Books and Magazines: Powerful Consumer Categories

Transcription

1 Books and Magazines: Powerful Consumer Categories Utilizing Publishing Assets to Drive Innovation for Consumer Engagement, & Bottom Line Results at Retail

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7 It s Time To Think About Magazines & Books Differently They re more than just words on a page, rather content that entertains, informs, educates and inspires your customers Let s work Together to Leverage Everything these Categories have to offer

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11 It s Time To Think About Magazines & Books Differently They re more than just words on a page, rather content that entertains, informs, educates and inspires your customers Let s work Together to Leverage Everything these Categories have to offer

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13 Consumers Engage with Magazines and Books Consumers are Reading Print 2017 Print Book Sales Increased 1.9%, a 4 th Consecutive Year of Sales Growth! Print Books Represent 81% of the Total Book Market Share 91% of Adults Read Print Magazines Millennials Prefer Print Format of Books & Magazines Over Digital spend 82% of reading budget on hard copies The Top 25 Print Magazines reach more adults & teens than the Top 25 Primetime TV shows Print is a Quality Experience Sources Nielsen, MPA Fact Book, NPD Book Scan

14 Consumers Engage with Magazines and Books Americans of ALL AGES read magazines especially younger adults 91% of adults 94% of those under 35 & 94% of those under 25 Survey Question = Have you read a magazine in the last six months? (print and digital editions) MPA-Fact-book 2017 Base U.S. adults 18+ GFK MRI Fall 2016

15 Consumers are Actively Looking for Books in Store Book Awareness Channels In-store display 15% Recommendation from friend 5% School 4% Author on TV 4% Bestseller list 4% Book review 4% Recommendation from purchase 3% Magazine ad Read an excerpt Author's website 3% 2% 2% In Store Display Ranks #1 for Book Awareness/Discovery Source: Nielsen Books & Consumers, Jan Jul 2015, awareness channels are ranked by all book consumers

16 Publishing Consumers are Retails Best Customers Average Shopper s Basket Size $34 Average Magazine Shopper s Basket Size $42 Avg. Basket Size that Contains a Magazine $ % Annual Spend Average Shopper $549 Annual Spend of Customers who Buy Magazines $ % Source: 2016 Willard Bishop Grocery SuperStudy

17 Books Deliver the Profits KEY STRENGTHS Books incur very low per-unit labor from being DSD $.058 (Avg. DSD in store labor is.10) (Avg. Warehouse item is.26) Book True Profit Margins 13.9% (Center Store Avg. 8.38%) (GM Avg. 4.98%) It takes 19 units of candy to equal the true profits of 1 Book sale Book True Profit Per-Unit $1.13 *SBT: Scan Based Trading Source: 2016 Willard Bishop Grocery SuperStudy

18 Magazines Deliver the Profits Magazines incur very low per-unit labor from being both DSD and SBT $.05 (50% Less than avg. DSD item) (Avg. DSD in store labor is.10 Avg. Warehouse item is.26) KEY STRENGTHS Magazines True Profit Margins 20.6% (Center Store Avg. 8.38%) (GM Avg. 4.98%) SBT savings PER Store in labor (per year) $2,027 Magazines Per-Unit True Profit $1.09 *SBT: Scan Based Trading No inventory and low labor allow Magazines to generate incremental cash flow with any increased space Source: 2016 Willard Bishop Grocery SuperStudy

19 Categories Delivering to the Bottom Line Category Rankings of 230 possible categories Category Weekly Sales Weekly Adjusted Gross Profit Weekly True Profit Unit Adjusted Gross Profit Unit True Profit Adjusted Gross Margin True Margin Books Magazines $1.61 $1.13 Front End Per-Unit Profits $1.16 $0.75 $0.62 $0.56 $0.48 $0.48 $0.47 $0.40 $0.31 $0.33 $0.40 $0.38 $0.34 $0.17 $0.25 $0.33 $0.01 $0.03 $0.06 ($0.14) $0.24 ($0.03) Magazines - Front-End Beef Stick or Jerky Pepperoni Sticks Energy Single- Serve Gum - Front-End Bottled Water - Flat Single- Serve Sport Drinks Single- Serve Carb. Bev. - Bottle Single- Serve Candy - Front-End Bottled Water - Imported Single- Serve Bottled Water - Sparkling Single- Serve Enhanced Water Single- Serve Source: 2016 Willard Bishop Grocery SuperStudy Unit Adjusted Gross Profit Unit True Profit

20 Beyond providing Sales & Profit Connecting to Shoppers The New Retail Environment Demands More and These Categories Are Ready to Deliver Magazines and Books are uniquely positioned to bring excitement to the Customer experience, adding an element of surprise to each visit, with content that is new and relevant

21 Opportunity The connected commerce era has arrived. Consumers are no longer shopping entirely online or offline; rather they re taking a blended approach, using whatever channel best suits their needs. The most successful retailers and manufacturers will be at the intersection of the physical and virtual worlds, leveraging technology to satisfy shoppers however, wherever and whenever they want to shop. Patrick Dodd, President, Global Retailer Vertical, Nielsen Collaborative Opportunities: Pre-Trip Engagement Shared Databases Click n Collect Social Media Meal Solutions / Planning Special Events Digital Couponing Continuity Programs Digital Apps Shopper Information & Resources

22 Examples of Opportunities... Meal Ideas & Solutions Good Tie in Martha Stewart s Living magazine with her new cookbook in a joint display Better Digital couponing and loyalty card offers Digital shelf talker with a personalized video message from Chip and Joanna to your shopper Consumer giveaways and contests Buy Both and Save! Best Collaborative relationship to with publishers to create a blended shopping approach Recipes for retailer Specials / Feature items Shared content across sites (providing resource with access to all recipes) Populate customer shopping list on retailer app Only the freshest ingredients

23 Opportunities... Leveraging Big Moments Good Display magazines and books tied to movie releases and special events Better Cross branding [e.g. Be Kind campaign] Cross merchandising with items from other departments Consumer giveaways And contests Best Tie-in with social media And digital platforms [e.g. Retailer exclusive links To celebrity live tweets, interviews, etc.] Special events [e.g. trailer walls, celebrity appearances, book signings]

24 Opportunities... On-Line and Off-Line Good Books and magazines listed on the retailer website Digital coupons Loyalty card offers including suggestions based on Purchases of other categories [e.g. Baby ] Book club program Better Social media engagement Pre-orders for Best selling writers, series, and specials with store pick-up [Generating incremental traffic/trips] Continuity programs Loyalty card recommendations based on prior purchases Best Retailer specific and/or exclusive content Cross promotion of publishing app content To retailer pharmacies As partners In doctor s office visits.

25 Leveraging Everything Unique, high quality, diverse and Consumer relevant products Very profitable products Flexible, knowledgeable DSD based supply chain Publishers heavily vested in and with knowledge of the digital marketplace Changing Consumers open to new marketing approaches Challenging and rapidly shifting retail environment Depth of knowledge within industry on the reading Consumer Unlimited Consumer/store/content collaborative opportunities And So Much More

26 Successes

27 Successes Source: TNG Magazine Overview presentation

28 Successes Source: TNG Magazine Overview presentation

29 Source: CMG retailer presentation Successes

30 Successes Source: Bauer retailer presentations

31 Source: Bauer retailer presentations Successes

32 Source: Hearst retailer presentations Successes

33 Successes Source: Meredith

34 Successes Source: Farmer s Almanac, Trusted Media Brands, and Consumer Reports retailer presentations

35 Successes Source: AMI retailer presentations

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