Vital Health Foods: Natrodale Targeted Coupon May Cashback ClubCard Mailing Post-Campaign Report

1. Vital Health Foods: NatrodaleTargeted CouponMay Cashback ClubCard MailingPost-Campaign Report July 2010

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

3. Introduction • 139,649 ClubCard shoppers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both current and new shoppers targeted: • 24,492 Current • 115,157 New • Reward level constructed tested: • Get R15 off any Natrodale products of R75 or more • 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 good: 0.5% (above 1% is ‘good’ for current , 0.5% ‘good’ for new) • Current shoppers generated excellent redemption rate of 2.3% 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: 0.7%(above 2% is ‘good’ for current , above 1% for new) due to high volume of new shoppers • Response rate amongst current shoppers is excellent at 3.5%. • This campaign has driven additional 148 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 51% of shoppers were incremental • All New shoppers to the brand were incremental 9

10. Incremental Units How many more units were purchased? • Overall 14% of total units purchased were incremental with 100% of units generated by New shoppers being incremental 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R40k 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 is poor: -91% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.5% (658 shoppers) • Response rate: 0.7% (1,014 shoppers) • Successful at driving incremental behaviour in terms of shoppers: • Shoppers: 517 (51%) • Not as successful in driving incremental behaviour in terms of units and sales

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