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The commercial marketing campaign pitched as an olympic fundraiser – for which newsagents are the fundraiser

Screen Shot 2016-06-28 at 7.37.32 PMNewsagents 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.

18 likes
Ethics

Join the discussion

  1. Bruce G

    Yes Mark. The theft of just a couple of scarves could seriously damage the slim profit margin. Or a mistake in counting the returns. Too much risk for too little reward. We are working for a very low pay here. And it sets a precedent.

    1 likes

  2. Richard Jackson

    i have advised our local news office not to send any to us as we wish not to participate.
    You can all do the same.

    1 likes

  3. Chris

    Unfortunately mine are all going to be returned. The whole lot. I am not supporting this promotion.

    2 likes

  4. David@anglevalenews

    Looks like Little ‘Ol SA is missing out on this wonderful opportunity to fund someone else’s feel good campaign.

    In our business, we support two charities, The Lions Club of Angle Vale and Diabetes Research. We will also, from time to time, make one off donations to local sporting and community soups.

    But, here’s the important thing – we decide who to support.

    1 likes

  5. Glenn

    News Corp have never, in any promotion they have ever done, considered the needs of newsagents in terms of a fair remuneration for the work we do.

    Why would they start now?

    5 likes

  6. Peter

    In NSW we get 20c or %10

    0 likes

  7. Jenny

    In hindsight I should have kept and returned the full supply.

    0 likes

  8. Peter B

    Turned up today in SA.

    If Swisse want us to do their marketing they can contact us direct and pay us an appropriate advertising rate.

    1 likes

  9. Colin

    Newscorp will never change whilst most newsagents gripe but still bow down and do as they request. Don’t promote them, send as many back as possible. Did the same last week with chemist magazine and managed to give out just 2, rest went in recyle bin.

    We need to get rid of the mentality that loss making products are just causes and stop being the mug that assists everyone in saving a buck.

    Tine to stand up or shut up.

    0 likes

  10. Chris

    Colin, I am confused as to your comment saying Newsagents should stand up or shut up whilst at the same time you allocated time last Sunday to handing out the Chemist promotion by giving out 2. Promoting it is only part of the issue, you still participated in it by handing it out.
    If enough newsagents contact their News Ltd rep and let them know that they did not hand out the chemist book but recycled the lot and refuse to sell the scarves next week there may be change but whilst stores still actually participate (doesn’t matter if you hand out 2 or 32 chemist ads, it still means you participated) change will not happen.
    I recommend also contacted Swisse https://www.swisse.com/en-au/en-au/contact-us
    and whoever the Chemist promotion was for (not sure as I threw them out without looking) to notify them of your decision. If they get 200 Newsagents tell them they may change their process.

    1 likes

  11. Mark Fletcher

    Chemist Warehouse Chris. I like the idea of contacting the advertisers.

    0 likes

  12. Chris

    If we do not contact them, do you think News Ltd will let the advertisers know that a percentage of newsagents did not participate and that their marketing was not effective?

    1 likes

  13. Steve

    Chris I don’t see how News Ltd would have the slightest idea what the outcome of this is or care. It not like there’s any returns to count. News Ltd is getting paid to print them, I’m making $2.50 a bundle to move them from a delivery ramp to the adjacent bin and Chem Warehouse is getting right royally shafted.

    0 likes

  14. Colin

    You don’t need to contact them. The effectiveness of promotions is monitored. These companies don’t just spend and expect no results, they monitor sales, by postcode ..by promotion.

    Don’t put your head above the parapet and expose yourself, just refuse to co operate, The message will arrive at its destination.

    1 likes

  15. Chris

    Steve, you are right News Ltd wont care about results but they would care if they were notified by a large number of newsagents that they contacted the sponsoring business and said they were not participating in the promotion which in turn may affect future advertising revenue.
    Colin, How can Chem Warehouse measure the results of this promotion when they already have other forms of promotional material similar to ours in the market place at the same time?
    As for the lovely quote unfortunately you chose to co-operate by handing out the product so the message from you is that they can continue doing these promotions. If that is your choice, that has to be respected. I do have the conviction to let Swisse, Chem warehouse and News Ltd know of my business decisions. I have no issues upsetting people with my opinions or business decisions as I have found in business that it is better to be upfront and honest in my dealings.

    0 likes

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