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

Author: Mark Fletcher

106 2013 One Direction calendars and counting

We have sold 106 of the 2013 One Direction calendars over the last few weeks. At $24.99 each.  It helped that we were the only retailer in our region with the calendar for the first few weeks.

We are confident of selling between 200 and 300 of these calendars this calendar season.

The 1D calendar and related products make our newsagency appealing to a young and valuable demographic – and those who buy for them.

Tapping into the 1D fan base is part of our own strategy for building our own newsagency of the future.  It’s a strategy focused on several age groups and built around a commitment to brands.

While the $2,648 we have banked so far from the 1D calendar is not enough to retire off, it is welcome revenue too many others have not pursued.

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Calendars

Australian Country a good anchor for country section

The latest issue of Australian Country magazine from Universal Magazines is the anchor title for our country section at the moment. The cover is clean, reaching outside the country category to appeal to other shoppers. I urge newsagents to seek out the title and ensure they are using it as an anchor title. Sales of country titles are surging for us – in part because we have devoted specific space to them close to the busy area of our women’s magazine aisle.

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magazines

Promoting Woman’s Day bonus offer

We are promoting the Woman’s Day recipes+ bonus offer with promotion in several locations including this one . It’s a good value offer. recipes+ inside Woman’s Day makes the overall package a bit physically unstable. We are countering this by keeping pockets full.

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magazines

Changes in TV should motivate newsagents to embrace change

There was a time when owning a TV broadcast licence was a licence to print money. As if the many cable competitors and the downloading of TV shows were not enough competition for free to air, the networks are now faced with video on demand.

Check out the story at gigaom about the re-launch of Arrested Development (a brilliant sitcom) on the Netflix VOD platform. This and similar moves with other shows is developing VOD as a platform to compete with the traditional distribution channel.

The reminder for me is that none of us can run our businesses expecting traditional supply channels to work for us in the future. How people buy much of what we sell is changing rapidly … as is happening in TV.

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Newsagency management

Lotterywest drives community connection for newsagents

It was an honour to speak at the Lotterywest Business Adventure 2012 conference in Perth yesterday. This full day business development event attended by 160 retailers, mainly newsagents, was packed with practical advice and help for building stronger and more relvant retailers.

I was taken by the unique community focus of the Lotterywest pitch. From the official opening by WA Premier Colin Barnett (also minister responsible for Lotterywest) through to other speakers from Lotterywest, the connection with the community was front and centre.

In making grants totalling more than $100 million a year to community groups, Lotterywest encourages retailers to pitch that buying a lottery ticket is helping the community.  This fits with the Unique Selling Proposition of many newsagents.

From the home page of the Lotterywest website (click on the image) to in-store collateral to the TV campaigns, Lotterywest actively promotes the important community work being done thanks to the grants it makes of money for community groups.

It’s a powerful message, one that it important to WA newsagents. With the Barnett government committed to continued government ownership of Lotterywest it is a message sure to continue for years to come.

If I was a WA newsagent, I’d build my community connection message around and including this.

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Lotteries

The frankie opportunity

As the audits continue to show, frankie is an important magazine for newsagents. We promote it several times through the on-sale and for the rest of the time we have three pockets of the title in our women’s magazine aisle as shown in the photo. Below this we have four more pockets of frankie. It’s very noticeable to anyone entering the aisle.

When we promote the magazine we do it in a billboard fashion on the aisle end as well as tactically at the counter or elsewhere.

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magazines

Promoting How Your Body Works

Check out the display the creative team at one of my newsagencies has put up for How Your Body Works.  It’s bold, eye catching and sure to help us make the most we can from the launch of this partwork.

I love how the stock has been used to create a background for the poster.  This is smart visual merchandising.

It’s at the front of the shop attracting browsers from the mall.

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partworks

Moshi Monster central

Bringing multiple Moshi Moster products together like this continues to be a smart move, driving purchases of multiple products.  We are finding this small Moshi Monster display working well at the ticket sales counter. I’d urge newsagents to group Moshi products together.

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magazines

Timely Internet Security magbook

We are promoting the just released Internet Security magbook with newspapers as well as with our tech magazines.

I suspect the newspaper location will work well as it’s the type of title people with an interest in online security will purchase on impulse.  This is not a title people will visit seeking out – hence our placement in a high traffic impulse location.

We need more titles like this, titles that reinforce magazine range as a point of difference. Newsagents will reject special interest titles like this at their peril.

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magazines

Thanks for feedback on Newsagency of the Future

The Newsagency of the Future video has been up at YouTube for 7 days and it has been viewed more than 370 times.  This is way more than I expected.  I am thrilled with the feedback from people – newsagents, suppliers and others.  There have been plenty of questions from newsagents about their specific situations.  I have also received suggestions on other areas to cover.

I have to say I was unsure about taping the the Newsagency of the Future as each session is different, an evolution from the one before. This time I have to stay more on script. But it appears to work.  I am thinking about breaking the discussion of the future up into action points and making a video about each.

To see the Newsagency of the Future video click on this link.

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newsagency of the future

We need to talk about magazine subscriptions

Newsagents need to develop a position on the issue of magazine subscriptions.

Of particular concern to me is subscriptions of fringe titles on which we rely to reflect our key point of difference and subscriptions at 40% or more off cover price.

Check out the latest promotion through Groupon to Australians earlier this week pitching magazine titles available through the Zinio digital platform.

Newsagents invest considerably in promoting mastheads and making magazines browsable by shoppers. This investment on our part helps make it possible for publishers to promote subscription offers and in particular digital subscription offers.

As the market changes, especially for titles with a strong digital subscription push, we need to consider our pricing model. I’d see this applying to titles offering steep (>40%) discounts for subscription and digital subscription commitments.

Our shelves and our labour are our resources to manage and price.

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magazine distribution

Kudos to Sound + Image magazine

Check out the latest issue of Sound+Image magazine and see how one publisher is making the case for independent retailers.  Nice!

The full page headed with 10 reasons to buy hi fi at a hi fi shop is a passionate pitch for shopping at a hi fi shop over a chain store and over online shopping.  It’s social responsibility in action.

Support from for local, small and independent retailers is welcome. The support in Sound+Image is a reason for newsagents to give the title some time in the spotlight.

Click on the image to see the ad in detail.

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Social responsibility

In-location promotion of InStyle magazine

This is how we are promoting the latest issue of InStyle magazine from Pacific Magazines.

As the only magazine being promoted in this way in this section – InStyle stands out. You can see shoppers notice it.

These in-location displays work well for us and for the title being features.  Okay, it’s not an aisle end but they don’t always drive the sales you want.

This type of in-location display achieves sales and that is what matters.

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magazines

Sunday marketing tip: names matter

One way a business can show off its commitment to customer service is by referring to customers by their names. Newsagents should urge their team members to do this, to make the personal connection by name when interacting with customers. It subtly reinforces a personal level of service the shoppers will not experience in other shops selling what you sell: supermarkets, convenience stores and petrol outlets.

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marketing tip

Sunday rant: K-Mart fails at retail and falls back on price

K-Mart sucks as a retailer in my view. They are not alone, Big-W, Target and a couple of others are as bad. They can’t, don’t and won’t compete on service (despite sometimes advertising they do), the most important differentiator in retail, so they fall back and play on price. They use loss-leaders to pull in shoppers, hoping they purchase other items.

People buying on price are not loyal. If you are cheap today they will shop with you today.  If someone else is cheaper tomorrow they will shop with them tomorrow. Discount shoppers are of little genuine value to retailers. They are expensive to attract and easy to lose.

Value is what brings people back.  Value from information and customer service … an experience of personal value to the shopper.

Customers who shop with you because of the experience or because you have prodeucts others don’t have are more likely to shop with you again. They are more valuable if you price your goods well.

K-Mark is in my sights today because they are using price to disrupt a great Father’s Day opportunity. They have the 400g Toblerone King Dad Father’s Day gift at $5.  Even allowing for a bulk purchase this is still a loss leader for them, a traffic generator.  The people behind the product would have to be frustrated as the $5 price point devalues the wonderful product.  Brand managers should realise this.  Toblerone is a premium product people pay a premium price for because it’s worth it. K-Mart has turned it into any other chocolate bar.

We are sticking with our price plan as attract different shoppers to those you get in a K-Mart store.  Also, our merchandising makes the product the hero. In K-Mart it’s a half-assed display, almost disrespectful. Shoppers in our store receive service unlike at K-Mart.

What I would love is suppliers to stand up to the disrespectful price tactics of the Coles and Woolworths groups. They damage respected brands and educate shoppers to not pay a fair price for good products.

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Newsagency management

Frustrated with All Day Distribution

I can’t get the foreign language newspapers I want in one of my newsagencies. The distribution newsagent refuses to supply me saying it will hurt his retail shop. Who cares? I don’t care that’s for sure. If the newsagent wants to be a distributor he should distribute and not hoard. Some shoppers don’t like going to the shop run by the distributor.  Every day we are asked for Chinese newspapers and every day we have to say sorry.

All Day Distribution is a problem here as they continue to reject our request for a direct account.

I don’t like turning away customers.

It’s got to a point where I think we will have to take the matter further about a newspaper distribution system that hinders consumer access to products.

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Newspapers

Stuck-on ad covers front page newspaper headline on The Daily Telegraph

Check out the placement of a newspaper subscription ad stuck over part of the headline on page one of The Daily Telegraph today.

I feel for the editorial team. This is shabby treatment of their work.

I feel for the newsagents selling the cookbook series (with two weeks to go) and share their frustration at now competing for a free offer from News Limited.

I wonder how much thinking goes into these things … competing with newsagent retailers, sending mixed messages on a product (cookbooks), sticking an ad on the front page which will be ripped off by frustrated shoppers.

All very disappointing.

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newspaper masthead desecration

Promoting to EFTPOS shoppers

We have copied an idea from a colleague and are promoting a product at each EFTPOS terminal on the counter. With EFTPOS users looking at the terminal, products we promote here are likely to be noticed.  The key will be to choose items easily purchased on impulse.

I like this new promotional space and can think of plenty of impulse purchase items I’d like to promote here – for customers to notice when they are processing their credit card.

Promoting products at key customer touch points can drive basket depth.

Right now we are promoting The Blob, a clever iPhone, sat. nav. and iPad stand being sold exclusively through newsXpress.

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newsagency marketing

SA Gardens taps into local interest

SA Gardens is selling well from what I am told.  It’s a garden magazine for and about South Australian gardens and gardeners.

SA Gardens taps into the interest in local stories. We know from independent local newspapers that people like to read stories about people and happenings closer to home.

I’m told newsagents give it prime positioning because of the local interest and the feeling of supporting the state. Makes sense.

SA Gardens is distributed by IPS.

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magazines

Newsagent stops selling newspapers

I discovered through a Twitter conversation yesterday that a Melbourne newsagent has stopped selling newspapers. The shopper calls the business a newsagent. I am yet to confirm for myself whether this is the case for certain. regardless, if it looks and feels to a customer like a newsagent and it stops selling newspapers because it’s not worth it we need to take note.

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Newspapers

Hmm, electronic cigarettes

At the Consumer Electronics Show in Las Vegas early this year I saw four or five companies offering electronic cigarettes. They were promoting them as the ‘safe’ alternative to tobacco.

I doubt the ‘safe’ claim.

While they remain a banned product here in Australia, electronic cigarettes are selling in the UK. I purchased a pack of Intellicig from a newsagency in London a few months ago.

In the pack is a cigarette, some nicotine dispensers and a charger to plug into a USB port on your laptop.  Odd.

I’d dismissed what I saw in Las Vegas until I saw it on the newsagent counter in London a couple of months later.  In the last week, on the back of the High Court decision on plain paper packaging, electronic cigarettes have been in the news again.

While electronic cigarettes have been around for decades, interest in them has grown as government controls over tobacco cigarettes has increased.

It will be interesting to see if regulations here change and the product reached the market.

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Tobacco sales

Cool mini cookbook stand

I liked the look of this mini cookbook stand I saw at Changi Airport on Wednesday night.

I like the small footprint, ease of browsing and that the edges are not sharp.

I am looking for something like this to try mini cookbooks elsewhere in-store to get them to a point where they are profitable.  I don’t think it’s smart to leave them in the magazine department.

Clicking on the image will show more detail.

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magazines

Featuring Women’s Health magazine

We have replaced the Men’s Health display of a couple of weeks ago with this Women’s Health display – at the entrance to our magazine department.

Note the placement of the current issue of Men’s Health in a floor display unit next to the main display. We also have Women’s Health placed in the women’s aisle as the feature health title.

Women’s Health is a popular title for us.

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magazines

Three partworks launches set to drive traffic to newsagencies

Network Services has announced to newsagents details of three partworks launches with each being exclusively distributed in the newsagency channel. Click here for the flyer.

The big launch is Cake Decorating with a large marketing budget for in-store and TV promotion. I was concerned that Cake decorating may be distributed to supermarkets. Thankfully, this is not the case.

I like partworks – for the traffic and the easy upsell. I love that these titles are exclusive to our channel.

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partworks