Tip Top Feet Targeted Coupon Dec CashBack ClubCard Mailing Post-Campaign Report January 2011

1. Tip Top Feet Targeted CouponDec CashBack ClubCard MailingPost-Campaign ReportJanuary 2011

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

3. Introduction • 99,186ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 29 Oct 2010 – 26 Dec 2010 • Both Current and New customers to ALL of Tip Top range targeted (due to Tip Top Feet being a new product launch) • 18,432 Current shoppers • 80,754 New shoppers • Reward level constructed tested: • Get R5 off on any Tip Top Feet product purchased • 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 • Overall redemption rate is low: 0.1% (above 0.5% ‘good’ for New shoppers) 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. • Overall response rate is low: 0.2%(above 1% is good for New shoppers) • Offer driving an 120 new shoppers to the range

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

9. Incremental Shoppers 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? • Control group for Current shoppers to the Tip Top range is too small to be an accurate measure of incremental behaviour • Of the shoppers new to the Tip Top range the mailed group shopped at a higher rate than targeted shoppers resulting in 65% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • Of the shoppers new to the Tip Top range the mailed group shopped at a higher rate than the control group resulting in 80%of total units being incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R4k achieved 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? • Overall ROI for new shoppers to the Tip Top range is negative: -95% 13

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

15. Campaign Summary • Overall campaign generated the following response: • Redemption rate: 0.12% (120 shoppers) • Response rate: 0.16% (156shoppers) • Successful at driving incremental behaviour for new shoppers to Tip Top • Shoppers: 79 (79%) • Units: 82 (80%) • Sales: R 419 (23%) • ROI of -95%at a promoted product level for new shoppers to Tip Top

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands; however recommend waiting until we have enough transactional data for Tip Top Feet to ensure targeting is more accurate

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