June 2010

1. Indigo Cosmetics: Yardley Skin Even Targeted CouponMay Cashback ClubCard MailingPost-Campaign Report June 2010

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

3. Introduction • 150 000 ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both Protect and Steal customers targeted: • 5,096 Protect • 144,904 Steal • Reward level constructed tested: • R5 off when you buy 2 or more Yardley Skin even products. Normal prices range between R17.95 and R21.95.Get R5 off any Vital product purchased • R3 off when you buy any Yardley Skin even product. Normal prices range between R17.95 and R21.95. • 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 • Overall redemption rate is slightly below average, however due to the large number of Steal shoppers targeted: (above 1% is ‘good’ for Protect, 0.5% ‘good’ for Steal) 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. • Overall response rate is excellent: 0.27%(above 2% is ‘good’ for Protect, above 1% for Steal) • Response rate amongst Protect shoppers is good at 3% • Steal offer generating average response rate: Driving250 new shoppers to the brand.

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? • Overall the control group shopped at a substantially higher rate than targeted shoppers resulting in a lower % of incremental shoppers 9

10. Incremental Units How many more units were purchased? • Due to high response rate from current customers more than 64% of total units purchased were incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R6k wasachieved 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 is below average: -109% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.08% (113 shoppers) • Response rate: 0.27% (399 shoppers)

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test broader offer for new customers (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 Zakariya Patel – 5one Analyst Zakariya.Pate@5one.co.za