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

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

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

3. Introduction • 97,299ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 16 Aug 2010 – 18 Sep 2010 • Both Current and New customers targeted: • 20,620 Current shoppers • 76,679New shoppers • Reward level constructed tested: • Get R10 off when you purchase 2 or more Natrodale products • Get R10 off when you spend R70 or more on any Natrodale products • Get R10 off any Natrodale 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: 0.44% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) • ‘Spend R70 and get R10 off’ offer to current shoppers has the 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 good: 2.66%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer to new shoppers driving an additional 347 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 the control group resulting in 19% of shoppers being incremental overall 9

10. Incremental Units How many more units were purchased? • 23% of total units purchased were incremental • Mailed units higher than responders indicating shoppers picking up more than one product during the campaign period 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R1.2m achieved, with 25% sales being incremental overall 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: 945% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.44% (424 shoppers) • Response rate: 2.66% (2,592shoppers) • Successful at driving incremental behaviour: • Shoppers: 485 (19%) • Units: 2,784 (23%) • Sales: R310,634 (25%) • Overall campaign generated excellent immediate ROI 945% at a promoted product level

16. Campaign Comparison

17. Campaign Comparison

18. 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 Natrodale shopper looks like, how they shop across the range and what competitor products they are purchasing into

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