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L’Oreal: Garnier Targeted CouponAugust CashBack ClubCard MailingPost-Campaign Report

November 2010


Contents

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

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Introduction

• 150 000 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 16 Aug 2010 – 18 Sep 2010• Only New shoppers targeted:

• 150,000 New Garnier Oil Control shoppers • Reward level constructed tested:

• Get R10 off the NEW Garnier Oil Control Complete Vanishing cream or face wash

• Control group of look alike shoppers measured over the campaign period

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The Mailing

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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 good for new shoppers: 0.56% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers)

Mailed Redeemed Red. Rate

150,000 844 0.56%


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: 1.20% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers)

• The coupon drove 1,794 new shoppers to the brand!

Mailed Redeemed

Red. Rate Responded Resp. Rate

150,000 844 0.56% 1,794 1.20%


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Incremental Shoppers

Mailed Resp. Rate

Responded

Control Resp. Rate

Incremental Shoppers % Incremental

1.20% 1,794 0.5% 1,090 61%

• Overall the mailed group shopped at a higher rate than targeted shoppers resulting in 61% of shoppers being incremental

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?


Incremental Units

How many more units were purchased?

• Due to high response rates of shoppers, 67% of total units purchased were incremental

• Mailed units higher than responders indicating shoppers picking up more than one product during the promotional period

Total Mailed Units Incremental Units % Incremental

2,745 1,845 67%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R28k was achieved, with 41% sales being incremental

Total Mailed Sales

Incremental Sales

% Incremental

Incremental / Responder

R 28,725 R 11,681 41% R 6,5


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Immediate Return On Investment

• Overall ROI is poor: -77%

What was the immediate ROI of the targeted coupon based on Incremental sales?

Total Mailed Sales

Incremental Sales

Production Costs Gross Profit ROI

R 28,725 R 11,681 R 50,000 R -38,319 -77%


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• Overall campaign generated ideal response:• Redemption rate: 0.56% (844 shoppers)• Response rate: 1.20% (1,794 shoppers)

• Highly successful at driving incremental behaviour:• Shoppers: 1,090 (61%)• Units: 1,845 (67%)• Sales: R11,681 (41%)

• Overall campaign generated excellent immediate ROI -77% at a promoted product level

Campaign Summary


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

Recommendations


Thank-youNikki Emerton – 5one Account Manager [email protected]

Zakariya Patel – 5one [email protected]

mailto:[email protected]

mailto:[email protected]

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