GfK Marketing Mix Evaluator (MME) How we evaluate advertising effectiveness GfK South Africa +60 A ction -50 +70 -65 +25.

GfK Marketing Mix Evaluator (MME) How we evaluate advertising effectiveness
GfK South Africa +60 A ction -50 +70 -65 +25

1 2 4 Elements of the perfect marketing mix
Why is it so important to get your mix right? 4 Time to remix

Synergy Study Situation Situation Approach Outcome
To measure the relative effects of different advertising strategies across media channels and with particular impact that print plays in ROI Situation Multiple Regression was used to measure the relationship between The ‘volume’ of advertising by media type (ad spend) The value of purchases of advertised brands by panel members who were users of that media type, and therefore assumed to have had the opportunity to see/hear that advertising No controlling variables such as demographic measures, loyalty to the brand, category usage, etc. were used in this analysis Approach The small discernible effect of advertising visible in panel data shows, for certain brands and categories, a positive effect linkable to changing volumes of advertising. Selected cases where the effect of print advertising is positive have been reported to illustrate the effect print advertising can have. Outcome

How did we get all this valuable data?
GfK Consumer Panel across 9 Provinces, LSM 4 – 10, Urban and Rural HH’s, scanning all household purchases made on a day to day basis 3000 Households with either a cell phone or internet connection using demographic profiles from AMPS 2015B and Stats SA annual mid-year population estimates fully representing13.1 million South African Households Scanners are placed in Panelist homes and Quality checked through stringent Global standards Interviews conducted with Main Household Purchaser to determine media consumption patterns across TV, Radio, Digital and Print Household incidence across 6 months data used PRC supplied GfK with Adex advertising spend Recording spend total by month By main media type – TV, Radio, Print For all advertised brands in the Food, Personal Care and Beverages Adex product groups © GfK March 2017 | PRC Marketing Mix Evaluator 4

Multiple Regression formed the core analysis
Multiple Regression was used to measure the relationship between volume of advertising by media type as represented by advertising spend in Rands, and value of purchases of advertised brands by panel members who were users of that media type, and therefore assumed to have had the opportunity to see/hear that advertising No background or controlling variables such as demographic measures, loyalty to the brand, category usage, etc. were used in this analysis Allowing the constant of the regression equation and the residual of the r2 to account for all such background influencers of brand spend This analysis was only intended to measure the relative effects of different advertising strategies and especially the effect of including print advertising in the strategy © GfK March 2017 | PRC Marketing Mix Evaluator 5

1 2 4 Elements of the perfect tune
Why is it so important to get your mix right? 4 Time to remix

GfK selected 40 product categories and 154 brands for synergy analysis – specific criteria were implemented to conduct the study: 1 Purchase/ Print Relationship: Read YES /NO Categories & Brands selected if print was used 36 product categories & 32 brands qualified for in-depth, deep-dive analysis 2 Category/ product selection qualifying criteria: Product monthly penetration greater than 4% in panel data Total media ad spend greater than R100k Significant variance in the data 3 TV baseline: For the purposes of this study TV forms the baseline of the assessment… TV advertising is far and away the most used medium in FMCG advertising All Categories and brands show for every R1.00 spent what the return is on your Rand But what was conclusively proved was that Its all about SYNERGY to achieve optimum ROI! Competitive advantage  profitable sales  higher ROI

6 Categories met the criteria to be included in our Synergy Analysis
6 Categories and Brands were selected and included in the following case studies: All Categories and brands show for every R1.00 spent what is the return on your Rand For every R1.00 we get… Beverages Dry Groceries CSDS – Coca Cola Energy Drinks Tea – Five Roses, Freshpak Soup – Knorr Soup Sauces – Tabasco Sugar – Huletts R1.01 100% R0.45 45% R0.10 10% TV & PRINT TV & RADIO TV, RADIO & PRINT *For marginal ad spent post a normative effect of a strong TV baseline spend. **key to note radio ad spend not consistent across all categories in the case studies. © GfK March 2017 | PRC Marketing Mix Evaluator 8

1 2 4 Elements of the perfect mix
Why is it so important to get your tune right? 4 Time to remix

Synergy Analysis : Coca Cola
Adding print to Coca Colas large TV and radio spend has a measurable and visible effect… Print delivering 8 times a larger effect R purchases R 0.01 purchases R 0.00 8x Panel purchases value, Adex Adspend, Multiple Regression

Print delivered a 68 times larger effect
Synergy Analysis: TEA Print in the Total Tea category delivers a measurable effect Print delivered a 68 times larger effect R purchases R purchases R purchases 68x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis : Five Roses Tea
Print advertises delivers 36 times the effect of TV advertising! Print delivered a 36 times larger effect R0.36 purchases R0.00 purchases 36x Panel purchases value, Adex Adspend, Multiple Regression

Brand Case Study : Freshpak
33x Brand Case Study : Freshpak Print advertises delivers 33 times the effect of TV advertising! Print delivered a 33 times larger effect R purchases R purchases 33x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis : SUGAR
Continuous presence increased incidence and spend for the sugar category Print delivered a 15 times larger effect R purchases R purchases R purchases 15x Panel purchases value, Adex Adspend, Multiple Regression

In conclusion Product groups need to analysed at the highest level in order to establish reliable measure of relationship between advertising spend and household purchase value The selected case studies demonstrate the effect of print advertising spend on household purchasing Synergy analysis shows the combination of media types renders a better result than single medium strategies At GfK, we believe that businesses can be successful if they understand what and why consumers buy. And if they can translate those insights into action. They can optimize consumers’ purchase journey if they use the most relevant data to gain the best insights on consumers’ purchasing decisions. And they can do all this in the most efficient way by applying proven market research approaches in innovative ways.

THANK YOU Molemo.Moahloli@gfk.com Sally.rothman@gfk.com

Appendix

Full set of brands analysed:
Baking & Preserving . Cocoa Fresh Deli Cold Meats . Anchor Golden Cloud Other Blue Ribbon Moirs Cadbury Enterprise Eskort Biscuits & Rusks Fresh Desserts Cold Sauce Bakers Oreo Ryvita Barni Other Clover Parmalat First Choice Ultra Mel Tabasco Bread & Rolls Creamer . Frozen Fish & Seafood Albany Sasko Other Cremora Sea Harvest Canned/Bottled Goods Dried Fruit & Nuts . Frozen Potatoes Products Bull Brand Glenryck Lucky Star Dursots Koo Rhodes Other Safari Mc Cain Carbonated Softdrinks . Edible Oil Frozen Vegetables . Coca Cola Jive Refreshhh Coo EE Kingsley Sparletta Fanta Other Sprite Pepsi Twizza Excella Sunfoil Mc Cain Energy Drinks . Grain . ACE Super B Iwisa White star Lucozade Score Red Bull Cereals Belvita Iwisa Other Bokomo Jungle FUTURELIFE Morvite Fresh & Frozen Poultry . Instant Coffee . Farmer Brown Café Enrista Laager Ciro Nescafe Jacobs Kronung Wiesenhof Chocolate Slabs . Fresh Cheese . Beacon Cadbury Clover Lancewood Fairview Parmalat

Jam Rice Syrup Juices & Still Drinks Roasted Coffee Tea
. Syrup Akila Golden Delight Aunt Tastic Caroline Spekko . Rhodes Robertson Jamaika Oros Juices & Still Drinks Roasted Coffee Tea Appeltiser Dewfresh Liqui Fruit Below Zero Drink O Pop Marble Gold Bibo Elvin Rani Capri Sun Frutus Rascals Ceres FUSION Roses Halls Sir Juice Tropika Zoom House of Coffees Kloof BOS Higher Living Lipton Five Roses Joko Tetley Freshpak Khoisan Trinco Glen Sauces & Gravies Knorr . Soup UHT Milk & Cream Knorr Royco Bonnita Ketchup Spices . Yellow Fat . All Gold Heinz Knorr Aromat Robertsons First Choice . Mayonnaise . Spreads Black cat Melrose Illovo Nole Hellmans . Milk . Stock Clover First Choice Knorrox Pasta Products . . Sugar Huletts Fattis & Monis

Synergy Analysis: Huletts
Huletts sugar print advertising delivers increased incidence and spend Print delivered a 14 times larger effect R purchases R purchases R purchases 14x Panel purchases value, Adex Adspend, Multiple Regression

                                  
Advertised Brand Adspend Total Print Radio TV Share GotPrintSpend GotRadioSpend GoTVSpend TVandPrint TV& Radio TV & Radio & Print TV Only Print Only JUICES & STILL DRINKS Liqui-fruit 100% KETCHUP All Gold MILK Clover 97% PASTA PRODUCTS FATTI S & MONIS 22 400 63% 3% RICE Spekko 2% 90% Tastic 34 019 12% 88% SOUP Knorr 39 300 17% 83% SPICES & HERBS Robertsons 83 814 SPREADS Black Cat STOCK Knorrox 9% 91% SUGAR Huletts 8% 14% 50% TEA Five Roses Freshpak 65 800 1% 99% Glen YELLOW FAT Rama 96% Stork YOGHURT Nutriday                                            

34 brands met the criteria:
Advertised Brand Adspend Total Print Radio TV Share GotPrintSpend GotRadioSpend GoTVSpend TVandPrint TV& Radio TV & Radio & Print TV Only Print Only BAKING & PRESERVING Golden Cloud 14% 86% BISCUITS & RUSKS Bakers 100% BREAD & ROLLS Albany 6% 3% 91% Sasko 72 870 16% 83% CANNED / BOTTLED GOODS Koo 53 340 97% CANNED / BOTTLEDGOODS Lucky Star 11% 21% 64% CARBONATED SOFTDRINKS Coca Cola 1% 24% 56% CEREALS Jungle 79% COLD SAUCE Tabasco 102,510 CREAMER Cremora EDIBLE OIL Excella Sunfoil 46 555 2 750 93% ENERGY DRINKS Redbull, Lucozade & Score 16,362,701 387,050 2,531,871 12,927,820 2% 15% FRESH DELI COLD MEATS Enterprise 8% 92% FRESH DESSERTS Ultra mel GRAIN Ace 94 366 10% White Star 5% 90%                                                   

7 product category/brands selected:
Advertised Brand Adspend Total Print Radio TV Share GotPrintSpend GotRadioSpend GoTVSpend TVandPrint TV& Radio TV & Radio & Print TV Only Print Only CARBONATED SOFTDRINKS Coca Cola 1% 24% 56% COLD SAUCE Tabasco 102,510 100% ENERGY DRINKS Redbull, Lucozade & Score 16,362,701 387,050 2,531,871 12,927,820 2% 15% 79% SOUP Knorr 39 300 17% 83% SUGAR Huletts 8% 14% 50% TEA Five Roses 3% 97% Freshpak 65 800 1% 99%

Synergy Analysis : ENERGY DRINKS
This suggests continuous print advertising delivers much better results Print delivered a 10 times larger effect R purchases R purchases R purchases 10x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis : CARBONATED SOFTDRINKS
Print delivering 16 times a larger effect than TV or radio R purchases R purchases R purchases 16x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis: SOUP
Print advertising returned good investment for this category Print delivered a 62 times larger effect R purchases R purchases R purchases 62x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis: Knorr Soup
Print advertising for Knorr soup is more positive than TV or radio Print delivered a 10 times larger effect R purchases R purchases 10x Panel purchases value, Adex Adspend, Multiple Regression

Synergy Analysis: COLD SAUCES/Tabasco
Advertising only in print is measurable for Tabasco Sauce N/A R purchases Panel purchases value, Adex Adspend, Multiple Regression

GfK Marketing Mix Evaluator (MME) How we evaluate advertising effectiveness GfK South Africa +60 A ction -50 +70 -65 +25.

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