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Centrum Targeted CouponJuly CashBack ClubCard MailingPost-Campaign Report

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

2

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Introduction

• 149,827 ClubCard customers targeted utilising 5one’s targeting tool

• Campaign period: 28 June 2010 – 30 July 2010

• Both Current and New shoppers targeted:

• 4,456 Current shoppers

• 145,371 New shoppers

• Reward level constructed tested:

• Get R20 off the purchase of any Centrum Base or Select 60’s pack

• Get R15 off the purchase of any Centrum Base or Select 60’s pack

• Control group of look alike customers measured over the campaign period

3

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The Mailing

4

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Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

5

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Targeted Coupon: Redemption

Redemption: shoppers who bought featured product at the same time as handing in the coupon

How many mailants shopped the promoted products?

• Overall redemption rate is good: 1.18% (above 1% is ‘good’ for Current, 0.5% ‘good’ for New)

• Offer to current shoppers generated excellent redemptions rates: 6.13%

Coupon MailedRedeeme

dRed. Rate

New R15 145,371 1,493 1.03%

Current R20 4,456 273 6.13%

TOTAL 149,827 1,766 1.18%

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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: 2.16% (above 2% is ‘good’ for Current, above 1% for New)

• Response rate amongst Current shoppers is excellent: 10%

• New offer driving 2,784 new shoppers to the brand

Coupon MailedRedeeme

dRed. Rate

Responded

Resp. Rate

New R15 145371 1,493 1.03% 2,784 1.92%

Current R20 4456 273 6.13% 456 10.23%

TOTAL 149,827 1,766 1.18% 3,240 2.16%

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Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

8

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Incremental Shoppers

CouponMailed Resp. Rate

Responded

Control Resp. Rate

Incremental

Shoppers

% Incremental

New R15 1.92% 2784 0.3% 2,385 86%

Current R20 10.23% 456 4.5% 255 56%

TOTAL 2.16% 3,240 0.4% 2,640 81%

• Overall the mailed group shopped at a substantially higher rate than the control resulting in a high % of incremental shoppers 81%

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?

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Incremental Units

How many more units were purchased?

• Due to high response rates of the mailed shoppers vs. the control group, 86% of total units purchased were incremental

CouponTotal Mailed

UnitsIncremental

Units%

Incremental

New R15 3,730 3,323 89%

Current R20 644 426 66%

TOTAL 4,374 3,750 86%

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Incremental Sales

How many more sales were achieved?

• Total mailed sales of R365k achieved, with 77% sales being incremental

CouponTotal Mailed

SalesIncremental

Sales%

IncrementalIncremental / Responder

New R15 R 316,707 R 259,132 82% R 93.1

Current R20 R 48,335 R 20,197 42% R 44.3

TOTAL R 365,042 R 279,329 77% R 86.2

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

12

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Immediate Return On Investment

• Overall ROI is Excellent!: 459%

What was the immediate ROI of the targeted coupon based on Incremental sales?

CouponTotal

Mailed Sales

Incremental

Sales

Production Costs

Gross Profit

ROI

New R15 R 316,707 R 259,132 R 48,513 R 210,619 434%

Current R20 R 48,335 R 20,197 R 1,487 R 18,710 1258%

TOTAL R 365,042 R 279,329 R 50,000 R 229,329 459%

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential.

Contents

• Introduction

• Coupon Redemption & Response

• Incremental Analysis

• Immediate ROI

• Conclusions & Recommendations

14

All content copyright © 5one 2001 - 2010. All rights reserved. Confidential. 15

• Overall campaign generated ideal response:

• Redemption rate: 1.18% (1,766 shoppers)

• Response rate: 2.16% (3,240 shoppers)

• Highly successful at driving incremental behaviour:

• Shoppers: 2,640 (81%)

• Units: 3,750 (86%)

• Sales: R279,329 (77%)

• Overall campaign generated an excellent immediate ROI 459% at a promoted product level

Campaign Summary

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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands

2. Test broader offer for new customers (less niched / fewer constraints)

3. In-depth analysis of what the Centrum shopper looks like, how they shop across the range and what competitor products they are purchasing into

Recommendations

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Thank-you

Nikki Emerton – 5one Account Manager Nikki.emerton@5one.co.za

Zakariya Patel – 5one AnalystZakariya.Patel@5one.co.za