Julie Green, National Channel Manager – Newsagents, at Bauer Media has issues a statement about Coles discounting Woman’s Day today in Victoria:
It has been brought to our attention that Coles has made the decision to discount this week’s current edition of Woman’s Day to $2.10 in their Victorian stores.
Bauer Media would like to state categorically that it does not support this decision and is not funding this promotion in any way.
Our extensive research has clearly demonstrated that discount price promotions of this nature do not perform positively both in terms of sale numbers or brand equity. The magazine category within a grocery outlet serves as an impulse sale which in turn builds baskets. They are not discount sensitive. Our strategy for magazines continues to be to add value to the purchase, not discount the product. We have spent considerable time, effort and resourcing to launch the Reader Rewards magazine loyalty program for newsagents that meets this strategy. The investment is substantial and ongoing. To then have this inappropriate activity happen in an alternative channel is extremely disappointing and frustrating.
We strongly urge those newsagents with Reader Rewards to exploit this competitive advantage. An issue of a magazine can be sold only once – claim the sale of Woman’s Day early by leveraging the reward of a free magazine with shoppers. Reader Rewards provides a key point of difference that will build customer traffic, loyalty and repeat purchase that will outlast and outperform this singular promotion.
It’s terrific to see Bauer being so clear on this issue.