Getting listed – and staying listed

In 2005 alone, there were 586 new magazine launches, all of which put pressure on existing titles trying to keep or improve their listing. One concern is that the stricter the buying policies within retail groups become, the more likely it is that this will reduce flow of new product to the market, which, in turn, could change the whole landscape of magazine retailing.

Every retail group has different parameters for their ranges. Supermarkets now offer significant ranges, however, with the exception of Tesco, who are looking to increase their range over the course of 2006, the general trend is to reduce ranges in the smaller stores, with the large ranges only being offered in their largest outlets. This can reduce the potential to gain a listing. Other retail groups are looking to reduce ranges and increase face outs of core titles, aiming to produce ‘pillar brands’ in each sector to help increase sales of titles with the highest retail sales value (RSV).

One in, one out

There is a finite amount of space on any retail group’s shelves, which is why more retailers are applying the ‘one in – one out’ rule when looking at adding titles to their ranges. Each title looking for a listing must justify its addition to the range, by providing more RSV than the existing titles.

Retailers are now using computer models to gauge the cost of all aspects of the magazine retailing business, including the cost of placing magazines on the shelf, merchandising, collecting and returning product and even magazine shrink. This is then subtracted from the RSV to show the true profit. If the title does not hit the expected figure, then there is a strong possibility that it may lose some of its listing, or be delisted altogether. At this juncture, a significant promotional investment might be encouraged to secure the listing going forward.

Publishers must be aware of the requirements of each retail group. Some pay more attention to the projected RSV; others will charge a publisher to be placed within the range for a specific period of time. Once that time is up, sales will be analysed and then a listing given – or not, if the title has not brought in the required RSV. Others look at these points, but also the amount of revenue the publisher is prepared to commit to over a period of time for their retail promotions.

Some retailers may only be interested in the larger titles, due to the limited space they have. They look at the titles that can bring in the most RSV from the smallest amount of space. Other retailers want to be known as range retailers and will give over significant space within stores to their magazine offer, believing that this not only brings in RSV but increases footfall into their stores and will thus increase their average transaction value.

Working closely with your distributor can help build your understanding of the different requirements. Do not leave it up to the distributor to build a case for your title to be listed. Publishers are the ones with the product knowledge; working closely with the distributor can ensure that you have the best possible chance of being listed within any group.

Gaining a listing

A well thought out plan can produce better results from a retail group; that means publishers and distributors working together to achieve a circulation plan, with a strategy to attract new readers throughout the year, as well as investing in retail promotions. This helps the distributor, when range reviews are due, to ‘sell’ the title to that particular retail group.

It is surprising how many titles still do not plan and discuss their year’s activity with their distributor. This makes it difficult for their distributor to keep on talking to retail groups on their behalf.

When constructing the plan, be aware of the following:

* Lead times for the selling in process.
If you are late presenting a title to a retailer there might be no promotional slots available.
* On sale dates.
Always strive to have the title on sale on the dates planned. If you continue to miss on sale dates, you will miss valuable sales or, possibly, end up paying for promotions that you eventually do not take part in.
* The sector.
Show that you understand the sector you are planning to launch into. Do your research and show that your title will add RSV to the range, and not just cannibalise sales from other titles.
* The retail group.
Understand the retail groups that your title will perform strongly with. Visit a store; gain an understanding of who shops there and why your title is important to them. Put aside promotional spend for the core retailers. Only the largest titles can afford to promote, over the course of the year, with all retail groups. Pick the most important to your title and spend wisely.
* Footfall.
Remember that retailers want titles that will perform strongly for them and will encourage footfall. What will your title do to ensure this?
* Dummy issue.
If possible, present a dummy to retail. That way, they get an idea of layout, what the title would sit well with, the quality of the paper; all these areas are considered when reviewing a title.
* Invest in retail promotions.
Accept the fact that, for some retail groups, not only is RSV checked but also the amount of promotions booked, when considering adding a title to the range. With some retail groups, you won’t be able to launch without spending some cash.

Keeping your listing

Once you have your title listed, the hard work doesn’t stop there. Now you have to hold on to that listing or hope to improve it at the next range review. Many titles let themselves down, believing that, once listed, they do not have to work at keeping that listing.

Money always talks at retail; however, other areas could also help to improve your sales and future listing:

1. Exclusives

All retail groups love the idea of a tailored promotions, exclusive to them. The mechanics that have been used include:

* Bookazines: product related to the title. This encourages add on purchases to the original brand and can be easily put together using past editorial.
* Books or supplements: easy to produce, either as contra deals with other publishers or, again, using existing editorial on a particular subject.
* CDs or DVDs: this can work well if targeted at the right time and with the right product.
* Calendars: successful at Christmas for many titles.
* Limited edition front covers: to celebrate the anniversary of a title, for instance.

The challenge for the publisher is to ensure that the consumer will be aware of these exclusives, to help increase the RSV through the targeted retailer. This can be in the form of email campaigns, information on the title’s website or even advertising in the previous issue. If the consumer isn’t aware of the exclusive, then this type of promotion is a waste of money, as you will not increase sales through the chosen retailer, which, at the end of the day, is the whole reason for the exercise.

2. Discounting / adding value

Link save promotions have increased in the last couple of years, especially with offers such as ‘buy X newspaper and receive £1 off Y magazine’. However, be warned, the retailer will maintain its margin in every case; you, the publisher, will be funding this mechanic, so you need to add this cost into the planning of the promotion.

3. Non-newstrade promotional activity

Promoting the title through sister publications can encourage additional purchases, especially if you are highlighting great covermounts. National radio and TV advertising can work, especially if you are looking to launch a title. It can build up a buzz around a launch and direct consumers into particular retail groups, if you tag them onto the advertising. Regional advertising can work well if you are listed with groups that have a particular regional bias.

4. RSV

The average weighted cover price of all launches in 2005 was £3.11, slightly down on the last two years. This has been due to the competitive nature of certain sectors, including Women’s Interest, that has seen the likes of Grazia enter the market and, of course, the Men’s Weeklies. Retailers would like to see a move to higher cover prices to improve their RSV.

Publishers need to work closely with their distributors, not only at range review time, but throughout the year. Too many publishers provide their distributors with too little information, too late. You also need to be aware of how each retail group reviews the range; that way your presentation can be tailored to each individual group, giving you a better chance of retaining your listing.

And finally …

If you are investing heavily in retail promotions, ensure that you commit to the print run that is needed to ensure the promotion has impact at store level. You will also need to ensure that the retail group complies with the promotion. From past experience, a lot of promotions suffer from early returns and non-compliance. This should definitely be brought up at range review!

Due to the nature of magazine retailing, with its high levels of launch activity, range reviews are here to stay and will probably become more difficult over the next 2-3 years. Saying that, if publishers can improve RSV and efficiency at retail, and up their game, the future could still be bright.