Corega Mailing Campaign Post-campaign Report December 2011

Contents Introduction Redemption Response Immediate ROI Summary, Conclusions & Recommendations 2

Introduction 3 25,200 ClubCard customers targeted using 5one’s targeting tool Campaign period: 14 October – 14 November 2011 Both current Corega shoppers and new Corega shoppers targeted, i.e. 18,910 current Corega shoppers 6,290 new Corega shoppers (based on their transactional behaviour have a high propensity to purchase Corega) All shoppers received 4 offers R10 off Corega Fixative Powder 50g R3.50 off Corega Cleansers 32’s R4 off Corega Cleanser Whitening 20’s R7.50 off Corega Fixative Cream 40g

Introduction 4

Contents Introduction Redemption Response Immediate ROI Summary, Conclusions & Recommendations 5

Targeted Coupon: Redemption 6 Redemption: shoppers who bought featured product at the same time as handing in the coupon Redemption rate is excellent: 11.4% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) Offer Current shoppers Redeemers (Red. Rate) New shoppers Redeemers (Red. Rate) Overall Redeemers (Red. Rate) R10 off: Fixative Powder 50g 394 (2.1%)8 (0.1%)402 (1.6%) R3.50 off: Cleansers 32s (7.8%)39 (0.6%)1 519 (6.0%) R4 off: Cleanser Whitening 20s 381 (2.0%)12 (0.2%)393 (1.6%) R7.50 off: Fixative Cream 40g (7.5%)17 (0.3%)1 441 (5.7%) Total # of redemptions Total # of shoppers redeeming (14.8%)59 (0.9%)2 861 (11.4%)

Contents Introduction Redemption Response Immediate ROI Summary, Conclusions & Recommendations 7

Targeted Coupon: Response 8 Response: customers who received the mailing and bought Corega products (with and without redeeming the coupon) A more accurate metric for campaign success as the mailing acts as a call to action and a marketing message. Overall response rate is excellent: 20.0% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) Offer Current shoppers Responders (Resp. Rate) New shoppers Responders (Resp. Rate) Overall Responders (Resp. Rate) R10 off: Fixative Powder 50g 490 (3.0%)10 (0.2%)500 (2.0%) R3.50 Off: Cleansers 32s (14.0%)63 (1.0%)2 684 (11%) R4 Off: Cleanser Whitening 20s 493 (3.0%)19 (0.3%)512 (2.0%) R7.50 Off: Fixative Cream 40g (13.0%)21 (0.3%)2 481 (10.0%) Total # of purchases Total # of shoppers purchasing (27.0%)97 (1.5%)5 131 (20.0%)

Contents Introduction Redemption Response Immediate ROI Summary, Conclusions & Recommendations 9

Immediate Return on Investment 10 What was the immediate ROI of the mailing? Target Total Mailed Sales Production Costs ROI Current shoppers R R % New shoppersR4 901 R % OverallR R % Further profit will be made from these shoppers as they repeat purchase over the long-term

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Summary Overall campaign was very successful Redemption: 11.4% (2 861 shoppers) Response rate: 20% (5 131 shoppers) ROI 242% On average 1.3 coupons were redeemed per shopper Whilst the new shoppers ROI was negative this group will break even over time as they repurchase Not only is this a call to action, but also a brand awareness exercise so customers may shop at a later stage outside of the analysis period 12

Recommendation 1.Continue to use targeted mailings to invoke re-purchase and gain new shoppers to the brands. Consider tests as follows: extending the offer period from 4 to 6 weeks to see if this increases response as it gives a longer period within which to redeem. Test sms reminder 1 week after mailing 2.Potentially target shoppers who have responded to this campaign with threshold offers to drive increased spend e.g. Purchase 2 or more products and receive the discount. 13

Thank You Belinda Walsh K&B Direct