All content copyright © 5one All rights reserved. Confidential. L’Oreal: Age Perfect and Age Re-perfect Targeted Coupon August CashBack ClubCard Mailing Post-Campaign Report November 2010

All content copyright © 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 2

All content copyright © 5one All rights reserved. Confidential. Introduction ClubCard customers targeted utilising 5one’s targeting tool Campaign period: 16 Aug 2010 – 18 Sep 2010 Only New shoppers targeted: 75,000 New Age Perfect 75,000 New Age Re-perfect Reward level constructed tested: Great skin for less! Save R 50 off your purchase on Age Perfect or Age Re-Perfect anti- ageing care. Control group of look alike shoppers measured over the campaign period 3

All content copyright © 5one All rights reserved. Confidential. The Mailing 4

All content copyright © 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 5

All content copyright © 5one 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 excellent: 2.75% (above 1% is ‘good’ for Current shoppers, 0.5% ‘good’ for New shoppers) Offer to new shoppers of Age Re-perfect had the highest redemption rate Target CellMailedRedeemedRed. Rate New Age Perfect75, % New Age Re-perfect75,0003, % TOTAL150,0004, %

All content copyright © 5one All rights reserved. Confidential. 7 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 excellent: 4.01% (above 2% is ‘good’ for Current shoppers, above 1% for New shoppers) The offers drove 6,016 new shoppers to the brand! Target CellMailedRedeemedRed. RateRespondedResp. Rate New Age Perfect75, %1, % New Age Re-perfect75,0003, %4, % TOTAL150,0004, % 6, %

All content copyright © 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 8

All content copyright © 5one All rights reserved. Confidential. 9 9 Incremental Shoppers Target Cell Mailed Resp. Rate Responded Control Resp. Rate Incremental Shoppers % Incremental New Age Perfect2.31%1,7320.4%1,41282% New Age Re-perfect5.71%4,2840.9%3,57483% TOTAL4.01%6,0160.6%4,98683% Overall the mailed group shopped at a higher rate than control shoppers resulting in 83% 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?

All content copyright © 5one All rights reserved. Confidential. 10 Incremental Units How many more units were purchased? Due to high response rates of shoppers, 85% of total units purchased were incremental Target CellTotal Mailed UnitsIncremental Units% Incremental New Age Perfect2,702 2,28585% New Age Re-perfect5,637 4,80485% TOTAL8,339 7,08985%

All content copyright © 5one All rights reserved. Confidential. 11 Incremental Sales How many more sales were achieved? Total mailed sales of R384k achieved, with 58% sales being incremental Target Cell Total Mailed Sales Incremental Sales % Incremental Incremental / Responder New Age Perfect R 154,523R 111,89672%R 64.6 New Age Re-perfect R 229,544 R 109,91148%R 25.7 TOTALR 384,067R 221,80758%R 36.9

All content copyright © 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 12

All content copyright © 5one All rights reserved. Confidential. 13 Immediate Return On Investment Overall ROI is 344% What was the immediate ROI of the targeted coupon based on Incremental sales? Target Cell Total Mailed Sales Incremental Sales Production Costs Gross Profit ROI New Age Perfect R 154,523R 111,896 R 25,000 R 86,896348% New Age Re-perfect R 229,544 R 109,911 R 25,000 R 84,911340% TOTALR 384,067R 221,807 R 50,000 R 171,807344%

All content copyright © 5one All rights reserved. Confidential. Contents Introduction Coupon Redemption & Response Incremental Analysis Immediate ROI Conclusions & Recommendations 14

All content copyright © 5one All rights reserved. Confidential. 15 Overall campaign generated ideal response: Redemption rate: 2.75% (4,129 shoppers) Response rate: 4.01% (6,016 shoppers) Highly successful at driving incremental behaviour: Shoppers: 4,986 (83%) Units: 7,089 (85%) Sales: R221,807 (58%) Overall campaign generated excellent immediate ROI 344% at a promoted product level Campaign Summary

All content copyright © 5one All rights reserved. Confidential Continue to use targeted coupons to invoke re-purchase and gain new shoppers to the brands 2.In-depth analysis of what the L’Oreal anti-ageing shopper looks like, how they shop across the range and what competitor products they are purchasing into Recommendations

All content copyright © 5one All rights reserved. Confidential. Thank-you Nikki Emerton – 5one Account Manager Zakariya Patel – 5one Analyst