Slow- Mag Review: Customer Insight Analysis

1. Slow-Mag Review: Customer Insight Analysis July 2010

2. Contents • Introduction • Shopper Profiling • Basket Analysis • Next Steps

3. 1. Introduction

4. Introduction Clicks Slow-Mag analysis commissioned in July 2010 Analysis based on the Clicks ClubCard shopper behaviour on the Slow-Mag brand Analysis has been carried out at a number of levels, outlined below: • Slow-Mag : Topline level • Range: Slow-Mag Tablets, Slow-Mag Capsules, Slow-Mag Fizzy Total SKU count: 8 Analysis period: 17 June 09 – 16 June 10 Category: Lifestyle Supplements

5. Introduction: Topline Stats Shopping stats and behaviour of Clicks ClubCard holders over the previous 12 months (17 June 2009 – 16 June 2010): Customers are likely to buy about 2 Slow-Mag units in a year over 1 to 2 baskets

6. Introduction: Topline Stats by Range Shopper type volumes by ranges: • If over two-thirds of purchases are within a range they are categorised as that shopper type, otherwise they are combination shoppers; there are no Slow-Mag Combination shoppers • Slow-Mag Fizzy has the smallest % of total shoppers, i.e. 4%

7. 2. Shopper Profiling

8. Profiling: Introduction • Profiling can assist with the look & feel of a marketing campaign, with packaging and with NPD. • Question: What do Slow-Mag shoppers look like? • Answer: We will examine customers by: • Segment profile • Age profile • Gender profile • Ethnicity

9. Shopper Segment Profiling Shopper segments based on transactional information and demographic data. Products are grouped together based on how they are bought, then the customers who buy them analysed to determine what is most important to each segment. Each segment is then analysed in more detail to create an enriched profile.

10. Understanding Indices and Volume Understanding Indices and Volume An index is an easy way of showing the difference between customer groups For example: 40% of Healthy at Heart buy Vitamin C But 20% of all customers buy Vitamin C We can see from this example that Healthy at Heart are twice as likely to buy Vitamin C, using an index: 40/20*100 = 200

11. Shopper Lifestyle Segment Profiling: Brand Level • Slow-Mag shoppers mainly Ageless Beauty and Healthy at Heart • More likely to be Ageless Beauty, Healthy at Heart and Sophisticated Me compared to Lifestyle Supplements category • Slow-Mag is currently not appealing to a budget shopper. Under-indexes on all other segments, but especially on Big Brands + Bargains andMovin On Up segments

12. Shopper Value Segment Profiling: Brand Level 12

13. Shopper Value Segment Profiling: Brand Level Check volumes, i.e. Number of shoppers 13

14. Shopper Value Segment Profiling: Brand Level • Slow-Mag shoppers mainly Top Shoppers and Frequent Modest Shoppers –more likely to fall into these segments in comparison to Lifestyle Supplements category as a whole • Under-indexes on all other value segments 14

15. Shopper Age Profiling: Slow-Mag Brand Level • Majority of Slow-Mag shoppers are older, i.e. 46-65 years • Slow-Magshoppers are more likely to be older and also less likely to be under 35 years

16. Shopper Gender Profiling: Slow-Mag Brand Level • Majority of Slow-Mag shoppers are Female • Slightly less likely than the Lifestyle Supplements category to be Male

17. Shopper Ethnicity Profiling: Slow-Mag Brand Level • Majority of Slow-Mag shoppers are White • Under-indexing on Black and Asian shoppers, in comparison to Lifestyle Supplements category

18. Shopper Type Segment Profiling: Range Level • In comparison to the other ranges: • Shopper type are fairly consistent in distribution • Slow-Mag Tablets have the highest proportion of Healthy at Heart and lowest proportion of Sensible & Su$$ed • Slow-Mag Fizzy range attracting highest proportion of Beauty on a Budget, Classic Gifters, Metro-Groomers, Sophisticated me and Sensible + Su$$ed

19. Shopper Type Value Segment Profiling: Range Level • Value Segment profiles are fairly similar across the shopper types • Encouraging that most shoppers are Top Shoppers – can we increase the frequency of Slow-Mag purchase as they are in store frequently

20. Shopper Type Age Profiling: Range Level • Slow-Mag Fizzy shoppers attract the highest proportion of younger shoppers – Potentially parents buying for kids? • Slow-Mag Tablets attract the highest proportion of age 55+

21. Shopper Type Ethnicity Profiling: Range Level • As expected, majority of shoppers are White • Although % is small Slow-Mag Tablets attracting the smallest proportion of Black shoppers

22. Profiling: Conclusions Slow-Mag Brand Level: • Slow-Mag shoppers mainly WhiteFemales, aged 46-65, are Ageless Beauty and Healthy at Heart shoppers who have a high visit frequency at Clicks • Compared to the Lifestyle Supplements Category, Slow-Mag shoppers are less budget focused, older and less likely to be Male and Black Range Level: • Slow-Mag Tablets attracting highest proportion ofHealthy at Heart shoppers, who are more likely to be older and White • Slow-Mag Fizzy range attracting highest proportion of budget segments like Beauty on a Budget and Metro-Groomers, attracting the highest proportion of younger shoppers • Slow-Mag Capsules range attracting the lowest proportion of Beauty On A Budget and Big Brands + Bargains, who are more likely to be older and white

23. 3. Basket Analysis

24. Basket Analysis: Introduction • Having now understood what Slow-Mag shoppers buy from the range, a basket analysis seeks to understand the behaviour of range shoppers in the context of their wider purchasing at Clicks. • It provides insight into key shopper areas & most important SKUs to Slow-Mag shoppers. • Question: What else do Slow-Mag shoppers purchase? • Answer: We will examine Slow-Mag shopper behaviour by: • Purchasing by customer (within same year) • Purchasing by basket

25. Basket Analysis By Shopper: Overall • Table above displays, overall, the most popular other classes purchased by Slow-Mag shoppers at Clicks within the last 12 months • The next slide analyses the % of Slow-Mag baskets containing products from competing areas 25

26. Basket Analysis By Shopper: Within Lifestyle Supplements • In total, R8.8m spent on other Lifestyle Supplements by Slow-Mag shoppers over 12 months 26

27. Basket Analysis By Shopper: Competing Areas 27

28. Basket Analysis By Shopper: Competing Areas 28

29. Basket Analysis By Shopper: Competing Areas 29

30. Basket Analysis By Shopper: Competing Areas 30

31. Basket Analysis By Shopper: Competing Areas 31

32. Basket Analysis By Shopper: Competing Areas 32

33. Basket Analysis By Shopper: Competing Areas 33

34. Basket Analysis By Basket: Overall • Table above displays the most popular other classes purchased within the same basket as Slow-Magthis one overall next competing areas • The next slide analyses the % of Slow-Mag baskets containing products from competing areas 34

35. Basket Analysis By Basket: Within Lifestyle Supplements • In total, R 1.5m spent on other Lifestyle Supplements products in the same basket as a Slow-Mag purchase 35

36. Basket Analysis By Basket: Competing Areas 36

37. Basket Analysis By Basket: Competing Areas 37

38. Basket Analysis By Basket: Competing Areas 38

39. Basket Analysis By Basket: Competing Areas 39

40. Basket Analysis By Basket: Competing Areas 40

41. Basket Analysis By Basket: Competing Areas 41

42. Basket Analysis By Basket: Competing Areas 42

43. Basket Analysis: Conclusions • Nothing unusual about the top product areas shopped by Slow-Mag shoppers at Clicks over a year • Slow-Mag shoppers shopping heavily into Health at Clicks – opportunity for co-promotion? • A high proportion of calcium supplements shopped by Slow-Mag shoppers • High proportion of shoppers purchasing other magnesium products – look at increasing frequency of shop

44. 4. Next Steps

45. Next steps 1. Workshop: • Discuss and agree outcomes from customer insight analysis • Agree objectives and align to those of Slow-Mag overall • Prioritise activity 2. Campaign plan • Activity • Timings • Budget

46. Thank you Nikki Emerton – Account Manager Nikki.emerton@5one.co.za Zakariya Patel – Analyst Zakariya.patel@5one.co.za 021-403-6312 46