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Single Copy Sales David McElvogue Regional Sales Director – West Co., Inc. Phoenix, AZ Single Copy Sales (Back to Basics)

o The Plan (Big Sunday Planner) ‹The Sunday rating system (5 Star Sundays) ‹ Data integrity: accurate, timely returns processes ‹ Draw analysis management o Location, Location, Location ‹ Building retail relationships (retailer contests) o Single Copy Sales Strategies ‹ Value added promotions (ad stikit coupons) o Social Media selling print ‹ Coupon bloggers are not extreme but the “likes” are o Shrink Management Super Sunday Planner Location, Location, Location Arizona Republic 2013 Thanksgiving Sale Arizona Republic 2013 Thanksgiving Sale Fry’s (Kroger) 2013 most creative display contest Fry’s (Kroger) 2013 Sales: 17,365 2012 Sales: 18,903 -6.71% year over year

10 Stores texted pictures year) 2013 Sales: 3,162 2012 Sales: 2,873 +10.06% year over year Arizona Republic 2013 Thanksgiving Sale

Fry’s #66 Avondale, Arizona 2013 Sales: 425 2012 Sales: 319 +33.2% year over year "Newsies Style" employees dressed up as hawkers, free hot chocolate with purchase. Arizona Republic 2013 Thanksgiving Sale

Fry’s #672 Maricopa, Arizona 2013 Sales: 683 2012 Sales: 466 +46.57% year over year Top Selling Fry’s in Arizona Display set up outside store with employee at register

Fry’s #75 Gilbert, Arizona 2013 Sales: 520 2012 Sales: 528 -1.52% year over year Display set up outside with Large Black Friday Edition sign Arizona Republic 2013 Thanksgiving Sale

Fry’s #22 Tempe, Arizona 2013 Sales: 200 2012 Sales: 171 +16.96% year over year Arizona Republic 2013 Thanksgiving Sale

Fry’s #45 Peoria, Arizona 2013 Sales: 243 2012 Sales: 117 +107.69% year over year Newspaper hats worn by employees with box display in store Arizona Republic 2013 Thanksgiving Sale

Fry’s #37 Chandler, Arizona Outside display with cash register at both entrances Coffee included with purchase of Arizona Republic 2014 Mother’s Day Sale

• Creative display contest (first time for the Sunday before Mother’s Day) Arizona Republic 2014 Mother’s Day Sale Salem Single Copy Sales Salem Statesman Journal 10 Roth’s Locations 2013 Sales: 2,032 2012 Sales: 1,121 +81.27% year over year HD/SC Partnership sold 30 additional displays in front of registers at Roth’s for Thanksgiving and now every Sunday Great Falls Tribune Sunday Merchandising/Retail Relationships: Single Copy Sales Strategies Single Copy Sales Strategies Cross departmental effort to sell Sunday Single Copy stikits. Concept: • The Arizona Republic partners with Company to include a special free offer for our Sunday single copy newspaper readers. Special free offer will be promoted in The Arizona Republic , azcentral.com, and point-of-purchase display marketing at single copy retail rack locations. Company special offer will be featured on an ad stikit placed on all single copy newspapers. Promotional Message: • Pick up The Arizona Republic at any participating retailer and get a “free…” from Company. The Arizona Republic Promotional Elements: • Production and insertion of ad stikits on singly copy newspapers. • Ads in The Arizona Republic : 2x9 ad running minimum of three times prior to ad stikit. • ROS Banners on azcentral.com – 250,000 impressions. • Point-of Purchase display at over 1,500 retail outlets. • azcentral.com newsletters -messaging on select newsletters Company to provide: • Special free offer to Arizona Republic readers. Goal • Drive single copy sales of The Arizona Republic . • Drive traffic to Company locations. Advertising Relationships • Focus on acquisition target accounts • Ask them to provide results to use as testimonials Single Copy Sales Strategies Cross departmental effort to sell Sunday Single Copy stikits. Where do I start?

‹ Think of ideas that will help drive the Single copy sale. o Retailer promotions (Quik Trip is trying to promote sandwiches) o Taco Bell (promoting breakfast items) o Flower shops for Mother’s Day and Valentine’s Day o Car Wash (free car wash) o Local Sports teams (free tickets) o Ad Rep trying to get new business (Added value to proposal) o Local movie theatre (free movie tickets) o USA Weekend just had Free! 2 pc. Boneless Combo (new from KFC) o Get creative and always thinking sales

‹ Set up meeting with Ad Director, Circulation and Marketing to discuss ideas o Ad rep (no commission on sale), look at added value for client or possible lead for new advertiser. o Contest for the ad reps, budget from circulation. Single Copy Sales Strategies Advertiser has created artwork, What’s next?

‹ Marketing/Circulation/Advertising will review

‹ Set Date for stikit (Circulation)

‹ Order stikit (Circulation covers cost)

‹ Advertising will notify Production

‹ Marketing/Circulation will promote stikit

‹ Follow up with Advertising/Marketing with results

‹ Costs: $20-$40 per thousand; 20,000 - $800 Cost

‹ Breakeven: $800 / $2.10 Rev per copy = 380 Sales

‹ Potential future ad revenue Sunday 10/21 Estimated Sales increase +1,350 (+2%) over trend (720 sales at Arby’s) ROP Ad Example: Ad Stikit Example:

Subject: October Stikit Hi, just wanted to let you know that we reserved and confirmed a stikit for October. Arby’s will be giving away a free Grand Turkey Club sandwich (valued at $4). They are willing to sell 20 papers in each store (49 locations) and will also promote to their database (am unsure as of now how many people their database consists of but am finding out) The stikit is reserved for Sunday 10/21. We will pre-promote the week before as we always do in print and ROS banners, social media, etc. Arby’s redeemed over 6,000 Grand Turkey Club Sandwich Stikits. Subject: del taco ad stikit The client said the results were awesome! She is filling out the form and will send. I am going to do a case study to showcase our partnership with her. Single Copy Retail Promotions

Front page stikit Front page stikit

Online Online banner In-store POP Front page stikit banner Countertop POP: Dunkin Donuts Promotion (Fort Myers):

Dunkin Donuts Promotion (Fort Myers): • Post-It Note coupon for free donut appeared on all single copy papers on Sunday, 2/3. Coupon valid at 12 participating stores through Thursday, 2/28. • Sunday, 2/3 sales: Improved upon trend by 4.5% (1,275 copies) • Coupon redemptions: Collected 524 coupons thus far. Average of 24 coupons per store. At this rate, total should come to around 1,152 once completed.

Note: Should reduce the redemption window to within one week. Single Copy Sales Strategies

Sunday April 14 th : McDonald’s Free Breakfast Sandwich Stikit (St. George, Utah) Promoted on Facebook, Twitter, ROP ad’s. +3.3% increase over trend

Next McDonald’s stikit: Sunday 4/28 Adding ROP ad in weekly TMC product Single Copy Sales Strategies Sunday April 14 th: McDonald’s Free Premium Coffee Stikit (Phoenix, Arizona) Promoted on Facebook, Twitter, ROP ad’s. +900 copies (+1.3%) increase over trend McDonald’s is scheduled twice a year. Single Copy Sales Strategies Blue Sky Airport Parking stikit did not match the criteria for the Sunday SC Stikit program but the advertiser still wanted to go with the coupon (Advertising revenue about $3,500 for front side only stikit) Text Alerts

* Text alerts for promotions 3,000 opted in for coupons and promotions. Social Media promotion Social Media Newspaper Promotion (Coupon Blog strategy) Concept: • “Learn how to coupon the right way. It doesn’t have to be stressful. It doesn’t have to be extreme. Minimize your effort, maximize your savings.” CouponSense.com. There are thousands of coupon and deals blogs on the internet. They are all very passionate about giving their audience information on deals. How can we get these sites to promote savings found in the newspaper? We will need to communicate the values that are available in the newspaper that they may not have seen. All coupon blogs are informed about the biggest coupon days of the year. They don’t always know all the deals that are found in the newspaper. Our challenge is to find the values that will excite the bloggers so that they will share the information and promote the value of the newspaper for us. Ad Stikit (Kohl’s coupon example): • The Kohl’s Ad Stikit is a very popular coupon ($10 off $30/$10 off $20 @ Kohl’s). The coupon does not have a promo code that can be shared online. The coupon can be used with other discounts. Kohl’s usually has a 15% discount to its email list members at the same time. How do we get the word out?: • Search the internet to find out who usually blogs about deals. • Search Twitter and Facebook to find coupon blog sites. • Research each coupon website to find out how to contact. • Set up database of email addresses. The database is updated after each Kohl’s stikit. • Email on the day of the coupon, no advance promotion for Kohl’s. • If coupon blog does not promote using an email, post to the site if possible. • Use Twitter or Facebook to post to coupon sites. Goal • Drive sales by using coupon blogs to promote the value in the newspaper to a very engaged audience of value minded customers. We simply provide the information to the coupon bloggers, they will promote on their websites, Twitter accounts and Facebook pages. Ad Stikit Sales Opportunities (Kohl’s stikit )

• June, 2010: saw positive sales trend discovered on the days a Kohl’s stikit was on the front page.

• August, 2010: Sales by outlet analyzed from last Kohl’s stikit. Added draw in retail outlets showing greatest increase over normal trend. Sales increased +500 over trend.

• Increased draw in all Metro retail outlets with more aggressive draws in high selling outlets. Dealer Folds placed in all Metro retail outlets promoting Kohl’s Coupon. Sales increased +2,000 over trend. Ad Stikit Sales Opportunities (Kohl’s stikit)

• Wednesday 9/29/2010: Promoting Kohl’s stikit using Social Media is added to the sales strategy. Contacted Coupon Sense to promote on their website and newsletter, email sent to Coupon Sense at midnight on the day of the coupon. Sales increased +5,000 over trend.

• Wednesday 10/20/2010: Promotion through Social Media is expanded with postings on coupon Kohl's: $10 Off Coupon! blogs and on Facebook (over • There is a Kohl's peelie on the Arizona Republic, today! It is 3,200,000 followers). Sales good for $10 off anything, even clearance merchandise. These are great coupons. Last time I got 2 pillows for free increased +6,500 over trend. and I didn't even have to pay sales tax! Ad Stikit Sales Opportunities (Kohl’s stikit)

“AZ Money Savin’ Mama” posted this on the • azcentral deals “tweet” added. Kohl’s Facebook page The “tweet” is then “retweeted” by followers of azcdeals. Sales increased 6,400 over trend. AZ Money Savin' Mama Rumor has it there is • 2011 strategy: continued growth a $10 off your purchase of $20 Kohl's coupon of Social Media outlets used to in today's Arizona Republic so if you get one promote the sale of the Arizona don't forget to peel it off & if you don't Republic. normally get one it would be a good idea to pick one up today . 2 hours ago · View Post Researching for Coupon Websites Contact information Setting up an Email database

Add email addresses to database: • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected]; • [email protected][email protected];

• BCC all emails The Email Communication (Keep it Simple) The Bloggers are Promoting Tweeting and Re-Tweeting Coupon Blogs Post Quickly Promoting the Tuesday paper Social Media Travels Far Kohl’s Stikit Sales

• Friday 8/6/2010 +500 Coupon $10 off $20 • Thursday 8/19/2010 +2,000 Coupon $10 off $20 • Wednesday 9/29/2010 +5,000 Coupon $10 off no minimum • Thanksgiving 2010 Coupon $10 off $20 • Thursday 12/16/2010 +6,400 Coupon $10 off $20 • Wednesday 2/9/2011 +2,300 Coupon changed to $10 off $30 • Friday 3/25/2011 +2,200 Coupon $10 off $30 • Thursday 6/16/2011 +3,500 Coupon $10 off $30 • Wednesday 7/13/2011 +1,950 Coupon $10 off $30 • Thursday 8/4/2011+1,000 Coupon $10 off $30 • Thursday 8/18/2011 +700 Coupon $10 off $30 • Tuesday 9/27/2011 +1,400 Coupon $10 off $30 • Tuesday 10/18/2011 +2,200 Coupon $10 off $30 • Thanksgiving 2011 Coupon $10 off $30 • Thursday 12/15/2011 +1,700 Coupon $10 off $30 • Tuesday 2/7/2012 +2,000 Coupon $10 off $30 • Thursday 4/26/2012 +1,100 Coupon $10 off $30 • Thursday 6/14/2012 + 800 Very little posting on blogs for this date JC Penney Stikit with promo code Social Media Promotes Print Social Media Promotes Print

Front page stikit Social Media Promotes Print Single Copy Sales Strategies

Saturday High School Football promotion program: Top 5 High School games promoted with specific game stacker cards, targeted draw increases, social media promotion. 20,000+ votes online. Home Delivery/Single Copy email blasts

• Utilize Circ non-sub e-mail blasts and social media to promote major events and high coupon days (Mother’s Day Ads, Back to School Ads, Thanksgiving, Holiday Ads. Shrink Management

• Keep Weekly Log Sheets at Major Accounts – Kroger, Safeway, Valero, Bashas, Wal-Mart, & Circle-K

• Work closely with Nexxus/I-Control to set up all accounts

• Review Scan Sheets Weekly, by Account/Contractor

• Communicate on a regular basis with the Finance Dept.

• Establish Field Work routines to maintain Store Relationships Shrink Management • Review your Display Placement within the Stores

• Set up Wednesday & Sunday Bulk Accounts at Wal-Mart - Bulk Account Example: Wednesday & Sunday 15-25 Copies Shrink Management • Establish and maintain a logbook at major convenience and grocery stores Shrink Management • Review rolling five week trend

• Meet Monthly with your top 10 stores managers in each account – Safeway, Bashas, Wal-Mart, & Fry’s

• Hold Financial Review meetings each month Weekly/Monthly Reports Weekly/Monthly Reports

• Monthly Grocery Accounts – Fry’s, Safeway, & Bashas

Chain Kroger Wholesaler Arizona Republic (AZR) Week Ending Date: 1/28/2013 --2/24/2013 Store Name Store # Address City State Zip Daily (Monday-Saturday) Sunday Total Scan Reported Daily Variance % Scan Reported Sunday Variance % Variance Sales Sales Variance $0.85 Sales Sales Variance $1.76 FRY S MARKETPLACE 674 674 13982 W. WADDELL ROAD SURPRISE AZ 85379 444 465 (21) -4.52% 849 955 (106) -11.10% $204.41 FRY S FOOD AND DRUG 124 124 3255 SOUTH RURAL ROAD TEMPE AZ 85282 362 445 (83) -18.65% 403 436 (33) -7.57% $128.63 FRY S MARKETPLACE 618 618 3246 EAST BELL ROAD PHOENIX AZ 85032 286 359 (73) -20.33% 345 377 (32) -8.49% $118.37 FRY S FOOD AND DRUG 122 122 10660 N.W. GRAND AVE. SUN CITY AZ 85351 893 985 (92) -9.34% 874 895 (21) -2.35% $115.16 FRY S MARKETPLACE 611 611 4440 EAST MAIN STREET MESA AZ 85205 804 852 (48) -5.63% 1018 1059 (41) -3.87% $112.96 FRY S FOOD AND DRUG 609 609 850 EAST HATCHER ROAD PHOENIX AZ 85020 394 444 (50) -11.26% 307 347 (40) -11.53% $112.90 FRY S FOOD AND DRUG 081 81 2250 EAST BASELINE ROAD PHOENIX AZ 85040 190 223 (33) -14.80% 354 398 (44) -11.06% $105.49 FRY S MARKETPLACE 675 675 1300 SOUTH WATSON ROAD BUCKEYE AZ 85326 412 421 (9) -2.14% 948 1003 (55) -5.48% $104.45 FRY S FOOD AND DRUG 135 135 4505 E. THOMAS RD. PHOENIX AZ 85018 345 392 (47) -11.99% 352 388 (36) -9.28% $103.31 FRY S FOOD AND DRUG 123 123 2727 EAST BROADWAY MESA AZ 85204 353 397 (44) -11.08% 440 476 (36) -7.56% $100.76 FRY S FOOD AND DRUG 130 130 2075 NORTH ALMA SCHOOL RD CHANDLER AZ 85224 195 212 (17) -8.02% 319 367 (48) -13.08% $98.93 FRY S MARKETPLACE 628 628 3949 EAST CHANDLER BOULEV PHOENIX AZ 85044 388 438 (50) -11.42% 502 532 (30) -5.64% $95.30 FRY S FOOD AND DRUG 129 129 4724 NORTH 20TH ST. PHOENIX AZ 85016 440 507 (67) -13.21% 431 452 (21) -4.65% $93.91 FRY S FOOD AND DRUG 062 62 554 WEST BASELINE ROAD MESA AZ 85210 271 299 (28) -9.36% 370 406 (36) -8.87% $87.16 FRY S FOOD AND DRUG 673 673 20427 NORTH HAYDEN ROAD SCOTTSDALE AZ 85255 815 862 (47) -5.45% 355 378 (23) -6.08% $80.43 FRY S FOOD AND DRUG 113 113 1245 W. MAIN ST. MESA AZ 85201 194 239 (45) -18.83% 232 254 (22) -8.66% $76.97 FRY S FOOD AND DRUG 037 37 981 WEST ELLIOT ROAD CHANDLER AZ 85224 138 139 (1) -0.72% 263 306 (43) -14.05% $76.53 FRY S FOOD AND DRUG 087 87 5140 W. BASELINE LAVEEN AZ 85339 368 417 (49) -11.75% 582 601 (19) -3.16% $75.09 FRY S MARKETPLACE 612 612 4707 EAST SHEA BOULEVARD PHOENIX AZ 85028 425 484 (59) -12.19% 375 388 (13) -3.35% $73.03 FRY S MARKETPLACE 621 621 8900 E. VIA LINDA SCOTTSDALE AZ 85258 735 780 (45) -5.77% 387 405 (18) -4.44% $69.93 Manager/Contractor Communication

• Meet regularly with contractors to review Weekly Scan Reports and discuss the Grocery Stores in the Top 20 • Schedule regular Store visits to address Shrink Issues Retailer Communication

• Send Monthly e-mail’s on Shrink Management

Hi Jessie:

I have attached the latest Fry’s Shrink report for the February set. The report is broken out by daily and Sunday sales, for the time period noted on the report (1- 28-2013 thru 2-24-2013). I have also noted the top 20 Fry’s Stores by dollar shrink, for this review period. In addition, I have noted those Fry’s Stores in Blue that were in the Top 20 for the January set.

Will you please let your Managers know that Arizona Republic employees will be stopping by the stores to discuss some options to improve the newspaper shrink. I appreciate your support as we strive to improve the shrink percentages.

Thanks for all your help

2012 Account Daily Shrink Sunday Shrink February Fry’s 5.95% 3.74% March Fry’s 5.71% 3.34% April Fry’s 6.12% 3.83% May Fry’s 7.04% 4.08% June Fry’s 7.27% 4.12% July Fry’s 7.88% 4.02% August Fry’s 7.51% 3.75% September Fry’s 7.19% 4.02% October Fry’s 7.25% 3.95% November Fry’s 7.14% 3.81% December Fry’s 7.32% 2.84% January 13 Fry’s 6.38% 3.20% February 13 Fry’s 6.56% 3.56% Ideas to Improve Shrink

• Provide feedback on Fry’s (FTV) Web Cast – New Process for Corporate/Store Communication • Review Retailer’s Margin • Focus on Drug Store Shrink and the Process – Goal 2% • Check 12 Route Audits • Solid Partnership with the retailer • Closed Stores Deliveries - Lock Box Process Dollar Tree Sales Program Dollar Tree Phoenix, AZ Sunday 3/10/13

• Customers line up outside Dollar Tree • Store opens @ 9 AM 110 papers were delivered. • Customers are not allowed to pick up the paper before purchasing, must get in line at the register. • Cashier will open the paper and show the customer the coupons in the paper before scanning the paper. • Sales are limited to 3 newspapers per customer. • 9:30 AM 5 papers remaining. • Store sold 155 more papers Mon-Sat from returns.

59 Dollar Tree Sales Program Sunday sales all week at Dollar Tree using Sunday returns to restock accounts

Dollar Tree, 99 Cent Store Returns process:

•Sunday returns are brought back to the dock Sunday or Monday night. •Sunday returns are noted on credit slip (no change in returns process). Dock returns will be added to Draw Messenger as normal. •Contractor wants to recover Dollar Tree, 99 Cent Store locations using Sunday Returns. •Dock can provide the Sunday papers to the Contractor using the Dock add process after all returns are accounted for. •The Transportation report is sent to Draw Center (normal process), Sunday draw is added to the Dock Draw. •Total number of returns used for Dollar Tree/99 Cent Store locations are sent to Finance to put in Reconciliation (Sunday returns are also used for MIE copies and previous Sunday delivery for HD). •Contractor will add the draw to the Dollar Tree/99 Cent Store locations in Draw Messenger. •The Sunday draws will need to be balanced in Draw Messenger as normal. •The papers can be delivered on Wednesday but draws must be entered into Draw Messenger no later than Tuesday. •Sunday papers left out all week must be picked up before the next Sunday delivery date.

•Example: Contractor for 225 brings back 300 Sunday returns Monday night. •300 Sunday returns are listed on credit slip •Contractor for 225 wants to pick up 90 Sunday papers. Sunday draw is added to the Monday/Tuesday Transportation report as a dock add. •Contractor will add the draw of 90 to Draw Messenger on Tuesday, must balance with Dock Draw •Papers are delivered on Tuesday morning or Wednesday morning. Dollar Tree Sales Program Sunday sales all week at Dollar Tree using Sunday returns to restock accounts

Dollar Tree sales are recorded with physical draw/returns and then compared to actual scanned sales by store. The weekly report from Eddie Gates shows Sunday sale by day of week by location. Sunday shrink at Dollar Tree locations averaged 5.62% in 2012.

(37% of sale from returns, next goal 40% of sales)

Dollar Tree 2012 Sun 01/01 Mon 01/02 Tue 01/03 Wed 01/04 Thu 01/05 Fri 01/06 Sat 01/07 Total Units Units Units Units Units Units Units Units 4,421 85 21 10 10 2 3 4,552 97.12% 1.87% 0.46% 0.22% 0.22% 0.04% 0.07% 100.00% Scanned Sales from Returns: 2.88%

Dollar Tree 2013 Sun 01/13 Mon 01/14 Tue 01/15 Wed 01/16 Thu 01/17 Fri 01/18 Sat 01/19 Total Units Units Units Units Units Units Units Units 5,528 2,204 614 232 131 46 31 8,786 62.92% 25.09% 6.99% 2.64% 1.49% 0.52% 0.35% 100.00% Scanned Sales from Returns: 37.08% Dollar Tree Sales Program

• Sunday 2/12/2012 6,838 sales - 5,580 sold on Sunday - 1,258 sold from returns 18.4% of total sale

• Sunday 3/3/2013 8,353 sales - 5,617 sold on Sunday - 2,736 sold from returns 37.9% of total sale

62 Pacific Daily News