1. Natrodale Targeted Coupon July CashBack ClubCard Mailing Post-Campaign Report

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

3. Introduction
130,587 ClubCard shoppers targeted utilising 5one’s targeting tool
Campaign period: 28 June 2010 – 30 July
Both Current and New customers targeted:
25,617 Current shoppers
104,226 New shoppers
Reward level constructed tested:
Get R10 off when you purchase 2 or more Natrodale products
Get R10 off when you spend R70 or more on any Natrodale products
Get R10 off any Natrodale products
Control group of look alike customers measured over the campaign period

4. The Mailing

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

6. Targeted Coupon: Redemption
Redemption: customers who bought featured product at the same time as handing in the coupon
Coupon
Mailed
Redeemed
Red. Rate
Current: Spend R70 get R10 off
12,736
231
1.81%
Current: Buy 2+ get R10 off
12,881
110
0.85%
New : R10 off
104,226 76
0.07%
TOTAL
129,843
417
0.32%
Overall redemption rate is low: 0.32% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)
‘Spend R70 and get R10 off’ offer generating highest redemption rates
How many mailants shopped the promoted products?

7. 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
Current: Spend R70 get R10 off
12,736
231
1.81%
1,303
10.23%
Current: Buy 2+ get R10 off
12,881
110
0.85%
1,287
9.99%
New : R10 off
104,226 76
0.07%
292
0.28%
TOTAL
129,843
417
0.32%
2,882
2.22%
Overall response rate is good: 2.22% (above 2% is ‘good’ for Current, above 1% for New)
Response rate amongst Current shoppers excellent: 10%
New offer driving 292 new shoppers to the brand

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

9. 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
Current: Spend R70 get R10 off
10.23%
1,303
8.4%
236
18%
Current: Buy 2+ get R10 off
9.99%
1,287
9.5% 67 5%
New : R10 off
0.28%
292
0.5% - 0%
TOTAL
2.22%
2,882
4.7%
303
11%
Overall the control group shopped at a substantially high rate compared to targeted shoppers resulting in a low % of incremental shoppers 11% 9 9

10. Incremental Units How many more units were purchased?
Coupon
Total Mailed Units
Incremental Units
% Incremental
Current: Spend R70 get R10 off
4,134
1,122
27%
Current: Buy 2+ get R10 off
4,048
601
15%
New : R10 off
831 - 0%
TOTAL
9,013
1,723
19%
19% of total units purchased were incremental 10 10

11. Incremental / Responder
Incremental Sales
How many more sales were achieved?
Coupon
Total Mailed Sales
Incremental
Sales %
Incremental / Responder
Current: Spend R70 get R10 off
R 401,147
R 97,968
24%
R 75.2
Current: Buy 2+ get R10 off
R 410,500
R 72,257
18%
R 56.1
New : R10 off
R 77,294 - 0%
R 0.0
TOTAL
R 888,941
R 170,225
19%
R 59.1
Total mailed sales of R888k achieved, with 19% sales being incremental 11 11

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

13. 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
Current: Spend R70 get R10 off
R 401,147
R 97,968
R 26,089
R 71,879
276%
Current: Buy 2+ get R10 off
R 410,500
R 72,257
R 4,430
R 67,827
1531%
New : R10 off
R 77,294 -
R 4,481
-R 4,481
-100%
TOTAL
R 888,941
R 170,225
R 35,000
R 135,225
386%
Overall ROI is good: 386% 13 13

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

15. Campaign Summary Overall campaign generated ideal response:
Redemption rate: 0.32% (417 shoppers)
Response rate: 2.22% (2,882 shoppers)
Highly successful at driving incremental behaviour:
Shoppers: 303 (11%)
Units: 1,723 (19%)
Sales: R170,225 (19%)
Overall campaign generated immediate ROI 386% at a promoted product level

16. Campaign Comparison Mailing Mailed Shopped Inc Shoppers Units
Inc Units
Sales
Inc Sales
ROI
Aug-09
94,315
2,639
2,490
7,979
7,621
R699, 000
R674,000
1248%
Dec-09
146,449
6,121
4,393
11,260
5,645
R937,945
R434,993
770%
May-10
139,649
1,014
517
1,132
157
R40,275
R4,736
-91%
July-10
130,587
2,882
303
9,013
1,723
R888,941
R170,225
386%

17. Recommendations
Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands
Test broader offer for new customers (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

18. Thank-you Nikki Emerton – 5one Account Manager
Zakariya Patel – 5one Analyst