Colgate: Plax Targeted Coupon January CashBack ClubCard Mailing Post-Campaign Report

1. Colgate: Plax Targeted CouponJanuary CashBack ClubCard MailingPost-Campaign Report

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: • 18,328 Current shoppers • 81,639 New shoppers • Reward level constructed tested: • Get R6 off any 500ml Colgate Plax Mouthwash • 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 1.27% (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: 3.5%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Excellent response rates for both current and new shoppers with overall 3,517 shoppers responding

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? • Mailed group for new shoppers shopped at a higher rate than the control group resulting in 1,212 incremental shoppers • Current shopper control group too small (598 shoppers) to accurately determine incremental behaviour 9

10. Incremental Units How many more units were purchased? • Overall 74% of units to new shoppers incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R177k achieved, with 74% new shopper 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? • ROI for new shoppers is 637% 13

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

15. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 1.27% (1,270 shoppers) • Response rate: 3.5% (3,517 shoppers) • Successful at driving incremental behaviour for new shoppers • Shoppers: 1,212 (72%) • Units: 1,470 (74%) • Sales: R 38,785 (75%)

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for new shoppers (less niched / fewer constraints) • In-depth analysis of what the Plax 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