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

Author: Mark Fletcher

Connecting with iPad users

We are promoting The Essential Guide to iPad with the full cover of the magazine on show thanks to our ideal front pocket placement. We wanted to make the most of the opportunity of the free iPad cover which comes with this issue. We have been able to place the title so that the promo header does not cover the title behind too much.

Newsagents are struggling to connect commercially with the iPad user. This title and other iPad titles provide us with an opportunity of some sort of connection at least. I think this is the type of title we need to promote.

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magazines

Promoting New Idea and shampoo

We are promoting the latest issue of New Idea magazine which is packaged with free Pantene shampoo and conditioner in several places in-store including this prime counter position.  While the package is a challenge to display, we have made it work to leverage the opportunity for maximum sales … and sell it has!  This counter location works the best because of the sep shelving we have in this position.

Unlike supermarkets where magazines are whacked into a pocket, we have thought about how to treat not only New Idea but other titles with gifts so that we can maximise sales and respect the product.

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magazines

Google on retail?

Peter Switzer on Sky last week interviewed Ross McDonald from Google about retail. It frustrates me when media outlets get one ‘expert’ who pushes the line which suits the business they represent. A Google representative was always going to talk about retail from a Google perspective.

While there is no doubt that retail is tough, plenty of retailers I speak with are enjoying success in their businesses, attracting new customers and driving more efficient baskets. Independent retailers are more nimble and therefore more responsive to today’s challenges than big retailers who tend to catch media attention.

The Switzer interview is worth watching if only to get a perspective on the structural change impacting the sector. This is real. But so is the positive response from many newsagents to the challenges of structural change.

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retail

The Australian reports on a price drop for ACP Magazines

The media section in The Australian today leads with a report claiming that the private equity business which owns Nine Entertainment, and through this ACP, would accept a price of $300 million for the business, a considerable drop in what was reported as the sale price.  The report says that analysts feel that CVC might get a better return by selling the parts of ACP rather than the whole business.  This will be an interesting story to watch given the direct connection with our businesses.  Check out page 34 of The Australian today.

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magazines

Staff cuts at Gordon and Gotch?

For more than two weeks now I have been hearing about another round of staff cuts (voluntary redundancies?) at magazine distributor Gordon and Gotch. I am not that surprised given the profit downgrade recently announced by the Gotch parent company PMP.  With the share price at 38 cents, down from over seventy cents fur months ago, cutting costs has to be on the agenda. Click on the image to see the share price chart from the ASX website.

The challenge for Gotch, if they are indeed cutting staff, is that customer service often suffers from such a move. They are already under performing rival magazine distributor Network Services on the customer service front and fewer staff would have to make that situation worse.

To fix the situation, Gotch needs to get serious about working with newsagents, supplying magazines at a volume more closely aligned with sales, implementing real sales based replenishment and working more closely with publishers on providing timely sales data.  Some system changes and a better customer service attitude from the top of the company could help build faith, sales and the financial return.

What ails Gotch needs top be addressed from the top down. While cutting staff may reduce costs and this may provide some relief around the share price, it is not a plan on which the  business can rely to build the business.

Sort of related … What surprises me is that I have not seen a response from IPS, the Fairfax owned new magazine distribution business, to the Gotch challenges. IPS has a model which could see it pick up some of the Gotch titles and thereby lift its relevance to newsagents and further leverage its seven day a week delivery service. With logistics being such a high cost in magazine distribution I would have thought that IPS could offer a model of reduced costs for publishers.

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magazine distribution

When a free gift hurts a magazine

I was in a Woolworths supermarket yesterday and a Coles this morning and could not see the Whitney Houston Woman’s Day tribute issue which came out Friday.  After some searching I found it (in each store), leaning forward in such a way as to completely obscure the cover.  This issue comes with a free gift of a make up stick of some sort.  The gift made the top of the magazine more than twice the thickness of the lower part. When the title has been placed in the pocket no one had thought to do it in such a way as to allow the cover to be seen.  While I will never know, I suspect that this will hurt sales – in this supermarket at least.

Supermarkets don’t like to have to manage magazines. They want to be able to put out all the stock they receive and leave it there for the on-sale.  In our newsagency if we received this stock we would put less in the pockets and ensure that the full cover could be seen. We would then top up the pocket as the week goes. I suspect that this is what m oct newsagents would do.

In the supermarket they see a magazine as a SKU. They expect the supplier to care about merchandising and replenishment of the shelves. This is where our channel is different. I wish that all of our suppliers would take more note of this. Newsagents would have derived more value from this gift than the supermarket I visited yesterday.

As for the gift itself, I don’t begrudge ACP placing it on supermarket product and not ours. Newsagents get gifts with Woman’s Day when supermarkets do not.

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magazines

Moshie Monster opportunity for newsagents

With the latest Moshi Monsters magazine out now we have an opportunity to promote not only the Moshi Monsters Magazine but access to the popular kids online game. We sell the Moshi Monster access thanks to Incomm launching this and other products to newsagents through the Touch platform. As you can see in the photo, we are promoting the online game vouchers with the magazines … this has worked a treat for us. Anything to extend the basket and get products from more than one category in there.

As well as the bonus sale from the Moshi Minsters card, we are reminding shoppers that we have this and hopefully they will think of us first next time they need a top up.

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magazines

Promoting Healthy Food and weight loss

We are giving the latest copy of Australian Healthy Food Guide some time in the sunshine with this prime positioning in among our food titles.  Being a low volume and physically small title it is easy to overlook. I wanted to get it out front to show our food title shoppers that we cater to healthy eating as well as more indulgent eating.  This is one of those titles which could easily fit in two sections of the magazine department: food and health & fitness. We give it a shot in both even though they are located in the same aisle. I am hopeful that this issue of Australian Healthy Food Guide will work particularly well because of the words weight loss on the cover. They can be magic for sales.

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magazines

Promoting Men’s Health magazine

We are promoting the latest issue of Men’s Health magazine from Pacific Magazines with this high profile display in among our sports titles. We are also giving the magazine a run next to newspapers this week to attract impulse purchases as it is the type of title which is easily picked up and purchased off location.  This type of additional promotion an be done right through the on-sale as Men’s Health, for us at least, sells right through.

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magazines

Sunday Marketing Tip: 12 ridiculous marketing ideas from which good ideas for your newsagency may emerge

I was speaking at a business conference last year and was asked to explain how an independent retailer can come up with fresh marketing ideas. Brainstorming is the best approach. Free form, no rules, ridiculous and crazy brainstorming.

In a brainstorming session it is often the most ridiculous ideas which are the best to explore and finesse to suit your needs. They usually come from a place which is unencumbered by business rules.

Sometimes, retail businesses need to look for marketing ideas which are not encumbered with business rules, crazy ideas which challenge how the business looks at and presents itself. This is certainly true for newsagents.

Here are crazy marketing ideas for retail businesses. The list is deliberately provocative. This is to shake up how you see marketing in your retail store and to encourage you to extend your own boundaries. Who knows, innovation could be in this list and waiting for your business:

  1. Blackout your windows. Stop passers-by looking in. Make it look as if you have a big secret inside. Tell people they need to com in if they want to see what is so special.
  2. Dark shopping. Turn your lights off and let your shoppers shop in the dark. Hand out night vision goggles for shopping. Maybe have some deals.
  3. Pyjama shopping. Give shoppers who shop in their pyjamas on a certain day a special discount. It does not matter whether pyjamas connect with your business. The key goal of this idea is to have fun.
  4. Invite a business class to develop your marketing plan. Contact a local high school and ask a business class to develop a marketing plan for your business award the best plan a modest cash prize, be sure to retail ownership of all entries.
  5. Run an eBay type sale. Set aside a good selection of items and invite customers to bid for these with the highest bidder getting the items. Letting your customer decide fair price for products could open your eyes to the value they attach to what you sell.
  6. Cross Dress for the day. Have all employees cross dress for the day. It could be for fun or it could be to say you want to see how the other half lives.
  7. Tithe Tuesday. Tuesdays are often slow in retail. Connect with your community and say that ten percent of all sales on each Tuesday will be donated to a local charity. This is sure to get the local charity pumping shoppers your way.
  8. Empty the shop sale. Run a sale promising to sell everything in the shop within a week except the fixtures. Kind of like an end of lease or a relocation sale but without you moving. Done well, this type of sale could see you quitting stock which has been on the shop floor for too long.
  9. Tell a joke sale. Offer customers a percentage discount if they tell a joke at the counter when paying for their goods.
  10. Bring a friend discount. Give each customer an offer at the checkout, if they bring a friend into the shop within 30 minutes they can get a good discount off their purchase.
  11. Bring back quoits. Setup a place to play quoits in your store. Give customers an opportunity to play for a discount. At the very least you have a bit of fun in the business. This could be done in an area adjacent to a retro product display – retro is in right now.
  12. Run a bake sale, and old-fashioned bake sale for a charity YES inside your store. Place this next to your country collections titles and anything connected with craft.

Before you discard any of these ideas, think for a moment whether they or any thoughts which flow from considering them could work for your retail business. Remember, sometimes it is the crazy and unconstrained ideas which work best.

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marketing

Social media being used to stop The Sun being successful

Rupert Murdoch had no sooner announced that a Sunday edition of The Sun newspaper would be published in the UK and social media sites like twitter lit up with people urging other to not buy The Sun.  News in the UK has become a toxic company mainly of its own doing through the phone hacking scandal and now the reported bribery of law enforcement officials.

Newsagents ought to look at the UK campaign and see how all sorts of people are getting behind the campaign against The Sun.  Look at traffic for the #dontbuythesun hashtag.

There is plenty newsagents could learn from UK campaigns against News for a local campaign on News Limited treatment of distribution newsagents.

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Newsagency challenges

Some newsagents really suck

A small bundle of a title meant for one of my newsagencies was delivered to a competitor by mistake. It was clearly labelled.  Plus they did not have the electronic invoice for the title. They unpacked it, put it on the shelf and sold out by they time we had sorted out with the distributor what had happened.  This competitor newsagent does’t care about the situation.

Okay we are competitors. but to act in such an unethical way against any other business is appalling. I guess it is better that we know this about their ethics.

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Ethics

Where is the ABC Football magazine?

The ABC yesterday launched a new Football magazine, an annual.  The thing is, I can’t find a newsagent with this title.  The TV commercial says that it’s at a number of retail outlets including newsagents. Hmm … I wonder what went wrong.  Based on our AFL record sales I think we could easily sell 30 or more copies of this new ABC title.  That’s close to $300 in sales.  If only we had the stock for the launch day.

Mumbrella has more including a copy of the TVC. This is where I got the cover shot from.

Newsagents, if you got the title please let me know.

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magazine distribution

Promoting all the Whitney Houston titles

Here is how another of my newsagencies is promoting the range of Whitney Houston related cover stories. This display is located behind the counter.  It’s support Who, Woman’s Day and OK!.  This behind the counter support is in addition to displays with newspapers and in-location for each of the magazine titles.

I could be wrong but I suspect that interest in Whitney will pass quickly given today’s news cycle. That’s why promotion this weekend is vital … it’s the biggest opportunity we have with the story.

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magazines

Promoting Who Whitney Houston tribute issue

Here is how one of my newsagencies is promoting the Who magazine Whitney Houston tribute issue.  Check out the detail in the display – Renee our in house merchandiser extraordinaire (and manager) has picked up on elements in the Who collateral and extended the reach of this beyond the magazine poster … just wonderful.

I think that with this type of very special tribute issue it is important to be respectful of the subject and this display achieves that – while appropriately drawing shopper attention to the opportunity.

I love the cover of Who – the photo and the gold work well together.

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magazines

Promoting Woman’s Day Whitney Houston special

One of my newsagencies is promoting the Woman’s Day Whitney Houston tribute issue on the column at the front of the newsagency facing into the shopping mall.

I love the treatments like the stars included to draw attention to the display and reinforce the special nature of this issue of the magazine.

Going above and beyond for this special issue is a way we newsagents can own the opportunity and the moment. No supermarket would do this.

Sales on the first day have been good.

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magazines

Rupert Murdoch’s News Limited hurts small business newsagents with indecision

News Limited kicked off a project a couple of years ago around the future of newspaper sales and distribution. They presented newsagents with three options: do nothing, consolidate or specialise.  News Limited senior management made it clear that do nothing was NOT an option.

Yesterday, News Limited told newsagents that it was going to do nothing. The promised new newspaper distribution contracts are not coming.

Newsagents have been stressed through the process since the knowledge of a decision by News about such a key part of their business made newsagencies difficult to sell and difficult to access funds for.  Any bank manger will confirm this.

I would go further and note that the earlier decision by News Limited to force changes around newspapers has been a key factor in the considerable decline in the sale of newsagencies over the last two years.

Newsagents were dealt a blow yesterday when the company advised that it is not ready to provide newsagents with the contractual certainty which it had said it would provide. News Limited has opted to do nothing … leaving newsagents with a longer period of uncertainty. Promised new contracts are not coming. News is not saying how long for … things could not be more uncertain.

the VANA blog has more details on the meeting with News Limited yesterday.

This inaction by News Limited means that finance will be harder to obtain for newsagency businesses, newsagencies, especially those with a distribution component, will be harder to sell and capital investment in the distribution side more challenging to complete.

News limited created the uncertainty and the cost to newsagents by launching their review.  They are continuing it by their inaction.  This is not socially responsible nor is it ethical.

Newsagents have very right to be angry.

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Ethics

Valentine’s Day sales surge in the last four days

While Valentine’s Day was a good season through the four weeks leading up to the day, the real sales surge for us occurred in the last four days.  We say a four fold sales surge in the last four days compared to the same period last year, far more than the sales surge for the whole four week season as we measure it.

While gift sales were up, it was cards which worked the best for us with sales up well over double.  Thanks to our in-store hallmark category and segment performance reporting we can see where the sales growth came from at the segment level.  For us, it was Husband and New Love which did particularly well on the previous year.  Oh, and the handcrafted Valentine’s Day lifestyle cards did very well.  Knowing the sales results at this micro level immediately after a major season is a real boost not only to our business performance intelligence but also to how we interact with suppliers.

Data is king (and queen) in this marketplace.  Bring on Easter!

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Newsagency management

Timely advice on magazine returns

Through the course of working with a newsagent over the last few weeks on returns processing questions and observing the handling of newsagent returned product at the Sydney warehouse, a senior customer service representative from Network provided me with the following observations which are valuable for newsagents to take on board:

During my stint in the returns dock I noticed a real problem with returns sent back via logistics providers. Many of these returns were consolidated onto a single sealed pallet with other store’s returns for both G&G and Network.

The pallets are then dumped in either the G&G area or the Network area without being separated. The G&G returns are processed in Victoria so any pallets dumped in their area are taken away (in full) by G&G and never received by Network. This makes these stores look like they simply aren’t returning stock at all and therefore likely to receive reversals of credits.

Newsagents need to ensure their agreement with their courier company is clear and it involves two separate drops, one to G&G and one to Network.

Ultimately the stores are responsible for their stock getting back to the correct place, so they should be asking questions of their service providers. We don’t want these people on our reversal lists, we only want those who are taking advantage of the system…problem is it’s impossible to tell them apart because their returns simply don’t show up in the system.

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magazine distribution

Promoting Frankie magazine

We are promoting the latest issue of frankie magazine with this display on a column seen by shapers as they enter the newsagency.  We are confident of selling out and are chasing more stock – but Gotch says they are out so we have gone to the publisher.

With this display, our in-location display and a growing pool of shoppers purchasing frankie we know we will sell out of stock.  I want to make sure that we have enough stock so we can reach our fullest potential. this is vital for us and for the title.

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magazines

Promoting Madison magazine

We are promoting the latest issue of Madison magazine with this high profile positioning.  We are not a Connections Emerald newsagency in this location and have only received limited collateral so we have gone for showing off the product benefit with the FREE summer tank gift and letting this speak for itself.

Everyone leaving our women’s magazine aisle faces this display.  We also have this issue of Madison in a waterfall disk;lay in its usual location.

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magazines

Woman’s Day and Who Whitney Houston specials

Newsagents in Victoria, New South Wales and Queensland (but not FNQ) have an opportunity tomorrow to drive incremental business with the special edition of Woman’s Day covering the passing this week of Whitney Houston.  We have prepared for the opportunity by deciding to place the special issue at the counter, next to newspapers as well as next to the current issue of Woman’s Day in our women’s weeklies section.

Who is out tomorrow nationally with a Whitney Houston feature as well. Friday is the usual on-sale for the title. We will have Who placed next to the Woman’s Day special at the counter and with newspapers as a Whitney fan is likely to purchase both titles.  Who is a strong seller for us and certainly a traffic generator on Friday and the weekend.

Special issues like what we will see tomorrow present newsagents with an opportunity to not only drive incremental sales but to also compete successfully with other retailers of magazines. Supermarkets, petrol outlets and convenience stores all operate off planograms. This limits how they can respond to special issues.  Our newsagency channel does not suffer from this rigidity. We can demonstrate the importance of our channel to suppliers through our actions tomorrow.

FOOTNOTE: Newsagents may need to check with their software company for handling the Woman’s Day special issue as the data will be out of cycle for the usual. Newsagents using newsagency software form my Tower Systems company were emailed advice early this morning.

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magazines