2009 2009 New England New England Association of Association of

Circulation ExecutivesCirculation ExecutivesConferenceConference

Single Copy SessionSingle Copy Session

Steven Q EdwardsSteven Q Edwards

Panelist IntroductionPanelist Introduction

Steve Edwards, The Atlanta Journal Steve Edwards, The Atlanta Journal Constitution Director of Retail Sales Constitution Director of Retail Sales and Partnershipsand Partnerships

Karen Sickles, Prescient Delivery Karen Sickles, Prescient Delivery Director, Advanced Commerce Director, Advanced Commerce ServicesServices

Jim Tallant, Fry’s Food and Drug Jim Tallant, Fry’s Food and Drug Division SupervisorDivision Supervisor

Session OverviewSession Overview Discuss strategies to help you grow revenue or reduce expenses Discuss strategies to help you grow revenue or reduce expenses Provide a contact at each newspapers discussed to investigate the strategy Provide a contact at each newspapers discussed to investigate the strategy

or tacticsor tactics Question and discussion opportunity Question and discussion opportunity

Capitalize on the BIGGEST Capitalize on the BIGGEST newspaper of the yearnewspaper of the year

The StrategyThe Strategy News contentNews content Advertising opportunities Advertising opportunities Marketing and Promotion Marketing and Promotion Strategic partnershipsStrategic partnerships Circulation SalesCirculation Sales

Goal: Drive Advertising and Goal: Drive Advertising and Circulation RevenueCirculation Revenue

News -- ContentThanksgiving Day Content in every section of the paper leading up to the holiday

A1 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 OpportunitiesAdvertising Opportunities

Media PromotionMedia Promotion Media ad: “Be a part of the biggest day of Media ad: “Be a part of the biggest day of

the year”the year”

Media ad after : Thank you for helping Media ad after : Thank you for helping kick off the holiday seasonkick off the holiday season

Introduced special pick up rate for smaller Introduced special pick up rate for smaller advertisers to be a part of Thanksgiving advertisers to be a part of Thanksgiving paperpaper

Marketing and PromotionMarketing and Promotion Promotional message: “Big Deals editionPromotional message: “Big Deals edition

Black Friday EventsBlack Friday Events Spend Black Friday selling the Thanksgiving day paper Spend Black Friday selling the Thanksgiving day paper

at local mall and movie theaters at local mall and movie theaters

Content PromotionContent Promotion

Run 2-3 ads from Nov 16-26Run 2-3 ads from Nov 16-26 Shopping Value PromotionShopping Value Promotion

Radio, TV, Billboards, Craig's list, Blog, POPRadio, TV, Billboards, Craig's list, Blog, POP

Strategic PartnershipStrategic Partnership Bulk BuyBulk Buy

CVS purchased 10K newspapers for delivery to targeted CVS purchased 10K newspapers for delivery to targeted winter visitor areaswinter visitor areas

Cold Stone Creamery ran full page ad on Thanksgiving Cold Stone Creamery ran full page ad on Thanksgiving Day with a coupon worth $2Day with a coupon worth $2

Key retailer partners provided dedicated racks for post Key retailer partners provided dedicated racks for post Thanksgiving sales Thanksgiving sales

Circulation Sales PlanCirculation Sales Plan

Objective: Sell 100% of the Gross Metro DrawObjective: Sell 100% of the Gross Metro Draw Redelivery to subscribers on vacation during holidayRedelivery to subscribers on vacation during holiday Charge $1.50 for Thanksgiving paperCharge $1.50 for Thanksgiving paper Maximize secondary single copy outletsMaximize secondary single copy outlets Managers merchandising in top 100 retailersManagers merchandising in top 100 retailers Harkins Theater purchased 10K papers including wrap to Harkins Theater purchased 10K papers including wrap to

promote loyalty program promote loyalty program

1st Paper Route Premium Concept

•Charge premium price for the first paper sold, then sell the remaining papers at minimal charge

   Example Buy/Sale  

Example 1st Paper

Rate Model

Cover price $ 1.00   $ 1.00

locations 50   50

Carrier rate $ 0.70   $ 0.05

WH Average Daily Rate $ 0.90   $ 0.90

WH Average Profit Rate $ 0.20   $ 0.85

Draw 200   200

Returns 60   60

Projected Sales 140   140

Wholesale Newspaper Bill $ 98.00   $ 7.00

Wholesale Collections $ 126.00   $ 126.00

Route Subsidy $ -   $ -

First Paper rate       $ 91.00

Current wholesale profit   $ 28.00   $ 28.00

11stst Paper Rate Model Paper Rate Model

Premium ConceptPremium Concept

Give carriers incentive to grow

sales

Give carriers incentive to grow

sales

Reduces contractor’s

incentive to steal from newspaper

Reduces contractor’s

incentive to steal from newspaper

Strengthens independent

contractor status

Strengthens independent

contractor status

Benefits to NewspaperBenefits to Newspaper

Incentive for contractor to increase sales

Incentive for contractor to increase sales

Reduces temptation for contractor to

overstate returns

Reduces temptation for contractor to

overstate returns

Distribution to ‘lower selling’ or out of the way dealers more

attractive-increase sales

Distribution to ‘lower selling’ or out of the way dealers more

attractive-increase sales

Independent Status

Cost

Billin

g

Pro

mo

Tra

ckin

g

Benefits to Wholesaler PartnerBenefits to Wholesaler Partner

Retailer

Carrier Newspaper

Too far, trouble

Accounts previously

Become viable

Increase Profits

Merchandising

Ending Inventory

Marginal accounts become

profitable

Sale increase via merchandising

POS

The Draw Wizard The Draw Wizard was was Born!!!Born!!!

NewsTr@ck“Every Paper Counts”

TheAtlanta Journal Constitution ajc.com

Single Copy Circulation Single Copy Circulation ChallengesChallenges

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

NewsTr@ck: NewsTr@ck: GoalsGoals

Increase Delivery and Return Accuracy Reduce costs Standardize Route Delivery, Management and

Data Collection Processes Collect Outlet Level Sales Information in a

central database Provide Information for Automatic Billing Respond to market conditions Route Optimization

How does NewsTr@ck help the How does NewsTr@ck help the AJC?AJC?

We know when all of our papers were delivered.

We know who signed for the papers at the store.

We know if the physical returns match what was recorded on the handheld.

We can easily determine if all papers are accounted for.

We have easily obtainable supporting documentation for the auditors.

Open DiscussionOpen Discussion