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

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

3. 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

4. The Mailing

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

6. 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?

7. 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!

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 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

10. 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

11. 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

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 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

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

15. 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%

16. 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

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