Vitabiotics: Wellkid Targeted Coupon Results May CashBack ClubCard Mailing Post-Campaign Report

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

Introduction 100 000 ClubCard customers targeted utilising 5one’s targeting tool Campaign period: 3 May – 4 June 2010 Both Current and New customers targeted: 392 Current shoppers 99,446 New shoppers Reward level constructed tested: Get R15 off any Vitabiotics Wellkid product purchased Control group of look alike customers measured over the campaign period

The Mailing

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

Targeted Coupon: Redemption Redemption: customers who bought featured product at the same time as handing in the coupon Coupon Mailed Redeemed Red. Rate New R15 99,446 32 0.03% Current R15 392 TOTAL 99,838 Overall redemption rate is low: 0.03% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) How many mailants shopped the promoted products?

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. Coupon Mailed Redeemed Red. Rate Responded Resp. Rate New R15 99,446 32 0.03% 107 0.11% Current R15 392 1 0.26% TOTAL 99,838 108 Overall response rate is low: 0.11% (above 2% is ‘good’ for Current, above 1% for New) New offer driving 107 new shoppers to the brand

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

Incremental Shoppers How many shoppers were 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? Coupon Mailed Resp. Rate Responded Control Resp. Rate Incremental Shoppers % Incremental New R15 0.11% 107 0.0% 100% Current R15 0.26% 1 - TOTAL 108 0.02% 99% Control group for current shoppers is too small to be able to report on incremental behaviour Offer to new shoppers resulted in 107 new shoppers of which 99% incremental 9 9

Incremental Units How many more units were purchased? Coupon Total Mailed Units Incremental Units % Incremental New R15 142 100% Current R15 1 - TOTAL 143 99% 100% of all the new mailed units incremental 10 10

Incremental / Responder Incremental Sales How many more sales were achieved? Coupon Total Mailed Sales Incremental Sales % Incremental / Responder New R15 R 10,858 100% R 101.5 Current R15 R 175 - TOTAL R 11,034 98% R 100.5 Total mailed sales of R11k achieved, with 98% sales being incremental 11 11

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

Immediate Return On Investment 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 R15 R 10,858 R 9,961 R 898 9% Current R15 R 175 - -R 39 TOTAL R 11,034 R10,000 R 858 Overall ROI is positive: 9% 13 13

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

Campaign Summary Overall campaign generated ideal response: Redemption rate: 0.03% (32 shoppers) Response rate: 0.11% (108 shoppers) Overall incremental behaviour: Shoppers: 107 (99%) Units: 142 (99%) Sales: R10,858 (98%)

Recommendations Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands Build base of customers through brand building activity In-depth analysis of what the Wellkid shopper looks like, how they shop across the range and what competitor products they are purchasing into

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