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

Month: June 2010

Fresh Visual Merchandising helps World Cup sales

world_cup_foresthill.JPGOn Friday we kicked up our 2010 World Cup magazine, sticker and supporter products promotion with a fresh display at the front of our newsagency.  While we were running low on most stock items, we were still able to bring something half decent together.  By the end of yesterday, sales showed that the effort was well worth it.  You only had to watch customers as they approached the store, the display was very popular.  I saw it draw several people who were walking past the newsagency to exit the centre – it definitelty drove some new traffic for us.

Too often I visit newsagencies where a display is created for a promotion, like the World Cup, and left in place for the duration of the opportunity.

Good retailers know that change is essential in retail. I think this is even more important in newsagencies where we can see the same customer three or more times each week.  These regular customers become as store blind as we do ourselves.  Change combats store blindness.

Change does not need to take hours.  Even just moving a stand can have a tremendous impact.  The key is to be tactical.  What is the outcome you want?  If it is to sell an item or a seasonal opportunity, like World Cup, think about the best location to put the stand, display or even a single product to disrupt traffic from customers who are likely to notice, browse and, hopefully, buy?  Disruption of shoppers is the key with this type of display.

The change we made to our World Cup offer on Friday morning was the fourth major change so far for the World Cup season.  The sales results indicate that the labour and floor space investment has been well worth it.

As the photo shows, displays don’t need to be the most beautiful to work.   In this case, our focus was on traffic disruption around a popular and short term seasonal opportunity.

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Herald Sun sell out

We sold out of the Herald Sun by lunchtime in most of my newsagencies yesterday and could not get more stock.  Thankfully, we had more World Cup scarves so we could at least sell these.  I suspect the sell out was widespread as calls for more stock went unanswered.

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Newspapers

Foreign language newspaper sales set for a lift

I expect to see a lift in foreign language newspaper sales in newsagencies through the next month as a result of the World Cup.

While capital city dailies will have good World Cup coverage people from Italy, for example, will want the more parochial coverage from an Il Globo.

We are working on a change to how we display the newspapers to drive greater impulse business.

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Newsagency opportunities

Promoting $30 million OzLotto jackpot

30mil-syndicates.JPGWe are actively promoting the $30 million OzLotto jackpot in a range of places including in with magazines as the photo shows.  We have these A4 posters atop the magazine units in each of our aisles.  This level of promotion of jackpots, particularly for OzLotto, has worked well for us in the past.  While I’d like Oz to go off to one of our customers on Tuesday, I’d like even more for it to jackpot for a few more weeks.  This would warm up newsagencies and lottery outlets through winter.

Our other promotion of the lottery jackpot includes: price point promotion at each counter sales point, a display at the entrance to the store, promotion with our newspaper stand and an attractive syndicate board.

Some newsagents question why we do so much work promoting Oz over and above what is required by Tattersalls.  I see lottery traffic as essential to our businesses for the next three to five years.  Winning a new customer from this promotion and retaining them is valuable over the course of a year once you add impulse purchases to their lottery product purchases.

We have customers shopping with us today who started last year when Oz last had its run of jackpots.

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Lotteries

Quarterly Essay sells out

We sold out of the latest issue of Quarterly Essay in four days.  I hope other newsagents picked up on my comments about the Kevin Rudd essay and the opportunity for sales.  We are chasing getting more stock as there is still good demand and the essay was disucssed on radio again this morning.

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Venues announced for Newsagency of the Future workshops

newsagency-future.jpgVenue details have now been announced for most of the free Newsagency of the Future workshops which commence next Tuesday in Melbourne.    The details for next week are: Melbourne – 15th June 2010 @ 11:00am, The Brighton Savoy, 150 The Esplanade, BRIGHTON VIC 3186. Adelaide – 16th June 2010 @ 2:00pm, Grand Chifley Adelaide, 208 South Terrace, ADELAIDE SA 5000. Perth – 17th June 2010 @ 11:00am, Metro Hotel Perth, 61 Canning Highway, SOUTH PERTH WA 6151.

At this stage we have over 300 newsagents participating in what I hope will be a good conversation about the future of the channel.

For the latest flyer and booking form listing venues please click here .  You can also book online and update your Outlook calendar at the same time.  You will see that I have added a Geelong session on July 6 at 11am.

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newsagency of the future

Master Chef Issue #2 going gangbusters

master-chef-magazine.JPGSales of issue #2 of the Master Chef magazine are excellent in many of the the newsagencies for which I have seen sales data – across several states.  I am hearing of 60% and 70% sell through already, just a few days into the on sale.  In several stores, sales are well ahead of the same period for issue #1.  This is great news as there is usually a dip for issue #2 of a launch.

While we are promoting Master Chef next to our main newspaper stand we are also using it to leverage sales of other products elsewhere in the store.

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Promoting a magazine based on its cover

time-magazine-june2010.JPGWe are promoting the latest issue of Time magazine, with the World Cup cover story, with newspapers for a few days.  While only simple, I am hoping that the tactical placement with newspapers will be effective since Time sales are not all that good for us.  Our World Cup magazine sales are going off so we know the interest is there in the cover story.

We often place magazines in high traffic locations based solely on the cover story.  We have senior people putting magazines out in the mornings and this is when these decisions are made.  I made the decision years ago to treat magazine placement in-store as a senior role.  Sales performance suggests this was a good decision.

I try and plan my travel schedule so that I am in town Monday, Wednesday and Friday mornings so I can do this work.   If surprises me the number of newsagents who see this work of putting out magazines as menial.  To me, it is driving one of the only points of difference we have in our newsagencies.

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Promoting Weight Watchers magazine

weight-watchers-june2010.JPGWe are promoting the latest issue of Weight Watchers magazine in the health section of our women’s magazine aisle.  We also have a couple of pockets of the title located above our women’s weeklies titles.  We plan to place the title in an impulse location over the weekend as it has worked well in similar situations in the past – while some customers come in looking for the title in our store, the majority of sales I see are on impulse.

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Ah shopping centre landlords!

knox-matser-chef.JPGCheck out the kiosk right out the front of a newsagency in a major shopping centre.  It is offering a free three month subscription to Master Chef magazine to anyone spending $50 in the centre.  I am not against the promotion itself, just the placement of the kiosk out the front of the newsagency, impeding traffic flow and distracting shoppers who might otherwise have seen the Master Chef display in the newsagency and bought a copy.

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magazines

World Cup opportunity continues for newsagents

fifa-world-cup.JPGI am amazed at the value of the 2010 FIFA World Cup to newsagents.  Magazines, trading cards, collector tins, supporter clothing and a range of fan items … all sorts of World Cup merchandise is selling very well.  I have seen newsagencies where World Cup magazine sales are well above $1,000 – four times what these newsagencies would usually sell in sports magazines in a month.  It is an excellent fillip to our magazine sales given magazine sales so far this year.

While the World Cup is not working for everyone, it is certainly working for plenty of stores I speak with.

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magazines

Promoting a $49.95 watch with Dolly magazine

fhn-dolly-jun2010.JPGWe are promoting the latest issue of Dolly out the front of the shop, facing into the mall.  Hopefully, the free watch will drive interest.  We also have a terrific display of Dolly in with the teen magazines.

While I am no expert on such things, my sense is that teen girls are over the freebies which come with Dolly and Girlfriend.  They have been inundated over the last year and probably prefer a good magazine over a gift which seems to be almost too good to be true.  While such gifts are not on every magazine, they are on enough to make the shoppers jaded.

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Promoting Good Health and their Snack Smart Guide

fhn-good-health-jun2010.JPGWe are promoting the Latest issue of Good Health magazine at the entrance to our women’s magazine aisle.  I like Good health, it’s what I’d call an honest magazine.  The latest issue comes with a free Snack Smart Guide – a gift which fits with the title.  Our prime location placement reflects our confidence around this issue.  We plan to leave this display in place for at least a week.  We are also supporting the title with a good display in its usual location.

The health category is more crowded than ever and this is making it challenging for every title to pull focus.  One shots and infrequent titles soak up space, and cash.    Good Health has it a bit easier than others since it is from ACP and newsagents have display obligations.

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Free magazine with an umbrella

A customer bought last month’s issue of Dolly early yesterday morning before we had put the latest issue out.  She wanted the free umbrella which came with the magazine and not the magazine itself – because of the heavy rain outside.  Bonus!

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magazines

When is a free fishing lure not free?

fishing-world-magazine.JPGThe latest issue of Fishing World magazine hit newsagencies today in two versions.  One at the usual price of $7.50 and another priced at $12.95 and offering a free Halco laser Pro 120 fishing lure.  The lure can be purchased at retail for around $12.00 so the apparent additional $5.45 for the lure does make it a deal.  But it’s not free, not when both copies of Fishing World magazine are placed next to each other.

I’d expect the ACCC to have an issue with this promotion.

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Racy lad’s mags, an energy drink and a pack of condoms

What more could a guy at an AFL game want? Promotional girls were out in force outside the MCG at the weekend handing out a showbags to any taker. Inside there was the then current issue of Zoo, Top Gear, a pocket ‘V’ drink and a pack of condoms.

There is a story there connecting all the gifts but I’ll leave that for now…

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Scratch and sniff magazine cover

The latest issue of Sactown, a bimonthly magazine covering Sacramento, has a mandarin and a slice of a mandarin on the cover – promoting a local festival.  Readers can scratch the mandarin slice and sniff, yep, mandarin.  I like the idea of scratch and sniff in this situation.  It offers a good local connection.  Mediacoder has more on this.

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magazines

Promoting car magazines

fhn_car-magazines.JPGWe have been promoting car magazines out the front of the newsagency, facing into the mall, since Monday.  The simple display has resulted in some sales and plenty of browsing.  The display faces shoppers as they leave the mall heading to the car park.

By using Top Gear on either side of the display we are drawing attention to the display using a well known brand.  In the middle, as the photo shows, we have a mix which plays to our range point of difference over other magazine retailers.

While only in place for a few days, the work is worth it as it plays to our strength as a newsagency.

I think that displays like this are essential for newsagents.  Too often we only focus on top selling magazines and miss the opportunity to promote depth of range.  This depth is where we find customers who stay with a newsagency for the long term.

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Promoting Cosmopolitan in its usual location

fhn_cosmo_june2010.JPGWe are promoting the latest issue of Cosmopolitan in its usual location this week even though it is not the focus of any publisher promotion.  The simple display is easily seen by everyone entering our women’s magazine aisle.  We have made the space available for this display for a week.

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Kudos for Frankie magazine

It was terrific to see Frankie magazine profiles on ABC1’s 7:30 Report tonight. This is a title I first acknowledged in August last year as one of two delivering good sales growth. The Frankie story is good for Melbourne and for niche magazines and that makes it good for newsagents as we are the main home of niche magazines in Australia.

The footage of Frankie in a retail situation was shot at mag nation in Melbourne.  It was good to see the barcode labels from my newsagency software company in the TV report too.

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The not so invisible Libra invisible pads

libra-invisible-pads.JPGLibra Invisible pads are, well, not as invisible as their marketing pitch suggests. Take a look at a stack of copies of the latest issue of Shop Til You Drop in the photo. The invisible pads make the magazines difficult to stack. I wondered what was bulking up the magazines and was surprised to discover that it was a product called Invisible.

Now I am no expert when it comes to feminine products, but I would have thought that something called invisible would be, well, less visible than this Libra product.

I would not have noticed had they put two packs in – one at the top of the page and one at the bottom.

The alternative is that they could have the freebie behind the counter and we hand it out. Hmm, probably not.

It turns out that the folks at Libra like magazines as a means of promoting their Invisible pads – Shop Til you Drop is not the only title with a freebie. The latest issue of Cosmopolitan has Invisible visible as well.

Footnote: I was talking with a colleague in the office about this yesterday and her comment was that she would never use one of these products from inside a magazine.

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Promoting issue #2 of Master Chef magazine

fhn-master-chef-june2010.JPGWe are promoting the latest issue of Master Chef magazine with a terrific aisle end display as well as a tall display unit next to our main newspaper stand plus two locations in our regular magazine aisles – with weeklies as well as food titles. We have been able to get the stock we needed so supply is not a challenge. Our goal is to beat the sales for issue one.  We will leave most displays / location in place for at least a week.

Our product placement decisions for Master Chef and most titles we promote are all about driving impulse purchases. My view is that newsagents can significantly lift magazine sales with less time spent on pretty displays and more on strategic placement. The key is to watch traffic and customer interaction for interruption opportunities.

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Opportunistic promotion of Quarterly Essay

quarterly-essay.JPGWe are promoting the latest issue of Quarterly Essay at the counter thanks to the considerable coverage of the David Marr essay on Kevin Rudd in the Fairfax newspapers on the weekend and on radio and TV yesterday.

Within a few minutes of making the move, we sold a copy to a customer who came in for a lottery ticket. Not bad lifting the margin for the sale from 42 cents to $5.40.

Magazines give us many chances to be opportunistic retailers. We need to be aware of these opportunities and leverage them for all they are worth. A perfect example of this was the pre-selling of the 2010 Michael Jackson calendar last year. More than $1,000 in revenue before the stock arrived is a great result. While we will not see sales of that level with this issue of Quarterly Essay, selling two or three copies on impulse will be most satisfying.

Newsagencies have opportunities like this every day.  The key is to be aware, aware of what is being shown on TV, discussed on radio and written about in newspapers.  We have brilliant traffic which can be worth so much more to us.

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