Its Logie time again
While I think the attraction of the Logies continues to fade, certainly in my circles, we are still promoting the connection with TV Week in-store with this in-location positioning at the entrance to our women’s magazine aisle. We will leave this up all week and tap into other Logie promotions in the coming weeks.
Offensive front page from The Daily Telegraph
I am offended by the front page of The Daily Telegraph today. That they are using their newspaper to run a commercially interested political agenda with little regard for facts is bad enough but to suggest Stephen Conroy is the same as Robert Mugabe, Stalin and others is offensive. It is evidence of the lengths to which News will go to get its own way. News can’t be objective on this issue so they have tossed out even trying to look objective.
The sad thing is that so many people rely on The Daily Telegraph for their news … and they vote. The role of a newspaper is to report news, not seek to influence public opinion based on mistruths.
The kind of bias demonstrated by The Daily Telegraph reminds me of media coverage I have seen in government controlled media in China and Vietnam in the last year.
For a more balanced perspective on the issue, check out an excellent piece at The Conversation by Martin Hurst from Deakin University.
Book supplier Hinkler disrespects newsagents in Woolworths Naplan move
Newsagents who took on the Naplan educational book range from book distributor Hinkler have been surprised to see the same range at Woolworths check-outs at a 10% discount.
Had they been told Woolworths would stock the Naplan books, newsagents I have spoken with have told me that they would not have taken on the product. It’s my view that Hinkler has disrespected newsagents by not disclosing the Woolworths move.
As Australia’s supermarket duopoly push more into our space – and they will – suppliers to newsagents who also supply the supermarkets need to be up front with us about their arrangements and plans with supermarkets. To sell to newsagents without disclosure will see their products dumped and, sometimes, alternative products sourced.
Our channel is different to supermarkets. We offer a value-based service whereas the supermarkets usually only compete on price. In pursuing their price strategy they disrespect brands. Suppliers who care about their brands will focus more on newsagents and less on supermarkets.
Yes, we attract different shoppers, but they are not ad different between newsagents and supermarkets as they are, for example, between newsagents and deep discount stores.
What Hinkler has done to newsagents with this Naplan range sucks.
Product placement as social commentary
I deliberately placed this timber sign: Teaching – not in it for the income in it for the outcome – at the front of the placement of these signs because it’s how I feel about teachers and because for two years now the Liberal state government in Victoria has failed to deliver on their promise. Ted Baillieu said he’d make Victorian teachers the best paid in the country and for two years he has welched on that promise. So I was happy to use this sign as the lead in our refresh of this homewares range.
I like being able to place product to make a statement. But I also like selling products with an optimistic message as this whole homewares range has. The optimism in the text of the range gives the shop and optimistic feel.
A reader’s view of the new look AFR
The Australian Financial Review is the newspaper I am most likely to purchase if I purchase a newspaper. As I have mentioned here before, it’s the most on-target and consistent newspaper I’ve seen. So, I was keen to see the new look product.
I’m impressed. The redesign has resulted in a better product. To me, it feels more substantial – less like a daily newspaper and more considered.
Given that I can and do access my news via digital platforms, I find myself looking to print based product for analysis and opinion I can’t digest on the fly. The re-design of the AFR feels like these are more in focus. It’s a good looking product.
I am happy to see Fairfax investing in its print product. The extent of their investment across three mastheads in recent weeks should encourage all of us who derive income from selling them.
The is the issue of Quarterly Essay to promote
Every so often an issue of Quarterly Essay comes along with the perfect feature to promote at the counter or with newspapers. The latest issue warrants such support. Political junkies will want to read Not dead yet by Mark Latham. But they probably won’t come in looking for it – hence the prompt to place with newspapers or at the counter. This is a magazine issue to chase sales for. Mark Latham is getting plenty of media coverage this week – this will be top of mind for many shoppers.
Looking for new ideas at the newsagency sales counter
I was in a department store recently and noticed these colourful shoelaces at the counter of the shirt department. The placement struck me as odd and then i realised it was genuis. Give the customers the unexpected and they will notice it more.
Many newsagencies offer the same at the counter, maybe so much so that it’s noticed that much. What if you tried something completely different, ridiculous even? maybe it would be notices and purchased. There is only one way to find out.
We often complain that customer are store blind in our shops – maybe we make them so by not being creative in our displays and placement.
Comparing the performance of like magazine titles
I am using the MPA magazine performance report in our newsagency software to compare key directly competitive magazine titles to uncover growth opportunities.
The first pairing I have looked at, comparing year on year sales on a moving annual total basis is OK! and Who. Our OK! sales are down 26% while Who sales are up 10%. The titles are treated almost the same. The only difference is that OK! has a second location in the Bauer basket building stand on the shop floor.
The difference is greater than I expected. Who has sold 77% more units in the 12 months to now compared to OK!.
Real data like this comparing titled targeting the same shopper can help us be certain of the more valuable title for our business and to know which title presents the easier sales growth opportunity.
Sales data is a vital metric and I encourage newsagents to look at this as I have, comparing like for like titles.
Where are your Easter cards?
As with all major seasons we place Easter cards in with our gift display – as well as in the main Easter card display. Co-locating a selection of cards with seasonal gifts helps anchor the seasonal display. It also reminds shoppers to get a card to go with the gift. With gifts attracting shopper traffic of their own it;s imoportant we promote cards with gifts.
Where are your Easter cards?
Great billboard campaign in Sydney promoting The Daily Telegraph
The Sydney CBD has plenty of these billboards up today promoting today’s issue of The Daily Telegraph, yes today’s issue. They look terrific. I like the campaign. It promotes the relevance of the paper. It reminded me of some countries where they put the front page up as a poster and people gather to read. I saw several people reading these today.
Thankfully there wasn’t a ad covering any editorial.
Pity about the newspaper headline
News Limited showed today that they no longer think headlines sell newspapers. Check out the trashing they have the headline of the day on The Daily Telegraph today in Sydney.
What’s the point of the headline if they are going to obscure it in this way? It shows the newspaper as an ad delivery platform first and foremost. News comes a distant second.
It’s a miracle! The Week rises from the dead!
The Week magazine ceased publishing in Australia on October 12, 2012. I liked the magazine but would never actually pay for it. I can get the same review of the week’s news free online. Anyway, it died.
I was shocked to see The Week in one of my newsagencies on the weekend. Was this a miracle? Had The Week has risen from the dead?
No, this is no miracle, it’s the UK edition from Dennis Publishing and distributed in Australia by the Bauer owned Network Services. This is no miracle, it’s a scam! There is no justification for sending the UK edition here, taking up our shelf space and using our cash.
The Week failed in Australia, abysmally. The failure cost newsagents money as we were oversupplied the title consistently. Now, some genius has decided that the UK version of The Week should be on our shelves.
Dennis Publishing and Network Services should know better. This is a sneaky move. Okay, they may sell some copies but why have I been sent stock in my store out in the Melbourne suburbs where the Australian edition failed to sell? Why didn’t Network ask me before they decided to spend my money this way? They want me to pay them on time yet they deny me mechanisms with which to reasonably control the level of debt.
This supply of the UK edition of The Week is another form of oversupply. It disrespects and abuses newsagents in a way Network would not treat the supermarkets or other magazine outlets.
Network and Dennis Publishing are treating us as suckers.
I am writing to the ACCC, documenting this example with history of the Australian title. Network will argue to the ACCC that I can stop the title and I can return unsold copies. Well, it’s not as easy as that. I have to submit the request and they have to decide if it’s acceptable. I can’t just cut the title.
FYI: The company behind the Australian issue of The Week, Dennis Publishing Pty Ltd, collapsed owing a considerable sum – see the creditors report here.
Driving sales of health related magazines
Last week, we introduced a range of health related magazine titles for display in the section under our women’s weeklies titles.
This location receives the highest traffic in our magazine department. sales of the health titles placed here should increase. For each title it’s the second location in-store.
We use this space below weeklies to feature titles outside their usual location.
For most titles we run here it works, delivering incremental sales of the featured titles. The times it does not work we learn for the future.
The biggest success we had was when we move craft titles here. In fact, the success was so great that we found a space to permanently locate the category opposite the weeklies. We made that move seven months ago. The result has been a 52% increase in sales for the category. Craft titles now account for 10% of all magazine we sell.
We can make more money from magazines.
Click on the image for a larger version.
Expanding what we offer the Mollie Makes shopper
With Mollie Makes such a success we have been seeking out other titles at the high end of craft titles and came across embellish, an Australian magazine distributed through IPS. While not a perfect fit for the Mollie Makes reader, it’sclose – hence our placement. The shoppers purchase more magazines than on average the more valuable the basket.
Our interest is more in margin dollars per sale than margin per item.
The decision to find titles to leverage the success of Mollie Makes is another example of how we can make more money from magazines.
Sunday newsagency marketing tip: wear a product you are promoting
Choose an item you want to sell and get one or two staff to wear it with a sign … sticky tape, a stapler, a new pens, a new magazine. Since staff don’t usually wear products, the product should be noticed and, hopefully, purchased.
This is a crazy idea. I can’t think of anyone who would try it. I doubt I would. And that’s the reason to try – because it is so crazy. What’s the worst that can happen? – customers will laugh. And the best? They buy the product.
Sunday newsagency management tip: Optimism as a attitude can help your newsagency grow
It’s easy for us in the newsagency channel to be drawn to a mindset pessimism. History gets some to this point while unjust and inequitable treatment by some suppliers gets others there. Once we there, in a pessimistic mindset, it’s hard work to get to an optimistic outlook.
While I am no psychologist, I know that running a newsagency through a fog of pessimism is more likely to lead to poor decisions that make the business situation worse and guide you to fulfilling a pessimistic view that the business is dying. Running your newsagency through a mindset of optimism, on the other hand, is more likely to lead to decisions which are positive for the business and those connected with it.
The challenge is how do you switch from one to the other?
As I noted, I am no psychologist. For me, if I feel pessimistic about a situation or overall, I focus on what I can change in and about my business. Sure I complain about suppliers, often in this blog, but once the complaint is given breath my energy is spent on climbing over or digging under or around it. I make a deliberate choice to leave the feeling of pessimism aside as I know that it is an emotion that wastes time and pulls focus from what can be achieved. I make a choice to see the opportunity – in any negative situation.
No matter what we are faced with, there are aspects we can control and act on and others we cannot. Focus on what you can act on. Celebrate the small steps. Share a positive comment with a team member and take energy from their joy at recognition. Play your favourite music. Wear something because you like it. Have the extra cup of coffee. Count your smiles for the day. Do things you know will make you happier and hope and work at these small steps helping you to focus on an optimistic outlook instead of a pessimistic one.
A difference I have noticed between businesses navigating change positively and growing and those that are not is the attitude / mindset of the leadership of the business. Work at choosing optimism over pessimism and it could be that challenges acting as a barrier today and in your rear view mirror tomorrow.
Amy Neumann has published a slide show documenting 19 ways to be more optimistic. It’s pretty cool.
I touched on this topic in Sunday management tip: what if you hate your newsagency? in May last year.
Tobacco age-checks on the increase?
I heard yesterday that some tobacco retailers in NSW have this week been tested in an undercover operation over the sale of tobacco to underage shoppers.
This is a timely reminder to newsagents selling tobacco products – if your newsagency software has age check features that causes a pop-up question to check age – use it, remind your staff to be vigilant and make sure your age restriction signage is clear. take these steps, especially the software step, and you have a stronger defence if a mistake is made.
Thoughtful product placement drives sales
I’ve found that placement of items targeting an occasion works better for some situations than keeping products together by brand or supplier.
Take aged birthday items, like these items for a 21st birthday. They work better in this display than placed by supplier – i.e. all glasses together and all frames together.
This type of placement tells our shoppers that we have the opportunity covered. It also helps them purchase more than one item from the range. Oh, and it makes shopping easier.
Placing by brand, and not occasion, makes it harder for shoppers to shop and this will discourage some – especially guys.
If a product is not working for you, think about how you are treating it – is it displayed and placed for success, are you managing the product with pride? I’ve seen situations where product failure is driven by poor shop-floor placement.
Here’s a way to reduce shopper theft
Check out the way a drug store (pharmacy) in New York lets shoppers know they are being filmed. I like the text they run under the screen.
I’ve been a fan of screens like this in-store for ages but have not used text to provide context. Seeing it as I did some months back – the text makes sense. Providing safety and savings … video recording in progress. I bet they have this because the text coupled with the screen achieves more than the screen by itself.
I’d forgotten I had the photo and now I’ve found it again I’m placing text like this for under our in-store security screens.
Newsagents who have a security system but no screen in-store – I’d urge you to place a screes so customers can see you are filming them. The more people feel they are likely to be caught the less likely they are to try and steal from you.
Click on the image for a larger version to see the text.
Good product placement management
Check out the planagram established for accurate placement of Bauer products into a floor display unit in a Woolworths supermarket. It shows the title placement plan, guiding those responsible for stocking the unit to get the right products in the right location. If you click on the image you an see the detail.
I suspect we don’t have processes like this in newsagencies as our space, for off-location display units like this especially, is not purchased by suppliers. In some respects I wish we did have this. It makes getting placement right easier.
Many years ago ACP did allocate space in newsagencies this way, not any more.
Magazine price wars in the UK
New TV listing magazine in the UK, TV Pick, is dropping its cover price from 40p to 20p next week. Through the launch period, newsagents are on a 90% margin. I am not sure I’d jump at a short term gain from a title that could well cause losses in the long term.
I can understand why publisher Northern and Shell, is using a combination of cover price and bonus margin to grab prime retail space. It’s disruptive. The challenge is that it could come back and bite them over time.
The only price pressure we see here in Australia at present is the package deals from Bauer and, for the most part at the moment, these are outside the newsagency channel.
Customer service is only as good as your worst customer service representative
At a Woolworths supermarket a couple of days ago, after the required questions of: How’s your day been? and Got much on tonight? the checkout person handed me a new Freddo biscuit product from Cadbury. Here she said and continued scanning my purchases. I’m sposed (SIC) to give everyone one she then said with a sigh – it sounded like an excuse. I dunno why she continued, rolling her eyes and shrugging her shoulders.
I hope Cadbury is not paying Woolworths to hand out these sample packs. If their goal was to get them in the hands of shoppers to sample the product I guess it worked … but you’d want it done with some professionalism and grace, you;d want it to be respectful of the brand.
If their goal was to make us feel good about the gift or to be given it with any context, it failed.
Through her execution of the promotion this checkout person told me she didn’t like her job, would do the bare minimum required and even undermine attempts by her employer to grow sales.
The experience was out of synch with the current Woolworths TV commercials promoting friendly service. It was also our of synch with the promotions run on their in-store radio.
The whole experience was a reminder of how much we rely on our employees to pitch our message and meet our customer service objective. It left me wondering if there was something this employees supervisor, manager or some other person could do to have her better reflect the customer service experience Woolworths advertises I will get.
Oh, yes, the Freddo biscuit was a treat.
That’s Life scratchie promo works
Run a cash prize promotion with That’s Life and Take 5 and you get a lift in sales. This is why we are giving the current issue of That’s Life additional spotlight attention – the winning scratchie ticket promotion is an easy way to drive sales. Full cover promotion with our weekly magazines as well as promotion with newspapers is helping drive sales of this issue.
See the placement of That’s Life Puzzler. This placement with the magazine is a key factor in double digit sales growth of this title for us. While we have it in two places, it’s this placement with the title that is generating the growth.
There is money to be made from magazines.