CONTINENTAL OUTDOOR MEDIA – ROMItrack

ALLSOME RICE – CONTROL / TEST STORE ANALYSIS

AGENDA

1 Business Question & Solution

2 Scope

4 Volume drivers

5 Results & Insights

6 Summary of findings

BUSINESS QUESTIONS

• How efficient was the Allsome Rice Billboard campaign in Motherwell? • Did product sales increase during and after the campaign, and why?

BUSINESS SOLUTION

The activity achieved a 10% net uplift

SCOPE

Target brand: • Allsome

Competitors: • Own brands • Tastic • Spekko • Sasko Campaign Test Period: • Start date: 01 October 2013 • Mid campaign date: 31 December

2013 • End date: 31 March 2014

Test Area: • Motherwell (EC)– 10km radius Control Area: • Tsakane (GP) – 10km radius Market Breakdowns: • Pick n Pay • Shoprite • Checkers

STORE LOCATIONS

CHAIN NAME STORE_TYPE RETAILER

Pick n Pay Picknpay Penford (Penford Centre, Uitenhague) Pick n Pay Super Uitenhage EC

Pick n Pay Picknpay Cleary Park + Liquor Pick n Pay Super Cleary Park EC

Pick n Pay Pnp Family New Brighton Port Elizabeth Pick n Pay Family New Brighton EC

Pick n Pay Picknpay Uitenhage Cbd ( Eastern Cape ) Pick And Pay PICKNPAY UITENHAGE CBD ( EASTERN CAPE )

Pick n Pay Uitenhage EC Pick n Pay Super Uitenhage EC

Shoprite Shoprite Motherwell Shoprite Motherwell EC

Shoprite Shoprite Despatch Shoprite Despatch EC

Shoprite Shoprite Bethelsdorp EC Shoprite Bethalsdorp EC

Shoprite Shoprite Uitenhage Shoprite Uitenhage EC

Shoprite Shoprite Zlyabuya Makwenkwe Street Kwadwesi E/Cape Shoprite Zlyabuya EC

Shoprite Uitenhage EC Checkers Uitenhage EC

Shoprite Shoprite New Brighton Plaza Shoprite SHP

Shoprite Shoprite Liquorshop Kwanobuhle Shoprite Shoprite LiquorShop Kwanobuhle

Shoprite Shoprite Liquorshop Ziyabuya Shoprite Shoprite LiquorShop Ziyabuya

Shoprite Shoprite Daku Rd Ibayi Cnr Arx&Marongo Shoprite SHOPRITE DAKU RD IBAYI CNR ARX&MARONGO

Shoprite Shoprite Kwanobuhle EC Shoprite Shoprite Kwanobuhle EC

Shoprite Shoprite Daku EC Shoprite Shoprite Daku EC

10KM RADIUS AROUND TEST & CONTROL AREA Motherwell – test area

11%

5% 1%

64%

6%

12%

GAUTENG

NWLMMP

FREE STATE/N CAPE

KWAZULU NATAL

EASTERN CAPE

WESTERN CAPE

ALLSOME RICE SALES BY REGION Majority of Allsome rice sales going through KZN. Test stores are in Eastern Cape while Control Stores are in Gauteng

Chart data - Latest 6 months of data NWLPMP = Northwest/Limpopo/Mpumalanga

AVERAGE PRICE BY REGION Allsome Rice 2kg having an average price of R16 across all regions

Table data - Latest 6 months of data

Allsome Tastic Spekko No Name Ritebrand Housebrand

Gauteng 15.9 26.0 23.9 17.3 17.3 18.1

NWLPMP 12.6 26.0 24.2 17.4 17.5 18.4

Free State 12.7 26.4 24.1 17.5 17.5 18.5

KZN 16.1 25.5 24.1 17.4 17.0 17.4

Eastern Cape 16.6 27.1 22.7 17.1 - -

Western Cape 16.0 26.5 24.1 17.3 17.5 18.3

NWLPMP = Northwest/Limpopo/Mpumalanga

CATEGORY VOLUME DRIVERS – TOTAL SA Total category growing YOY with all the main items in the market contributing positively to the sales growth. Allsome was launched in September 2013 and only contributing 5% among the top brands in Modern Trade

127

134

3.8

0.5 0.2 0.7 1.0

0.7

12MMDEC12'

Allsome Tastic Spekko No Name Ritebrand Sasko 12MMDEC13'

Sale

s V

alu

e (

mill

ion

s)

Total Rice – Modern Trade

5.5%

Total Rice* = Items included in SCOPE

5%

50% 23%

4% 13%

5% Allsome

Tastic

Spekko

No Name

Rite Brand

Sasko

Pie chart data – latest 6 months of data**

34

40 2.1

2.6

1.4 0.2 0.2 0.2

Pre Test(Jul - Sep

13')

Allsome Tastic Spekko No Name Ritebrand Sasko Test (Oct -Dec 13')

Sale

s V

alu

e (

mill

ion

s)

Total Rice – Modern Trade

CATEGORY VOLUME DRIVERS – TOTAL SA 19.6% increase in volume for total defined rice category. Mainly driven by Allsome, Tastic and Spekko

19.6%

Total Rice* = Items included in SCOPE

Pre Test Period

Test Period

DATA WATCH-OUTS

• Brand is new and lacks good distribution

• Stores have very sporadic sales, change a huge amount each week

• i.e. very few stores sell every week

• Has not settled into a regular “run rate”

• Rate of Sale is very low

• i.e. Some stores sell only 1-2 packs of Allsome per week

IMPACT OF OUTDOOR CAMPAIGN

From an ROI perspective, one of the most important, and predictable, factors for a brand is dollar sales. Consider the following hypothetical example:

SALES AD SPEND AD LIFT

SMALL BRAND $50,000 $5,000 10%

LARGE BRAND $200,000 $5,000 5%

AD-DRIVEN SALES INCREASE

MARGIN AD-DRIVEN PROFIT

SMALL BRAND $5,000 30% $1,500

LARGE BRAND $10,000 30% $3,000

AD-DRIVEN PROFIT/SPEND SHORT-TERM ROI

SMALL BRAND $1,500/$5,000 $0.30

LARGE BRAND $3,000/$5,000 $0.60

In this example, both brands spent the same amount on advertising, and even though we “stacked the deck” by

assigning the Small Brand a greater percentage sales lift (10% vs. 5%), the Large Brand realized a greater ROI on its

advertising investment. A large brand has the ability to leverage fixed costs of advertising across its existing business.

This example illustrates how ROI for a large brand can exceed that of a smaller brand, even when the percentage sales

lift generated is greater for the smaller brand.

SIZE OF BUSINESS IS A KEY INDICATOR OF ROI POTENTIAL

Prepared for SC Johnson

Nielsen Normative Marketing ROI by size of Brand

$0.43

$0.63

$0.81

LESS THAN $100MM

$100MM - $400MM

OVER $400MM

ANNUAL DOLLAR SALES OF BRAND

OU

TLIE

R

0

500

1000

1500

2000

2500

3000

25

-Au

g-1

3

01

-Sep

-13

08

-Sep

-13

15

-Sep

-13

22

-Sep

-13

29

-Sep

-13

06

-Oct

-13

13

-Oct

-13

20

-Oct

-13

27

-Oct

-13

03

-No

v-1

3

10

-No

v-1

3

17

-No

v-1

3

24

-No

v-1

3

01

-Dec

-13

08

-Dec

-13

15

-Dec

-13

22

-Dec

-13

29

-Dec

-13

Control Stores Test Stores

STORE MATCHING – TOTAL ALLSOME Close match of test and control stores during pre-test period. Since Test starts, sales of test stores grow vs. control.

Pre-test period

Test period

Ave

rage

Sal

es V

alu

e p

er

sto

re

Promo Period Outlier

OU

TLIE

R

-1500

-1000

-500

0

500

1000

1500

25

-Au

g-1

3

01

-Sep

-13

08

-Sep

-13

15

-Sep

-13

22

-Sep

-13

29

-Sep

-13

06

-Oct

-13

13

-Oct

-13

20

-Oct

-13

27

-Oct

-13

03

-No

v-1

3

10

-No

v-1

3

17

-No

v-1

3

24

-No

v-1

3

01

-Dec

-13

08

-Dec

-13

15

-Dec

-13

22

-Dec

-13

29

-Dec

-13

Gap

TEST VS. CONTROL GAP – TOTAL ALLSOME Close match of test and control stores during pre-test period. Since Test starts, sales of test stores grow vs. control.

Pre-test period

Test period

Ave

rage

Sal

es V

alu

e p

er s

tore

Te

st v

s. C

on

tro

l

Promo Period Outlier

-45

201 245

-100

-50

0

50

100

150

200

250

300

Pre Test With Advert Difference

TEST SALES MINUS CONTROL SALES During the pre-test period (before advert) the control stores we very similar to the test stores. When the advert starts, the test stores overtake the control stores **Please note, calculated excluding outlier weeks

R245 extra

sales per store / week

Understanding the impact of outdoor media on sales

Advertised Brand Name Allsome Rice

Manufacturer Willowton

Type of Advertising Billboard

Location of Advertising Motherwell, Eastern Cape – 10km radius

Store Selection Criteria Pick n Pay, Shoprite, Checkers in 10km radius

Date of Execution Start Oct 2013 End Dec 2013

Investment

(half for 3

months)

Sales Uplift Revenue

Generated

Return on Investment

(ROI)

(First 3 months)

R58,500 19% R73,590 R1.26

Please note Total Investment is R117k

Benchmark for Similar Execution R0.71

Source of Benchmark SA Outdoor Food

Above Expected Expected Below Expected

SUMMARY

• New Brand, Allsome has driven growth within the rice category

• Test vs. Control stores see a positive impact in Test Area (Motherwell, Eastern Cape)

• This is a large 19% uplift per store /week

• This equates to R245 per store/week additional sales

• Which yields an interim (based on 3 months) ROI of R1.26

• Allsome have to market their product aggressively to grow market share, particularly with Category Captaincy i.e. Tastic drives the category.