1. HEAD & SHOULDERS Direct Mailing Results July 2011

2. Introduction 235 000 customers sent a ClubCard endorsed direct mail pack with Head & Shoulders information and dandruff tester strip Targeted to ClubCard active customers, who bought a shampoo or conditioner in last 12 months Excluding existing H&S buyers Mail date: 19 April 2011 Campaign period measured: 20 April – 3 June 2011 No offer – dandruff tester strip included (involvement device) Mailed in English & Afrikaans.

3. Creative

4. Response Mail qtySales% response 235 00053952.30% Number of mailed customers who bought H&S products between 20 April and 3 June 2011

5. Total ‘sales’ from mailed group MailedTotal ‘sales’% No/customer 235 00060552.581.12 Total number of H&S sales from mailed group

6. Sales by sku 6 Top performers Featured on front of letter *customers may have bought >1 H&S product

7. Comparison 7 Month prior to mailing Measured sales period 4/3 - 19/4/201120/4 - 3/6/2011% increase ClubCard customers mailed who bought H&S 05,395 Total ClubCard customer sales of H&S 27926290494.02 Total customers buying H&S (CC + non-CC customers) 30383312772.94 H&S product sales from CC customers mailed 06055 Total H&S product sales from all ClubCard customers 31118317752.11 Total product sales of H&S (from CC + non-CC customers) 44064450262.18

8. Observations and Conclusions 1.Despite the fact that the pack did not include an offer or a response deadline, the response rate in the 6-week measured sales period from customers mailed was good at 2.3%. 2.Because there was no offer to purchase from a Clicks store specifically, the mailing could have prompted customers to buy an H&S product at any retail store. This impact cannot be measured. 3.An increase of 4% in total ClubCard customers buying an H&S product was seen during the 6-week measured sales period compared to the previous 6-week period (29 409 vs 27 926). It is quite possible there will be additional sales after the measured sales period, from the customers mailed. 4.Because the mailing selection excluded existing H&S buyers, the 5395 who bought H&S are brand new H&S buyers who may buy again if they are satisfied with the product. 5.It appears that ‘Classic Clean’ is the so-called ‘flagship’ product variant, as is evident by the number of customers and product sales. What is interesting is that the ‘Soothing Care’ product variant that was featured on the front of the letter enjoyed a higher response than the remaining variants. One could conclude that this exposure increased awareness and resulting sales of that particular product variant. 6.This mailing will have done an excellent brand and educational job with consumers that will be realised over time with increased sales. 7.The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Head & Shoulders for the first time will repeat purchase.

9. Recommendations 9 1.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. 2. Future mailings could include tests. These could take the form of: different offers (different rands off values; points, competitions, etc.) the inclusion / exclusion of the dandruff tester strip support the mail pack by using additional supporting Clicks channels around the same mailing period.