Bio Oil Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report

1. Bio Oil Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report

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

3. Introduction • 130,587ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 28 June 2010 – 30 July 2010 • Both Current and New customers targeted: • 55,587Current shoppers • 75,000New shoppers • Reward level constructed tested: • R8 off when you buy Bio Oil 200ml • R8 off when you buy Bio Oil 60ml • Control group of look alike shoppers 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: shoppers who bought featured product at the same time as handing in the coupon • Overall redemption rate is good: 1.62%(above 1% is ‘good’ for Current, 0.5% ‘good’ for New) • Offer to current shoppers of 60ml generating highest redemption rate How many mailants shopped the promoted products?

7. Targeted Coupon: Response Response: shoppers 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: 7%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer to new shoppers driving an additional 2,425 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 lower rate than targeted shoppers resulting in 29% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • Due to high response rates of shoppers 42% of total units purchased were incremental • Mailed units higher than responders indicating shoppers picking up more than one product during the promotional period 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R638k wasachieved, with 29% sales being incremental 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: 426% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 1.62% (2,120 shoppers) • Response rate: 7% (9,203shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 2,690 (29%) • Units: 5,496 (42%) • Sales: R184,224 (29%) • Overall campaign generated excellent immediate ROI 426% at a promoted product level

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 Bio Oil shopper looks like, how they shop across the range and what competitor products they are purchasing into

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