84.51 Direct Mail Cesar_Recruitment_Direct Mail_Q22016_8451

CESAR Wet Direct Mail Kroger 84.51 Q2 2016 Understand what triggers a new Wet DOHH to enter and stay in the category Test conversation triggers – coupon only vs. 1, 3 or 5 samples w/bb coupon Targeted CESAR Wet direct mailer sent to dog owning HHs that: Buy Dry dog food but not buying wet Buy Dry dog + heavy treat buyer not buying wet Buy Small Breed Dry dog buyers but not buying wet Each target segment received either a coupon only for 7 FREE, 1 sample/3 samples or 5 samples plus a coupon for 7 FREE New to category HH Pen Incremental sales lift Offer redemption and repeat purchase 1 sample + 7 FREE coupon 3 samples + 7 FREE coupon 5 samples + 7 FREE coupon Average redemption rate 21.6% (including coupon only segment) CESAR program acquired 40,000 new HH to the brand Over $220,000 in incremental sales (long term results 3/25/17) 3 sample most effective and efficient at bringing new DOHH Sending physical samples is more effective than coupon only but difficult to scale to a larger audience due to higher investment costs Cesar_Recruitment_Direct Mail_Q22016_8451

Redemption Plus Repeat Purchase Results CESAR Wet Direct Mail Kroger 84.51 Q2 2016 3 and 5 count sampling and targeting “Small Dog Variant” HH is proven to be most effective in influencing the shopper 3 samples more efficient and just as effective as 5 samples 25% repeat purchase accounting for 37% of total program sales Redemption Plus Repeat Purchase Results Cesar_Recruitment_Direct Mail_Q22016_8451 Source: 84.51, Cesar Panels, 23 week, Dec 3, 2016