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Tip Top Feet Targeted CouponDec CashBack ClubCard MailingPost-Campaign Report

January 2011

All content copyright © 5one 2001 - 2011. All rights reserved. Confidential.

Contents

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

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Introduction

• 99,186 ClubCard customers targeted utilising 5one’s targeting tool• Campaign period: 29 Oct 2010 – 26 Dec 2010• Both Current and New customers to ALL of Tip Top range targeted

(due to Tip Top Feet being a new product launch)• 18,432 Current shoppers • 80,754 New shoppers

• Reward level constructed tested:• Get R5 off on any Tip Top Feet product purchased

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

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The Mailing

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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 low: 0.1% (above 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

Current: Tip Top 18,432 40 0.2%

New: Tip Top range 80,754 80 0.1%

TOTAL 99,186 120 0.1%

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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 low: 0.2% (above 1% is good for New shoppers)• Offer driving an 120 new shoppers to the range

Coupon Mailed Redeemed Red. Rate Responded Resp. Rate

Current: Tip Top 18,432 40 0.2% 56 0.3%

New: Tip Top range 80,754 80 0.1% 100 0.1%

TOTAL 99,186 120 0.1% 156 0.2%

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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

% Incrementa

l

Current: Tip Top 0.3% 56 n/a n/a n/a

New: Tip Top range 0.1% 100 0.0% 79 79%

TOTAL 0.2% 156

• Control group for Current shoppers to the Tip Top range is too small to be an accurate measure of incremental behaviour

• Of the shoppers new to the Tip Top range the mailed group shopped at a higher rate than targeted shoppers resulting in 65% of shoppers being incremental

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?

• Of the shoppers new to the Tip Top range the mailed group shopped at a higher rate than the control group resulting in 80% of total units being incremental

Coupon Total Mailed Units Incremental Units % Incremental

Current: Tip Top 66 n/a n/a

New: Tip Top range 103 82 80%

TOTAL 169

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Incremental Sales

How many more sales were achieved?

• Total mailed sales of R4k achieved

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

Current: Tip Top R 1,781 n/a n/a n/a

New: Tip Top range R 1,833 R 419 23% R 4.20

TOTAL R 3,614

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Contents

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

12

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Immediate Return On Investment

• Overall ROI for new shoppers to the Tip Top range is negative: -95%

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

CouponTotal

Mailed Sales

Incremental

SalesProduction

CostsGross Profit ROI

Current: Tip Top R 1,781 n/a R 1,858 n/a n/a

New: Tip Top range R 1,833 R 419 R 8,142 -R 7,722 -95%

TOTAL R 3,614 R 10,000

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Contents

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

14

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• Overall campaign generated the following response: • Redemption rate: 0.12% (120 shoppers)• Response rate: 0.16% (156 shoppers)

• Successful at driving incremental behaviour for new shoppers to Tip Top• Shoppers: 79 (79%)• Units: 82 (80%)• Sales: R 419 (23%)

• ROI of -95% at a promoted product level for new shoppers to Tip Top

Campaign Summary

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1. Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands; however recommend waiting until we have enough transactional data for Tip Top Feet to ensure targeting is more accurate

Recommendations

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