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

newsagency marketing

Access to the newsagency channel

An ad on page 42 of yesterday’s Australian Financial Review claimed to be able to help suppliers achieve distribution in newsagencies and other channels. Having never heard of Future Markets Australia, I did some digging and found their website, the Shanghai Charlie website – about the person who registered the website and a weird document about health service issues.

Newsagents have GNS, other wholesalers and marketing groups to facilitate access to the network. The last thing we need is a middleman taking a cut for what others already cover.

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newsagency marketing

Newsagents promoted in FHM magazine

fhm_dec08.JPGThe January issue of FHM magazine which came out today has a double page ad promoting newsagencies. ACP Magazines is graciously running the ad without cost. This ad connects to the TV commercial I funded and the ad ACP has already run in TV Week. My creative team at Tower Systems has developed the artwork. You’ll see a broad range of newsagencies and brands represented.

Maybe, one day, newsagent associations will get behind this initiative.

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newsagency marketing

Magazine loyalty program update from the UK

nx_magclub.JPGSteven Denham reports at his Village Counter Talk Blog about presenting to suppliers his learnings from the launch in September of the Magazine Club Card loyalty program in his shop in the UK.

The success for Steve and his team since September is excellent:

We have given out nearly 400 cards up to now with a good number of customers on to their second or third. We have one customer who has claimed 6 free magazine so has bought more than 66 in the past 12 weeks. We need to reward this type of customer as they are the backbone of our business.

It is good to see from Steve’s blog that suppliers engaging on this initiative. Given the win for them such engagement is important. This is a newsagent initiative which they could drive for the success of the most important channel to magazine sales in the UK and here in Australia.

Rewarding consumer loyalty around magazine purchases through the Magazine Club Card is all about enticing increasing sales. The keys are genuine and attainable reward and the promotion of the offer only by word of mouth across the counter.

In our own experience over the four and a half years we have run this program, the increase in magazine sales comes at a cost to other magazine retailers as well as from genuinely new business.

It is rare that we see this marketing initiative fail.

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magazines

VANA spins its new marketing group

VANA has announced its Future Project to its members. This is the new marketing group I blogged about three days ago although VANA is at pains to point out that this is not a marketing group. The announcement reads differently to the pitch given to newsagents who have attended a briefing.

VANA’s announcement points to compliance as a key driver of the project. Newsagents who want to focus on compliance have options already available in the form of newsXpress, Nextra, Supanews and, to a lesser extent, Newspower. The first three have franchise agreements which act as the mechanism for compliance. What VANA is doing is going into competition with these groups using newsagent funds. If they were a good association I would not mind so much but they are not. They have failed their members on many fronts over the last year.

This project has less to do with compliance and more to do with VANA hatred of GNS. This motivation is one reason the project is likely to fail for all but a select group of newsagents. If the association was concerned about serving all members then their future project would have been structured in a way that it was relevant to all newsagents from the outset.

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Newsagency challenges

More on the new VANA marketing group

Further to my post about VANA starting a new marketing group for newsagents, VANA has two Newspower shares. This makes their move to create competition for the newsagents owned Newspower even more curious. On a personal note, VANA has let me know how they feel by removing me from their Christmas party list. It is childish behaviour which started VANA down this read years ago in a dispute with GNS.

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newsagency marketing

New marketing group for newsagents from VANA

I have been told by four people that VANA has been hosting invitation only secret meetings with newsagents in Victoria to encourage them to sign up to a $495.00 a month (inc. GST) trial program which they claim will increase gross profit. Everything about the project sounds like a marketing group. VANA identifies it as such by the services on offer and by saying they do not want Nextra and newsXpress members involved.

Considerable fear is being demonstrated by VANA about this secret project.

The information I have seen reminds me of a project VANA proposed between ten and fifteen years ago, back when Peter Jordan was CEO. The project back then, as today, was developed by an external consultant. While VANA says this will be industry owned, it is the consultant who I would expect to make serious money – and makes a mockery of the claim of industry ownership. I actually don;t care about who owns commercail opportunities put to newsagents – the keys are true value and transparency. VANA is vague about both.

VANA would be better served focusing on delivering members services. It is an association after all. The $200,000 I hear bandied about on this project could be better spent serving members with practical association services.

Victorians have a choice between Newspower, Nextra, newsXpress and Supanews. For a channel with around 650 outlets in Victoria I would have thought that four marketing groups from whcih to choose was ample. If VANA wanted an alternative offer, why not work with an existing player – Newspower makes sense since VANA already has a share in that group.

This move by VANA is more fracturing of the industry by an Association which appears to have forgotten that it is an Association.

If I were on the Board of VANA, I would push for the organisation to focus on:

  • Pursuing, without fear or favour, a fairer and more equitable magazine supply model for all Victorian newsagents
  • Private and public lobbying around achieving a fair return for home delivery of newspapers for all Victorian newsagents
  • Lobbying the State and Federal Government for assistance to help all Victorian newsagents navigate the significant change ahead
  • Establishing a register (benchmark) of supplier terms which VANA members could use to compare terms they have been offered
  • Working with GNS, the industry owned stationery supplier to build a strong consistent statewide stationery business in all Victorian newsagencies

Once sufficient progress has been made on these five key areas and if VANA had resources available, I would push for what I would call phase two of the reinvention of VANA. I’ll leave those thoughts for another time.

VANA failed its members abysmally on Bill Express. It was not until the public meeting which Adam de Jong and I organised that VANA woke, briefly, on Bill Express. Because of their lack of leadership, some Victorian newsagents paid money for Bill Express equipment which they should not have paid.

I am a VANA member. I am also a shareholder in newsXpress, a marketing group for newsagents.

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Newsagency challenges

Magazines as a Christmas gift

magazine-christmas-2.jpgThis is the artwork for the poster for newsagents to promote magazines as a Christmas gift.

The poster is a free service for all newsagents from Tower Systems and is available A2, A3 or A4 size.

We will finalise artwork mid next week with fresh magazine covers.

I have funded the development of this poster for the same reasons I funded the recent TV commercial – to help newsagents have pride in their unique offer and to help increase sales in newsagencies, especially of magazines.

I was prompted to do this when I saw the email promotion of magazine subscriptions by Magshop. I realised that we did not professionally promote magazines as Christmas gifts in newsagencies. I took this as a challenge to create an enticing poster which newsagents could use in-store for this purpose.

While we could complain about the Magshop pitch, their offer makes sense. They will attract different consumers to those who visit newsagencies. Our job is to connect with our traffic. Hence the importance of a poster such as this connected with back end processes for putaways and the like.

I hope that newsagents like the poster and can put it to good use.

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magazines

Free Christmas message artwork

For years, the Tower Systems software has made it easy for newsagents to promote their businesses on receipts. You can include any image easily. This could be a coupon or some offer to lure customers back. Coupons work extremely well in the US. I think they could work well here too. As a service, we are making artwork for the two coupons below available for anyone who would like them.

ccoup.JPG

The artwork for the two coupons has been emailed to Tower newsagents. If you would like a free copy please email me. All you need is POS software which can include images on receipts.

Receipts are free advertising space for us – it makes sense to leverage this opportunity for our own businesses. After Christmas, use the coupon space for back to school offer or a back to uni offer. Keep using this space to pull customers back in.

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newsagency marketing

Is Victoria about to get a new marketing group?

Rumors have been circulating in Victoria for several months that VANA is close to forming a new newsagency marketing group.  While VANA has denied these rumors, that they continue suggests that something is afoot.  Just what that something is I am not sure. 

VANA has a long track record for playing outside the traditional association space.  As a VANA member I would prefer to see more robust representation on association matters and less on competing with existing industry suppliers.

Since VANA and GNS had a falling out a couple of years ago, VANA has spent member resources competing with GNS is some areas.  Member funds could have been better spent elsewhere rather than spiteful competition.

Disclosure – I am a Director of newsXpress, a marketing group for newsagents.

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newsagency marketing

Planning the shopfit

nx_frank_front.JPGThe image is the planned shopfront for our Frankston newsagency.  We have been working with designers, the landlord and other stakeholders for months to find a fit which is flexible and fits the various requirements we face.  What started as a partial fit has become a complete refit.  Nothing from the existing newsagency will be retained.  Where we have spent the most time have been in obsessing about flexibility.  We consider it vital that the shop be able to be easily reconfigured as the needs of the business change.

On the front left of the shop will be our card and gift offer.  To the right from the counter back will be magazines and next to that will be stationery.  Across the entrance we will feature categories and products we wish to push.

Now all we need is final building approval before we can lock in dates.

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newsagency marketing

Finding new customers with ink

nxhi9.JPGThe newsXpress Hot Ink flyer we have sent to 20,000 homes around each of our newsagencies has well and truly hit, bringing in valuable new customers. Consistency has been important in building our ink sales – consistency in promoting value, a brand based range and marketing. The brochures bring people in for ink and they walk out with this and other items in their basket. Ink is very efficient for our business like that. It amazes me that some newsagents don’t stock ink at all.

Promoting on price is also good given the economic news. It pitches our shops as places where you can find a good deal.

The timing of this latest Hot Ink promotion is good for us at Forest Hill where a Dick Smith store is set to open shortly and while we will compete on price, we won’t compete on marketing noise.

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newsagency marketing

Newsagents promoted in TV Week

tvw_newsagents.JPGTurn to page 35 of TV Week which went on sale today and see a full page ad supporting newsagents. ACP Magazines has funded this ad in support the TV campaign Tower Systems has been running promoting newsagents.

Having ACP back this campaign in one of their weeklies is most welcome. I am hopeful of more coverage soon including from other publishers who respect newsagents and the vital role they play in the magazine and newspaper categories.

As the ad says: SUPPORT YOUR LOCAL NEWSAGENT AND KEEP BUSINESS LOCAL.

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newsagency marketing

Sharing rewards from suppliers

Intralot is running a promotion for its Lucky Bingo game in Victoria and Tasmania with an overall first prize of $3,000 and $1,500 prizes based on the best performer in each category of store.  This post is not about Intralot, although I do like the promotion.  This post is about how we include our employees in the chase for the reward.

At our Forest Hill store we have made it clear that was prize we win in this promotion will be split among the employees involved.  The only exception would be those working one shift a week.  Our view is that it is important to share rewards like this and for this to work you have to share the opportunity of the reward.

If five employees make up the core counter team and if you win a category prize, they would each get $300 – a good inducement for their engagement in the promotion.

While there is the risk of not winning, that is the case with all of these promotions where you are chasing a reward based on sales growth.  The key is to let everyone know this up front and to have some fun along the way, chasing the pot of gold.

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newsagency marketing

November customer newsletter

Click here to download a copy of our November customer newsletter.  This is available from a stand near the entrance to our Forest Hill shop.  Newsletters like this, while basic in style, work in introducing customers to new products and other offers in-store without making a hard sell.

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newsagency marketing

Building better newsagencies

I am visiting several cities this week presenting a workshop on how to build greater success in your newsagency. This is being delivered as part of the Tower Systems Spring User Meeting Tour. Any newsagent, regardless of the system they use, are are most welcome to attend. The details of where I will be speaking are:

  • Perth. Wednesday Nov. 5 @ 10am. Duxton Hotel, No. 1 St Georges Terrace, Perth WA 6000.
  • Dubbo. Thursday Nov. 6 @ 10am. MACQUARIE INN. Corner Wheelers Lane and Birch Avenue Dubbo East NSW 2830.
  • Adelaide. Friday Nov. 7 @ 10am. Rydges South Park. South Terrace, Adelaide.

My session is followed by a review of the latest version of the Tower Systems newsagency management software (retail and home delivery) which was released two weeks ago. This is followed by an open Q&A session.

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Newsagency management

Excellent Halloween sales

frankhall.jpgHalloween sales have been fantastic in our newsagencies – our best year yet.  All this week we have had customers spending up on costumes, party items and trick or treat bags.  It is great to have a sell-out, especially with good margin product!  Yesterday, the team at our Frankston store really got into the swing of things with everyone in costume – the photo shows Sherrie, Sammi and Rhonda.  I am told it was a lot of fun for the team and our customers.

newsXpress embraced Halloween three years ago.  It sources products and provides excellent marketing collateral  The offers and opportunities have increased every year.  Sales in other departments benefit from the additional traffic the Halloween promotion brings.  This is now an important season on our marketing calendar.  It is an example of how a smart marketing group can help you find new customers and sell more to existing customers – and help you have fun at the same time.

The one learning from this year was with the gingerbread product we tried at two of our newsagencies.  It did not work.  The product is excellent and the price good.  The challenge is that this type of product it unexpected in a newsagency and therefore less likely to sell.  We are glad we tried it though. 

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newsagency marketing

Halloween and pizza

Halloween, October 31, is one of the five busiest days for pizza delivery in the US. Newsagents strong in Halloween should check their local pizza shop and see if this trend is emerging here. if so, next year a tie-in with the local pizza shop around Halloween could be a smart move.

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newsagency marketing

Dominating the morning

I am grateful to a colleague for sending me this list of good ideas in response to a blog post here a couple of days back. These ideas fit what you might call a dominate the morning strategy – a brilliant idea which could work in many newsagencies.

Newsagencies on high streets open earlier every Morning. There are few outlets open at the time, we can provide a complete solutions for the people (both on-the-go and local) in early Morning to attract maximum sales on our traditional lines, and convenience lines.

1. Support basic lines on bread, milk, paper, cigarettes.

2. Offer coffee and food service lines.

3. Increase basket size and customer purchase frequency by tailoring offers to targeted groups, for example, health products for morning exercisers, breakfast deals for morning workers, coffee deals for morning commuters, milk and bread deal for mums.

4. Build up the volume on basic lines, and specify offers on high value-added products. Be outstanding on food service and convenience service

5. Get advice from retired newsagents and small business owners. Get advice from experts on convenience / food service trade. Get advice from suppliers and distributors. Pay for the advice if needed.

6. Be happy to take risk and loss on trying new products, be happy to make no money on certain new directions, be happy to make some stupid mistakes, be determined to dominate target trade at all cost. While it may not suit every newsagent, the list is bound to generate ideas for most newsagents.

I like this idea of focusing on a certain part of the day. The morning makes sense because we are open early, most of us at least. Given that our location is a key part of the newsagency offer, convenience as a focus makes sense too.

I can see a dominate the morning strategy working well in a high street situation.

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marketing

Newsagents in the Herald Sun

sun_oct25.JPGTurn to page 36 of today’s Herald Sun and see another full page ad promoting newsagents. While this TV and print advertising campaign will not fix the challenges of the channel, it is a rally call for us to be proud newsagents – of our network and of the service we provide.

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newsagency marketing

Newsagents playing the TVC

I have received phone calls over the last few days from newsagents who received the DVD we sent of the TV commercial promoting the channel. It has been terrific hearing how the commercial is being played in-store and at staff meetings and even at home.

Part of our goal in creating this commercial was to encourage newsagents to feel more excited about their businesses and to be proud. The calls I have received suggest this is happening at least with some newsagents.

The current campaign run ends this Sunday. We are currently talking with the agency about another run in a few weeks. I’ll pass on dates here once I know them.

I am grateful to Queensland Newsagent magazine and Stationery News magazine for supporting this initiative.

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newsagency marketing

Putaways marketing advice

Click here for a copy of the new putaways marketing advice Tower Systems has published as a free service to all newsagents. Putaway customers are among the most valuable to newsagents – their baskets are deeper. Our last basket research showed that putaway customers are 35% more likely to purchase other items than any other customer group in a newsagency.

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magazines

Christmas starts

fhn_first_round_christmas.JPGWith Christmas well and truly under way at the majors, we created an initial window display last week to feature some soft toys and boxed Christmas cards. This is the earliest we have gone out with Christmas. It is working, customers are purchasing.

The battle is around space and the battle between calendars, diaries, books, Christmas and the usual flow of promotions. The next two and a half months will be challenging on this front.

Our focus is to create a unique and enjoyable shopping experience while, at the same time, embracing every opportunity of the channel and the season.

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newsagency marketing

Sunday Herald Sun support newsagents

hs_oct19b.JPGThe Sunday Herald Sun yesterday ran the full page ad promoting newsagents.  This is the second run they have given this ad.  I hope newsagents are thanking their reps.  I also hope that newsagents are making the most of this and playing the TVC in their shops and have placed the free A4 or A3 posters in their window.

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newsagency marketing