Changing Of The ROTO Guard

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Changing Of The ROTO Guard
NAA Newspapers 2000
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The New Internet User
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BlueLight Is Being Integrated Into All Kmart Media
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The Power of the ROTO
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Kmart ROTO Facts

• In continuous circulation since 1969
• In hundreds of leading newspapers throughout the
  country every market a Kmart is present
• Reaches 70-100 of American households weekly
  with a circulation of over 72 million copies
• Readership in excess of 187 million people
• Weekly sales attributed to the weekly insert
  contribute in excess of 20 to total Kmart sales!

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Kmarts ROTO Mission

• To reach more consumers and sell more merchandise
  
• Present a BlueLight and Kmart image that is
  consistent with our customers expectations
• Deliver a strong brand/value/price message
• Promote dominant merchandise categories
• Capitalize on trends
• Differentiate Kmart from the competition
• Drive traffic to BlueLight.com and into Kmart
  stores

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The Power of the ROTO

• Effective The Big Kmart insert is delivered to
  over 70 million households a week and reaches 70
  - 100 of the households.
• Weekly circulation is 78 - 500 higher than the
  top three national weekly publications in the
  country.
• Efficient The Kmart weekly ROTO insert has a
  circulation that is one and a half times greater
  than that of five of the top womens magazines in
  the U.S. combined.
• Economical The Kmart weekly insert has a lower
  CPM than that of leading national magazines.

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BUT.The ROTO is a bad addiction!!
It represents the old mass way to reach
customers (even with 17 regional versions) It
forces Kmart to down-price all items to all
people It doesnt allow for effective one-on-one
marketing It allows customers to cherry-pick
specials It does not reward loyalty
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The Future of the ROTO
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Retail Success Requires

• 1 to 1 marketing
• Loyalty and affinity are the buzzwords any
  great retailer needs to embrace
• One size fits all is yesterdays story
• Every customer needs to be spoken to as an
  individual with individual needs
• Custom publishing and profiling technologies will
  need to be co-developed (and be interoperable) by
  media companies and retailers alike

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ROTO The Next Classifieds??

• Are ROTOs following the same path as online
  classifieds?
• Newspapers can work together with their key
  partners to insure this wont happen
• Its simpleras classifieds represents millions
  of sellers while ROTO represents just key
  national retailers
• Bottom Line Newspapers must work hard to keep
  ROTO relevant

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Newspaper Print Classifieds Growth Stalls By 2005
Coping With Classifieds Erosion, May 24, 2000
The Forrester Report
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The BlueLight Newspaper Alliance

• Seeking up to five prominent newspapers to launch
  and market test late this fall
• Embedded links into daily online news sites
  whereby given shopper types in password and gets
  a personalized ROTO and unique offers updated
  hourly
• Specialized ROTO inserts, ads and BlueLight site
  links
• Requires newspaper subscription for access
  privilege
• Market by market exclusives

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The BlueLight Newspaper Alliance

• By aligning your needs (continued ROTO
  distribution) to our needs (the need to target
  and speak with shoppers individually)we both can
  we successful
• Failure to bridge the gap will result in the
  online classifieds phenomena and reduced
  advertising and insertions by major retailers