1. Olay Total Effects DM Campaign Post-Campaign Report
August 2011

2. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

3. Introduction
280,068 ClubCard customers targeted using 5one’s targeting tool
Campaign period: 27 June 2011 – 07 August 2011
New shoppers Olay Total Effects range targeted, i.e.
Shoppers who have a high propensity to buy Olay Total Effects based on their previous transactional behaviour
These shoppers have not purchased Olay Total Effects in the past 12 months
Control group of look-alike customers were measured over exact same campaign period

4. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

5. Creative

6. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

7. Response
Customers who received the mailing and bought Olay Total Effects in the 6-week period measured
Mailed
Responded
Resp. Rate
280,068
2,987
1.1%
Overall response rate is good: 1.1% (above 1% considered good for new shoppers to a brand), particularly for a mailing going to customers who have:
not bought Olay Total Effects, and
where there is no offer attached.

8. Response
Customers who received the mailing and bought any Olay product in the 6-week period measured
Mailed
Responded
Resp. Rate
280,068
14,796
5.3%
Overall response rate very good: 5.3%

9. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

10. Incremental Analysis: incremental shoppers
Incremental analysis shows how the customers who did respond would have shopped had they not received the mailing – this is essential in understanding the actual effect of the campaign.
The control group of ‘look-alike’ customers selected were not sent the mailing.
How many Olay Total Effects shoppers were incremental?
Mail Qty
Mailed Response Rate
Responded
Control Response Rate
Incremental Shoppers %
Incremental
280,068
1.1%
2,987
0.5%
1,633
55%
Overall 55% of shoppers responding to this campaign were incremental, i.e. 1,633 customers shopped for Olay Total Effects as a direct result of this mailing 10 10

11. Olay TE Units purchased
Incremental Analysis: incremental behaviour
What other incremental behaviour did this campaign drive?
Total
Incremental
% Incremental
Olay TE Shoppers
2,987
1,633
55%
Olay TE Units purchased
4,061
2,298
57%
Olay TE Sales
R 506,487
R 307,977
61%
Of the 4061 units of Olay Total Effects purchased, 2298 (57%) were incremental
Of the R worth of revenue generated from Olay Total Effects sales, R (61%) was incremental.

12. Olay Brand Units purchased
Incremental Analysis: brand level
Incremental behaviour at brand level:
Olay Brand
Total
Incremental
% Incremental
Olay Brand Shoppers
14,796
2,192
15%
Olay Brand Units purchased
20,780
2,838
14%
Olay Brand Sales
R1,807,765
R339,316
19%
Of the 14,796 total Olay brand shoppers, 2192 (15%) were incremental
Of the total Olay brand unit sales, 2838 (14%) were incremental
Of the R worth of revenue generated from total Olay brand sales, R (19%) was incremental.

13. Incremental Analysis: TE vs brand
Olay Total Effects vs total Olay brand sales:
Mail Qty
280,068
Mailed Response Rate
Responded
Control Response Rate
Incremental Shoppers %
Incremental
Olay TE
1.1%
2,987
0.5%
1,633
55%
Total Olay Brand
5.28%
14,796
0.8%
2,192
15%
55% of Olay Total Effects shoppers responding to this campaign were incremental, i.e customers shopped for Olay TE as a direct result of this mailing
15% of shoppers of any Olay product responding to this campaign were incremental, i.e customers shopped for any Olay product as a direct result of this mailing
Overall the campaign attracted 2192 new shoppers to the total Olay brand. 13 13

14. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

15. Immediate Return On Investment
What was the immediate ROI of the mailing?
Total Mailed Sales
Incremental
Sales
Production Costs
Gross
Profit
ROI
Olay TE
R 506,487
R 307,977
R939,000
-R631,023
-67%
Total Olay
R1,807,765
R 339,316
-R599,684
-64%
Overall ROI is negative: -64%. However it is important to keep in mind that there was no offer included. In addition, the brand awareness generated cannot be directly measured. 15 15

16. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

17. Observations & Conclusions
The response rate of 1.1% was fair considering the following:
No specific call to action to drive sales was included
No deadline to drive urgency was included
Purchase behaviour for a product like face cream is typically more difficult to influence in the short-term.
Because there was no offer, the mailing could have prompted customers to buy from any retail store. This impact cannot be measured.
This mailing will have done a further brand building job that will be realised over time with additional sales.
It is quite possible there have been additional sales after the 6-week measured sales period from the customers mailed which would improve the results.
The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Olay TE for the first time will repeat purchase.

18. Contents Introduction Creative Response Incremental Analysis
Immediate ROI
Observations & Conclusions
Recommendations

19. Recommendations
For maximum return on investment from a ClubCard direct mailing, we recommend:
Inclusion of an offer ( rands off, points, competition, etc.) for in-store redemption
An expiry date to drive urgency
Because of the nature of the product, a product sample could be included for customers to trial
Future mailings could include tests of different offers (different rands off values, points, competitions, etc.)
Support the mail pack by using additional Clicks channels around the same mailing period.

20. Thank you