july 2011

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

New Clicks: Ethnic Haircare Targeted Coupon

April CashBack ClubCard MailingPost-Campaign Report

July 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• 100,000 ClubCard shoppers targeted utilising 5one’s targeting

tool• Period: 11 April to 25 June 2011• Both Current and New shoppers targeted:

• 70,000 new shoppers to Inecto • 30,000 new shoppers to Inecto Plus and Cavil Colours

• Reward level constructed tested:• R5 off INECTO 50ML’s• R10 off on INECTO PLUS & CAIVIL COLOURS

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The Mailing

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Contents


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All content copyright © 5one 2001 - 2011. All rights reserved. Confidential. 6

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 0.5% (above 0.5% ‘good’ for New shoppers)

Coupon Mailed Redeemed Red. Rate

R5 off Inecto 50mls 70,000 289 0.4%

R10 off Inecto Plus & Cavil Colours 30,000 229 0.8%

TOTAL 100,000 511 0.5%


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 1% (above 1% for New shoppers)• This campaign resulted in an additional 1,110 new shoppers to the promoted

product. Over time this should generate long term ROI for these brands.

Coupon Mailed Redeemed Red. Rate Responde

dResp. Rate

R5 off Inecto 50mls 70,000 289 0.4% 537 0.8%

R10 off Inecto Plus & Cavil Colours 30,000 229 0.8% 432 1.4%

TOTAL 100,000 511 0.5% 969 1.0%


Contents


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Incremental Shoppers

Coupon Mailed Resp. Rate Responded Control Resp.

RateIncremental

Shoppers%

Incremental

Current: R40 off 6.5% 3,233 3.3% 1,559 48%

New: R30 off 1.5% 745 0.3% 589 79%

TOTAL 4% 3,978 0.6% 2,147 58%

• Overall the mailed group shopped at a higher rate than the control group resulting in 2,147 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?


Incremental Units

How many more units were purchased?

• Overall 58% of units were incremental

Coupon Total Mailed Units

Incremental Units

% Incremental

Current: R40 off 4,657 2,470 53%

New: R30 off 1,009 815 81%

TOTAL 5,666 3,285 58%


Incremental Sales

How many more sales were achieved?

• Total mailed sales of R1.1 million achieved, with 60% sales being incremental

Coupon Total Mailed Sales

IncrementalSales

% Incremental

Incremental / Responder

Current: R40 off R 954,601 R 542,215 57% R 168

New: R30 off R 178,774 R 140,837 79% R 189

TOTAL R 1,133,375 R 683,052 60% R 172


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Immediate Return On Investment

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

Coupon Total Mailed Sales

IncrementalSales

Production Costs

Gross Profit ROI

Current: R40 off R 954,601 R 542,215 R 5,000 R 537,215 10744%

New: R30 off R 178,774 R 140,837 R 5,000 R 135,837 2717%

TOTAL R 1,133,375 R 683,052 R 10,000 R 673,052 6731%

• Overall ROI is 6731%


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Campaign Summary

• Overall campaign generated the following response:• Redemption rate: 1.2% (615 shoppers)• Response rate: 4% (3,978 shoppers)

• Successful at driving incremental behaviour:• Shoppers: 2,147 (54%)• Units: 3,285 (58%)• Sales: R 683,052 (60%)

• Overall ROI is 6731%


Campaign Comparison

Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales Profit ROI

Jan-11 R40 when you spend R300 or more Current 50,000 1.1% 6.5% 3.3.% 48% 53% 57% R 542,215 R537,215 10744

%

Jan-11 R30 when you spend R300 or more New 50,000 0.1% 1.5% 0.3% 79% 81% 79% R 140,837 R135,837 2717%

Overall Jan-11 100,000 0.62% 4% 0.6% 54% 58% 60% R 683,052 R673,052 6731%

Dec-10 R50 when you spend R300 or more Current 28,762 2.64% 14.78% 16.1% 0% 3% 0% R 0 -R 2,881 -100%

Dec-10 R30 when you spend R300 or more New 71,081 0.23% 2.39% 0.9% 64% 67% 55% R 185,875 R 178,755 2511%

Overall Dec-10 99,843 0.92% 5.96% 1.7% 18% 19% 13% R 185,875 R 150,875 431%

May-10 R70 when you spend R300 or more Current 44,200 1.5% 5.4% 14% 0% 0% 0% R 0 -R698 -100%

May-10 R50 when you spend R300 or more New 55,800 0.2% 0.9% 0.01% 99% 99% 99% R 114,512 R105,209 1131%

Overall May-10 100,000 0.7% 2.9% 1% 18% 16% 15% R 114,512 R 104,512 1045%


Mailing Offer Targeting Mailed Red. Rate

Resp. Rate

Control Resp. Rate

% Shoppers inc

% Units Inc

% Sales Inc

Inc Sales Profit ROI

Jan-10 R70 when you spend R300 or more Current 50,000 0.83% 2.5% 1.1% 55% 59% 70% R 276,759 R 271,759 5435%

Jan-10 R50 when you spend R300 or more New 49,994 0.44% 1.5% 0.3% 82% 82% 86% R 203,261 R 198,262 3965%

Overall Jan-10 99,994 0.64% 2.0% 0.5% 65% 67% 76% R 480,021 R 470,021 4700%

Dec-09 R70 when you spend R300 or more Current 15,124 3% 4% 0.2% 94% 94% 85% R 53,372 R 51,844 3392%

Dec-09 R50 when you spend R300 or more Current 10,938 3% 4% 0.2% 95% 96% 88% R 64,623 R 63,517 5746%

Dec-09 R70 when you spend R300 or more New 36,448 0.5% 1% 0.4% 35% 32% 0% R0 -R3,683 -100%

Dec-09 R50 when you spend R300 or more New 36,447 0.4% 1% 0.2% 71% 84% 56% R 16,914 R 13,231 359%

Overall Dec-09 62,509 1% 2% 0.2% 83% 84% 74% R 134,909 R

124,9091249

%

Campaign Comparison


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

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

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

Recommendations

july 2011

Documents

content copyright

clubcard shoppers

rateincremental shoppers

incremental current

inecto 50mls70

new shoppersthis campaign

inecto 50mlsr10

incremental coupontotal