Merck: Multibionta Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

1. Merck: MultibiontaTargeted CouponMay Cashback ClubCard MailingPost-Campaign Report

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

3. Introduction • 150 000 ClubCard shoppers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both Current and New shoppers targeted: • 2,892 Current shoppers • 147,108 New shoppers • Reward level constructed tested: • Get R15 off Multibionta Platinum • 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 0.2%, however due to the large number of new shoppers targeted (above 1% is ‘good’ for Current, 0.5% ‘good’ for New) • Current offer generated an excellent redemption rate of 4.3% 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, due to large number of new shoppers targeted: 0.40%(above 2% is ‘good’ for Current, above 1% for New) • Response rate amongst Current shoppers are excellent at 8.1% • The new offer drove 298 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? • The new offer generated 298 new shoppers to the brand • The control group for the current offer shopped at a higher rate, therefore there were no incremental shoppers, this could be due to a promotion perhaps? 9

10. Incremental Units How many more units were purchased? • Overall response rate is 54% with all new shoppers being incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R47k achieved, with 52% sales being incremental • On average gained an additional R 46 per responder 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 negative due to high volume of new shoppers targeted with low incremental sales 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.20% (305 shoppers) • Response rate: 0.40% (531 shoppers) • Overall incremental behaviour: • Shoppers: 298 (56%) • Units: 460 (54%) • Sales: R 24,476 (52%)

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 Zakariya.Pate@5one.co.za