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EDGE Data Portal
EDGE Usage Analysis

                                                        Reports
                                                        Actions
                                                         Users

• Number of Users           500
                            1000
                            250,000


                            400
                            200,000
                             750

                            300
                            150,000
• Number of Reports          500
                            200
                            100,000

                             250
                            100
                             50,000


• Number of Actions           00 -
                                      20042004
                                       2004                2007
                                                           2007
                                                             2007        2011
                                                                          2011

                                                 2004     2007    2011


• 65% of reports “marketing” oriented

• 40% of reports run by clients / consultants
EDGE
EDGE – Data Portal

      24 Hour on-line access
        Intuitive, easy-to-use
                interface

      Presentation-ready reports

            Data Available
              Billings

               O&R

           Assignments

            Forecasting

             Financial

               ABC
EDGE
EDGE – O&R Data


     Updated Monthly       Share of Market

        4,000 Titles         Ratio Reports

      Variety of reports    Opportunity Gap
                           Distribution Exceptions
EDGE
EDGE – Assignment Results

    Updated upon completion

     Integrated with O&R
        (Select reports)

         Pocket Counts
              W/Sales Data
              Comparisons

                  Trends
           Distribution
           confirmation
           Promotion
          confirmation /
            analysis
           Withholding
EDGE – Check-out Analysis

        Pocket counts                   Comparisons
           by Title
                                      Opportunity Gaps
        Collected Quarterly
                                     Exclusive Retailers

       40 Titles / 300 Retailers   Multi-Title Comparisons
EDGE
EDGE – ABC Reporting

      Available day FAS-     Rankings & Variances
        FAX released

        Variety of reports        ByByCirculation
                                   By By Trends
                                       Publisher
                                Long-termTitle Dist.
                                Long-Termtrends
                                     National
                                    By Category


                                           Comprehensive
                                          Newsstand Review
EDGE Upgrade – Software


• 2012 – Q2: Go live

• Review, revise, update all
  corporate documents

• Expanded Capabilities
   • Improved performance
   • Scheduling
   • Organization
   • External data providers
EDGE Upgrade – POS


• 2012 – Q2: Go live
• All major classes of trade
   • Represent “pricing”
• Tiered access /40% of newsstand
                                      Feature                            Silver     Gold   Platinum
• Multiple Audiences Publisher Title (Single View)                  POS Reporting
   • Retailer           Data by Day
                        Detail by Retailer
   • Publisher          Store Counts
                        Competitive Title (Single View)
   • Senior Management View (with comps)
                        Multi-Title
                               Issue Code Designation
                               Standard Analytics (Multi-tabbed
                               views with sums, sorts, averages,
                               ratios, etc.)
                               CIA Support (Report building, data
                               analysis, etc.)
                               Advanced Analystics (forecasting,
                               penetrations, etc.)
Consumer Insights & Analysis
EDGE
Consumer Insights & Analytics

                        By Retailer
      Promotions
                       By Wholesaler
      Promotion Log
                         Results

        PDC Reports
Consumer Insights – Custom Reports
 Advanced Analytics

               High-
        powered, customized   POS – Based Forecasts
              reports
                                  DMA Analysis
        Advanced, statistic
           al analysis
                              Range of Sale Analysis
       Data / Demographic           Venn Analysis With Profitability
           Integration
Expansion Opportunities: Three Approaches
         1. EDGE-based analytics
Expansion Opportunities

• Identify   - expansion targets by class of trade / retailer

• Analyze    - current trends to establish baselines

• Forecast   - expected sales results

• Rank       - retail targets

• Measure    - actual results versus expectations
Expansion Opportunities: Mac World

                                                     MAC WORLD                                                                           MAC LIFE
                                                                                                                                        MENS HEALTH
                                                         201101 - 201104                                                                  201101 - 201104
                                                                                                                                       Issues 201010 - 201103
                            Store      Average      Average                      Draw /           Sale /      Store        Average     Average                   Draw /     Sale /
                                                                 Efficiency                                                                         Efficiency
                            Count       Draw         Sales                       Dealer           Dealer      Count         Draw        Sales                    Dealer     Dealer
Selling Both Titles          8,284      72,657       29,084         40.0%               8.8            3.5    8,284         83,429      32,650        39.1%          10.1        3.9
Selling One Title            5,954      18,347       5,028          27.4%               3.1            0.8    6,087         22,840       6,446        28.2%           3.8        1.1
Total                       14,238      91,004       34,112           MAC WORLD
                                                                    37.5%             6.4              2.4    14,371      106,269 LIFE
                                                                                                                             MAC 39,096
                                                                                                                        MENS HEALTH                   36.8%           7.4
                                                                                                                                                                     RATIOS      2.7
                                                                        201101 - 201104                                Issues 201101 --201104
                                                                                                                              201010 201103
                                            Store         Average      Average                     Sale /    Average       Average                   Sale /      Average    Average
                      Class of Trade                                                 Efficiency                                        Efficiency
                                            Count          Draw          Sale                      Dealer     Draw           Sale                    Dealer       Draw        Sale
                                                 8,284        72,657        29,084      40%            3.5      83,429        32,650      39%              3.9     87%        89%
             TERMINAL                             772         30,452        15,050     49%            19.5      30,855        15,130     49%              19.6    99%        99%
             BOOKSTORE                           1,934        13,846         6,190     45%             3.2      18,547         7,942     43%               4.1    75%        78%
             GROCERY                             2,717        10,175         3,578     35%             1.3      12,343         4,716     38%               1.7    82%        76%
             OTHER                                665          9,164         1,653     18%             2.5      11,263         1,611     14%               2.4    81%        103%
             MASS MERCHANDISE                    1,024         4,017          924      23%             0.9       4,677         1,273     27%               1.2    86%        73%
             NEWSSTAND                            388          1,711          643      38%             1.7       1,978           616     31%               1.6    86%        104%
             DRUG                                 452          1,910          560      29%             1.2       2,149           746     35%               1.6    89%        75%
             MILITARY                             132           674           294      44%             2.2         871           406     47%               3.1    77%        72%
             CONVENIENCE                          185           653           175      27%             0.9         684           189     28%               1.0    95%        93%



                      These ratios, efficiencies and sales per dealer provide baselines for
                       anticipated performance from expansion efforts into retailers selling
                                            Mac Life but not Mac World.
Expansion Opportunities: Mac World

   RETAILERS CURRENTLY SELLING MAC                                        MAC LIFE                                             MAC WORLD
                                                                      Issues 201101 - 201104
        LIFE BUT NOT MAC WORLD                                                                                             Projected Performance
                                                                                                          Current
                                                            Average     Average                  Sale /                                             Sale /
           Banner Nam e     Class of Trade   Store Count                            Efficiency              Ratio   Draw      Sale     Efficiency
                                                             Draw         Sale                   Dealer                                             Dealer
                                                                                                           (COT)
CVS                       DRUG                       932        2,902         825      28%          0.9       75%    2,112      620          29%        0.7
BEST BUY                  OTHER                      153         765          394      51%          2.6      103%    2,241      404          18%        2.6
WAL MART SUPERCENTER      MASS MERCHANDISE           344        1,631         435      27%          1.3       73%    1,371      315          23%        0.9
SHOPPERS DRUG             DRUG                       186         733          285      39%          1.5       75%     729       214          29%        1.1
PARADIES                  TERMINAL                    12        329          203      62%          16.9      99%     408       201          49%       16.8
HUDSON NEWS-TERMINAL TERMINAL                         12        378          189      50%          15.7      99%     380       188          49%       15.6
PUBLIX                    GROCERY                   122         582          220      38%           1.8      76%     475       167          35%         1.4
STOP & SHOP SUPERMKT      GROCERY                    177         456          194      42%          1.1       76%     418       147          35%        0.8
KROGER                    GROCERY                    187         689          188      27%          1.0       76%     406       143          35%        0.8
WALGREENS                 DRUG                       310        1,062         188      18%          0.6       75%     480       141          29%        0.5
WAL MART CANADA           MASS MERCHANDISE           136        1,170         163      14%          1.2       73%     514       118          23%        0.9
RITE AID                  DRUG                       331         873          153      17%          0.5       75%     391       115          29%        0.3
TARGET                    MASS MERCHANDISE           204         565          150      27%          0.7       73%     473       109          23%        0.5
CREWS OF CALIFORNIA       TERMINAL                     3        192           90      47%          29.8      99%     180         89         49%       29.7
INDEPENDENT OTHER HQ      OTHER                       28         141           84      60%          3.0      103%     478        86          18%        3.1
HARRIS TEETER             GROCERY                     51        242          102      42%           2.0      76%     219         77         35%         1.5
BARNES & NOBLE COLLEGE
                          BOOKSTORE                  111         483           97      20%          0.9       78%     170        76          45%        0.7
BOOKS
TOP TARGETS                                         3,299      13,192       3,956      30%          1.2       81%   11,444     3,210         28%        1.0
ALL RETAILERS                                       6,087      22,840       6,446      28%          1.1       57%   14,345     5,742         40%        0.9
Expansion Opportunities: Three Approaches
          2. Advanced Analytics
Newsstand Break-EvenAnalysis

                               Using basic newsstand metrics we
                               determine a title’s break-even point of
                               efficiency.

                               Also determine net profit:
                               • per reader
                                     issue
                                  annually
Venn Analysis

                                                      MAC WORLD
                                                                     M WO
                                                        Stores
                  section in the "Venn" tab. *Note that Draw
                                                                      3,171                                           Analysis shows several thousand
                                                                      7,478
                                                        Sale          2,134                                           retailers profitably selling
                                                        Eff          28.5%
                                                                                                                      competitive titles where Mac
                                                                                                                      World is not displayed.

                                                                                                                      Three segments of business -
                                M WO          M LI                                         M WO      PC W
                    Stores         877         877                                Stores    2,371    2,371
                    Draw         3,450       4,015                                Draw      9,946   11,201            • retailers selling Mac Life and PC
                    Sale         1,124       1,380                                Sale      3,052    3,081
                    Eff         32.6%       34.4%                                 Eff      30.7%    27.5%             World;

                                                                                                                      • retailers selling Mac Life;
                                                           M WO           M LI   PC W
                                             Stores       6,518        6,518  6,518
                                             Draw        64,788       74,296 77,368                                   • and retailers selling PC World;
                                             Sale        26,457       29,326 16,373
                       M LI                  Eff         40.8%        39.5% 21.2%
         Stores       2,145                                                                                   PC W    show potential for profitable
         Draw
         Sale
                      7,478
                      2,063                                        M LI      PC W
                                                                                                    Stores
                                                                                                    Draw
                                                                                                             15,791
                                                                                                             54,762
                                                                                                                      expansion of Mac World
         Eff         27.6%                        Stores          3,797      3,797                  Sale     11,769   distribution.
                                                  Draw           15,448     15,913                  Eff      21.5%
                                                  Sale            4,633      3,895
                                                  Eff            30.0%      24.5%




                              MAC LIFE                                               PC WORLD

Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
Opportunity Analysis

                                      Draw/Sale: Stores Selling Both MAC LIFE and PC WORLD
                                                    Store        Average Average                        Draw /         Sale /
                                Title                                            Efficiency
                                                    Count         Draw    Sales                         Store          Store
                       Mac Life                        3,797          15,448         4,633    30.0%          4.07         1.22
                       Runner's World                  3,797          14,299         5,944    41.6%          3.77         1.57
                        Almost 4,000 retailers sell both Mac Life and PC World, but not Mac World.

                        Several classes combine significant sales volume and acceptable sales per dealer to
                        make them potential expansion targets. While Terminal and Bookstore classes would
                        probably require investment, Mass and Grocery probably would not.


                                                                                Mac Life                   PC World
                                                           Store         Avg             Sale /     Avg             Sale /
                                Class of Trade                                  Avg Sale                   Avg Sale
                                                           Count        Draw             Dealer    Draw             Dealer
                        Terminal                                51        1,244      588    11.5     1,133      310      6.1
                        Bookstore                               128          599      208    1.6      473        135        1.1
                        Mass                                    738       3,485       916    1.2     3,303       974        1.3
                        Grocery                                1233       4,432      1,468   1.2     3,485    3,303         2.7
                        Drug                                   1327       4,509      1,132   0.9     4,702       991        0.7
                        Other                                   320       1,179       321    1.0     1,203       231        0.7
                        TOTAL                                 3,797      15,448      4,633   1.2    14,299    5,944         1.6


Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
Opportunity Analysis

                                      Draw/Sale: Stores Selling Both MAC LIFE and PC WORLD
                                                    Store         Average Average                              Draw /           Sale /
                                Title                                             Efficiency
                                                    Count          Draw    Sales                               Store            Store
                       Mac Life                        3,797         15,448             4,633        30.0%            4.07           1.22
                       Runner's World                  3,797         14,299             5,944        41.6%            3.77           1.57
                        Almost 4,000 retailers sell both Mac Life and PC World, but not Mac World.


                        A number of retailers offer attractive expansion metrics, with competitors selling more
                        than 1 copy per store. The opportunities exist across several classes including Mass,
                        Grocery and Drug.

                                                                                     Mac Life                        PC World
                                                          Store                                  Sale /                              Sale /
                             Banner Name                             Avg Draw        Avg Sale             Avg Draw Avg Sale
                                                          Count                                  Dealer                              Dealer
                    CVS                                    680             2,247           629        0.9      2,666      591             0.9
                    WAL MART SUPERCENTER                    365            1,725           487       1.3      1,960           605         1.7
                    PUBLIX                                  134              623           236       1.8       684            163         1.2
                    SHOPPERS DRUG                           116              513           211       1.8       410            105         0.9
                    STOP & SHOP SUPERMKT                    181              475           198       1.1       858            208         1.1
                    HUDSON NEWS-TERMINAL                    14               439           192      13.7       384            116         8.3
                    WALGREENS                               288            1,004           174       0.6       846            170         0.6
                    PARADIES                                12               237           150      12.5       231             64         5.3
                    WAL MART CANADA                         89               731           139       1.6       319            120         1.3
                    KROGER                                  95               368           114       1.2       327             89         0.9
                    ALL RETAILERS                         3,797           15,448         4,633       1.2     14,299          5,944        1.6


Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
Opportunity Analysis
                                      Draw/Sale: Stores Selling MAC LIFE but not MAC WORLD
                                                    Store         Average Average                                 Draw /      Sale /
                                Title                                             Efficiency
                                                    Count          Draw    Sales                                  Store       Store
                       Mac Life                         2,145          7,478           2,063           27.6%         3.49        0.96

                         Over 2,100 retailers sell Mac Life but not Mac World

                        However, most classes are unable to generate the volume of sales per dealer to make
                        them attractive expansion targets. With the exception of Terminal, any expansion
                        efforts should be fully vetted.


                                                                                                       Mac Life
                                                                 Store                                              Draw /    Sale /
                                  Class of Trade                         Avg Draw Avg Sale               Pct.
                                                                 Count                                              Dealer    Dealer
                        Terminal                                      17       396     161                  41%        23.3        9.5
                        Bookstore                                      212            962       228         24%         4.5        1.1
                        Grocery                                        584           1,903      472         25%         3.3        0.8
                        Mass                                           320           1,094      208         19%         3.4        0.7
                        Drug                                           446           1,207      363         30%         2.7        0.8
                        Other                                          566           1,916      632         33%         3.4        1.1
                        TOTAL                                       2,145            7,478     2,063        28%         3.5        1.0




Source: store-level O&R data representing 95% of newsstand; Jan 2011 - April 2011.
Opportunity Analysis
                                      Draw/Sale: Stores Selling MAC LIFE but not MAC WORLD
                                                    Store        Average Average                              Draw /      Sale /
                                Title                                            Efficiency
                                                    Count         Draw    Sales                               Store       Store
                       Mac Life                        2,145           7,478         2,063      27.6%            3.49        0.96

                        Over 2,100 retailers sell Mac Life but not Mac World

                        Only terminal retailers generate sufficient sales per dealer to make them attractive
                        expansion targets.


                                                                                                     Mac Life
                                                                      Store                                     Draw /    Sale /
                                        Retailer                              Avg Draw Avg Sale        Pct.
                                                                      Count                                     Dealer    Dealer
                       BEST BUY                                           155       775     403           52%       5.0        2.6
                       HMS HOST-TERMINAL                                     9        354     283         80%     39.3        31.4
                       CVS                                                 216        560     171         31%       2.6        0.8
                       SHOPPERS DRUG                                        96        376     148         39%       3.9        1.5
                       PARADIES                                             10        290     138         48%     29.0        13.8
                       TARGET                                              149        404     116         29%       2.7        0.8
                       KROGER                                              112        405     100         25%       3.6        0.9
                       RITE AID                                            134        318      73         23%       2.4        0.5
                       BARNES & NOBLE COLLEGE                               65        272      61         22%       4.2        0.9
                       BOOKS
                       WAL MART CANADA                                      45        400      46         12%       8.9        1.0
                       TOTAL                                             2,145       7,478   2,063        28%       3.5        1.0


Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
Opportunity Analysis
                                     Draw/Sale: Stores Selling PC WORLD but not MAC WORLD
                                                    Store         Average Average                                   Draw /      Sale /
                                Title                                             Efficiency
                                                    Count          Draw    Sales                                    Store       Store
                       PC World                       15,791          54,762           11,769            21.5%         3.47        0.75

                         Almost 15,800 retailers sell PC World but not Mac World.

                         However, most classes are inefficient and generate low volumes per retailer. Any
                         expansion efforts into these stores should be fully vetted.



                                                                                                         PC World
                                                                 Store                                                Draw /    Sale /
                                  Class of Trade                         Avg Draw Avg Sale                 Pct.
                                                                 Count                                                Dealer    Dealer
                        GROCERY                                     4088     17,167   3,571                   21%         4.2        0.9
                        MASS MERCHANDISE                             2654            12,174      3,383        28%         4.6        1.3
                        DRUG                                         6476            18,753      3,233        17%         2.9        0.5
                        CONVENIENCE                                    777            2,521       309         12%         3.2        0.4
                        TERMINAL                                        45             621        187         30%       13.8         4.2
                        OTHER                                       1,751             3,526      1,086        31%         2.0        0.6
                        TOTAL                                      15,791            54,762     11,769        21%         3.5        0.7




Source: store-level O&R data representing 95% of newsstand; Jan 2011 - April 2011.
Opportunity Analysis
                                     Draw/Sale: Stores Selling PC WORLD but not MAC WORLD
                                                    Store        Average Average                               Draw /         Sale /
                                Title                                            Efficiency
                                                    Count         Draw    Sales                                Store          Store
                       PC World                       15,791         54,762          11,769     21.5%             3.47           0.75

                        Almost 15,800 retailers sell PC World but not Mac World.

                        Most, however, have modest efficiencies and sales per dealer that make them
                        speculative targets. Only Wal Mart and Giant Food offer any real possibilities.


                                                                                                      PC World
                                                                      Store                                    Draw /         Sale /
                                         Retailer                                Avg Draw Avg Sale      Pct.
                                                                      Count                                    Dealer         Dealer
                         WAL MART SUPERCENTER                          1399           7,288   2,345        32%     5.2             1.7
                         WALGREENS                                     3734           9,512   1,661        17%          2.5        0.4
                         CVS                                           1419           4,947    972         20%          3.5        0.7
                         WAL MART                                       386           1,722    502         29%          4.5        1.3
                         PUBLIX                                         460           2,411    489         20%          5.2        1.1
                         KROGER                                         271           1,037    275         27%          3.8        1.0
                         RITE AID                                       667           2,165    266         12%          3.2        0.4
                         TARGET                                         418           1,539    237         15%          3.7        0.6
                         SAFEWAY                                        246            966     225         23%          3.9        0.9
                         GIANT FOOD CARLISLE                            127            784     194         25%          6.2        1.5
                         TOTAL                                         5,852         26,854   8,496        32%          4.6        1.5


Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
Expansion Opportunities: Three Approaches
3. Demographic / Consumer purchasing behavior
Spectra Quadrant Analysis

       Demographic and consumer purchasing behavior, by store, is used to identify “high and low” potential sales.
       These are compared to actual sales to generate the below quadrant analysis.




Source: store-level O&R data for all Wal Mart divisions; May 2010 – April 2011
Measuring Results
Before-and-After Range of Sale
Before-and After Range of Sale Analysis
                                           Issues 201102 -Cut Variance 201101 - 201112
                                             Pre - and - Post 201106 , 1 or More Issues
        Range of   # of                               Variance          Pct Variance
                                                                   Share of Share of                Draw /       Sale /
                            Draw
                         Range of
                                          Sales
                                        # of
                                                       Efficiency                       Variance
          Sale   Accounts                          Draw       Sales Draw
                                                                       Draw     Sales Share of Draw Dealer
                                                                                 Sales                           Dealer
        0-1         15,580 Sale Accounts
                               79,447      7,060           8.9%       32.6%       7.8%   Reduction
                                                                                             -24.8         5.1       0.5
                         0-1          -4,025 -25,700         8,088     -32.3%   114.6%         63.9%
        1-3          8,425
                         1-3
                               51,549 -724
                                         20,026 -7,071    38.8%
                                                            -2,807
                                                                      21.1%
                                                                       -13.7%
                                                                                 22.1%
                                                                                -14.0%
                                                                                               1.0
                                                                                               17.6%
                                                                                                           6.1       2.4
        3-7          4,817
                         3-7 48,104 -154 24,307 -3,143    50.5%
                                                            -3,358    19.7%
                                                                        -6.5%    26.8%
                                                                                -13.8%         7.1
                                                                                                7.8%      10.0       5.0
        7-12         1,479
                         7-12 24,831     14,052 -1,176
                                         -31              56.6%
                                                            -1,185    10.2%
                                                                        -4.7%    15.5%
                                                                                 -8.4%         5.3
                                                                                                2.9%      16.8       9.5
        12-18          527
                         12-1813,267       7,865 -169
                                         -10              59.3%-68      5.4%
                                                                        -1.3%     8.7%
                                                                                 -0.9%         3.2
                                                                                                0.4%      25.2      14.9
        18-25            18-25 6,786
                       211                -6
                                           4,498 -229         -267
                                                          66.3%         2.8%
                                                                        -3.4%    -5.9%
                                                                                  5.0%          0.6%
                                                                                               2.2        32.2      21.3
        25-35            25-35 6,061
                       145                -5
                                           4,319 -394         -401
                                                          71.3%         -6.5%
                                                                        2.5%     -9.3%
                                                                                  4.8%          1.0%
                                                                                               2.3        41.8      29.8
        35-50            35-50 4,621
                        81                -2
                                           3,394 -204         -189
                                                          73.4%         -4.4%
                                                                        1.9%     -5.6%
                                                                                  3.7%          0.5%
                                                                                               1.9        57.0      41.9
                         50-75            -2       -318       -242     -11.7%   -13.8%          0.8%
        50-75           30      2,712      1,749          64.5%         1.1%      1.9%         0.8        90.4      58.3
                         >75              -7     -1,829       -515     -27.8%   -15.5%          4.5%
        >75             28
                         Total
                                6,580 -4,966 -40,230
                                           3,320          50.5%
                                                              -943
                                                                        2.7%
                                                                       -16.5%
                                                                                  3.7%
                                                                                 -1.0%
                                                                                               1.0       235.0     118.6
        Totals      31,323   243,957       90,588         37.1%      100.0%     100.0%         N/A         7.8       2.9


                                     Range of Sale 201108 - 201112 or1 or More Issues
                                        Issues 201108 - 201112 , 1 , More Issues
        Range of
        Range of   # of
                   # of                                       Share of Share of                        Draw /    Sale /
                             Draw
                             Draw      Sales
                                       Sales     Efficiency Share of Share of Variance
                                                 Efficiency                         Variance           Draw /    Sale /
          Sale
          Sale   Accounts
                 Accounts                                      Draw
                                                               Draw       Sales
                                                                          Sales                        Dealer
                                                                                                       Dealer    Dealer
                                                                                                                 Dealer
        0-1
        0-1         11,555
                     2,012     53,747
                                6,906      15,148
                                              719         28.2%
                                                          10.4%       26.4%
                                                                      46.5%      16.9%
                                                                                 12.5%        -9.5
                                                                                             -34.0         4.7
                                                                                                           3.4       1.3
                                                                                                                     0.4
        1-3
        1-3          7,701
                       512     44,478
                                2,468      17,218
                                            1,157         38.7%
                                                          46.9%       21.8%
                                                                      16.6%      19.2%
                                                                                 20.2%        -2.6
                                                                                               3.5         5.8
                                                                                                           4.8       2.2
                                                                                                                     2.3
        3-7
        3-7          4,663
                       205     44,961
                                1,499      20,950
                                            1,008         46.6%
                                                          67.3%       22.1%
                                                                      10.1%      23.4%
                                                                                 17.6%         1.3
                                                                                               7.5         9.6
                                                                                                           7.3       4.5
                                                                                                                     4.9
        7-12
        7-12         1,448
                        58     23,656
                                  980      12,867
                                              575         54.4%
                                                          58.7%       11.6%
                                                                       6.6%      14.4%
                                                                                 10.0%         2.7
                                                                                               3.4        16.3
                                                                                                          16.9       8.9
                                                                                                                     9.9
        12-18
        12-18          517
                        13     13,099
                                  275       7,797
                                              188         59.5%
                                                          68.4%        6.4%
                                                                       1.9%       8.7%
                                                                                  3.3%         2.3
                                                                                               1.4        25.3
                                                                                                          21.2      15.1
                                                                                                                    14.5
        18-25
        18-25          205
                        27      6,558
                                  722       4,231
                                              585         64.5%
                                                          81.0%        3.2%
                                                                       4.9%       4.7%
                                                                                 10.2%         1.5
                                                                                               5.3        32.0
                                                                                                          26.7      20.6
                                                                                                                    21.6
        25-35
        25-35          140
                        10      5,667
                                  495       3,918
                                              300         69.1%
                                                          60.5%        2.8%
                                                                       3.3%       4.4%
                                                                                  5.2%         1.6
                                                                                               1.9        40.5
                                                                                                          49.5      28.0
                                                                                                                    30.0
        35-50
        35-50           79
                         3      4,417
                                  157       3,205
                                              147         72.6%
                                                          93.6%        2.2%
                                                                       1.1%       3.6%
                                                                                  2.6%         1.4
                                                                                               1.5        55.9
                                                                                                          52.3      40.6
                                                                                                                    49.0
        50-75
        50-75           28
                         3      2,394
                                  212       1,507
                                              189         62.9%
                                                          89.2%        1.2%
                                                                       1.4%       1.7%
                                                                                  3.3%         0.5
                                                                                               1.9        85.5
                                                                                                          70.7      53.8
                                                                                                                    63.0
        >75
        >75             21
                         6      4,751
                                1,135       2,805
                                              869         59.0%
                                                          76.6%        2.3%
                                                                       7.6%       3.1%
                                                                                 15.2%         0.8
                                                                                               7.5       226.2
                                                                                                         189.2     133.6
                                                                                                                   144.8
        Totals
        Totals      26,357
                     2,849   203,727
                              14,849       89,645
                                            5,736         44.0%
                                                          38.6%      100.0%
                                                                     100.0%     100.0%
                                                                                100.0%         N/A
                                                                                               N/A         7.7
                                                                                                           5.2       3.4
                                                                                                                     2.0
Wholesaler Share of Market Trends

                     35%



                     30%



                     25%

                                                                         TNG
                     20%                                                 AND
                                                                         SIC
                     15%                                                 IND
                                                                         HUD

                     10%                                                 TNG-LP
                                                                         OTHERS

                      5%



                      0%
                                   2007      2008   2009   2010   2011

                     -5%




Source: CMG billing records, 2007 to 2011.
Wholesaler EfficiencyTrends
                    41%


                    39%


                    37%


                                                                         TNG
                    35%
                                                                         AND
                                                                         SIC
                    33%
                                                                         IND
                                                                         HUD
                    31%
                                                                         TNG-LP
                                                                         OTHERS
                    29%


                    27%


                    25%
                                   2007      2008   2009   2010   2011




Source: CMG Billing records; 2007 to 2011.
CMG Publisher YOY Dollar Trend by Wholesaler
                                                                  CMG TNG
                                                                    HUDSON
                                                                    OTHERS
                                                                     TNG-LP
                                                                      OVERALL
                                                                       SIC
                          15%
                          0%


                          10%                                                                                   11%
                         -2%
                                                                                          -3%
                           5%

                         -4%                   0%        2%
                           0%           -5%
                                     -2%                                                            -1%
                                               -2%                               -3%

                          -5%        -6%
                                     -6%                           -6%
                         -6%                   -7%       -7%       -7%
                                                                   -7%
                                                         -9%                     -8%      -8%
                                     -9%      -10%
                         -10%       -11%                                                           -11%         -11%
                                                                                 -12%    -12%      -13%
                         -8%                                       -13%
                                                         -15%
                                                       -9%                               -15%
                                                                                         -15%                   -15%
                                                                                                                -15%
                         -15%                 -16%                               -16%

                        -10%                                                             -21%
                         -20%                                                                                -11%
                                                                                                   -23%
                                                                          -11%
                         -25%                                                                      -26%
                        -12%
                                                                                 -28%

                         -30%
                                                                                                                 -36%
                        -14%       HEARST     CONDE   READ DIG.   PENNY     CONSUMERS     ROB     BONNIER    INTERWEAVE
                                        TNG           TNG-LP              SIC           KENNEDY
                                                                                           HUD              OTHERS




Source: CMG Billing records; 2007 to 2011.
Wholesaler – Share of Market by Class of Trade

                                                                     HUDSON
                                                                      TNG-LP
                                                                      OTHER
                                                                       TNG
                                                                        SIC
                 50%



                                43%
                 40%

                                38%

                                                   35%
                                34%
                 30%
                                30%

                                27%                                                                      27%
                                                   24%
                                                   23%
                 20%                                                     22%

                                                            17%          16%
                                                                                 14%          14%
                                                   13%      13%
                 10%                               12%                           11%
                                                                         11%
                                                                                                          9%
                                                                         7%                    8%
                                                            7%                                 6%         6%
                                                            5%           5%                               4%
                                                            3%                    1%
                                                                                  2%           2%
                                                                                               3%
                   0%
                             GROCERY               MASS   TERMINAL      DRUG   BOOKSTORE   CONVENIENCE   OTHER




Source: store-level O&R data; all titles, 2011 issues.
Wholesaler - Share of Market by Retailer

                                                                             HUDSON
                                                                              TNG-LP
                                                                              OTHER
                                                                               TNG
                                                                                SIC
                 35%



                 30%              32%
                                                                                           TOP SIX RETAILERS
                 25%
                                                                                             = 46% SHARE
                                                                                               27%
                                                                                               50%
                                                                                               60%

                                  23%
                 20%



                 15%              16%

                                                         14%
                                  12%
                 10%
                                                         10%           10%
                                                         9%                              9%
                   5%             7%                                   7%
                                                         6%            6%                6%              6%
                                                                       5%                5%
                                                                                         5%              5%               5%
                                                                                                         5%
                                                                       4%                4%              3%               4%
                                                                                                                          4%
                                                                                                                          3%
                                                                                                                          3%
                   0%
                         WALWAL MART
                          HUDSON CANADA
                            MART NEWS            DOLLAR GENERAL
                                                 BARNES & NOBLE
                                                     KROGER
                                                       CVS        BARNES & NOBLE
                                                                    WALGREENS
                                                                      AHOLD
                                                                      PUBLIX       SCHNUCKMART
                                                                                     HUDSON NEWS HY VEERITE MILLION LOWES COMPANIES
                                                                                      SAMS MARKETS BOOKS A AID
                                                                                      WAL CLUB
                                                                                       SAFEWAY        SAFEWAY
                                                                                                       TARGET
                                                                                                        FOOD STORES SHOPPERS DRUG
                                                                                                                       SUPERVALU
                                                                                                                        PARADIES
                                                                                                                        DELHAIZE




Source: store-level O&R data; all titles, 2011 issues.

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CIA Spring 2012

  • 2. EDGE Usage Analysis Reports Actions Users • Number of Users 500 1000 250,000 400 200,000 750 300 150,000 • Number of Reports 500 200 100,000 250 100 50,000 • Number of Actions 00 - 20042004 2004 2007 2007 2007 2011 2011 2004 2007 2011 • 65% of reports “marketing” oriented • 40% of reports run by clients / consultants
  • 3. EDGE EDGE – Data Portal 24 Hour on-line access Intuitive, easy-to-use interface Presentation-ready reports Data Available Billings O&R Assignments Forecasting Financial ABC
  • 4. EDGE EDGE – O&R Data Updated Monthly Share of Market 4,000 Titles Ratio Reports Variety of reports Opportunity Gap Distribution Exceptions
  • 5. EDGE EDGE – Assignment Results Updated upon completion Integrated with O&R (Select reports) Pocket Counts W/Sales Data Comparisons Trends Distribution confirmation Promotion confirmation / analysis Withholding
  • 6. EDGE – Check-out Analysis Pocket counts Comparisons by Title Opportunity Gaps Collected Quarterly Exclusive Retailers 40 Titles / 300 Retailers Multi-Title Comparisons
  • 7. EDGE EDGE – ABC Reporting Available day FAS- Rankings & Variances FAX released Variety of reports ByByCirculation By By Trends Publisher Long-termTitle Dist. Long-Termtrends National By Category Comprehensive Newsstand Review
  • 8. EDGE Upgrade – Software • 2012 – Q2: Go live • Review, revise, update all corporate documents • Expanded Capabilities • Improved performance • Scheduling • Organization • External data providers
  • 9. EDGE Upgrade – POS • 2012 – Q2: Go live • All major classes of trade • Represent “pricing” • Tiered access /40% of newsstand Feature Silver Gold Platinum • Multiple Audiences Publisher Title (Single View) POS Reporting • Retailer Data by Day Detail by Retailer • Publisher Store Counts Competitive Title (Single View) • Senior Management View (with comps) Multi-Title Issue Code Designation Standard Analytics (Multi-tabbed views with sums, sorts, averages, ratios, etc.) CIA Support (Report building, data analysis, etc.) Advanced Analystics (forecasting, penetrations, etc.)
  • 11. EDGE Consumer Insights & Analytics By Retailer Promotions By Wholesaler Promotion Log Results PDC Reports
  • 12. Consumer Insights – Custom Reports Advanced Analytics High- powered, customized POS – Based Forecasts reports DMA Analysis Advanced, statistic al analysis Range of Sale Analysis Data / Demographic Venn Analysis With Profitability Integration
  • 13. Expansion Opportunities: Three Approaches 1. EDGE-based analytics
  • 14. Expansion Opportunities • Identify - expansion targets by class of trade / retailer • Analyze - current trends to establish baselines • Forecast - expected sales results • Rank - retail targets • Measure - actual results versus expectations
  • 15. Expansion Opportunities: Mac World MAC WORLD MAC LIFE MENS HEALTH 201101 - 201104 201101 - 201104 Issues 201010 - 201103 Store Average Average Draw / Sale / Store Average Average Draw / Sale / Efficiency Efficiency Count Draw Sales Dealer Dealer Count Draw Sales Dealer Dealer Selling Both Titles 8,284 72,657 29,084 40.0% 8.8 3.5 8,284 83,429 32,650 39.1% 10.1 3.9 Selling One Title 5,954 18,347 5,028 27.4% 3.1 0.8 6,087 22,840 6,446 28.2% 3.8 1.1 Total 14,238 91,004 34,112 MAC WORLD 37.5% 6.4 2.4 14,371 106,269 LIFE MAC 39,096 MENS HEALTH 36.8% 7.4 RATIOS 2.7 201101 - 201104 Issues 201101 --201104 201010 201103 Store Average Average Sale / Average Average Sale / Average Average Class of Trade Efficiency Efficiency Count Draw Sale Dealer Draw Sale Dealer Draw Sale 8,284 72,657 29,084 40% 3.5 83,429 32,650 39% 3.9 87% 89% TERMINAL 772 30,452 15,050 49% 19.5 30,855 15,130 49% 19.6 99% 99% BOOKSTORE 1,934 13,846 6,190 45% 3.2 18,547 7,942 43% 4.1 75% 78% GROCERY 2,717 10,175 3,578 35% 1.3 12,343 4,716 38% 1.7 82% 76% OTHER 665 9,164 1,653 18% 2.5 11,263 1,611 14% 2.4 81% 103% MASS MERCHANDISE 1,024 4,017 924 23% 0.9 4,677 1,273 27% 1.2 86% 73% NEWSSTAND 388 1,711 643 38% 1.7 1,978 616 31% 1.6 86% 104% DRUG 452 1,910 560 29% 1.2 2,149 746 35% 1.6 89% 75% MILITARY 132 674 294 44% 2.2 871 406 47% 3.1 77% 72% CONVENIENCE 185 653 175 27% 0.9 684 189 28% 1.0 95% 93% These ratios, efficiencies and sales per dealer provide baselines for anticipated performance from expansion efforts into retailers selling Mac Life but not Mac World.
  • 16. Expansion Opportunities: Mac World RETAILERS CURRENTLY SELLING MAC MAC LIFE MAC WORLD Issues 201101 - 201104 LIFE BUT NOT MAC WORLD Projected Performance Current Average Average Sale / Sale / Banner Nam e Class of Trade Store Count Efficiency Ratio Draw Sale Efficiency Draw Sale Dealer Dealer (COT) CVS DRUG 932 2,902 825 28% 0.9 75% 2,112 620 29% 0.7 BEST BUY OTHER 153 765 394 51% 2.6 103% 2,241 404 18% 2.6 WAL MART SUPERCENTER MASS MERCHANDISE 344 1,631 435 27% 1.3 73% 1,371 315 23% 0.9 SHOPPERS DRUG DRUG 186 733 285 39% 1.5 75% 729 214 29% 1.1 PARADIES TERMINAL 12 329 203 62% 16.9 99% 408 201 49% 16.8 HUDSON NEWS-TERMINAL TERMINAL 12 378 189 50% 15.7 99% 380 188 49% 15.6 PUBLIX GROCERY 122 582 220 38% 1.8 76% 475 167 35% 1.4 STOP & SHOP SUPERMKT GROCERY 177 456 194 42% 1.1 76% 418 147 35% 0.8 KROGER GROCERY 187 689 188 27% 1.0 76% 406 143 35% 0.8 WALGREENS DRUG 310 1,062 188 18% 0.6 75% 480 141 29% 0.5 WAL MART CANADA MASS MERCHANDISE 136 1,170 163 14% 1.2 73% 514 118 23% 0.9 RITE AID DRUG 331 873 153 17% 0.5 75% 391 115 29% 0.3 TARGET MASS MERCHANDISE 204 565 150 27% 0.7 73% 473 109 23% 0.5 CREWS OF CALIFORNIA TERMINAL 3 192 90 47% 29.8 99% 180 89 49% 29.7 INDEPENDENT OTHER HQ OTHER 28 141 84 60% 3.0 103% 478 86 18% 3.1 HARRIS TEETER GROCERY 51 242 102 42% 2.0 76% 219 77 35% 1.5 BARNES & NOBLE COLLEGE BOOKSTORE 111 483 97 20% 0.9 78% 170 76 45% 0.7 BOOKS TOP TARGETS 3,299 13,192 3,956 30% 1.2 81% 11,444 3,210 28% 1.0 ALL RETAILERS 6,087 22,840 6,446 28% 1.1 57% 14,345 5,742 40% 0.9
  • 17. Expansion Opportunities: Three Approaches 2. Advanced Analytics
  • 18. Newsstand Break-EvenAnalysis Using basic newsstand metrics we determine a title’s break-even point of efficiency. Also determine net profit: • per reader issue annually
  • 19. Venn Analysis MAC WORLD M WO Stores section in the "Venn" tab. *Note that Draw 3,171 Analysis shows several thousand 7,478 Sale 2,134 retailers profitably selling Eff 28.5% competitive titles where Mac World is not displayed. Three segments of business - M WO M LI M WO PC W Stores 877 877 Stores 2,371 2,371 Draw 3,450 4,015 Draw 9,946 11,201 • retailers selling Mac Life and PC Sale 1,124 1,380 Sale 3,052 3,081 Eff 32.6% 34.4% Eff 30.7% 27.5% World; • retailers selling Mac Life; M WO M LI PC W Stores 6,518 6,518 6,518 Draw 64,788 74,296 77,368 • and retailers selling PC World; Sale 26,457 29,326 16,373 M LI Eff 40.8% 39.5% 21.2% Stores 2,145 PC W show potential for profitable Draw Sale 7,478 2,063 M LI PC W Stores Draw 15,791 54,762 expansion of Mac World Eff 27.6% Stores 3,797 3,797 Sale 11,769 distribution. Draw 15,448 15,913 Eff 21.5% Sale 4,633 3,895 Eff 30.0% 24.5% MAC LIFE PC WORLD Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
  • 20. Opportunity Analysis Draw/Sale: Stores Selling Both MAC LIFE and PC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store Mac Life 3,797 15,448 4,633 30.0% 4.07 1.22 Runner's World 3,797 14,299 5,944 41.6% 3.77 1.57 Almost 4,000 retailers sell both Mac Life and PC World, but not Mac World. Several classes combine significant sales volume and acceptable sales per dealer to make them potential expansion targets. While Terminal and Bookstore classes would probably require investment, Mass and Grocery probably would not. Mac Life PC World Store Avg Sale / Avg Sale / Class of Trade Avg Sale Avg Sale Count Draw Dealer Draw Dealer Terminal 51 1,244 588 11.5 1,133 310 6.1 Bookstore 128 599 208 1.6 473 135 1.1 Mass 738 3,485 916 1.2 3,303 974 1.3 Grocery 1233 4,432 1,468 1.2 3,485 3,303 2.7 Drug 1327 4,509 1,132 0.9 4,702 991 0.7 Other 320 1,179 321 1.0 1,203 231 0.7 TOTAL 3,797 15,448 4,633 1.2 14,299 5,944 1.6 Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
  • 21. Opportunity Analysis Draw/Sale: Stores Selling Both MAC LIFE and PC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store Mac Life 3,797 15,448 4,633 30.0% 4.07 1.22 Runner's World 3,797 14,299 5,944 41.6% 3.77 1.57 Almost 4,000 retailers sell both Mac Life and PC World, but not Mac World. A number of retailers offer attractive expansion metrics, with competitors selling more than 1 copy per store. The opportunities exist across several classes including Mass, Grocery and Drug. Mac Life PC World Store Sale / Sale / Banner Name Avg Draw Avg Sale Avg Draw Avg Sale Count Dealer Dealer CVS 680 2,247 629 0.9 2,666 591 0.9 WAL MART SUPERCENTER 365 1,725 487 1.3 1,960 605 1.7 PUBLIX 134 623 236 1.8 684 163 1.2 SHOPPERS DRUG 116 513 211 1.8 410 105 0.9 STOP & SHOP SUPERMKT 181 475 198 1.1 858 208 1.1 HUDSON NEWS-TERMINAL 14 439 192 13.7 384 116 8.3 WALGREENS 288 1,004 174 0.6 846 170 0.6 PARADIES 12 237 150 12.5 231 64 5.3 WAL MART CANADA 89 731 139 1.6 319 120 1.3 KROGER 95 368 114 1.2 327 89 0.9 ALL RETAILERS 3,797 15,448 4,633 1.2 14,299 5,944 1.6 Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
  • 22. Opportunity Analysis Draw/Sale: Stores Selling MAC LIFE but not MAC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store Mac Life 2,145 7,478 2,063 27.6% 3.49 0.96 Over 2,100 retailers sell Mac Life but not Mac World However, most classes are unable to generate the volume of sales per dealer to make them attractive expansion targets. With the exception of Terminal, any expansion efforts should be fully vetted. Mac Life Store Draw / Sale / Class of Trade Avg Draw Avg Sale Pct. Count Dealer Dealer Terminal 17 396 161 41% 23.3 9.5 Bookstore 212 962 228 24% 4.5 1.1 Grocery 584 1,903 472 25% 3.3 0.8 Mass 320 1,094 208 19% 3.4 0.7 Drug 446 1,207 363 30% 2.7 0.8 Other 566 1,916 632 33% 3.4 1.1 TOTAL 2,145 7,478 2,063 28% 3.5 1.0 Source: store-level O&R data representing 95% of newsstand; Jan 2011 - April 2011.
  • 23. Opportunity Analysis Draw/Sale: Stores Selling MAC LIFE but not MAC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store Mac Life 2,145 7,478 2,063 27.6% 3.49 0.96 Over 2,100 retailers sell Mac Life but not Mac World Only terminal retailers generate sufficient sales per dealer to make them attractive expansion targets. Mac Life Store Draw / Sale / Retailer Avg Draw Avg Sale Pct. Count Dealer Dealer BEST BUY 155 775 403 52% 5.0 2.6 HMS HOST-TERMINAL 9 354 283 80% 39.3 31.4 CVS 216 560 171 31% 2.6 0.8 SHOPPERS DRUG 96 376 148 39% 3.9 1.5 PARADIES 10 290 138 48% 29.0 13.8 TARGET 149 404 116 29% 2.7 0.8 KROGER 112 405 100 25% 3.6 0.9 RITE AID 134 318 73 23% 2.4 0.5 BARNES & NOBLE COLLEGE 65 272 61 22% 4.2 0.9 BOOKS WAL MART CANADA 45 400 46 12% 8.9 1.0 TOTAL 2,145 7,478 2,063 28% 3.5 1.0 Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
  • 24. Opportunity Analysis Draw/Sale: Stores Selling PC WORLD but not MAC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store PC World 15,791 54,762 11,769 21.5% 3.47 0.75 Almost 15,800 retailers sell PC World but not Mac World. However, most classes are inefficient and generate low volumes per retailer. Any expansion efforts into these stores should be fully vetted. PC World Store Draw / Sale / Class of Trade Avg Draw Avg Sale Pct. Count Dealer Dealer GROCERY 4088 17,167 3,571 21% 4.2 0.9 MASS MERCHANDISE 2654 12,174 3,383 28% 4.6 1.3 DRUG 6476 18,753 3,233 17% 2.9 0.5 CONVENIENCE 777 2,521 309 12% 3.2 0.4 TERMINAL 45 621 187 30% 13.8 4.2 OTHER 1,751 3,526 1,086 31% 2.0 0.6 TOTAL 15,791 54,762 11,769 21% 3.5 0.7 Source: store-level O&R data representing 95% of newsstand; Jan 2011 - April 2011.
  • 25. Opportunity Analysis Draw/Sale: Stores Selling PC WORLD but not MAC WORLD Store Average Average Draw / Sale / Title Efficiency Count Draw Sales Store Store PC World 15,791 54,762 11,769 21.5% 3.47 0.75 Almost 15,800 retailers sell PC World but not Mac World. Most, however, have modest efficiencies and sales per dealer that make them speculative targets. Only Wal Mart and Giant Food offer any real possibilities. PC World Store Draw / Sale / Retailer Avg Draw Avg Sale Pct. Count Dealer Dealer WAL MART SUPERCENTER 1399 7,288 2,345 32% 5.2 1.7 WALGREENS 3734 9,512 1,661 17% 2.5 0.4 CVS 1419 4,947 972 20% 3.5 0.7 WAL MART 386 1,722 502 29% 4.5 1.3 PUBLIX 460 2,411 489 20% 5.2 1.1 KROGER 271 1,037 275 27% 3.8 1.0 RITE AID 667 2,165 266 12% 3.2 0.4 TARGET 418 1,539 237 15% 3.7 0.6 SAFEWAY 246 966 225 23% 3.9 0.9 GIANT FOOD CARLISLE 127 784 194 25% 6.2 1.5 TOTAL 5,852 26,854 8,496 32% 4.6 1.5 Source: store-level O&R data representing 95% of newsstand; Jan 2011 – April 2011.
  • 26. Expansion Opportunities: Three Approaches 3. Demographic / Consumer purchasing behavior
  • 27. Spectra Quadrant Analysis Demographic and consumer purchasing behavior, by store, is used to identify “high and low” potential sales. These are compared to actual sales to generate the below quadrant analysis. Source: store-level O&R data for all Wal Mart divisions; May 2010 – April 2011
  • 29. Before-and After Range of Sale Analysis Issues 201102 -Cut Variance 201101 - 201112 Pre - and - Post 201106 , 1 or More Issues Range of # of Variance Pct Variance Share of Share of Draw / Sale / Draw Range of Sales # of Efficiency Variance Sale Accounts Draw Sales Draw Draw Sales Share of Draw Dealer Sales Dealer 0-1 15,580 Sale Accounts 79,447 7,060 8.9% 32.6% 7.8% Reduction -24.8 5.1 0.5 0-1 -4,025 -25,700 8,088 -32.3% 114.6% 63.9% 1-3 8,425 1-3 51,549 -724 20,026 -7,071 38.8% -2,807 21.1% -13.7% 22.1% -14.0% 1.0 17.6% 6.1 2.4 3-7 4,817 3-7 48,104 -154 24,307 -3,143 50.5% -3,358 19.7% -6.5% 26.8% -13.8% 7.1 7.8% 10.0 5.0 7-12 1,479 7-12 24,831 14,052 -1,176 -31 56.6% -1,185 10.2% -4.7% 15.5% -8.4% 5.3 2.9% 16.8 9.5 12-18 527 12-1813,267 7,865 -169 -10 59.3%-68 5.4% -1.3% 8.7% -0.9% 3.2 0.4% 25.2 14.9 18-25 18-25 6,786 211 -6 4,498 -229 -267 66.3% 2.8% -3.4% -5.9% 5.0% 0.6% 2.2 32.2 21.3 25-35 25-35 6,061 145 -5 4,319 -394 -401 71.3% -6.5% 2.5% -9.3% 4.8% 1.0% 2.3 41.8 29.8 35-50 35-50 4,621 81 -2 3,394 -204 -189 73.4% -4.4% 1.9% -5.6% 3.7% 0.5% 1.9 57.0 41.9 50-75 -2 -318 -242 -11.7% -13.8% 0.8% 50-75 30 2,712 1,749 64.5% 1.1% 1.9% 0.8 90.4 58.3 >75 -7 -1,829 -515 -27.8% -15.5% 4.5% >75 28 Total 6,580 -4,966 -40,230 3,320 50.5% -943 2.7% -16.5% 3.7% -1.0% 1.0 235.0 118.6 Totals 31,323 243,957 90,588 37.1% 100.0% 100.0% N/A 7.8 2.9 Range of Sale 201108 - 201112 or1 or More Issues Issues 201108 - 201112 , 1 , More Issues Range of Range of # of # of Share of Share of Draw / Sale / Draw Draw Sales Sales Efficiency Share of Share of Variance Efficiency Variance Draw / Sale / Sale Sale Accounts Accounts Draw Draw Sales Sales Dealer Dealer Dealer Dealer 0-1 0-1 11,555 2,012 53,747 6,906 15,148 719 28.2% 10.4% 26.4% 46.5% 16.9% 12.5% -9.5 -34.0 4.7 3.4 1.3 0.4 1-3 1-3 7,701 512 44,478 2,468 17,218 1,157 38.7% 46.9% 21.8% 16.6% 19.2% 20.2% -2.6 3.5 5.8 4.8 2.2 2.3 3-7 3-7 4,663 205 44,961 1,499 20,950 1,008 46.6% 67.3% 22.1% 10.1% 23.4% 17.6% 1.3 7.5 9.6 7.3 4.5 4.9 7-12 7-12 1,448 58 23,656 980 12,867 575 54.4% 58.7% 11.6% 6.6% 14.4% 10.0% 2.7 3.4 16.3 16.9 8.9 9.9 12-18 12-18 517 13 13,099 275 7,797 188 59.5% 68.4% 6.4% 1.9% 8.7% 3.3% 2.3 1.4 25.3 21.2 15.1 14.5 18-25 18-25 205 27 6,558 722 4,231 585 64.5% 81.0% 3.2% 4.9% 4.7% 10.2% 1.5 5.3 32.0 26.7 20.6 21.6 25-35 25-35 140 10 5,667 495 3,918 300 69.1% 60.5% 2.8% 3.3% 4.4% 5.2% 1.6 1.9 40.5 49.5 28.0 30.0 35-50 35-50 79 3 4,417 157 3,205 147 72.6% 93.6% 2.2% 1.1% 3.6% 2.6% 1.4 1.5 55.9 52.3 40.6 49.0 50-75 50-75 28 3 2,394 212 1,507 189 62.9% 89.2% 1.2% 1.4% 1.7% 3.3% 0.5 1.9 85.5 70.7 53.8 63.0 >75 >75 21 6 4,751 1,135 2,805 869 59.0% 76.6% 2.3% 7.6% 3.1% 15.2% 0.8 7.5 226.2 189.2 133.6 144.8 Totals Totals 26,357 2,849 203,727 14,849 89,645 5,736 44.0% 38.6% 100.0% 100.0% 100.0% 100.0% N/A N/A 7.7 5.2 3.4 2.0
  • 30. Wholesaler Share of Market Trends 35% 30% 25% TNG 20% AND SIC 15% IND HUD 10% TNG-LP OTHERS 5% 0% 2007 2008 2009 2010 2011 -5% Source: CMG billing records, 2007 to 2011.
  • 31. Wholesaler EfficiencyTrends 41% 39% 37% TNG 35% AND SIC 33% IND HUD 31% TNG-LP OTHERS 29% 27% 25% 2007 2008 2009 2010 2011 Source: CMG Billing records; 2007 to 2011.
  • 32. CMG Publisher YOY Dollar Trend by Wholesaler CMG TNG HUDSON OTHERS TNG-LP OVERALL SIC 15% 0% 10% 11% -2% -3% 5% -4% 0% 2% 0% -5% -2% -1% -2% -3% -5% -6% -6% -6% -6% -7% -7% -7% -7% -9% -8% -8% -9% -10% -10% -11% -11% -11% -12% -12% -13% -8% -13% -15% -9% -15% -15% -15% -15% -15% -16% -16% -10% -21% -20% -11% -23% -11% -25% -26% -12% -28% -30% -36% -14% HEARST CONDE READ DIG. PENNY CONSUMERS ROB BONNIER INTERWEAVE TNG TNG-LP SIC KENNEDY HUD OTHERS Source: CMG Billing records; 2007 to 2011.
  • 33. Wholesaler – Share of Market by Class of Trade HUDSON TNG-LP OTHER TNG SIC 50% 43% 40% 38% 35% 34% 30% 30% 27% 27% 24% 23% 20% 22% 17% 16% 14% 14% 13% 13% 10% 12% 11% 11% 9% 7% 8% 7% 6% 6% 5% 5% 4% 3% 1% 2% 2% 3% 0% GROCERY MASS TERMINAL DRUG BOOKSTORE CONVENIENCE OTHER Source: store-level O&R data; all titles, 2011 issues.
  • 34. Wholesaler - Share of Market by Retailer HUDSON TNG-LP OTHER TNG SIC 35% 30% 32% TOP SIX RETAILERS 25% = 46% SHARE 27% 50% 60% 23% 20% 15% 16% 14% 12% 10% 10% 10% 9% 9% 5% 7% 7% 6% 6% 6% 6% 5% 5% 5% 5% 5% 5% 4% 4% 3% 4% 4% 3% 3% 0% WALWAL MART HUDSON CANADA MART NEWS DOLLAR GENERAL BARNES & NOBLE KROGER CVS BARNES & NOBLE WALGREENS AHOLD PUBLIX SCHNUCKMART HUDSON NEWS HY VEERITE MILLION LOWES COMPANIES SAMS MARKETS BOOKS A AID WAL CLUB SAFEWAY SAFEWAY TARGET FOOD STORES SHOPPERS DRUG SUPERVALU PARADIES DELHAIZE Source: store-level O&R data; all titles, 2011 issues.

Editor's Notes

  1. Summary / overview of EDGE and contents. Each pink bullet will be detailed in following slides; not designed to spend much time on any of the individual bullets. There is a pause after the first three bullets to allow discussion about the interface / ease of use / presentation-ready reports….then each pink bullet is triggered by mouse-click.
  2. Emphasis on comparative elements and things noted in Meredith RFP (opportunities / exceptions).
  3. Highlights pocket info available (be careful as clients do not have direct access to the pocket info; has to be requested through MM).
  4. Can be run through pretty quickly; point is to highlight how quickly info is available and the comprehensiveness of the reports / views.
  5. Can be run through pretty quickly; point is to highlight how quickly info is available and the comprehensiveness of the reports / views.
  6. Can be run through pretty quickly; point is to highlight how quickly info is available and the comprehensiveness of the reports / views.
  7. Emphasis on comparative elements and things noted in Meredith RFP (opportunities / exceptions).