Olay Total Effects DM Campaign Post-Campaign Report

1. Olay Total Effects DM Campaign Post-Campaign Report August 2011

2. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

3. Introduction • 280,068 ClubCard customers targeted using 5one’s targeting tool • Campaign period: 27 June 2011 – 07 August 2011 • New shoppers Olay Total Effects range targeted, i.e. • Shoppers who have a high propensity to buy Olay Total Effects based on their previous transactional behaviour • These shoppers have not purchased Olay Total Effects in the past 12 months • Control group of look-alike customers were measured over exact same campaign period

4. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

5. Creative

6. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

7. Response Customers who received the mailing and bought Olay Total Effects in the 6-week period measured • Overall response rate is good: 1.1% (above 1% considered good for new shoppers to a brand), particularly for a mailing going to customers who have: • not bought Olay Total Effects, and • where there is no offer attached.

8. Response Customers who received the mailing and bought any Olay product in the 6-week period measured • Overall response rate very good: 5.3%

9. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

10. Incremental Analysis: incremental shoppers Incremental analysis shows how the customers who did respond would have shopped had they not received the mailing – this is essential in understanding the actual effect of the campaign. The control group of ‘look-alike’ customers selected were not sent the mailing. How many Olay Total Effects shoppers were incremental? • Overall 55% of shoppers responding to this campaign were incremental, i.e. 1,633 customers shopped for Olay Total Effects as a direct result of this mailing 10

11. Incremental Analysis: incremental behaviour What other incremental behaviour did this campaign drive? • Of the 4061 units of Olay Total Effects purchased, 2298 (57%) were incremental • Of the R506 487 worth of revenue generated from Olay Total Effects sales, R307 977 (61%) was incremental.

12. Incremental Analysis: brand level Incremental behaviour at brand level: • Of the 14,796 total Olay brand shoppers, 2192 (15%) were incremental • Of the 20 780 total Olay brand unit sales, 2838 (14%) were incremental • Of the R1 807 765 worth of revenue generated from total Olay brand sales, R339 316 (19%) was incremental.

13. Incremental Analysis: TE vs brand Olay Total Effects vs total Olay brand sales: • 55% of Olay Total Effects shoppers responding to this campaign were incremental, i.e. 1633 customers shopped for Olay TE as a direct result of this mailing • 15% of shoppers of any Olay productresponding to this campaign were incremental, i.e. 2192customers shopped for any Olay product as a direct result of this mailing • Overall the campaign attracted 2192 new shoppers to the total Olay brand. 13

14. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

15. Immediate Return On Investment What was the immediate ROI of the mailing? • Overall ROI is negative: -64%.However it is important to keep in mind that there was no offer included. In addition, the brand awareness generated cannot be directly measured. 15

16. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

17. Observations & Conclusions • The response rate of 1.1% was fair considering the following: • No specific call to action to drive sales was included • No deadline to drive urgency was included • Purchase behaviour for a product like face cream is typically more difficult to influence in the short-term. • Because there was no offer, the mailing could have prompted customers to buy from any retail store. This impact cannot be measured. • This mailing will have done a further brand building job that will be realised over time with additional sales. • It is quite possible there have been additional sales after the 6-week measured sales period from the customers mailed which would improve the results. • The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Olay TE for the first time will repeat purchase.

18. Contents • Introduction • Creative • Response • Incremental Analysis • Immediate ROI • Observations & Conclusions • Recommendations

19. Recommendations • For maximum return on investment from a ClubCard direct mailing, we recommend: • Inclusion of an offer ( rands off, points, competition, etc.) for in-store redemption • An expiry date to drive urgency • Because of the nature of the product, a product sample could be included for customers to trial • Future mailings could include tests of different offers (different rands off values, points, competitions, etc.) • Support the mail pack by using additional Clicks channels around the same mailing period.

20. Thank you