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2011 Grocery SuperStudy™
Improving Total Store Performance in the Grocery Channel
Revised: January 2012
- Member Sponsor Report -
SuperStudy Key Message
• The Core Profitability Elements for Magazines are Very Strong.–High Margin–High Unit Profit– Low Labor Costs – Superior Bottom Line Contribution– Superior Profit to Space Ratio
A Fresh Approach for Retail
• Worked with MPA to Develop a New Approach
– Leveraging industry expertise– Targeting all levels of retail management – Expanding the message to address broader concerns– Look for new ways to communicate – Lean on the strengths of the category– A program with staying power & flexibility
The Power in Print Messages
• Great products that connect, engage and resonate with consumers/readers
• That despite the digital hype print magazines are valued by consumers and publishers
• Magazines is a significant & large category • Magazines are very profitable• There is opportunity to grow• Magazines contribute beyond the sales
Additional Communication Efforts
• In Development
–Direct mail to retail offices–Power in Print campaign adapted for
retailer use–PowerPoint to be used by the trade.
A Perfect Category at Retail
Unique & Respected Educates, Informs, Entertains & Celebrates
Engages ConsumersOver 93% of Adults Read Magazines
SignificantOver $3.7 Billion in Single Copy Sales
Very ProfitableExcels in Top and Bottom line Profit
Power …. to Entertain & Celebrate
Power ….to Inform & Inspire
Power ….to Engage Readers
*A.B.C., measured circulation
Reading a magazine is an intimate, involving experience, which is one reason the average reader spends 41 minutes with each issue
Power ….
High Margin High Return on Inventory ($7.31 AGMROII)
*
Low Store Labor Costs (.07 DL/unit)
Low Risk ( Guaranteed Sale) *
Delivering Superior Bottom Line Profits *
to Drive Profitability
* Willard Bishop 2011 Grocery Super Study
Via ..Low overhead , low inventory investment , low fixture cost, low labor,& high margin!
Power ….
Magazines
Gen Merch
HBC
Grocery
Frozen
Dairy
0.00 0.10 0.20 0.30 0.40 0.50 0.60
0.56
0.21
0.39
0.35
0.50
0.38
True Profit* Per Unit
*True Profit is profit after all expenses and overhead
to Drive the Bottom Line
.56
* Willard Bishop 2011 Grocery Super Study
Power ….
*True Profit is profit after all expenses and overhead
Magazines Deliver
12%of General Merchandise’s
True Profit while using only
4% of the space
that’s Efficient
* Willard Bishop 2011 Grocery Super Study
Power ….
Magazines do all this on under1/2 % of store sales
For a category with 92% household penetration.
Imagine how much more we can do ….
Together!
to Spare