Schick Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

1. Schick Targeted CouponMay Cashback ClubCard MailingPost-Campaign Report July 2010

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

3. Introduction • 149 279 ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both Current and New customers targeted: • 42 969 Current shoppers • 106 310 New shoppers • Two offers tested: • Buy a Titanium Razor, and get 50% off the Blades • Buy a Titanium Razor, and get R47.50 off the Blades • Three target groups tested: • Current shoppers of razor and blade range • Current shoppers of shaving cream • New shoppers • Control group of look alike customers 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: customers who bought featured product at the same time as handing in the coupon • Overall redemption rate is poor (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) • Current shoppers: Current shoppers of the razor & blade range performed better than current shoppers of shaving cream How many mailants shopped the promoted products?

7. Targeted Coupon: Response Response: customers 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%(above 2% is ‘good’ for Current, above 1% for New) • Response rate amongst Current shoppers overall is good – current shoppers to razor and blade range performed much better than current shoppers to shaving cream • New offer generating good response rate: Driving 472 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 42% of shoppers incremental with 518 new shoppers to the range 9

10. Incremental Units How many more units were purchased? • This campaign has resulted in an additional 737 units being purchased 47% incremental units overall 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R123k achieved, with nearly 50% being incremental • Nearly half of all sales generated were incremental, with an average additional R47 per responder 11

12. How Did Shoppers Respond at a Total Range Level Because the offer was only on Schick razor blades, it is important to understand if responders chose a different product from the Schick range as a result of the mailing. Again, measuring this against the control group enables us to understand what was incremental How many more shoppers, sales and units were generated at a range level? • Targeted voucher delivered better results at a total Schick level, generating nearly R60k incremental sales • This demonstrates the marketing halo effect of sending targeted communication

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

14. Immediate Return On Investment : Product level What was the immediate ROI of the targeted coupon based on Incremental sales? • Overall ROI is poor: -95% *sales through the till ex VAT 14

15. Immediate Return On Investment: Range Level What was the immediate ROI of the targeted coupon based on Incremental sales at a total Range level? • Overall ROI at a range level is 16% • Targeting current shoppers of shaving cream has produced a higher ROI than targeting razor and blade range shoppers; however, shopper volumes are small • Control group for razor and blade range shopped at a higher rate resulting in negative ROI • Range level purchasing shows the effect that the coupon had on New shoppers, generating 60k inc sales from new shoppers! 15

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

17. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.3% (378 shoppers) • Response rate: 1% (1 228 shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 518 (42%) • Units: 737 (47%) • Sales: R58,107 (47%) • Overall campaign generated an poor immediate ROI at a promoted product level, but an excellent ROI at brand level

18. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for customers (less niched / fewer constraints) • E.g. Price off offer for blades for current shoppers • In-depth analysis of what the Schick shopper looks like, how they shop across the range and what competitor products they are purchasing into

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