All content copyright 5one All rights reserved. Confidential. Sister Lilian Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report All content copyright 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 2 All content copyright 5one All rights reserved. Confidential. Introduction 149,876 ClubCard customers targeted utilising 5ones targeting tool Campaign period: 28 June 2010 30 July 2010 Both Current and New customers targeted: 1,300 Current shoppers 148,576 New shoppers Reward level tested: Buy any 2 Sister Lilian Remedie and get R15.00 off Buy any Sister Lilian Remedies products and get R10.00 off Control group of look alike customers measured over the campaign period 3 All content copyright 5one All rights reserved. Confidential. The Mailing 4 All content copyright 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 5 All content copyright 5one All rights reserved. Confidential. 6 Targeted Coupon: Redemption Redemption: shoppers who bought featured product at the same time as handing in the coupon How many mailants shopped the promoted products? Overall redemption rate is low 0.05% (above 1% is good for Current, 0.5% good for New) CouponMailedRedeemedRed. Rate New R10 148, % Current R15 1, % TOTAL 149, % All content copyright 5one All rights reserved. Confidential. 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 low: 0.19% (above 2% is good for Current, above 1% for New) However, response rate amongst Current shoppers is excellent 5.23% New offer driving an additional 216 new shoppers to the brand CouponMailedRedeemedRed. RateRespondedResp. Rate New R10 148, % % Current R15 1, %685.23% TOTAL 149, % % All content copyright 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 8 All content copyright 5one All rights reserved. Confidential. 9 9 Incremental Shoppers Coupon Mailed Resp. Rate Responded Control Resp. Rate Incremental Shoppers % Incremental New R %2160.1%13462% Current R %686.3% -0% TOTAL 0.19%2840.1%13447% Overall 47% incremental shoppers, with 62% of New shoppers being incremental Control response rate for current shoppers is quite high, an indication of a promotion perhaps? 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? All content copyright 5one All rights reserved. Confidential. 10 Incremental Units How many more units were purchased? 45% of total units purchased incremental Coupon Total Mailed Units Incremental Units % Incremental New R % Current R % TOTAL % All content copyright 5one All rights reserved. Confidential. 11 Incremental Sales How many more sales were achieved? Total mailed sales of R21k was achieved, with 45% sales being incremental Coupon Total Mailed Sales Incremental Sales % Incremental Incremental / Responder New R10 R 16,021R 9,88962%R 45.8 Current R15 R 5,969-0%- TOTAL R 21,990R 9,88945%R 34.8 All content copyright 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 12 All content copyright 5one All rights reserved. Confidential. 13 Immediate Return On Investment Overall ROI is negative: -72% What was the immediate ROI of the targeted coupon based on Incremental sales? Coupon Total Mailed Sales Incremental Sales Production Costs Gross Profit ROI New R10 R 16,021R 9,889R 34,696 -R 24,808-71% Current R15 R 5,969-R 304-R % TOTAL R 21,990R 9,889R R 25,111-72% All content copyright 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 14 All content copyright 5one All rights reserved. Confidential. 15 Overall campaign generated ideal response: Redemption rate: 0.05% (77 shoppers) Response rate: 0.19% (284 shoppers) Highly successful at driving incremental behaviour: Shoppers: 134 (47%) Units: 168 (45%) Sales: R9,889 (45%) Overall campaign generated a negative immediate ROI -72% Campaign Summary All content copyright 5one All rights reserved. Confidential Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands 2.Test broader offer for new customers (less niched / fewer constraints) 3.In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into Recommendations All content copyright 5one All rights reserved. Confidential. Thank-you Nikki Emerton Account Manager Zakariya Patel Analyst