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

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

3. Introduction
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

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
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?

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
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

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
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

10. 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

11. 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

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
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

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

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

16. 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

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