2009 New England Association of Circulation Executives Conference Single Copy Session Steven Q Edwards

Panelist Introduction  Steve Edwards, The Atlanta Journal Constitution Director of Retail Sales and Partnerships  Karen Sickles, Prescient Delivery Director, Advanced Commerce Services  Jim Tallant, Fry’s Food and Drug Division Supervisor Session Overview  Discuss strategies to help you grow revenue or reduce expenses 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 or tactics Provide a contact at each newspapers discussed to investigate the strategy or tactics Provide a contact at each newspapers discussed to investigate the strategy or tactics  Question and discussion opportunity Question and discussion opportunity Question and discussion opportunity

Capitalize on the BIGGEST newspaper of the year The Strategy News content News content Advertising opportunities Advertising opportunities Marketing and Promotion Marketing and Promotion Strategic partnerships Strategic partnerships Circulation Sales Circulation Sales Goal: Drive Advertising and Circulation Revenue

News -- Content Thanksgiving 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 Opportunities Media Promotion  Media ad: “Be a part of the biggest day of the year”  Media ad after : Thank you for helping kick off the holiday season  Introduced special pick up rate for smaller advertisers to be a part of Thanksgiving paper

Marketing and Promotion  Promotional message: “Big Deals edition  Black Friday Events Spend Black Friday selling the Thanksgiving day paper at local mall and movie theaters Spend Black Friday selling the Thanksgiving day paper at local mall and movie theaters  Content Promotion Run 2-3 ads from Nov  Shopping Value Promotion Radio, TV, Billboards, Craig's list, Blog, POP

Strategic Partnership  Bulk Buy CVS purchased 10K newspapers for delivery to targeted winter visitor areas CVS purchased 10K newspapers for delivery to targeted winter visitor areas Cold Stone Creamery ran full page ad on Thanksgiving Day with a coupon worth $2 Cold Stone Creamery ran full page ad on Thanksgiving Day with a coupon worth $2 Key retailer partners provided dedicated racks for post Thanksgiving sales Key retailer partners provided dedicated racks for post Thanksgiving sales

Circulation Sales Plan  Objective: Sell 100% of the Gross Metro Draw Redelivery to subscribers on vacation during holiday Redelivery to subscribers on vacation during holiday Charge $1.50 for Thanksgiving paper Charge $1.50 for Thanksgiving paper Maximize secondary single copy outlets Maximize secondary single copy outlets Managers merchandising in top 100 retailers Managers merchandising in top 100 retailers Harkins Theater purchased 10K papers including wrap to promote loyalty program Harkins Theater purchased 10K papers including wrap to promote loyalty program

1 st 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 locations50 Carrier rate $ 0.70 $ 0.05 WH Average Daily Rate $ 0.90 WH Average Profit Rate $ 0.20 $ 0.85 Draw200 Returns60 Projected Sales140 Wholesale Newspaper Bill $ $ 7.00 Wholesale Collections $ Route Subsidy $ - First Paper rate $ Current wholesale profit $ st Paper Rate Model

Premium Concept Give carriers incentive to grow sales Reduces contractor’s incentive to steal from newspaper Strengthens independent contractor status

Benefits to Newspaper Incentive for contractor to increase sales Reduces temptation for contractor to overstate returns Distribution to ‘lower selling’ or out of the way dealers more attractive-increase sales

Independent Status Cost BillingPromo Tracking Benefits to Wholesaler Partner Retailer CarrierNewspaper Too far, trouble Accounts previously Become viable Increase Profits Merchandising Ending Inventory Marginal accounts become profitable Sale increase via merchandising

The Draw Wizard was Born!!!

“Every Paper Counts”

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

Goals  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 help the 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 Discussion