Share code : HCL
ISIN : ZAE000023594
Heritage Collection Holdings Limited (Hercol) enters into a joint agreement
with the Automobile Association of South Africa (AA)
The Heritage Collection (Hercol) which owns the Southern African franchise
for Reader's Digest is pleased to announce that it has entered into a joint
venture agreement with the Automobile Association of South Africa (AA) with
the object of enhancing the profitability of both companies.
The venture will build on the success of the long-standing previous
arrangement between Reader's Digest and the AA in which motoring and travel
books were produced and marketed to AA members.
These books were all best-sellers and included 'Book of the Car", "Off the
Beaten Track" , which sold over 150 000 copies, and "South African Book of
the Road" which sold over 300 000 copies.
Says Barry Lloyd, CEO of Hercol: "When you consider that the average South
African non-fiction best-seller in retail shops may only sell 5000 copies,
you will realise the potential of such a partnership. Reader's Digest can
supply world expertise in identifying and creating comprehensive books like
these while the AA has a list of dedicated car and travel enthusiasts in the
upper income group.
"One outstanding advantage of the arrangement is that Reader's Digest -
unlike other publishers- does extensive market research into the size, type
and style of book preferred by potential customers. Our market research will
also gauge the number of sales from a full-scale promotion before any
significant capital outlay is made - providing a predictable investment."
Marketing will mainly be conducted through direct mail to the combined
mailing lists of both companies - estimated to be in the region of a million
names.
Testing of Hercol products to the AA list has already commenced.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
