We have a story to tell

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

The Delivery

Ad 1 Ad 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 ConsumersOver 93% of Adults Read Magazines

SignificantOver $3.7 Billion in Single Copy Sales

Very ProfitableExcels 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 ….

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

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