Tip Top Nails:Targeted Coupon May 2010 Cashback ClubCard Mailing Post-Campaign Report

1. Tip Top Nails:Targeted CouponMay 2010 Cashback ClubCard MailingPost-Campaign Report

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

3. Introduction • 88,180ClubCard shoppers targeted utilising 5one’s targeting tool • Campaign period: 3 May – 4 June 2010 • Both Current and New shoppers targeted: • 37,911 Current • 50,269 New • Reward level constructed tested: • Buy 3 Tip Top Products, one of which must be a Nail Treatment, and receive R10 off • Buy any Tip Top Nail Treatment and a Tip Top Nail Chic Colour and receive R5 off • Get R5 off any Tip Top boxed Nail treatment • 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, however due to the large number of New shoppers targeted: 50k (above 1% is ‘good’ for Current , 0.5% ‘good’ for New ) • Current R5 off offer generating good redemptions rates, i.e. 0.5% 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 excellent: 3.6%(above 2% is ‘good’ for Current , above 1% for New ) • Response rate amongst Current shoppers is very high • New offer generating good response rate: Driving 1,130 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 control group shopped at a substantially higher rate than targeted shopper 9

10. Incremental Units How many more units were purchased? • No incremental units due to high control response rates • Again, targeting new shoppers generating high % incremental units 10

11. Incremental Sales How many more sales were achieved? • Total mailed sales of R160k wasachieved 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 : 427% 13

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

15. Campaign Summary • Overall campaign generated ideal response: • Redemption rate: 0.2% (157 shoppers) • Response rate: 3.6% (3,127 shoppers) • Highly successful at driving incremental behaviour: • Shoppers: 1,017 (33%) • Units: 1,423 (33%) • Sales: R52,654 (33%) • Overall campaign generated an excellent immediate ROI 427%

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