We have a story to tell

2011 Grocery SuperStudy™ Improving Total Store Performance in the Grocery Channel Revised: January 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

The Delivery

Ad 1Ad 2

Beginning May 14 IPDA contracted for a series of ads in major trade publications

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 Consumers Over 93% of Adults Read Magazines Significant Over $3.7 Billion in Single Copy Sales Very Profitable Excels in Top and Bottom line Profit

Power …. as a Trusted Resource

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 …. *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 under 1/2 % of store sales For a category with 92% household penetration. Imagine how much more we can do …. Together! to Spare

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