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The Valentine’s Day age range

Further to my post below about promoting the Lovatts BIG crossword title with our Valentine’s Day range, check out the two customers I saw shopping our Valentine’s Day card range yesterday afternoon.  This is typical of the age range of Valentine’s Day shoppers we have seen in this shop … retirees down to school kids – shopping side by side.

I love a season which brings in such a diverse range of shoppers.  For some years I made the mistake of thinking it was a season for younger people.  A couple of customers soon set me straight on that score.  While most of our Valentine’s Day customers purchased a card, we have had  terrific success with plush and the other Valentine’s Day themed gifts we have on offer.

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Greeting Cards

Cross category promotion for Valentine’s Day

As we have done for years we have the Valentine’s Day themed BIG crossword title from Lovatts mixed in with our Valentine’s display.  We do this because we see this as a season for all ages and not just the young. A crossword could be the perfect Valentine’s Day gift for a couple who have been married for 30, 30 or more years. The Lovatts crossword title in the display also shows off a more practical side to the season and I expect this would be appreciated by those who says the day is too commercial.

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Newsagency opportunities

A lucky Valentine’s Day shopper

We’re planning on drawing the winner of our JAG watches prize after we close today. One of our customers will win the two watches which we are giving away as part of a Hallmark promotion. I like competitions like this where one of our shoppers is certain to win the prize. This reinforces the value of local business shopping compared to bigger stores where someone somewhere else wins.

We will run six local in-store competitions like our Valentine’s Day JAG watches promotion this year. They will be nicely spaced and provide a reminder of the bonus value of shopping with us. In each case, entry is tied to in-store purchases.

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marketing

Promoting Better Homes and Gardens in location

We are promoting the latest issue of Better Homes and Gardens magazine with this in-location display.  This is in addition to the counter display which I mentioned over a week ago. As the second most popular magazine in Australia this bonus support just about always results in sales growth for us.

The in-location display for Better Homes and Gardens is the only one on this side of the aisle – this helps draw attention.

With the TV show back on the air and continuing its strong rating showing this is an ideal magazine for newsagents to regularly and boldly promote.

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magazines

Nine explores sale of ACP Magazines

The Australian Financial Review reports today that Nine Entertainment Co. has engaged Macquarie Group to explore the potential sale of ACP Magazines. The report goes on to note that senior executives from Seven West, owner of Pacific Magazines, have met with Macquarie for “preliminary” discussions. I’m sure newsagents will want to read the lengthy report in the AFR.  Network Services magazine distribution business sits under the ACP structure as I understand it.

While I can see benefits for a merged entity, I expect that the ACCC would have some concerns about the move based on past decisions. That said, in any change there exists opportunities.

I have no doubt that 2012 will be a year of consolidation across a range of suppliers who trade with newsagents. We have seen one move already in the software space. I am sure there are be more changes on the way.

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magazines

The Australia and Mark Day miss an opportunity

The Australian newspaper and columnist Mark Day missed an opportunity in the media section of today’s newspaper to correct the wrong information theypublished last week about newsagents being protected.  Day and senior people at The Australian would know abut newsagent concerns because of this blog, tweets about the issue and direct communication from the ANF on the matter.

As a newspaper which aims for accuracy in reporting it is disappointing that they have ignored the opportunity to correct what Day wrote.

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newspaper home delivery

Knowledge is power when it comes to stationery price comparisons

Newsagents are often frustrated that their businesses are regarded as expensive.  One way to combat this is to educate your staff about the price difference between key products in your newsagency and nearby competitors like Officeworks, stationery shops, supermarkets and convenience stores.

Choose ten popular everyday stationery items and get out of your newsagency and price company. Educate yourself about how competitive you are or are not … as the case may be.

Armed with factual information you can make some valuable business decisions.

If you are not cheaper, look at your buying and your margin and decide if you want to be the cheapest or if not the cheapest the outlet offering the best value.

If you are cheaper, make sure that every one of your employees knows this. Encourage them to work into their discussions with shoppers. Find a way to promote your price comparison results without starting a price war and without breaching your lease if you are in a major shopping centre.

It is hard work turning around public perception and we don’t have then unity or budget to match the Officeworks spend on their price positioning. But we have to start somewhere.  I think that the best place to start is in your newsagency and then comparing with others. Knowledge is power. Armed with this you can make your newsagents to best value stationery destination in the area.

Imagine the value of a pitch around price and service.  This would be a perfect win win for your newsagency and for the channel.

You have more control over stationery than just about any other department in your newsagency yet for many newsagents it provides the worst return on investment and the worst return on retail space.

We have let stationery business be taken from us for too long. We should make 2012 the year we fight back at the store and national level. There is no reason why we could not double the amount of stationery sold out of our businesses – people are buying this and plenty more from other outlets, why not us?

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Newsagency challenges

Promoting the BBC earth series with the Herald Sun

The BBC earth series being run promoting the Herald Sun newspaper is popular. It’s driving traffic and generating good sales. This is a smart promotion for a newspaper to run, better than the movie and other giveaways which newspapers in the UK used for years. This series is all about knowledge … as I said, smart for a newspaper.

Our newspaper and DVD sales have been helped buy the large cutout of a penguin which the folks at the Herald Sun organised for us.  We have had this at the front of the newsagency, in various locations, facing into the mall – to show our connection with the well advertised promotion.

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Newspapers

Promoting Marie Claire magazine

We have been promoting the latest issue of Marie Claire magazine on a column which is seen by shoppers as they head to the counter from the greeting card aisle.

Given the surge in card sales this Valentine’s week and given the types of shoppers it attracts we figured this was ideal placement for driving incremental business for Marie Claire and promoting the free $50 Mimco voucher which comes with the magazine.

We also have Marie Claire in ideal placement in our women’s magazine aisle, toward the entrance and in a half waterfall display.

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magazines

Feast taps into the dumpling craze

Dumplings are very popular at the moment, especially here in Melbourne. We have some highly regarded (and hard to get into) dumpling restaurants and other places which have added dumplings to their menu to tap into the craze. I was therefore thrilled to see the cover of the latest issue of Feast magazine.

The dumpling taps beautifully, and deliciously, into the interest in dumplings.  The cover story makes this issue of the magazine relevant to today’s food trends. I like that.

We are giving the magazine star treatment with ideal placement in our food section as well as time next to the newspapers to drive impulse purchases.

There is no doubt that dumplings are a food of the moment.  This latest issue of Feast gives newsagents an opportunity to tap into this interest. I’d encourage every newsagent reading this to ensure that the latest issue of Feast is in a high traffic and fully visible location. You should sell more copies as a result.

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magazines

Promoting Dolly magazine and the free novel

We are promoting the latest issue of Dolly magazine, which comes with a free novel, with this in-location placement. It’s a feature in our women’s / girl’s magazine aisle. We’re set to sell to based on current sales.

While the display is very simple and not the billboard display some publishers prefer, it will work a treat and drive the sales outcome we all want.

regulars here would know that I am a fan of these in-location displays. That’s because they work – especially when you have a genuine value proposition like this offer from ACP magazines for the latest issue of Dolly magazine.

The display will run for a few days more.

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magazines

Breaking the news of Whitney Houston’s death in-store

Click here to hear how the death of Whitney Houston was announced in-store on our live in-store radio network. People will remember where they were when they head the news of Whitney’s death and it’s good to demonstrate our relevance as a news source – thanks to the live in-store radio operation.

Following the news of Whitney’s death, her music featured on high rotation in-store … again showing relevance.

While our in-store radio network is for newsXpress stores, the company behind this has an unbranded in-store radio service for other newsagents. I recommend it as it promotes products we sell and plays music relevant to our traditional shopper. And, as we experienced today, it breaks news as it happens.

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newsagency marketing

Sunday marketing top: cozy up to your local newspaper

Local newspapers, especially genuinely locally owned ones, are often small businesses too.  They have similar challenges to newsagencies – a limited marketing budget.  Here are some suggestions you could put to the local newspaper in return for their support of your business.

  1. Prime positioning.  Offer the best newspaper location in-store for the local newspaper.
  2. Co-location.  On the day of issue (if it’s not a daily) offer a second location right at the counter or the front of the store to maximise circulation for them.
  3. A once (or twice) a year window display. Promise a feature window display at least once a year around a mutually agreed theme.
  4. Co-branding certain competitions.  Offer to co-brand colouring competitions and adult art competitions with their masthead. Run the competitions with them. This ensures their coverage of the competition and the winners.
  5. Co-branding of your noticeboard.  If you have a local events / news / activities noticeboard (and you should have), co-brand it with the newspaper to drive their support of it and your business.

In return for your support in-0store, ask the publisher to provide you with an agreed number of house ads for free, ads in a location of their choosing which promote your business.  Also ask for agreed coverage of key events beyond the dual branded events such as colouring competitions.  Finally, negotiate a significantly discounted ad rate for a set position in each issue. I am not talking a big ad here – business card size is fine – something which keeps your business in the minds of readers and promotes your unique selling proposition or some special deal you have at the time.

It is vitally important that you promote your newsagency outside your newsagency. A mutually beneficial relationship with a local newspaper could be the best way of achieving external advertising without breaking your marketing budget (which should be at least 2% of sales).

I have often had newsagents tell me that advertising in the local newspaper is expensive.  Yes, it is if you just enquire about casual advertising.  Develop a relationship along the lines of what I have suggested and you might find it well within your reach. There is nothing to lose and plenty to gain from trying.

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newsagency marketing

Magazine club card key to newsagency magazine sales growth

There is no doubt that our magazine club card offering has been vital in helping drive magazine sales growth for us over the last year, especially over the last quarter since our magazine relay.  It is a point of difference for us not only in our shopping centre but in our region.

Our magazine club card is the most successful and longest running loyalty program in the newsagency channel. I mention this today in the context of the latest audit results.

We have taken the opportunity to promote the loyalty program to all magazine customers, gladly handing out cards with every purchase and giving away free magazines to customers who quality immediately … and there are who sho do thanks to magazines being purchased as Christmas gifts.

I launched our channel’s first magazine loyalty program in early 2004 and have run with it ever since.  It is now the most widely used loyalty program in the newsagency channel and has been copied by plenty (which I am happy with).  Done well and consistently, a magazine based loyalty program can drive incremental magazine sales.  That’s what it is doing for us.

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magazines

The opportunity in the magazine circulation audit numbers

While the latest magazine circulation audit results show some challenged magazine titles, the results also highlight opportunities … for newsagents who embrace the magazine specialist opportunity.

Newsagents who perform average will get the average result and have themselves to blame.

Newsagents who go the extra mile and embrace opportunities like the magazine relay which I have written about here will see better than average results. There is no doubt.

I have checked the latest audit results with what I am achieving and overall I am doing much better than the average. This is what we must do – I have no doubt about that.

Sure I want better margin, no returns and greater certainty around supply. I want world peace too.  I am making more money focusing on the bit of the magazine supply chain which I can control rather than ignoring this because of the mess that is the rest of the magazine supply chain. There is no doubt that the actions of the magazine distributors play a role in the performance of some titles. Fix distribution and you should see an increase in sales … of some titles at least.

But I digress. Newsagents can do more to drive magazine sales. Beyond the magazine relay, look at the titles which have achieved growth and take a look at how you are treating these titles. What can you do better?

Newsagents who offer a an appealing, changing and professionally managed magazine department will enjoy sales growth which will be vital to their success in the medium (three to five years). The latest audit figures can help us drive this.

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magazines

Take 5 and That’s Life have a tough audit

Sales of Take 5 and That’s Life dropped this audit by 7.10% and 6.22% respectively.  This is not ideal for newsagents given that these titles anchor our Wednesday traffic and magazine sales. We need to be actively engaged with publishers in helping to arrest the situation as the mid week traffic bump is vital not only to the sales of these titles but sales more generally in our newsagencies.

Of the titles themselves, I’d like to see them become more relevant to the target shopper. While I am no publisher I think this is done by way of content rather than giveaways and promotions.

Check out the report of Mumbrella for more on the performance of Take 5 and That’s Life and other weeklies. It’s vital reading for any newsagent who considers themselves to be a magazine specialist.

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magazines

Zoo, Picture and People sales drop 25%

The sales of Zoo dropped 26.94% in the latest circulation audit to December 2011 while sales for People dropped 25.65% and Picture 23.76%. With the titillation offered by these titles so readily available online and through handheld devices, why pay? That’s what I am wondering at least. We we will continue to carry the titles, they are actually loss making when you look at the cost of retail real-estate and the labour required to manage them.

With a circulation of just 29,834, People must be the title under the most pressure.

While I am no publisher, it seems to me that the only upside for these titles is for them to offer something not available for free online. I’m not sure what that is but this must be the challenge for the titles to regain relevance.  Browser time is always an indicator of title success.  It was just a few years ago that our soft porn section would be busy on the weekend. This is no more. I suspect that the guys who stopped off for half an hour or so instead go find a quiet place for some time on their smart phone.

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magazines

Frankie powers ahead

Frankie magazine continues its sales growth run with an increase of 13.87% in the latest audit results to December 2011.  As I have noted here several times, Frankie is enjoying tremendous sales success. This is a title newsagents could drive further.  It’s easy: give Frankie prime positioning, if you sell out order more, use it to attract younger girls … they will purchase other items.  Frankie offers newsagents a traditional win win – all it takes is a bit of work.

If we are the magazine specialists we see ourselves as we should act like it and be driving the sales growth of these successful titles like Frankie.  The thing is that we are not as much as the forefront of growth as we should be and that is a problem for the future of the newsagency channel.

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magazines

Caravans & Motorhomes increases sales by 15.91%

Caravan & Motorhomes magazines from EMG increased sales in the latest audit to December 2011 by 15.91% … no thanks to newsagents.  yes, many of us early returned this title despite the publisher delivering to us bonus commission. The publisher sought to engage with us on valuable commercial terms and we flipped them the bird and disrespected the title.

Supermarkets grew sales of Caravan & Motorhomes more than newsagents.  I discussed this with the publisher yesterday and while they are frustrated at the early return behaviour of some newsagents, they will continue to support the channel.

Check out how you have been treating Caravan & Motorhomes.  Is it in prime position with your caravan titles? Have you been early returning?  The audit results tell you that you can achieve growth. The question if this us a sure thing, why not embrace it?

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magazines

Game Informer magazine delivers best increase in sales

Sales of Game Informer magazine increased by 54.97% in the latest audit to December 2011.  That is a massive increase for what is for newsagents a special interest title.  This growing popularity, ahead of the pack of other growth titles, means that we need to take more notice of and care with Game Informer. Give it hero treatment and this will help us drive sales even more.

I see titles delivering excellent sales growth as low hanging fruit opportunities – they will be easier for us to grow sales in our stores.  So the success list is a target list for me.

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magazines

Masterchef magazine loses 33% of circulation

Masterchef magazine lost 33.42% of its circulation in the audit to December 2011. This is the second biggest decline in the audit.  For a title connected to a successful TV franchise this is a dreadful result for the publisher.

As I have noted here previously, Masterchef has lost its way. It does not play to the TV show connection and, in my view, does not make itself appealing enough to be sought out from the excellent range of food titles we have in Australia.

The title will either be need to be dramatically overhauled.  Given the publisher’s marketing in 2011, I fear that the overhaul will come at the cost of newsagency sales.

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magazines

FHM drops 50% of circulation

Newsagents would not be surprised to hear that FHM magazine has dropped 50% of its sales. We have seen this in-store.  mUmBRELLA has the story.

This whole space continues to be a challenge.  My sense is that publishers are not offering a lad’s mag which caters to the Australian marketplace.

More broadly, the mUmBRELLA article includes this from Matt Stanton, CEO of ACP magazines:

“ACP is progressively offering new ways for readers to engage with our magazine brands.  We currently offer 36 digital editions of ACP magazines, and the growing number of people interacting with our mastheads on those applications and platforms is not yet reflected in circulation figures.

“Our digital distribution strategy will allow our readers to access our content when and where it suits them, enhancing their engagement and enjoyment of our magazines, attracting new readers and strengthening the brands themselves.”

It’s been a tough audit for a bunch of publishers.  I’ll pick on some more titles in the next few posts.

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magazines

Newsagents respond to Mark Day’s ignorant comment in The Australian

The Australian Newsagents Federation has picked up the issue I raised yesterday about News Limited commentator Mark Day saying newsagents have been protected for more than fifty years.

The ANF response and comments by newsagents here serve to challenge News Limited to resolve the misinformation put about by the Day comment. Personally, I’d like to debate the issue with Day in a public forum.

Here is the ANF communication from yesterday in its entirety:

Alf Maccioni, CEO Australian Newsagents’ Federation has responded on behalf of the industry to Mark Day’s comments in The Australian, Monday 6 February.

In commenting on the plans of News Limited’s CEO Kim Williams to overhaul News Limited, Mark Day said Williams sees a need to reinvent the way newspapers are delivered and sold, which means a new approach to relationships with the newsagency business — protected from competition for more than half a century.

Mr Maccioni wrote:

In Monday’s Australian News Limited’sMark Day has made some inaccurate statements about the newsagency channel, namely that it is a protected channel. Newsagents have not been protected since last century when the ACCC deregulated the industry.

Newspapers are sold everywhere from petrol stations to corner stores; they are given away at hotels and football matches and discounted heavily on subscription – direct to News Limited. Newsagents have no monopoly on the sales of newspapers.

The only thing that newsagents do have all to themselves is the home delivery of newspapers.They serve their customers and get the paper through, even though they make little money doing so.

Newsagents receive 25% of a cover price that in some cases have not risen for 10 years.

Newsagents are not protected; they are usedby News Limited to keep their print product distributed.

Kim Williams is right – there is a need to reinvent the way newspapers are delivered and sold—rewarding and recognising the people who do this will be part of the future of newspapers.

News Limited has been promising newsagents a ‘new distribution model’ – and newsagents are still waiting.

The newsagents of Australia welcome Mr Williams’ statement that newspapers are not dead, that it is a customer-focused business, and look forward to his reinvention of the way newspapers are sold and distributed.

Much can be done to boost newspaper sales and fresh thinking in News Limited is the way to go about it; not stale thinking that newsagents are somehow protected andneed to be deregulated.

As much as News Limited, Australian newsagents want newspapers to survive and prosper and will work to bring this about – but not for nothing. They too seek a fair and just reward.

You could say that newsagents are over reacting.  I’d say not given the timing of the comment from Day. News Limited has been chipping away at the newsagent business on a rang of fronts and doing so in a commercial environment which provides newsagents with no protection. So, Day’s comment is wrong, so wrong that the opposite is true thanks to the efforts of the company he works for.

I wonder whether we should go as far as to complain formally about the knowing inaccuracy of Day’s statement.

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newspaper home delivery

I am not paid to write about what I write about

I rumour was put to me for clarification yesterday that I was paid by some newsagency suppliers to talk up certain products. I have never been paid to write anything here and have not sought and will not seek payment for anything I write here. I write what I write because I want to.

Anyone hearing the rumour should question the motivation of those behind it.

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