiking the Tattslotto superdraw and magazines

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We brought in our spruiker (Brian) today to promote the $22 million superdraw and the discount social stationery in the photo. Brian also promoted New Woman and the free umbrella, New Idea and the free pedometer and Burke’s Backyard and the free tea lights. While the superdraw and stationery spruiking worked brilliantly, as I expected it would, promoting the magazine giveaways worked better than expected. Sales spiked thanks to connecting the three giveaways. Our feeling is that it worked well because of the quality of these specific giveaways.

We’ve used several spruikers over the years. Brian is the best. He is professional and robust without getting customers offside. He’s our preference every time. Part of the success to the magazine promotion today is due to the connection of his pitch with our customers.

In case you’re wondering about the $5 social stationery sale – part of the landlord make good for the upheaval caused by the construction is a free outpost. Rather than extend current product into the mall we brought in this social stationery range and have sold over 1,100 units in three weeks.

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Dressing for Mother’s Day

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Like most newsagencies, our store is well dressed for Mother’s Day. We are fortunate that the newsXpress Mother’s Day materials integrate well with the Hallmark materials. We have used both to create a store within a store feel – somewhere special to find the right card and gift for mum.

Mother’s Day has evolved from being primarily about greeting card sales for newsagencies. Today, it’s equally about gifts such as journals, note paper, pens, books and magazine subscriptions.

We’re using our main display window to support Mother’s Day season.

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Please excuse the reflection off the glass in the photo.

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Greeting Cards

Friday 13th follow up

Our instant scratch lottery ticket promotion last Friday increased sales by 80% on the day. It’s a sales kick benchmark we hope to pass next week when we run an over the counter promotion with an iPod as a prize.

Australians are not great at the over the counter upsell. In newsagencies this is, in part, due to how business the counter is. But it’s also because we’re not that pushy. While I don’t want to make my newsagency like those awful Coles and Woolworths / Safeway petrol outlets where you are virtually berated into purchasing junk candy, I do want us to interact more. Our iPod giveaway will focus on this.

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Hot moves on the dance floor

Between our counter, our newspaper stand and our card display is what we call the dance floor. This is our highest traffic display area so we change the display regularly and actively promote categories which would otherwise be visited by destination shoppers.

The dance floor is great for displaying promotions such as the hot stationery deals promotion we have running at the moment. We pick up impulse sales and remind everyone that we have keen prices on stationery.

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When this campaign comes down in a week we will replace it with our Mother’s Day offering. While the weekly or fortnightly change is time consuming, it is the best way to demonstrate to our customers that our business is moving and that we have deals. Newsagents are thought to be expensive so anything we can do to counter that is a win for us.

Evey newsagency needs a dance floor and they need fancy footwork to make it work.

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In store magazine promotions

We have allocated and aisle end for ACP Connections promotions. It’s valuable space but well used thanks to the excellent materials the Connections team provide. It’s frustrating that at Easter and Christmas they take time off from promotions. We’ve created our own thing for Gardening Australia:

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The best way to keep the space allocated and the retail systems working like clockwork is for these promotions to not stop.

While the folks at ACP will not happy at my swipe here, I hope they understand where I am coming from. Newsagents work to processes and if you take a week off then it is easy for the process to be forgotten.

The folks at Pacific will be unhappy that such great display space is given to ACP. If they created a weekly promotional package like I get from ACP’s Connections program I’d find a good space for it.

I want my shop to look fresh and vibrant and weekly point of sale materials help achieve this.

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magazines

Friday 13th lottery promotion

We’ve papered our store with posters for our Friday 13th instant lottery promotion. The prize is a sexy HP printer.

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The promotion of the HP OfficeJet Pro printer gives us a chance to also promote our range of ink and toner.

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Hot stationery deals

We’re using the time between Easter and Mother’s Day to really push the newsXpress Hot Stationery Deals offer. This flyer has gone out with the local paper this week to houses around our centre.

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The promotion has hit at a good time because we have considerably overhauled our stationery range. We have the promotion product on display in a high traffic area in the shop and it’s moving. It’s also encouraging people brought in by the promotion shopping our stationery aisles.

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We’re expecting to run one of these promotions every eight weeks, in between ink and toner promotions.

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Embracing school holidays

We have made space for a School Holiday Fun table at the front of the shop. We’ve brought together products from various categories in the newsagency which relate to the target demographic: 5 to 12. Art products, magazines – K-Zone Total Girl and others, textas, scrap books, pads – anything likely to help with school holiday activities. Even Sudoku and other small puzzle titles.

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It’s a healthy table – no candy. It’s about interaction. None of the items is on special as this is not about price. The table is a service to parent and grandparents wanting something to do with kids on holidays. We’ve skirted the table with a quick School Holiday Fun skirting which, next year with more time, we could make look more attractive.

What I like about this home grown marketing idea is that we’re promoting across the categories and doing it in a way which is focused on helping people through school holidays. It’s about customer service and being attuned to customer needs.

Memo to magazine publishers: while this may not be the sexy magazine display you’d like to see promoting your titles, it’s an example of how newsagents can tell a story with your titles as the hero and thereby demonstrate why they are retailers you ought to nurture more rather than seek competitive outlets to.

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I’m proud of our School Holiday Fun table – I hope other newsagents copy it.

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Easter eggs and cards

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Easter is an odd season. We’ve had our greeting cards out for a month and they have been selling consistently – we’ve needed extra stock to cover the demand and we should finish the season up 20% on last year. We’ve had our Easter Eggs out for three weeks and sales have really only kicked in this week. It’s been a busy three days. We’ll beat last year but thought going out early we might do even better.

Easter is a great feel-good season – especially when you have access to the well packaged Darrell lea product. The margin is tight but having an exclusive offering makes it worthwhile. I am surprised more newsagents don’t chase the brand. The bright packaging allows us to tell a good retail story.

We’re cracking product open today and giving a small egg to every customer. Saturday is our Easter Egg hunt … hmmm, that could be interesting.

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Popular AFL promotion

The Herald Sun AFL cards promotion is generating a sales kick of more than 25% compared to last year. Even though there have been some challenges getting stock it’s a good and welcome campaign which drives such a traffic boost to your store. I’m just glad I am not in Adelaide where News Ltd prefers BP over newsagents for such promotions.

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Zodiac coffee and a roll of the dice

At a coffee vendor on George Street in Sydney this morning I noticed they cut the zodiac from the Daily Telegraph and stuck it on the coffee machine where people line up to collect their daily grind. I noticed it because there was a group of people reading how their day would go. What a great add on with coffee!

Up the road a few places a coffee shop has an offer where you could win a free coffee in the afternoon based on the roll of dice. They’re not as busy as the cart.

Of the two marketing tactics the first is more interesting to me. It makes the wait for coffee more interesting and it adds value to those interested. The second feels like lazy marketing. It’s got me thinking of what we can do at our lottery counter for those who find themselves waiting.

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Inkfast ink and toner cartridge business going strong

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It’s been a while since I have blogged about Inkfast, our online ink and toner business. Inkfast is two years old. We run it out the back of our newsagency. We advertised heavily online through Google, Yahoo and Yellow Pages online. All those campaigns are now off and have been since third quarter last year. Sales are strong with around 70% coming from existing customers and the rest from new business won through word of mouth. Most customers are corporate and most items purchased and not items we would usually carry in our newsagency. Thanks to our turning off of the expensive advertising spend, profitability is good, even with tight margins due to a very competitive marketplace.

I’d go out on a limb and claim that Inkfast is the most successful website created out of a newsagency. Traffic numbers are high and sales strong. It is bringing new customers to us, even though we never see them, every day. We transact more business in a week than we do in the stationery department of our shop in a month. This is in part due to our demographic. Being online, Inkfast is not bound by the demographic feeding our retail location.

The Inkfast experience is unlocking for us supplier rebates as well as an understanding about ink and toner which is helping us create a more successful offering in store for our retail customers.

What we are most proud of is that we created this ourselves from scratch and we rely on no one major supplier. The feeling of freedom is wonderful.

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Receipt marketing at point of sale

How’s this for cool receipt marketing? The customer buys printer ink and an offer prints automatically with their receipt. The discount is effectively on the third item purchased. We’re not sure if we will run with 25% or a bit less – we’re still working on that. While we have done receipt marketing before, we are now targeting more carefully. For us it’s free ad real-estate.

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Valentine’s Day window

Valentine’s Day is one of those seasons which happens at the last minute. We all dress our stores and wait with crossed fingers hoping shoppers engage. As part of our preparations, Darrell Lea has made good use of our window:

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Newsagent ad live at 3loves online dating site

3l-newsagent-ad.JPGThis is one of the ads we have just started running at our 3loves free online dating website. 3loves is one of four social media sites we are building to drive traffic to Find It online classifieds.

Find It is being launched in partnership with newsagents – newsagents will earn commission when we start charging for advertising. We have contracted to profit share with newsagents.

By clicking on the newsagent ad at 3loves people get to the Find It database of newsagents.

We have only just started running banner ads on 3loves. More banner ads for newsagents will be added over the next two weeks. We will be tracking how many people click on the ads and search for a newsagency. This link is another reason newsagents need to place their free business ads on Find It – currently there are 1,000 newsagents listed. Only a few have loaded photos. Check out the listing for Beechworth Newsagency and my business, newsXpress Forest Hill.

3loves is achieving close to 2,000 visits and 8,000 to 10,000 page views a day. The current newsagent ad will be on a third of all pages viewed. To my knowledge this is the first time the generic newsagent shingle has been advertised online in this way. The benefit is only there for Find It newsagents as they are the ones listed when visitors click the link.

With 4,200+ profiles now online, 3loves is growing well. The interaction between people with profiles is about day to day stuff and not just dating. Having a newsagent message in the background during this contact helps us promote the channel and our local community focus without bigger business noise drowning us out.

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Magazine loyalty program competition

mag-madness.JPGWe launched the first ever Magazine loyalty program in August 2004. We planned for our Magazine Club Card to run for six months. It’s now run for two years and five months without a break. While some individual newsagents have embraced our loyalty program with success, the most sustained success has been achieved by newsXpress newsagents.

There is more science to the Magazine Club Card program than printing a card and pitching the offer to customers across the counter or on a poster. There are rules, disciplines, magazine layout implications and day to day management changes which integrate to deliver what one magazine publisher calls the most significant sales growth achieved by any magazine banner group.

I mention this by way of background to what I really want to blog about – the new Magazine Madness promotion by Newspower. Like any parent I am proud to see how far my initial single store promotion has traveled. The Newspower execution is not as good as it could be. The purchase rules will not drive sales as much as I see in my shop. The lower redemption value dilutes the reward.

Customers are smart. A good loyalty program needs to offer a genuine reward for an achievable yet above average commitment from the customer. The Magazine Madness campaign from Newspower does not do this.

I’d welcome an opportunity to help any newsagent with any aspect of their business. If I knew Newspower were launching into the magazine loyalty space I’d have suggested they play elsewhere – not because of the competition but to ‘own’ a point of difference. Newspower has one key and exclusive asset, membership numbers. They are the largest marketing group of newsagents in the country. Their size and geographic spread could have been leveraged in a more powerful and unique campaign than any single store of a small group of stores.

Every day at my newsagency we pitch the Magazine Club Card to customers we’re seeing for the first time. We still get a buzz from their joy at the opportunity to same money on magazines. I know we continue to pull sales from the supermarkets because of the program. Locally, it is one of our key points of difference.

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magazines

Chocolate pornography for Valentine’s Day

The Valentine’s Day product which seemed like a good idea at the time.

Karma Sutra chocolate, how could this NOT be great for Valentine’s Day? We saw the samples and laughed. Yeah, a bit edgy with the designs but fun. And chocolate, who doesn’t like chocolate?

Plenty it seems. We’ve had our Karma Sutra Valentine’s Day chocolate out on display for two days and the complaints are rolling in. Some sales too, but more complaints. I am guessing that our complainers have not looked in some of our cards.

Below is a photo so don’t scroll down if you’re likely to be offended.

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We picked the product as a point of difference from the usual Valentine’s Day fare. Those who have bought it like it for this reason.

Worst case if it does not sell is that we get to eat it.

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Sharing the love of my newsagency

We’re going to experiment with what we’ll call workplace love. We’re creating t-shirts for team members to wear if they want. The message of I love my newsagency personalises how they feel about their workplace. And making it optional makes the message more personal.

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Too often and in too many businesses customers encounter grumpy people. We want to provide an environment which focuses on the customer experience and we can’t do that until we focus on the employee experience.

In discussing the t-shirts with the team we’ll get to talk through what’s good and not so good about our workplace and, as a result, make changes to improve the experience for all. The t-shirts will help us facilitate any necessary change.

Newsagencies are visited, collectively, by millions every week. Customer service is often the only differentiator we have. By focusing on this in a personal way we can ensure that it works for us and not against us.

This is an initiative in my store only at this stage.

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Street marketing for online classifieds

We’re commencing the next phase of street marketing for Find It, the online classified site we’re building in partnership with newsagents. Here is a copy of a double sided card we’re handing out at key venues. We’ll hand out 100,000 and then assess the response.

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Of course we’re doing more than just these street cards. I’m posting this material here as an illustration of the more guerilla style marketing.

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Brilliant local area marketing

Hastings Newsagency in Victoria has distributed a promotional newspaper around its area. It’s brilliant. Inside are local stories mixed with stories about products and services connected with the newsagency. It’s an excellent initiative and a perfect example of local area marketing. They even got some local businesses ton support the newspaper with ads.

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Using the newspaper format connects well with what a newsagency is known for. It’s the kind of local marketing newsagents need to use to compete with the majors and to deepen their community connect. It’s great.

This newspaper campaign is an idea worth copying. Well done Hastings Newsagency.

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Christmas is soooo yesterday

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Here are five Christmas themed puzzle magazines which arrived at our newsagency and I am sure thousands of others yesterday. We have not even put them on the shelves as they would make our business look out of date. This is yet another example of a magazine distributor having little regard for their newsagent partners.

It also highlights the broken magazine distribution model in Australia. Government policy in part created this problem and they have washed their hands of the mess for small business they created.

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Magazine browsing made easy

madison-counter.JPGWe’ve taken the stand supplied to us by ACP to promote their 600 page COOK cookbook last year and turned it into a magazine browsing stand. It was a logical move – we noticed that COOK was browsed regularly so rather than trash the well designed and made cardboard stand we thought it could work with the right magazine titles.

We have started with Madison as shown in the photo and will move on to other titles which work with the red colour and lend themselves to the browsing experience. Also, with women more likely to browse at our counter than men, we will focus more on fashion and food titles. Oh, and we will only use the stand for monthlies – we don’t think it’s right for the weeklies and they are well promoted elsewhere. Also, promoting monthlies better reinforces out point of difference.

If this works for magazines and leads it a measurable increase in sales the next step will be to see if we can make a more permanent unit with a slightly smaller footprint.

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magazines

Polarised retailing affects newsagents

The toughest part of retailing has been newsagents and book selling, where sales dived throughout 2006, with a 4.5 per cent drop since June. Mr Ganz said many of their sales had been cannibalised by supermarkets.

There are signs retailing is becoming increasingly polarised.

“Top-end and bottom-end retailers are doing well but those focused on the vague middle market are struggling,” said Andrew Cavanagh, of the Australian Centre of Retail Studies.

So reports David Uren in The Australian today. I know of newsagents who would agree with the report and others who would disagree. I’d like to see the data for city versus regional / rural and shopping centre versus high street and a comparison of socio-economic areas.

The newsagents doing well, and there are many, are those who make their businesses stand for something, where they control the business. We have to be bold, not necessarily big, but bold in making a statement about what our business stands for. The more valuable we are to our customers the more they will spend.

We must create our own businesses and turn our backs on the businesses our suppliers created for us more than 100 years ago.

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This penguin would have made for happy feet

happy_feet.JPGHow great would it have been to have this fella in our stores leading up to Christmas and the launch of the Happy Feet movie. He could have been the prize in a giveaway. His presence in store would have been a magnet for the kids and kids at heart. The little penguins can be landed in Australia for just over $1. I reckon they’d retail for $9.95. The big fella could be landed for around $200 – the expensive stuffing is the killer.

This is an example of how we could better tie in with blockbuster movies and events – using stuffed characters and similar items for in store promotion and offering smaller versions for sale. It takes planning and being in the know about upcoming events.

It’s too late now for the penguin but the mainland China based manufacturer I spoke with yesterday already knows what they will focus on in 2007 based on planned movie releases.

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