Contents

1. Novartis: Sandoz Targeted CouponAugust CashBack ClubCard MailingPost-Campaign ReportNovember 2010

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

3. Introduction • 41,226ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 16 Aug 2010 – 18 Sep 2010 • Both Current and New customers targeted: • 31,351Current shoppers • 9,875New shoppers • Reward level constructed tested: • Get 50 points when you purchase Sandoz Calcium Forte or Sandoz Calcium Optim • 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: 0.17% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) 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 low: 0.43%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • New offer driving an additional 82 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? • No incremental shoppers due to control group shopping at a higher rate than mailed shoppers • Indicates clash in promotional activity? 9

10. Incremental Units and Sales How many more units were purchased? How many more sales were achieved? • Due to high response rate of control group only 9% of total units purchased were incremental • Mailed units are higher than responders indicating some shoppers picking up more than one product during the campaign period 10

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

12. Immediate Return On Investment What was the immediate ROI of the targeted coupon based on Incremental sales? • Overall ROI is negative: -100% 12

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

14. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 0.17% (72 shoppers) • Response rate: 0.43% (178shoppers) • Incremental behaviour: • Units: 25 (9%) • No inc. shoppers and sales • Overall campaign generated negative immediate ROI -100% at a promoted product level

15. Recommendations • Test broader offer for new customers (less niched / fewer constraints) • Test Rand off offers • In-depth analysis of what the Sandoz shopper looks like, how they shop across the range and what competitor products they are purchasing into

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