ON THE On the Dot 1 / INTRODUCTION On the Dot is the most signific driving the sale of products by operating 2 national net platforms. On the Dot's footprint includes exports to 58 African countries on a monthly basis and it is currently operated from more than 30 premises throughout South Africa and ‘one in Windhoek, Namibia. On the Dot enjoys a customer base of over 200 outsourced partnerships, ranging from large to small publishers and media owners. On the Dot takes care of more than 63% of all magazine distribution, 38% of newspaper distribution, almost 46% of book distribution, a growing share of consumer electronic products, and 52% of leaflet distribution in South Africa. With subscription management expertise, On the Dot services around 35 million magazine and newspaper subscription deliveries per year. On the Dot is also involved in the logistics of consumer electronic products, which complement the content-creation industry as media consumption devices. On the Dot delivers products to 22 000 outlets, 6 000 bookshops, distributors, educational departments and millions of home addresses per year, ant multichannel media logistics company in South Afr twork of sales and distrib On the Dot customer service personnel! COMPETITORS ugh On the Dot operates in ae a niche market, many competitors exist including p Allied Mobile pooksite (New Holland) Createspace (Amazon) DHL Le Grange & Sons Magscene MML & Pearson Pressmart Primedia PSD RNA Zinio. 3/ DIFFERENTIATION AND COMPETITIVE ADVANTAGE (On the Dot has a proven track record of logistics tion has led to a well-established hensive list of services in order With more than 35 years’ experience, services within the media industry. The business’ reputa business offering, tailor-made services and a comprel to provide a one-stop solution to clients. With 63% of magazine distribution, 38% of newspaper distribution, almost 46% of book distribution, a growing share of consumer electronic products, and 52% of leaflet distribution in South Africa, On the Dot has 2 substantial market share. The market share also allows On the Dot to benefit from economies of scale, which are passed on to clients. The business has one of the largest distribution footprints 19 South Africa and reaches More than 22.000 retailers and 6 000 bookshops. Through relationship management with large and smaller retailers, together with the market share of the business, On the Dot offers clients more shelf space in rete!’ stores, On the Dot is also the only South African aggregator of digital content ; On the Dot continually invests in operating systems and new ee ue aie the only South Afican company 0 offer publishers digital fulfilment senlces such as content creation. content aggregation ‘and management, cataloguing 2M 4 jon. Our website wwwwmysubs.coza offers presentation, fulfilment ane in where end Consumers can subscribe to print and publishers an e-commerce PRMAT pox development Wot recently launched an digital publications online The OP md app to stay abreast of technological advances hte creader and upgiaded et ad Ph verjosable reading experience Previous and to provide the end consume outsourcing to international aggregators, which ifulimen ior ircost effective local solution. no solutions for digital was expensive ontheERS hips with clients and to offer clients business intelligence, 4 / STRATEGIC BUSINESS PARTN 0 ers On the Dot aims to build strategic [eee ands, as well ¢ er bel our and tends, a into consumer behavic . me of our strategic partnerships include insigh, Kalahaticom Leisurebooks Media24 Books Media24 Magazines & Newspapers » » » » D ible Society of South Africa ) Cambridge University Press D Real People D Multichoice SA D Multichoice Africa, 5 / CUSTOMER SERVICE On the Dot services three main client groups: retailers who stock the products that On the Dot distributes, publishers who produce the products, and subscribers Managed by On the Dot on behalf of publishers. All publishers and retailers are assigned key account managers to assist with queries, Provide updates and give feedback. The key account managers ensure that clients si service-level agreements to manage the expectations of clients and to provide clear and measurable service levels. Effective control of all queries is achieved by assigning key account managers and ensuring that clients’ expectations are managed. Various call centres are available for retailers to log queries and for subscribers to report non-deliveries or late deliveries or query their accounts. 6 / SERVICE OFFERING On the Dot's services are comprehensive, ensuring that every facet of a product's lifecycle is carefull ¥ Managed, monitored and optimised, meet specific client needs. On the Dot prides itsel services, which provides clients with a c Services include the following, Alll services are tailor-made to IF on being flexible with regard to its ‘Ompetitive advantage. > Retail management. Re: tail listings, forecasting feturns, footprint development and Maintenance, advertising and promotions > Online and print subscri tion management. Subscription canvassing, retention, home and postal deliveries > Customer contact centre. Custorney Care, order taking and consignment tracking, order payments D Distribution services. Distribution of products, consumer distribution, imports and exports» Warehousing. Warehousing of completed products » Debt collection. Specialised debtor administration and cre dit vetting function and weekly cash collection from retailers » Digital fulfilment. Content creation, content aggregation and management, cataloguing and presentation, fulfilment and consumption » Courier services. Mailrooms, distribution and home deliveries. 7 | CHALLENGES The past year has been extremely challenging for On the Dot. Major changes were introduced, which included implementing new contact centre software, centralising all contact centre activities, implementing Oracle as a new enterprise resource planning (ERP) tool in the magazine and Newspaper supply chains, and re-structuring and re- Positioning the various business units in On the Dot. Oracle as an ERP solution and its implementation were problematic and it was decided to stabilise this platform while we prepare to adopt SAP as an ERP tool ‘These changes have led to varying degrees of insecurity and uncertainty among staff, but also raised a fair amount of confusion and negative perception among our Primary clients as well as end consumers. Previously, On the Dot was not seen as a consumer brand, but as complaints from end consumers increased, the brand was damaged. The markets On the Dot operates in are largely mature markets, of which some are on the decline. Because some markets are declining, the global print media industry is rapidly undergoing profound changes, changing the way in which content is being produced, marketed, distributed and consumed. As a result, the industry is under Pressure to come up with new products, business models, processes and strategies whilst Operating in a declining market with limited investment capabilities. The uncertainty is worsened by dramatic advances in technology, changing consumer expectations and the creation of a complex environment to operate in. The result is that new entrants, who are dominating the digital space and value chain, encroach on publishers’ terrain and utilise new business opportunities. All international trends and statistics indicate that digital products in the print media industry are the fastest growing sector, although iis still in its infancy. The fact that the markets in which On the Dot operates are mature and some are declining leaves On the Dot with a clear, ongoing challenge of continued improvement in efficiencies, and exploring the markets for extra growth in adding volumes and new Media products, such as digital, in order to derive the maximum return on assets and infrastructure. It is therefore imperative that a general focus across all supply ch, 1S 10 secure new business that will improve our economies of scale and le dependency on just one EF two Major clients, Mains, ssen Our1 400 en ye Dot has roughly Mpa yecg 8 / STAFF opsive, ON the + Jabour inte As loaistics oper ns are to several CO! tractors sup in adit taft comprises: {specialists and mid-management fed. experienced specia id mid 3 auaiited. ex ed special Senr-shilied 2 - ee 1396 DEVELOPMENT ; , a eRe rand was created in 2009 after a restructuring process, which included ssiness divisions within the Media24 Group: Media24 Logistics, MCS24, NND24 and 24 These businesses were consolidated under On the Dot, which was Positioned as tegic Media logistics partner in the media industry. The reasons for restructuring the business were to create a business that can be benchmarked in the media industry, bea brand leader, a preferred supplier, to increase market Opportunities through economies 2nd, most importantly, to remove the defragmented service Offering causing confusion with clients and trading communities. On the Dot was aligned to the expectations of clients and end consumers and focuses on convenience and a seamless service offering, The restructuring also provided for economies of scale for clients, The various business platforms and systems were linked to provide a more comprehensive service offering across multiple media types. Because the On the Dot brand was a result of restructuring, itwas expected that staff morale would be low and that a r Culture programme was introduced to facilitate th business. The programme is cal fe change management needed in the led Woema! Woemais a teul ferrin " peas ‘ ly South African term referring [0 vigour and energy — and at On the Dot we believe in our values and living them with IE of aaa ror taduced allow employees to identify and focus on specific ee 0a business operating iN sales and logistics, The four words > Accountability. /did 1 » Courage. | speak up! » Integrity. Ido right! » Respect. /see you!A campaign was launched to promote the values. This included > e-mails and posters > animations » coffee mugs for staff > special newsletters. Ohne E\LIVE Wa FE KLUES oF ON THE pot Hk One of the graphics that accompanied the Woema! campaignent was needed as the bu: alignmé 5 Since the establishment of the brand, further re rapidly expanded, creating a vibrant and innovative business. ho ind The was created to ensure brand recognition in the media industry, using g modern and simplistic design. The corporate colour chosen was a warm and energetic ted that draws attention to itself. With strong corporate identity guidelines, the log may only be used in red and black to ensure that the logo Is easily recognised. alively and vibrant brand, a secondary colour palette was introduced that complements the red On the Dot logo. These colours are bright green and grey. The typeface used is Avant Garde Gothic for all signage and stationery and Century Gothic for web use. 0 teate BY LIVING THE VALU E \ OF ON THE DOT wit WoeVor ACCOUNTABILITY ome COURAGE INTEGRITY RESPECT10/ COMMUNICATION Ina very competitive industry, clients trust On the Dot to safeguard information that may be beneficial to competitors. In this regard On the Dot has an untainted reputation. It is also necessary to keep communication channels open between the business and clients, as well as employees. Communicating with clients General e-mail and telephone communication is the order of the day and, to ensure consistency In messages, an electronic client newsletter was introduced with the intention of communicating services, providing industry news that may benefit clients and advising clients of potential challenges. The newsletter was aptly called On the Spot, inviting clients to ask questions that would be addressed in the open forum. Client portals with unique login credentials also allow clients access to secure On the Dot systems where only their information is stored. This allows clients to get up-to- date information and statistics that are necessary to make business decisions. ONTINESPOT 1 October 2011 The aptly titled On the Spot newsletterCommunicating with staff E-mail updates are sent to all staff as well as. a monthly employee newsletter to shara ‘and to share advice and motivate staff. The news ed to make suggestions and company and client information allows for comments and employees are encourag n questions, creating an interactive forum. As more than 300 of our staff members ara watehouse based and do not have access to computers, internet kiosks have beer introduced and training provided to enable employees to access information. This is als, printed and distributed on company notice boards. An On the Dot Facebook group was also created where employees shara information they feel is relevant and where company announcements are made. te CShnected © ie acm re SISSIES. Wy EES Same ge Se /krminaae «What's the truth? ee > Lf, erence sere vane oremnrar women | On the Dot's innovative method of communicating with staff 11/ CORPORATE SOCIAL INVESTMENT Employees engage with communities 45 a part of the Culture of Excelence py run by On the Dot. As such, social work come’ stiaight fom the hearts of stat ene who get involved personslly. What makes our projects 50 extraordinary is thay we NOS work efforts are funded by various On the Dot teams, either through fundraising 2 SOC! or donations. On the Dot assists with some materials and allows staff time off paves to participate in these projects. mM work Recently On the Dot had 24 separate projects where volunteers assisted at ¢ hi " homes, homes for the elderly and in helping to build a museum in the Northern cuao"'S Cape,12/ ENTERPRISE DEVELOPMENT Between 2007 and 2011 On the Dot contributed more than Rl 10 million to various enterprise development projects. These included helping sm, businesses, taining, assistance, office telationships between On the Dot most of these contractors operate separate businesses and are now service providers to On the Dot and other business fequiting contract distribution, We still support these businesses, by providing uniforms and office stationery, In partnership with some of our clients, we small distribution contractors, assist them in bu assist with the administration and financial re knowledge to grow their businesses, all distribution contractors to set up their space and material and promotional clothing. The and these contactors have been successfully fulflled, as will launch a new project to empower ying delivery vehicles, arrange training. quirements of the business and share Big deals creating big deals. & An example of an advertisement that focused on enterprise development 13/ MARKETING STRATEGY On the Dot drives the sale of media products by operating distribution platforms that can be leveraged in other niche industry segments While a basic requirement of successful marketing campaigns is measuring success, many of the company’s previous marketing campaigns were not measured and evaluated. New measurement tools were introduced to rectify thisMedia?4 is On the Dot's largest client and also owns the BUSINeSS. Therefore marketing initiatives were limited in the past Publishers Naser tlnnetes Priman customersand the end consumer relationship was managed ae Boe Recently the focus has also shifted to retailers as primary customers. Retailers stock the publicatig, that On the Dot distributes, therefore it is essential to manage this relationship ang market On the Dot's services to them. This new focus has provided On the Dot with the opportunity to strengthen relationships with retailers and allow publishers to deal wir, eir clien me are Dot views employees as brand ambassadors and, through the Culture of Excellence programme, employees are encouraged to raise their concerns a, make suggestions that empower them, thereby creating a sense of ownership. This project has been running for a few years and it has raised staff morale and improveg customer service. On the Dot has adopted a direct marketing approach where all campaigns are based on individual clients or where more clients are targeted and industry events are leveraged to provide a platform. Client workshops and tours of facilities are also arranged and during these sessions clients are invited to provide constructive criticism and make suggestions on how to improve processes and services within On the Dot. Advertisements are placed mainly in trade publications to sell services and, in some instances, in clients’ publications to strengthen brand association. Advertisements focus mainly on the complete service offering. Use OUR services Hg gel YOUR product lo OUR customersice Trade shows are leveraged to build positive relationships with epee OTST them to the On the Dot business and advise them on the benefits of partne! o eonine resence is achieved through online press releases, e ipa and the On the Dot website. The main aim of the website is to provi aang erven of the business and its operations, as well as selling clients’ products throu bookshop and the MySubs subscription platform. (ON THE DO. he leacng South Atican multichannel N Moat gnc een scence Digital Fulfilment Offering Brochures are also used effectively to promote services and ex plain business processes toclients. 14/ TARGET MARKETING On the Dot relies heavily on target marketing, as most of our services to cater for the specific requirements of the clien therefore not effective for On the Dot By focusing on industry events, such as the Magazine Awards and Pendoring Advertising Awards, we teach all our key clients. It 's more difficult to reach retailers, as On the Dot has a relationship with more than 22000 retailers. Here we focus solely on individual presentations and retail fairs, are tailor-made t. General marketing campaigns are Cape Town Book Fair, the PICA15/ PUBLICITY sy Until recently, On the Dot maintaned 2 EE hurt to such an extent ths consumers’ negative perceptions, the brand aut itself forced the company to start sharing positive news about i ae ‘As we have a strong focus on increasing our client Doss eT ae business ventures and new clients joining On the Dot are eras saree releases and announcements in industry See ‘ comes ee .. e website traffic to that of a year ago makes it clear that this focus on publicity works. Visit the On the Dot press office at www.onthedot.coza. profi , but 8s a result of ep all new gh 16/ MEDIA Being the supplier of leaders in the publishing industry, On the Dot gets exposure with every title that we distribute. We have included this as a minimum requirement in all contracts with clients. On the Dot has a strong focus on brand association and aligning itself to publications of the highest standard. Our press office is also utilised to communicate to the public and we recently introduced tracking of press releases to measure the effectiveness of messages. On the social media front we mainly use Facebook as a tool to communicate with staff and Twitter to follow our clients and to make public announcements. With more than 500 000 e-mails sent monthly from On the Dot, e-mail branding has been identified as a perfect communication and marketing tool, Through the e-mail banners, more than 4 000 people visit our websites and clicks are converted to sales, Using an e-mail signature and banner management platform ensures full control of corporate identity. HELP DISTRIBUTION TO DO EVEN BETTER Exceeding excellent VJ Getting it there OM THE DOT EXTENDED THEIR COURIER SERVICES Millions and millions of school books! TEAMWORK. PERSEVERANCE. INNOVATIONNeed to get a message out? ANY OF OUR DISTRIBUTION CHANNELS WILL 00 IT FOR YOU. TAKE QUE LEAFLET D!ST@ISUTION AS EXAMPLE Stay smarter than your Android NEW APPLICATION DEVELOPED Subscribe online now! Dp SeECIAUSTOWINEWSPAPERS/ANDIMAGAzINEs Subscription specialists at your service RVICING I MILLION PLUS SUBSCRIBERS AVYomn@Hd Examples from the e-mail banner campaign dn,the Dot fast facts, Services $8 African countries 0 premises in South Africa and one in Namibia 45 200 outsourced partnerships of more than 700 vehicles 30 km per week to service all routes. Written by: Ean Steenkamp, Marketing Manager: On the Dot Websites: www.onthedot.co.za, www.mysubs.co.2a, WwW.mybooks.co.za