VHF: Weetol Targeted Coupon Aug CashBack ClubCard Mailing Post-Campaign Report November 2010

1. VHF: Weetol Targeted CouponAug CashBack ClubCard MailingPost-Campaign ReportNovember 2010

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

3. Introduction • 66,566ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 16 Aug 2010 – 18 Sep 2010 • Both Current and New customers targeted: • 18,747 Current shoppers • 47,819New shoppers • Reward level constructed tested: • Get R10 off when you purchase 2 or more Weetol products • Get R10 off when you spend R50 or more on any Weetol products • Get R10 off on any Weetol products • 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 low: 0.82% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) • The Spend R50 get R10 off offer, has the highest redemption rate of 3.20% 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 good: 3.29%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer to new shoppers driving an additional 212 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 mailed group shopped at a higher rate than targeted shoppers resulting in 6% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • The mailed group shopped at a higher rate than the control group resulting in 28% of total units being incremental • Large portion of current 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 R157k achieved, with 12% 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 good: 89% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.82% (546 shoppers) • Response rate: 3.29% (2,187shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 124 (6%) • Units: 944 (28%) • Sales: R18,856 (12%) • Overall campaign generated immediate ROI of 89% at a promoted product level

16. Campaign Comparison

17. Campaign Comparison

18. Campaign Comparison

19. 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 VHF: Weetol shopper looks like, how they shop across the range and what competitor products they are purchasing into

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