INSIGHTS
Marketing Intelligence for Media Professionals
March 2015
brought to you by DJG, WRSS & ProCirc
The 2015 Retail Game Plan: A Focus on the 4P’s
By: Scott Hill – President, ProCirc Retail Solutions Group
The recently released industry newsstand results from the Alliance for Audited Media (AAM) and
MagNet – showing audited titles down 14.2% in the 2nd Half 2014 period and total industry units
down 16.7% for the full year - are a painful reminder of the difficulties publishers faced in 2014. A
series of significant wholesaler closures left retailers such as Wal-Mart, Safeway, CVS, Walgreens,
Michael’s, Lowe’s, Dollar General and the overseas military with limited or no newsstand copies.
Publishers felt the impact of this lost distribution in lower newsstand revenue, missed budgets and,
in some cases, wholesaler bad debt deductions.
As we enter 2015, however, there are some positive signs from the improving economy and lower
prices paid at the gas pump to suggest the retail picture should improve in the New Year. While
not anticipating growth at the newsstand, we do believe a renewed and redoubled effort in
focusing on the four “P’s” of classic marketing strategy – Product, Place, Promotion and Price –
should enable publishers to improve their newsstand p&l over the upcoming year:
I.
Product – The in-store battle to catch a consumer’s eye and impulse purchase
continues to heat up as mobile device distraction and self-scan checkouts continue
to proliferate. Shoppers moving too quickly through stores have not only impacted
magazine sales, but also the performance of other impulse purchase categories
like sweets, snacks and beverages. How can publishers differentiate themselves
and stand out in this chaotic retail environment? By producing strong, eye
catching covers that grab consumer’s attention. We have been working closely
with several of our publishers on completing title cover reviews and competitive
comparisons that are helping editors and art directors to design a stronger
newsstand cover presentation and improve their single copy performance.
II.
Place – The opening of TNG’s new warehouses in Hobart, IN, and Ontario, CA, over
the last two months will help restore traditional truck delivery and in-store
merchandising to a majority of the former Source Interlink serviced retailers.
While this in and of itself should contribute positively to the industry’s
performance, we are also working diligently to review all title distributions to
insure the post-Source transition allocations are accurate and efficient.
continued
INSIGHTS
Marketing Intelligence for Media Professionals
March 2015
III.
brought to you by DJG, WRSS & ProCirc
Promotion – Display and visibility are crucial in succeeding at retail. However,
given the price of promoting at retail it is imperative that publishers understand
the economics of any particular program in order to determine if the expense falls
in line with their circulation strategy. In general promotion budgets have been
reduced this year in line with lower budgeted revenue so our p&l analyses are
used to target the most efficient and productive promotion investment possible.
IV. Price – The strengthening US dollar is creating remittance shortfalls for many
publishers in their Canadian and foreign newsstand business. ProCirc Retail
Solutions is currently undertaking a review of all client title Canadian and export
pricing and will be following up with recommendations over the next 30 days.
Marketing the right product, at the right place and the right price is the Holy Grail at retail. While
challenging to achieve, we believe that by focusing on the basics of product, place, promotion and
price we can help our publishers turn the page from a disappointing 2014 to a more stable and
predictable 2015.
ProCirc is the largest and most innovative full-service circulation outsourcing company in the
market today. We offer strategic, promotional, analytical, and operational support to publishers of
all sizes. Our turn-key approach to subscription marketing is the most efficient and effective way
to put your title's performance in perspective and to grow a profitable base of engaged readers.
Please contact us if you are interested in exploring creative strategies opportunity in greater depth.