1 New Pricing for Catalogues Royal Mail Wholesale Helping You to Grow Your Business

Why is Catalogue Pricing Changing? 2 Current pricing is restricting catalogues to weights <100g Many catalogues stay below 100g weight as a consequence of pricing structure Royal Mail Wholesale Yet, you tell us you can drive increased sales through increasing the pagination and/or improving paper quality, both of which impact on the weight 19.08p 31.05p < 100g Letter 101g – 250g Large Letter All rates are based on 2016 tariff

More Flexible Letter Format 3 Addressing your requirements for more flexible letter format options We are introducing 5 higher weight bands above 100g rising in 10g increments up to 150g for a trial period between January 2016 to March 2017 Royal Mail Wholesale 19.08p 22.08p 22.58p 23.08p 23.58p 24.58p New pricing bands for Advertising Mail Catalogue option Catalogue Letter format prices (from Jan 2016) Large Letter

Addressing customer requirements for more flexible large letter format options We are introducing 5 new weight bands between g rising in 10g increments up to 150g for a trial period between January 2016 to March p 25.38p 26.38p 27.38p 28.38p 29.88p 31.05p Royal Mail Wholesale Catalogue Large Letter format prices (from Jan 2016) More Flexible Large Letter Format New pricing bands for Advertising Mail Catalogue option

Customers who are mailed catalogues, spend more, buy more and buy more frequently 5 74% Have ordered products after seeing a catalogue and spent on average £271 vs. £162 (non- catalogue users) Buy more frequently if they receive a catalogue Source: Printed Catalogues in a Digital World, % Of purchases made were influenced by the catalogue Bought more than originally intended as a result of receiving the catalogue Of the 74% 50% 40% Royal Mail Wholesale Mailed Catalogues Drive Sales …

6 Ways It Could Work for You Royal Mail Wholesale How you could use this change to grow your business Increase catalogue weight above 100g but pay a more graduated price This could enable you to: More cost effectively increase pagination to display more products Increase paper weight to test recipient effect Test effect on response and average order values Add inserts to make packs more cost effective Re-invest postage savings to increase customer reach and sales This could enable you to: Mail more packs for the same money Increase acquisition volumes Mail to lower performing segments or lapsed customers Create new testing strategies or review campaign cost of acquisition Currently <100g Currently g

Is My Catalogue Eligible? 7 Royal Mail Wholesale Your mailing will be eligible for the catalogue prices if: the mailing primarily comprises a list of goods and/or services, together with a description, image and price; the goods and/or services are sold directly from the page at the prices listed; and the editorial and other content of the mailing is minimal. Examples of Eligible Mailings A mail order company sending its new or seasonal catalogue to a prospective customer base A travel company sending its new or seasonal holiday brochure to an existing or prospective customer base. A mail order company sending its new or seasonal catalogue to an existing customer base.

A Few Technical Points 8 1.Check your catalogue meets the content requirement for the new Advertising Mail Catalogue service against the specification 2.Check that you have set up Royal Mail Wholesale to receive a seed/sample on the day of mailing 3.Ensure the UCID number will be printed on each seed/sample to correlate with each mailing. If you prepare the posting docket, ensure that you: 1.Make any necessary IT upload adjustments; 2.Use the new Advertising Mail Catalogue product codes; 3.Declare, by format,the number of items in each container by the relevant weight band (including Mixed Weight) 4.Inform DSACC of the UCID of each new poster prior to posting Royal Mail Wholesale

What do I Need to do Next? 9 Think about how this will support your marketing plan to promote your key products What are your big products for 2016 and how can you promote them more effectively? How can you utilise the extra space more effectively to achieve a greater ROI? How can you further promote your best sellers in your catalogue / brochure? Be ready to post from January 2016 Contact your operator or Royal Mail Wholesale Account Director for further details Royal Mail Wholesale