2009 New England Association of Circulation Executives Conference

2009 New England Association of Circulation Executives Conference Single Copy Session Steven Q Edwards

Session Overview Panelist Introduction Discuss strategies to help you grow revenue or reduce expenses Ø Steve Edwards, The Atlanta Journal Ø Provide a contact at each newspapers discussed to Constitution Director of Retail Sales investigate the strategy or tactics and Partnerships Ø Question and discussion opportunity Ø Ø Karen Sickles, Prescient Delivery Director, Advanced Commerce Services Ø Jim Tallant, Fry’s Food and Drug Division Supervisor

Capitalize on the BIGGEST newspaper of the year The Strategy l News content l Advertising opportunities l Marketing and Promotion l Strategic partnerships l Circulation Sales Goal: Drive Advertising and Circulation Revenue

News -- Content Thanksgiving Day Content in every section of the paper leading up to the holiday A 1 Concept: • Your Guide to the Big Thanksgiving Weekend” Living Section • Guide to weekend movies, • DVDs while your family's at home Metro Section • Volunteer needs Sports • The big local games

Advertising Opportunities Media Promotion Ø Media ad: “Be a part of the biggest day of the year” Ø Media ad after : Thank you for helping kick off the holiday season Ø Introduced special pick up rate for smaller advertisers to be a part of Thanksgiving paper

Marketing and Promotion Ø Promotional message: “Big Deals edition Ø Black Friday Events l Spend Black Friday selling the Thanksgiving day paper at local mall and movie theaters Content Promotion Run 2 -3 ads from Nov 16 -26 Ø Shopping Value Promotion Radio, TV, Billboards, Craig's list, Blog, POP Ø

Strategic Partnership Ø Bulk Buy l CVS purchased 10 K newspapers for delivery to targeted winter visitor areas l Cold Stone Creamery ran full page ad on Thanksgiving Day with a coupon worth $2 l Key retailer partners provided dedicated racks for post Thanksgiving sales

Circulation Sales Plan Ø Objective: Sell 100% of the Gross Metro Draw l Redelivery to subscribers on vacation during holiday l Charge $1. 50 for Thanksgiving paper l Maximize secondary single copy outlets l Managers merchandising in top 100 retailers l Harkins Theater purchased 10 K papers including wrap to promote loyalty program

1 st Paper Route Premium Concept • Charge premium price for the first paper sold, then sell the remaining papers at minimal charge

1 st Paper Rate Model Example 1 st Paper Rate Model $ 1. 00 50 50 Carrier rate $ 0. 70 $ 0. 05 WH Average Daily Rate $ 0. 90 WH Average Profit Rate $ 0. 20 $ 0. 85 200 60 60 Projected Sales 140 Wholesale Newspaper Bill $ 98. 00 $ 7. 00 Wholesale Collections $ 126. 00 Route Subsidy $ - Cover price locations Draw Returns First Paper rate Current wholesale profit Example Buy/Sale $ 91. 00 $ 28. 00

Premium Concept Give carriers incentive to grow sales Reduces contractor’s incentive to steal from newspaper Strengthens independent contractor status

Benefits to Newspaper Incentive for contractor to increase sales Reduces temptation for contractor to overstate returns Distribution to ‘lower selling’ or out of the way dealers more attractive-increase sales

Benefits to Wholesaler Partner Carrier Newspaper Retailer Increase Profits Accounts previously Too far, trouble Become viable Promo Tracking Ending Inventory Billing Marginal accounts become profitable Merchandising Cost Sale increase via merchandising Independent Status

The Draw Wizard was Born!!!

News. Tr@ck “Every Paper Counts”

Single Copy Circulation Challenges Ø Ø Ø Ø More sales with fewer returns & sellouts Accountability Verification- Who, When, Where Accurate & timely reporting Customized reporting Multi-Product Delivery Earlier delivery

News. Tr@ck: Goals Ø Increase Delivery and Return Accuracy Ø Reduce costs Ø Standardize Route Delivery, Management and Data Collection Processes Ø Collect Outlet Level Sales Information in a central database Ø Provide Information for Automatic Billing Ø Respond to market conditions Ø Route Optimization

How does News. Tr@ck help the AJC? Ø We know when all of our papers were delivered. Ø We know who signed for the papers at the store. Ø We know if the physical returns match what was recorded on the handheld. Ø We can easily determine if all papers are accounted for. Ø We have easily obtainable supporting documentation for the auditors.

Open Discussion