Contents

1. Scott & Wells Targeted CouponDecember CashBack ClubCard MailingPost-Campaign ReportJanuary 2011

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

3. Introduction • 99 357 ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 29 Oct 2010 – 26 Dec 2010 • Both Current and New customers targeted: • 17,138 Current shoppers • 82,219New shoppers • Reward level constructed tested: • R10 off when you purchase any Scott & Wells product • 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: 0.4% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) • As expected, offer to current shoppers generating highest redemption rate 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: 1.3%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • Offer to new shoppers driving an additional 430 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 82%of shoppers being incremental • Control group volume too low for current shoppers to calculate accurate incremental behavior 9

10. Incremental Units How many more units were purchased? • Due to higher response rates of mailed shoppers, 85%of total units purchased were incremental • Mailed units for current shoppers almost double that of responders indicating 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 R114k 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: 198% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.4% (370 shoppers) • Response rate: 1.3% (1,331shoppers) • Successful at driving incremental behaviour: • Shoppers: 345 (82%) • Units: 2,382(35%) • Sales: R 24,674 (82%) • Overall campaign generated immediate ROI of 198%at a promoted product level

16. Recommendations • Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands • Test different offer levels (high/low) to current and new shoppers

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