1. February 2012 Newspaper Creative Benchmark Report Coles

2. It’s a component of the Newspaper Effectiveness Metric which is run by the newspaper industry marketing body, The Newspaper Works. A monthly study designed; To measure and identify the effectiveness of newspaper creative To help improve understanding of how to use newspapers effectively To improve the understanding of the roles newspaper advertising can play To improve the standard of newspaper creative To provide a consistent metric that is accepted as the industry standard

3. Pre/post effectiveness studies, measuring in-market effects and how newspaper work with Television Comparison of creative against category averages Comprehensive analysis of how newspapers can best be used to influence purchase behaviour The Newspaper Works’ effectiveness partner:

4. Recognised industry measures + Newspaper measures Proprietary newspaper measures The Newspaper Works’ effectiveness partner: Ad Recognition Brand Linkage Message Comprehension Brand Equity Impact Role Map Action Map Newspaper Creative Diagnostics

5. Coles Ads Tested To Date November 2008 May 2009 June 2009August 2009 May 2009 March 2010June 2010 February 2011 June 2011

6. This ad was one of three shown to respondents Sample: Australians 16+ Sample size: 99 Test market: Sydney Fieldwork: 5 th -12 th February 2012 Conducted online by Ipsos MediaCT Benchmarks used: Retail Averages (see appendix for details)

7. Ad Appearance: – Sun Herald, Sunday October 23 rd 2011 This ad was one of three shown to respondents Sample: Australians 16+ Sample size: 102 Test market: Sydney Fieldwork: TBC December 2010 Conducted online by Ipsos MediaCT Benchmarks used: Newspaper Norms (see appendix for details) Ad shown as it appeared in the Sun Herald on October 23 rd, 2011 Branded Newspaper Benchmarks

8. Retail Averages Most responses to the creative were positive with high scores achieved for ‘Has a great photo/image’, ‘ Looks good’ and ‘Makes it easy to see whats on offer’

9. Brand linkage was well above Average and Interest levels were very high versus Retail Averages Note: Ad Recognition and Brand Linkage can be affected by weight of campaign and timing of research Significantly different to Retail Average at 90% c.l. Retail Averages

10. Respondents found the message to be significantly appropriate or relevant for Coles to advertise Significantly different to Retail Average at 90% c.l. Retail Averages

11. While only 37% of respondents played back specific messages from the advertising, a further 55% were able to position it in the right context. 43% of those would have become ‘correct’ had they offered a small amount of further information e.g. some wrote ‘Meat kebabs’ or ‘Aussie Day BBQ’

12. What did the respondents say about the ad? Similarly cluttered like other supermarket adverts Well the ad is very well done as it grabs your attention and is very appetising. In other words I'd buy the product. The ad is really great, especially with the picture really clear and appealing, eye catching really caught my attention I liked that the prices are on the ad so you don't have to go in to the store to find out the price. Attention grabbimg Aussie made is good Good to show pricing It appears like a page out of a catalogue Like that the Australian made logo/stamp is clearly visible I believe the Made in Australia angle is very important to any company.

13. The word cloud leaves no doubt what people perceive as the main message of the ad.

14. Respondents agree this ad makes them think of the TV advertising, with this ad achieving significantly high scores for Extension. This ad also helps drive brand Affinity at significantly high levels. Significantly different to Retail Average at 90% c.l. Retail Averages

15. The ad achieves significantly high scores at generating product purchase and store visitation intentions, which is obviously the key objective of any supermarket advertising. It is highly effective at achieving these objectives. Significantly different to Retail Average at 90% c.l. % scores Retail Averages

16. Comparison with other ads

17. Comparing Some of Coles’ Action Map Results The ‘1/2Price’ DPS from Feb ‘11 has achieved the highest scores for both ‘Try/buy’ and ‘Visit Store/Look out for’. Worth noting that statistically, the difference between a 35% score and a 31% score is not meaningful. %

18. Our Supermarket Top Ten* : ActionMap results for ‘Visit Store’ * Of 15 tested against ActionMap metric, introduced March 2010 Coles holds 5 out of the Top Ten for driving supermarket visitation through their newspaper advertising.

19. All Retail Categories: “Visit Store” 47 43 36 The retail advertising that generates the highest likelihood of store visitation appears to have one of two qualities. 1)A surprising change or unique approach (triggering Reappraisal) 2)Lots of choice! (a strong retail offer)

20. Off the back of their ‘No added hormones’ Beef campaign, this ad for Coles has received very high scores against Extension and Affinity It is highly motivating towards product purchase and store visitation which means this ad has been a highly effective Newspaper ad for Coles In terms of call to action metrics, it has a similar level of effectiveness to the highly successful ‘Feed Your Family’ execution. Coles now dominates our Supermarket ‘Top Ten’ for driving store visitation, with 5 out of the ten spots.

21. Top Performers on Rolemap

22. 6.2x Higher than norm 5x Higher than norm 2.1x Higher than norm 2.9x Higher than norm 7.8x Higher than norm 3.8x Higher than norm All newspaper norm. Dec 2011 (Updated monthly)

24. Established in 2006 by the major Australian newspaper publishers: – News Limited – Fairfax Media (including Rural Press) – APN News and Media – West Australian Newspapers Represents paid national, metropolitan, regional and community titles. Primary aims: – To promote newspapers as a powerful medium for advertisers – To ensure that newspapers are perceived as being contemporary and relevant in a transforming media landscape

25. Testing of randomly selected and hand picked newspaper display ads Over 7,000 ad observations in total 36 test ads (27 randomly selected, 9 hand picked) 100+ observations per ad Population representative sample of the five mainland state capitals Conducted online by Ipsos Media CT, July-August and October – November 2008 Sample size 2,475

26. Newspapers are a powerful medium to utilise across a broad range of strategic roles. Six strategic advertising roles have been validated both qualitatively and quantitatively, resulting in the creation of Role Map, one of two proprietary newspaper metrics. Role Map demonstrates how consumers connect with newspaper advertising across the six roles, comparing the performance of creative against a footprint of all ads tested. Retail average Statements are tailored to be appropriate to the advertising category.

27. Newspapers are recognised as an effective medium for delivering a Call to Action. Action Map, the third proprietary newspaper metric, expands on this strategic role to provide an understanding of the types of action a newspaper ad inspires. Measured via forced exposure, people are asked about the actions they would consider taking (or have taken) as a result of seeing the ad. New measure introduced in March 2010, norm not yet available.

28. Another proprietary newspaper metric provides a set of creative diagnostics unique to the attributes of newspaper advertising. They’ve been developed to help identify areas for improvement where results across other brand and advertising measures may require further analysis and interrogation. Retail average Statements are tailored to be appropriate to the advertising category.