HEAD & SHOULDERSDirect Mailing Results

July 2011

Introduction

•235 000 customers sent a ClubCard endorsed direct mail pack with Head & Shoulders information and dandruff tester strip

• Targeted to ClubCard active customers, who bought a shampoo or conditioner in last 12 months

•Excluding existing H&S buyers

•Mail date: 19 April 2011

•Campaign period measured: 20 April – 3 June 2011

• No offer – dandruff tester strip included (involvement device)

• Mailed in English & Afrikaans.

Creative

Response

Mail qty Sales % response

235 000 5395 2.30%

Number of mailed customers who bought H&S products between 20 April and 3 June 2011

Total ‘sales’ from mailed group

Mailed Total ‘sales’

% No/customer

235 000 6055 2.58 1.12

Total number of H&S sales from mailed group

Sales by sku

6

Top performers

SKU Number and Description# customers who

bought H&S product*

Total # of H&S

products bought

0104874 HEAD & SHOULDERS CLASSIC CLEAN 2IN1 200ML 583 610

0104876 HEAD & SHOULDERS CITRUS FRESH 200ML 305 312

0104879 HEAD & SHOULDERS CLASSIC CLEAN 200ML 285 300

0104881 HEAD & SHOULDERS COOL MENTHOL 200ML 273 279

0104883 HEAD & SHOULDERS OCEAN SPA 200ML 249 251

0104897 HEAD & SHOULDERS VOLUME BOOST 200ML 76 79

0104916 HEAD & SHOULDERS CLASSIC CLEAN 2IN1 400ML 612 650

0104918 HEAD & SHOULDERS SENSITIVE CARE 400ML 248 256

0104921 HEAD & SHOULDERS SMOOTH & SILKY 400ML 237 247

0104923 HEAD & SHOULDERS SOOTHING CARE 400ML 393 407

0104930 HEAD & SHOULDERS CITRUS FRESH 400ML 253 261

0104932 HEAD & SHOULDERS CLASSIC CLEAN 400ML 265 281

0104934 HEAD & SHOULDERS COOL MENTHOL 400ML 290 300

0104937 HEAD & SHOULDERS OCEAN SPA 400ML 250 266

0119391 HEAD & SHOULDERS SHAMPOO DAMAGE RESCUE 400ML 230 235

0128533 HEAD & SHOULDERS ANTIHAIRLOSS SHAMP 200ML 223 234

0128668 HEAD & SHOULDERS ANTIHAIRLOSS SHAMP 400ML 193 201

0187209 HEAD & SHOULDERS CLASSIC CLEAN 750ML 215 218

0187210 HEAD & SHOULDERS MENTHOL SHAMP 750ML 182 189

0187212 HEAD & SHOULDERS CITRUS SHAMP 750ML 202 204

0187213 HEAD & SHOULDERS CLASSIC 21 SHAMP 750ML 264 275

Total 5,828 6,055

unique # of customers who bought 5,395

Featured on front of letter

*customers may have bought >1 H&S product

Comparison

7

Month prior to mailing

Measured sales period

4/3 - 19/4/2011 20/4 - 3/6/2011 % increase

ClubCard customers mailed who bought H&S 0 5,395  

Total ClubCard customer sales of H&S 27926 29049 4.02

Total customers buying H&S (CC + non-CC customers) 30383 31277 2.94

H&S product sales from CC customers mailed 0 6055  

Total H&S product sales from all ClubCard customers 31118 31775 2.11

Total product sales of H&S (from CC + non-CC customers) 44064 45026 2.18

Observations and Conclusions

1. Despite the fact that the pack did not include an offer or a response deadline, the response rate in the 6-week measured sales period from customers mailed was good at 2.3%.

2. Because there was no offer to purchase from a Clicks store specifically, the mailing could have prompted customers to buy an H&S product at any retail store. This impact cannot be measured.

3. An increase of 4% in total ClubCard customers buying an H&S product was seen during the 6-week measured sales period compared to the previous 6-week period (29 409 vs 27 926). It is quite possible there will be additional sales after the measured sales period, from the customers mailed.

4. Because the mailing selection excluded existing H&S buyers, the 5395 who bought H&S are brand new H&S buyers who may buy again if they are satisfied with the product.

5. It appears that ‘Classic Clean’ is the so-called ‘flagship’ product variant, as is evident by the number of customers and product sales. What is interesting is that the ‘Soothing Care’ product variant that was featured on the front of the letter enjoyed a higher response than the remaining variants. One could conclude that this exposure increased awareness and resulting sales of that particular product variant.

6. This mailing will have done an excellent brand and educational job with consumers that will be realised over time with increased sales.

7. The investment in this campaign needs to be viewed from a long-term customer lifetime value perspective, i.e. customers who purchased Head & Shoulders for the first time will repeat purchase.

Recommendations

9

1. For maximum return on investment from a ClubCard direct mailing we recommend:

1. inclusion of an offer (rands off, points, competition, etc.) for in-store redemption

2. an expiry date to drive urgency.

2. Future mailings could include tests. These could take the form of:

1. different offers (different rands off values; points, competitions, etc.)

2. the inclusion / exclusion of the dandruff tester strip

3. support the mail pack by using additional supporting Clicks channels around the same mailing period.