VHF: Weetol Targeted Coupon Dec CashBack ClubCard Mailing Post-Campaign Report January 2011

1. VHF: Weetol Targeted CouponDec CashBack ClubCard MailingPost-Campaign ReportJanuary 2011

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

3. Introduction • 149,260ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 29 Oct 2010 – 26 Dec 2010 • Both Current and New customers targeted: • 118,209 New shoppers • 31,051 Current shoppers • Reward level constructed tested: • Get R10 off on any Weetol products • Get R10 off when you purchase 2 or more Weetol products • 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 average: 0.6% (above 1% is ‘good’ for Current shoppers, 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 good: 3.6%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer to new shoppers driving an additional 925 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 mailed group shopped at a higher rate than targeted shoppers resulting in 19% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • The mailed group shopped at a higher rate than the control group resulting in 32% of total units being incremental • As expected, large portion of current shoppers picking up more than one product during the promotional period 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R420k achieved, with 22% sales being incremental 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 excellent: 837% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.6% (941 shoppers) • Response rate: 3.6% (5,438shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 1,022 (19%) • Units: 2,713 (32%) • Sales: R 93,747 (22%) • Overall campaign generated immediate ROI of 837% at a promoted product level

16. Campaign Comparison

17. Campaign Comparison

18. Campaign Comparison

19. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test higher offer levels for new shoppers • In-depth analysis of what a Weetol shopper looks like, how they shop across the range and what competitor products they are purchasing into

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