Tip Top Nails:Targeted Coupon May 2010 Cashback ClubCard Mailing Post-Campaign Report

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

Introduction 88,180 ClubCard shoppers targeted utilising 5one’s targeting tool Campaign period: 3 May – 4 June 2010 Both Current and New shoppers targeted: 37,911 Current 50,269 New Reward level constructed tested: Buy 3 Tip Top Products, one of which must be a Nail Treatment, and receive R10 off Buy any Tip Top Nail Treatment and a Tip Top Nail Chic Colour and receive R5 off Get R5 off any Tip Top boxed Nail treatment Control group of look alike shoppers measured over the campaign period

The Mailing

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

Targeted Coupon: Redemption Redemption: shoppers who bought featured product at the same time as handing in the coupon Coupon Mailed Redeemed Red. Rate New R5 off (treatment) 50,269 36 0.07% Current R10 off (buy 3) 11,058 Current R5 off (treatment & colour) 26,853 121 0.5% TOTAL 88,180 157 0.2% Overall redemption rate is low, however due to the large number of New shoppers targeted: 50k (above 1% is ‘good’ for Current , 0.5% ‘good’ for New ) Current R5 off offer generating good redemptions rates, i.e. 0.5% How many mailants shopped the promoted products?

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. Coupon Mailed Redeemed Red. Rate Responded Resp. Rate New R5 off (treatment) 50,269 36 0.07% 1,130 2.3% Current R10 off (buy 3) 11,058 487 4.4% Current R5 off (treatment & colour) 26,853 121 0.5% 1,510 5.6% TOTAL 88,180 157 0.2% 3,127 3.6% Overall response rate is excellent: 3.6% (above 2% is ‘good’ for Current , above 1% for New ) Response rate amongst Current shoppers is very high New offer generating good response rate: Driving 1,130 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 R5 off (treatment) 2.3% 1,130 0.2% 1,017 90% Current R10 off (buy 3) 4.4% 487 11.5% Current R5 off (treatment & colour) 5.6% 1,510 16% TOTAL 3.6% 3,127 2.8% 33% Overall the control group shopped at a substantially higher rate than targeted shopper 9 9

Incremental Units How many more units were purchased? Coupon Total Mailed Units Incremental Units % Incremental New R5 off (treatment) 1,550 1,423 92% Current R10 off (buy 3) 650 Current R5 off (treatment & colour) 2,135 TOTAL 4,335 33% No incremental units due to high control response rates Again, targeting new shoppers generating high % incremental units 10 10

Incremental / Responder Incremental Sales How many more sales were achieved? Coupon Total Mailed Sales Incremental Sales % Incremental / Responder New R5 off (treatment) R57,122 R52,654 92% R47 Current R10 off (buy 3) R27,697 Current R5 off (treatment & colour) R74,600 TOTAL R159,419 33% R17 Total mailed sales of R160k was achieved 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 R5 off (treatment) R57,122 R52,654 R 5,701 R 46,953 824% Current R10 off (buy 3) R27,697 R 1,254 R -1,254 -100% Current R5 off (treatment & colour) R74,600 R 3,045 R -3,045 TOTAL R159,419 R 10,000 R 42,654 427% Overall ROI is Excellent : 427% 13 13

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

Campaign Summary Overall campaign generated ideal response: Redemption rate: 0.2% (157 shoppers) Response rate: 3.6% (3,127 shoppers) Highly successful at driving incremental behaviour: Shoppers: 1,017 (33%) Units: 1,423 (33%) Sales: R52,654 (33%) Overall campaign generated an excellent immediate ROI 427%

Recommendations Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands Test broader offer for new shoppers (less niched / fewer constraints) In-depth analysis of what the Vital shopper looks like, how they shop across the range and what competitor products they are purchasing into

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