New Clicks: Dr Sole Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report

1. New Clicks: Dr SoleTargeted CouponJanuary CashBack ClubCard MailingPost-Campaign Report March 2011

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

3. Introduction • 100,000 ClubCard shoppers targeted utilising 5one’s targeting tool • Campaign period: 20 January – 3 March 2011 • Both Current and New shoppers targeted: • 50,000 Current shoppers • 50,000 New shoppers • Reward level constructed tested: • Get R5 off any Dr Sole product. • 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 0.2% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) 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: 1.24% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • R5 offer generating a good response rate, driving 1,235 new shoppers to Dr Sole products.

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 higher rate than the mailed group resulting in no incremental shoppers • This indicates a possible clash in promotional activity 9

10. Incremental Units How many more units were purchased? • Overall 1,470 units were mailed. 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R28,237 achieved. 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 -100% • 1,235 new shoppers to Dr Sole will generate long term ROI over time 13

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

15. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 0.2% (235 shoppers) • Response rate: 1.24% (1,235 shoppers) • Although ROI was negative these new shoppers should generate ROI over time

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands; however need to ensure there is no clash in promotional activity over the campaign period • Test broader offer for new shoppers (less niched / fewer constraints) • In-depth analysis of what the Dr Sole shopper looks like, how they shop across the range and what competitor products they are purchasing into

17. Thank-you Nikki Emerton Nikki.Emerton@5one.co.za 083 686 9076