00 Reporter Winter 09

There is more to RNA Distribution than meets the eye, as Jane Warburton discovered when she met with Managing Director, Chris Niehaus and Promotions Manager, Vanessa Abrahams.

This very well run division of CTP stays out of the headlines, yet is a star earner for CTP Publishers and Printers. Since its inception, 11 years ago, it has gone from a small contributor to being one of the biggest divisions within CTP. Plus, it’s recognised as one of the largest magazine distributors in the southern hemisphere.

RNA boasts an unrivalled portfolio of magazines and media entertainment products, which gives it a market-leading share of some of South Africa’s, the UK’s and the USA’s biggest magazine market sectors. As well as being responsible for ensuring Caxton’s titles are on sale in the right place at the right time, RNA also provides a full range of independent services for partworks and collectables and imported books and magazines by international publishers including; Marketforce, Seymour, Comag, and Mills & Boon.

RNA Distribution has established itself as a leader in the management and distribution of media products within the South African market by understanding the unique requirements of each of its clients, their products and the South African retail environment. They have developed their management and distribution systems and the experience and knowledge gained is utilised exclusively to maximise the visibility and sales potential of each of the products managed and distributed by RNA.

As a market leader, RNA has incorporated all levels required into one comprehensive, efficient service offering aimed at fulfilling their client’s sales and distribution objectives. RNA develop circulation strategies to achieve sales goals and maximise every opportunity for each of the titles they represent. Their experience in magazine distribution, coupled with market leading systems and market intelligence provides clients with the competitive advantage to succeed in today’s robust market.

First Impressions

RNA Distribution: On the moveThere is more to

RNA Distribution than meets the eye, as Jane Warburton d i s c o v e r e d when she met with Managing Director, Chris Niehaus.

Since its inception, 11 years ago, it has gone from a small contributor to being one of the biggest divisions within CTP and it is recognised as one of the largest magazine distributors in the southern hemisphere. RNA boasts an unrivalled

portfolio of magazines and media entertainment

products, which gives it a market-leading share of some of Southern Africa’s, the UK’s and the USA’s biggest magazine market sectors.

RNA distributes 140 local magazine titles and the manager of local publications, Francois Kruger is responsible for ensuring that they are on sale in the right place at the right time every month. This amounts to 3-million copies being distributed

monthly. RNA also provides a full range of

independent services for partworks, bookazines, collectables, imported books and magazines by international publishers including; Marketforce, Seymour, Comag, and Mills &

Boon. Marius de Vos handles the international publishers which account for 90 percent of all the international titles brought into South Africa. Marius arranges the shipping, clearing, packaging and agreed publisher pricing.

Fifteen hundred monthly and weekly international magazine titles and eight hundred collectables and partworks are distributed every month. This amounts to over 500 000 copies being distributed by RNA on a monthly basis.

RNA has established itself as a leader in the management and distribution of media products within the South African market by understanding the unique requirements of each of its clients, their products and the South African retail environment. They have developed their management and distribution systems and the experience and knowledge gained is utilised exclusively to maximise the visibility and sales potential of each of the products managed and distributed by RNA.

RNA develop circulation strategies to achieve sales goals and maximise every opportunity for each of the titles they represent. Their experience in distribution, coupled with market leading systems and market intelligence provides clients with the competitive advantage to succeed in today’s robust market.

ii First Impressions Summer 2011

RNA manages a supply chain that reaches +- 10 000 retail points per week nationally. This is achieved by an unmatched operations team managed by James Durieux together with Lukas Rheeders and merchandising expert, Annelie Du Plooy. From managing the collection of magazines from printers through to the delivery to wholesalers and onto retail customers, they offer a timely, accurate and complete distribution supply chain to achieve their publishers’ needs.

RNA’s 24 branches and 3 distribution centres attend to the needs of CNA, Exclusive Books, Airports, Spar, Pick ‘n Pay and Checkers as well as growing independents like; garage outlets, hospitals, Makro, Builders Warehouse and 7-Elevens’.

RNA has their own independent contractors that on a daily basis make deliveries and RNA has entered into a distribution agreement with a niche distributor, EZWENI whose principal focus is the sourcing, developing and maintaining of small outlets with unique needs. The performance of EZWENI as well as the outlets it services is monitored continually to measure growth and sell throughs.

“We have strong relationships with our publishers and retail agents and we are constantly looking to drive developments and improvements in service. Our reputation of delivering excellent results at retail are as a result of our first class retail sales team, our merchandisers and the promotions

we offer. Our results come from the fantastic team ethic that runs through our business,” says Chris.

InvestIng In PeoPle and technology “We have seen tremendous change in our industry and RNA has both led and adapted to these changing dynamics. I would like to salute my team, without whom we would not have the business we have today,” says Chris.

“The entire team work in synergy - it’s a well-oiled machine that adds enormous value to our publishers,” says Chris. “Our rapid expansion necessitated employing two senior people to handle operations, finance and IT. James Durieux is responsible for operations at all the 24 branches and 3 distribution centres; and Carla Nel has been employed as General Manager Finance and Systems.”

The supply chain logistics are managed by Operations Controller, Peter Botes. He arranges road transport and airfreight of the material from the printers to the national distribution centres which is then dispatched to the 24 branches nationally and into Africa which includes; Zimbabwe, Malawi, Zambia, Mozambique, Kenya and Mauritius. He is also in charge of procurement for the distribution centres.

In order to remain competitive and to meet the challenges of doing business, RNA has invested heavily in systems. The

00 Reporter Winter 09

result of this investment has proven fruitful, as publishers now enjoy the benefit of information quickly gathered, interpreted and put to use in management reports.

“The Denim Nash system gives our customers an overview of the market, magazine sell throughs, market share of retailers, and top performers and non-performers.”

Carla Nel also oversees subscriptions which is an important aspect of publishing. The subscriptions call centre, run by Debbie Roos utilises the Magnet system which helps to administer 120 000 subscribers. RNA manage subscription data bases for all their clients including; Caxton, Carpe

Diem, Top Billing, Conde Nast and Lonehill Trading.

The Magnet system provides publishers access to current sales data on the internet. Within this website, publishers can load their own information, log queries and access RNA’s services.

attractIng attentIonRNA provides not only distribution support, but marketing, and display support services to the publishing industry. They also offer in-store implementation and ongoing merchandising support services to retailers and brand marketers, which include product merchandising, distribution verification, promotion

First Impressions

“We have strong

relationships with

our publishers and

retail agents and

we are constantly

looking to drive

developments and

improvements in

service.”

iii First Impressions Summer 2011

validation, point-of-purchase placement, and expiration reclaims.

Visual merchandising displays aim to make magazines, books and collectables more visible, encouraging consumers to make an impulse purchase or to choose our brands rather than competitor publications. For added impact, RNA send their own field marketing people to help retailers to run demonstrations in store or at an event, or by hosting promotions at major shopper centres.

The promotions team under the leadership of Vanessa Abrahams provides clients with the opportunity to get their magazines right in the face of the customer. “Even though the retail trading environment is becoming more and more demanding, we drive magazine sales because of our creative approach to promotions.”

RNA provides not

only distribution

support, but

marketing and

display support

services to

the publishing

industry.

Light boxes, LCD screens, window displays, dump bins, wobblers, value added packs, 2 for 1 bagging, in-store displays, advertising, radio commercials and toll road promotions – jargon to most – but the backbone of the promotions department. Displays are changed every week, 116 light boxes are refreshed every Monday. Effective window displays are vital for any retailer needing to pull in passerby traffic and light boxes have proved to be highly effective promotional selling tools, particularly in airports as the waiting time drives magazine and book sales.

A dedicated marketing team managed by Adele van Heerden, deal at head office level with all national retail groups, meeting regularly to discuss annual and tactical promotional plans and regular range reviews.

First Impressions

Effective window

displays are vital

for any retailer

neeeding to pull

in passerby traffic

and light boxes

have proved to be

highly effective

promotional selling

tools.

iv First Impressions Summer 2011

collectors cornerCollectables, Bookazines and partworks are huge business around the world and South

Africa is not immune to the phenomenon. Approximately forty percent of RNA’s turnover is generated from partworks, collectables and international magazines.

RNA distribute high quality partworks for UK publishers; Eagle Moss, De Agostini, GE Fabbri and Hachett. For example; Hanna Montana partworks have developed into a tween craze in South Africa. The publication is crammed full of fun things to do, tips on how to be a pop star, projects that dazzle and free gifts, which RNA package and wrap in South Africa.

Collectables and partworks are snapped up by hobbyists across all market segments, from building model starships to creating and furnishing a dollhouse. These Illustrated series’ run up to thousands of pages over the course of a collection, with a strong emphasis on accurate and interesting editorial content.

RNA handled the distribution of the 2010 Match Attax collectables on behalf of the Panini group. Five-million FIFA sticker packets were sold during the 2010 World Cup. Ben 10, Spiderman, Match, Harry Potter, Disney, big ball rugby and English League soccer are also big sellers.

00 Reporter Winter 09

BranchIng outA natural evolution for RNA was to incorporate other channels of distribution, to obtain new products and new markets. This portfolio diversification was realised when CTP bought MFP’s (Music For Pleasure) assets after they were liquidated in September 2009. This heralded a promising business opportunity outside the scope

of RNA’s previous distribution experience to distribute CD’s and DVD’s.

This new division of RNA is managed by Gerhard Du Preez and despite only being in operation for a year, growth has been rapid and RNA Entertainment are currently the largest distributor of Afrikaans and gospel music in the country.

RNA Entertainment distribute

CD’s and DVD’s to major chains including; CNA, Makro, Game/Dion, Spar, Look & Listen, Reliable Music, Super CD, Shoprite Checkers and Jet Mart amongst other smaller retailers.

They offer two basic business models; the first model includes warehousing, pick-and-pack and distribution predominantly for Next Entertainment (Fox MGM label)

First Impressions

v First Impressions Summer 2011

and Select Music Distribution. The other model offers a

route to market for smaller record companies such as; Electromode, Nyce Entertainment and Maranatha. RNA Entertainment delivers the product from the supplier direct to the vendor. They negotiate the pricing, procure the orders and coordinate the distribution. This bundle of services offers independent and specialist record companies the opportunity to distribute their label under the umbrella of RNA’s extensive network of retailers.

a culture of carIngRNA’s culture extends to social reform and 3 years ago they became involved in Dowling Primary School in Westbury, Johannesburg. This project is headed up by Human Resources Manager, Carol Horn.

The majority of learners at the school reside in the surrounding area where poverty and unemployment is rife. Drug abuse and violence is also very prevalent and something the school-goers are exposed to on a daily basis.

RNA’s first initiative was to arrange a Christmas Party for the kids and this kicked off a lasting relationship.

Based on a “wish list” from the school highlighting their needs, RNA built structures greatly needed by the school. The one structure is a food

hall, an undercover area where the learners can eat the meals provided to them by the school’s feeding scheme.

With RNA’s help, Dowling Primary School learners can look forward to less harsh winters, sheltered from the cold during meal times and the little ones, will have their own area at the school where they can safely learn and play.

CTP bought

MFP assets,

heralding a

promising

business

opportunity.

00 Reporter Winter 09

skIlls develoPmentAs a niche industry in South Africa, there are very few independent training programmes for employees and as such most of the training takes place in-house. Training manager, Faridah Kearns has developed operational training manuals and programmes together with experienced operations managers with the focus being on the basics of distribution.

In the last financial year year, twenty-five BIC (Black, Indian and Coloured) employees attended a SETA accredited Learnership Programme and were awarded a national certificate in Wholesale and Retail Merchandising Operations. Seven BIC employees were awarded bursaries to study at University of the Western Cape, Unisa, Boston College and the IMM Graduate School of Marketing.

Sixty three employees attended the Branch Manager Seminar and 16 employees attended the Promotions Workshop. Over 100 employees completed health and safety training with an emphasis on fire fighting, first aid, reach truck training and forklift training.

Over 30 employees received Microsoft Office training and other employees attended job specific workshops and seminars relating to; payroll, tax, labour law, procurement, BEE verification, advanced sales, event management, employment equity and disciplinary hearing training.

First Impressions