The Power of Magazines

Transcription

1 The Power of Magazines

2 The Power of Magazines Three key elements Brand Power The consumer relationship with magazines Magazines and Retail The business case for magazines Making magazines work harder in the retail environment Working in Partnership to Grow the Category What can we do together?

3 Sources Referenced NatMag Web Survey Understanding Women Total Market Report Tesco Research Specialist Magazine Publishers Promotional Effectiveness PPA Absorbing Media Magazines in a Supermarket Economy Magazines and the Independent Retailer Magazines and the Multiple Retailer Magazine Town Research IPC Media Values IGD UK Grocery Outlook 2007 Henley Centre, Magazines into 2000 Henley Centre, Delivering Engagement Convenience, What do shoppers want in store ABC Reports A Case for Magazines at Retail Purchase Behaviour 2005 Purchase Behaviour 2002 Magazine Footfall Supermarket Cross Purchase Marketforce Promotions Survey Interactive IPC SouthBank Marketforce Marketforce/SPA Jim Bilton Wassenden/Brandlab Marketforce/SPA PPA Jim Bilton Wassenden/Brandlab im Bilton Wassenden/Brandlab Jim Bilton Wassenden/Brandlab Jim Bilton Wassenden/Brandlab IPC Media IGD Henley Centre Henley Centre IGD Marketforce Comag, Time Warner US Frontline Frontline Dunhumby LMG Nectar Marketforce

4 Brand Power

5 My magazine speaks to me in a way and at a time that no-one else can Magazines Make People s Lives Better

6 The biggest celebrities the gossip real life stories

7 Cool Chic Sexy

8 The fast & the furious

9 Thanks for helping me understand and feel safe Susan Carrington, Sussex

10 I read your article Thanks for caring.. Tina Black, Bolton

11 I used your week by week guide to teach my autistic son about our new arrival Rebecca Bennett

12 After 150 job applications you gave me the confidence boost I needed to get on track Anna Jakes, London

13 The only safe tan is a fake tan thanks for looking after us! Cath, Kent

14 I ve been using so much porn, I can t face my wife. Thanks for the sex tips name not supplied!

15 I was taking drugs at 13, a heroin addict by 18, clean at 28, and now a runner. I have just completed my first marathon Jessica Stait chose LIFE

16 A trusted friend 54% say that magazines are a source of information they trust 82% say that magazines are a useful source for ideas of what they should buy 67% say that they are more likely to buy a product or service endorsed by a magazine

17 Can still be attractive in tough trading times Recession can work in favour of magazines in a stay at home culture if we get the messaging right. An inexpensive indulgence On average, read for two hours versus cinema costs of 9.50 and theatre of 30 plus

18 Magazines and Retail

19 British shoppers spend 1.6 billion on magazines Consumers have a huge diversity of interests and passions 85% of adults read magazines; 80% men and 89% women 3,409 consumer magazines are published in the UK 80% of 15 24s read one or more of these 78% of ABC1s read one or more of these (NRS) An equally diverse magazine market caters for these needs

20 A communications tool reaching new audiences

21 Drive online business 70% of online adults have been prompted to search by offline messaging (PPA Marketing 08) Magazines are the primary driver of online search (RAMA 07) In over 70% of product categories magazine advertising is the primary driver of online purchase. (PPA Marketing 08)

22 Our magazines drive shopper behaviour Advertising in this medium is helpful to guide buying Magazines 35% TV Newspapers 22% 24% Web Supplements 14% 13% Radio 6% Source: Absorbing Media 2002

23 Product launches in just 48 hours!

24 Magazines are the key footfall driver for non food More people buy magazines than other non food % of all Tesco shoppers buy into the magazine category higher than Chocolate Bars, White Goods and Hardback Fiction White Goods 0.1% Chocolate Bars 35.3% Hard Back Fiction 7.2% Dunnhumby Previous Period: 26 weeks from 18 Feb 08 to 17 Aug 08 Most Recent Period: 26 weeks from 18 Aug 08 to 15 Feb 09

25 Magazines play an important role in top up shop (%) Total I am just picking up one or two items in store (e.g. lunch/snacks/magazines/ papers/cigarettes etc) 30 Almost a 1/3 of magazine shoppers are just popping to the kiosk area (on a lunch time) Main shop I am doing most of my food and grocery shopping for this week during this visit to the store 36 Top up shop I am picking up a few bits and pieces for the household for the next few days 31 Other 1 Source: Marketforce Promotional Effectiveness 2007

26 Magazines are highly cross purchased with other front of store categories 48% of all shoppers Since the beginning of the year who s being buying magazines? 44% of all shoppers 41% of all shoppers Source: LMG Nectar Jan June 09

27 High frequency and repeat purchase (%) Total Once a week or more 38 Over a 1/3 are buying magazines once a week or more Once every couple of weeks Once a month Once every couple of months 8 Once every six months 2 Source: Marketforce Promotional Effectiveness 2007

28 Shoppers want a bigger area for magazines. They want to see them front of store Magazine shoppers felt that alongside making the newsstand easier to browse and navigate, magazines should be front of store in Tesco % of respondents Source: Research Now, Marketforce Online Survey June 2009

29 Magazine shoppers are the most valuable Magazine purchasers over index as being Tesco s core Premium shoppers (high frequency, high spend) Premium Standard Potential Uncommitted Lapsing Gone aways Source: DunnHumby June 2008 MAT

30 and they are also the most popular secondary purchase Magazines are the most popular secondary purchase in supermarkets, followed by flowers 21% 10% 9% 8% 8% 4% 3% 3% 5% 5% 2% 1% 1% 1% 1% Sandwiches Outdoor and leisure products Electrical products CDs/DVDs/Games Books Tobacco Greeting cards Alcoholic drinks Lottery Tickets Confectionery Soft drinks Groceries Newspapers Flowers Magazines Source: PPA Project Newsstand 2006

31 Magazines and Retail Is there a correlation between range and market share? Tesco ranges almost 700 titles Sainsbury s and Asda circa 500 titles Tesco s share of the magazine market over indexes its share of the grocery market.. WHS stock over 2,100 titles and have the highest share in the high street Martin Retail Group stock over 900 titles and out perform the traditional convenience sector

32 Enhancing the Retail Experience

33 Magazines make the shopping experience more enjoyable Because the food shop is so boring, I like to look at the magazines first 82% of shoppers say that they enjoy the process of choosing which magazine to buy Survey Interactive May 2009

34 Magazines and Retail Generally people spend 4.4 minutes browsing TOTAL Young Women TV Guides Trad Weeklies Home Int Celeb Weeklies Fashion & Lifestyle Source: Understanding Women, IPC SouthBank 2005

35 Magazines make shopping more enjoyable 52 % of respondents enjoyed shopping for magazines compared to: 39% in music & DVD s 49 % in health and beauty 37% in beers, wines & spirits Survey Interactive May 2009

36 Magazines are essential for shopper satisfaction 44% of respondents would be likely or very likely to switch to an alternative retailer if they could not find their favourite magazines. 66% said they would go elsewhere Survey Interactive 2009

37 The most enjoyable part of shopping Enjoyment Of Store Areas (ASDA & Sainsbury s) Enjoy Shopping There Magazines 63 Bakery 49 Music /DVD 48 Books 46 Fresh fruit & vegetables 42 73% of respondents said that they bought magazines on the spur of the moment when they catch my eye Health & beauty 41 Beers, Wines & Spirits 36 Deli /Take-Away counters 36 Fresh meat & poultry 31 Frozen food 24 Source: Promotional Effectiveness / SPA 2007

38 Enhancing the Retail Experience Endorsing product choice Magazine brands edit choice for the consumer Products and services endorsed by trusted brands can increase response rates by over 100%

39 Driving forward our shared goals Communicate key messages to 85% of the population Share customer research co fund new research Cross sell and up sell more than any other category Help you champion magazines inside your business

40 The Power of Magazines