October 2010

1. Vital Health Foods: Vital Vitamins Targeted CouponMay Cashback ClubCard MailingPost-Campaign Report October2010

2. Contents • Introduction • Coupon Redemption & Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

3. Introduction • 150 000 ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both Current and New customers targeted: • 75,000 Current shoppers • 75,000 New shoppers • Reward level constructed tested: • Get R10 off when buying 2 or more Vital products to the value of R80 or more • Get R5 off any Vital product purchased • Control group of look alike customers measured over the campaign period

4. The Mailing

5. Contents • Introduction • Coupon Redemption & Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

6. Targeted Coupon: Redemption Redemption: customers who bought featured product at the same time as handing in the coupon • Overall redemption rate is good: 1.7% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) • Current offers generated an excellent redemption rate of 3.1% How many mailants shopped the promoted products?

7. Targeted Coupon: Response Response: customers who bought featured product regardless of whether they handed in the coupon A more accurate metric for campaign success as the coupon acts as both a discount and marketing message. • Overall response rate is excellent: 6.6%(above 2% is ‘good’ for Current, above 1% for New) • Offer to New shoppers driving 581 new shoppers to the brand

8. Contents • Introduction • Coupon Redemption & Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

9. Incremental Shoppers Incremental analysis shows how total mailed responders would have shopped had they not received the mailing – essential in understanding actual effect of the campaign. How many shoppers were incremental? • Overall the control group shopped at a substantially lower rate than targeted shoppers resulting in a high % of incremental shoppers • All New shoppers to the brand incremental! 9

10. Incremental Units How many more units were purchased? • Due to high response rate of customers 60% of total units purchased were incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R550k achieved, with 48% sales being incremental • Nearly half of all sales generated was incremental, and on average an additional R27 per responder gained 11

12. Contents • Introduction • Coupon Redemption & Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

13. Immediate Return On Investment What was the immediate ROI of the targeted coupon based on Incremental sales? • Overall ROI is excellent: 433% 13

14. Contents • Introduction • Coupon Redemption & Response • Incremental Analysis • Immediate ROI • Conclusions & Recommendations

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 1.7% (2,597 shoppers) • Response rate: 7% (9,829shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 5,177 (53%) • Units: 7,807 (60%) • Sales: R 266,624 (48%) • Overall campaign generated an excellent immediate ROI of 433%

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for new customers (less niched / fewer constraints) • In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

17. Thank-you Nikki Emerton – Account Manager Nikki.emerton@5one.co.za Zakariya Patel – 5one Analyst Zakariya.Pate@5one.co.za