Contents

1. Novartis: Excedrin Targeted CouponAugust CashBack ClubCard MailingPost-Campaign ReportNovember 2010

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

3. Introduction • 149,998ClubCard customers targeted utilising 5one’s targeting tool • Campaign period: 16 Aug 2010 – 18 Sep 2010 • Both Current and New customers targeted: • 140,356New shoppers • 9,642Current shoppers • Reward level constructed tested: • Get 20 points when you purchase Excedrin tablets & Excedrin powders • 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 due to high proportion of new shoppers: 0.29% (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 1.07%(above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) • The new offer drove an additional 588 new shoppers to the brand! • Excellent response rates for current shoppers with 10.5% shopping 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 42% of shoppers being incremental 9

10. Incremental Units How many more units were purchased? • Due to high response rates of shoppers 53% of total units purchased were incremental • Mailed units are higher than responders indicating some 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 R28k achieved, with 37% 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 negative: -79% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.29% (433 shoppers) • Response rate: 1,07% (1,600shoppers) • Successful at driving incremental behaviour: • Shoppers: 675 (42%) • Units: 1,284 (53%) • Sales: R10,707 (37%) • Overall campaign generated negative immediate ROI -79% at a promoted product level

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

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