CONFIDENTIAL

Results of DM pilot in FMCG sector

IS-03

2

FMCG PILOT CAMPAIGN AND MARKET RESEARCH SETUP

Activate purchase

Hard discount shoppers

ATL only (reference group)ATL + free pressATL + unaddressed mailingATL + DM

1600 phone interviews

Campaign goal

Target customers

DISGUISED EXAMPLEIN FMCG SECTOR

Media mix

Market research method

Source:Market research, 2005; Team analysis

3

KEY MESSAGES

Source:Team analysis

The results presented in this document were obtained during a pilot in the FMCG sector (for player A); media involved were DM, unaddressed mailing, and Free Press, all with coupons; an ATL campaign (press) was running in parallel, focusing on brand equity building; target customers were Hard Discount shoppers

The results of the market research show that DM is a well suited medium to trigger coupon usage, as well as to build brand image.

– A Direct Mail campaign increases intention to use coupons compared to unaddressed and Free Press (+88% for DM versus Free Press)

– Media with coupons improve brand perception on all brand attributes and help to bridge the gap with Hard Discounters products.

– DM shows a better recall rate than ATL media

4

PILOT SET UP

Group 2

Addressed mail + ATL

Group 2

Addressed mail + ATL

Group 3a

Unadressed Delta Media + ATL

Group 3a

Unadressed Delta Media + ATL

Group 1

Free press +ATL

Group 1

Free press +ATL

Group 4

Reference group(ATL only)

Group 4

Reference group(ATL only)

Number of market research interviews

402

400

391

401

Total: 2001 interviews

Interviewed customers have a hard discount shoppers profile

Interviewed customers have a hard discount shoppers profile

DISGUISED EXAMPLEIN FMCG SECTOR

Group 3b

Unadressed DistriPost + ATL

Group 3b

Unadressed DistriPost + ATL

407

5

KEY MESSAGES

Source:Team analysis

The results presented in this document were obtained during a pilot in the FMCG sector (for player A); media involved were DM, unaddressed mailing, and Free Press, all with coupons; an ATL campaign (press) was running in parallel, focusing on brand equity building; target customers were Hard Discount shoppers

The results of the market research show that DM is a well suited medium to trigger coupon usage, as well as to build brand image.

– A Direct Mail campaign increases intention to use coupons compared to unaddressed and Free Press (+88% for DM versus Free Press)

– Media with coupons improve brand perception on all brand attributes and help to bridge the gap with Hard Discounters products.

– DM shows a better recall rate than ATL media

6

KEY MESSAGES

Source:Team analysis

The results presented in this document were obtained during a pilot in the FMCG sector (for player A); media involved were DM, unaddressed mailing, and Free Press, all with coupons; an ATL campaign (press) was running in parallel, focusing on brand equity building; target customers were Hard Discount shoppers

The results of the market research show that DM is a well suited medium to trigger coupon usage, as well as to build brand image.

– A Direct Mail campaign increases intention to use coupons compared to unaddressed and Free Press (+88% for DM versus Free Press)

– Media with coupons improve brand perception on all brand attributes and help to bridge the gap with Hard Discounters products.

– DM shows a better recall rate than ATL media

7

COMPARED TO FREE PRESS, DM LEADS TO 88% INCREASE IN INTENTION TO USE COUPONS

Source: Market research on 2001 customers; Team analysis

Sales activation funnel

Media received

Percentage of respondents

‘Do you remember seeing any ad in Free Press /receiving a mailing for player A recently?’

‘Did you notice the reduction coupons in the ad / mailing for player A?’

Free Press + ATL 100 25 18 17

Unaddressed + ATL

100 47 32 29– DistriPost

– Delta Media 100 32 23 22

DM + ATL 100 47 35 32

25

47

32

47

85

68

72

75

94

91

95

92

Media recall Coupon recallIntention to use at least one couponMedia recallMedia received

(x) Total sample size

(400)

(407)

(391)

(402)

+ 88%

‘Do you have the intention to use at least one of the reduction coupons?’

DISGUISED EXAMPLEIN FMCG SECTOR

8

KEY MESSAGES

Source:Team analysis

The results presented in this document were obtained during a pilot in the FMCG sector (for player A); media involved were DM, unaddressed mailing, and Free Press, all with coupons; an ATL campaign (press) was running in parallel, focusing on brand equity building; target customers were Hard Discount shoppers

The results of the market research show that DM is a well suited medium to trigger coupon usage, as well as to build brand image.

– A Direct Mail campaign increases intention to use coupons compared to unaddressed and Free Press (+88% for DM versus Free Press)

– Media with coupons improve brand perception on all brand attributes and help to bridge the gap with Hard Discounters products.

– DM shows a better recall rate than ATL media

9

Player A: customers from reference group who assessed Hard Discounter A or B

PLAYER A HAS BETTER BRAND PERCEPTION THAN HARD DISCOUNTERS ON ALL DIMENSIONS EXCEPT PRICE

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

0

20

40

60

80

100Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers, November 21 – November 30, 2005; Team analysis

Percentage of respondents

Player A

Hard Discounter A

Hard Discounter B

DISGUISED EXAMPLEIN FMCG SECTOR

10

MEDIA WITH COUPONS IMPROVE PLAYER A PERCEPTION ON SEVERAL KEY DIMENSIONS, WITH EVEN STRONGER IMPACT FOR DM, DISTRIPOST AND DELTAMEDIA…

'To which extent do you agree with the following statements concerning player A?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

DM

DistriPost

0

20

40

60

80

100

Percentage of respondents

DeltaMedia

Free Press

ATL only

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food

DISGUISED EXAMPLEIN FMCG SECTOR

11

DM REINFORCES PERCEPTION OF PLAYER A ON MOST ATTRIBUTES, ESPECIALLY PRICE WHERE IT BRIDGES THE GAP WITH HARD DISCOUNTERS

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

Percentage of respondents

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 1594 customers; Team analysis

0

20

40

60

80

100Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Very tasty products

Nutrition specialistPlays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food

Player A: customers from reference group who assessed Hard Discounter A or B

DISGUISED EXAMPLEIN FMCG SECTOR

Player A, DM

Hard Discounter A

Hard Discounter B

Player A, ATL

12

…BRIDGING THE GAP WITH HARD DISCOUNTERS ON PRICE – DM

0

20

40

60

80

100

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

Percentage of respondents

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food Player A:

customers from reference group who assessed Hard Discounter A or B

Player A, DM

Hard Discounter A

Hard Discounter B

Player A, no media

DISGUISED EXAMPLEIN FMCG SECTOR

13

…BRIDGING THE GAP WITH HARD DISCOUNTERS ON PRICE – DISTRIPOST

0

20

40

60

80

100

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

Percentage of respondents

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food Player A:

customers from reference group who assessed Hard Discounter A or B

Player A, Distripost

Hard Discounter A

Hard Discounter B

Player A, no media

DISGUISED EXAMPLEIN FMCG SECTOR

14

…BRIDGING THE GAP WITH HARD DISCOUNTERS ON PRICE – DELTAMEDIA

0

20

40

60

80

100

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

Percentage of respondents

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food Player A:

customers from reference group who assessed Hard Discounter A or B

Player A, Deltamedia

Hard Discounter A

Hard Discounter B

Player A, no media

DISGUISED EXAMPLEIN FMCG SECTOR

15

…BRIDGING THE GAP WITH HARD DISCOUNTERS ON PRICE – FREE PRESS

0

20

40

60

80

100

'To which extent do you agree with the following statements concerning the following brands?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

Percentage of respondents

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food Player A:

customers from reference group who assessed Hard Discounter A or B

Player A, Free press

Hard Discounter A

Hard Discounter B

Player A, no media

DISGUISED EXAMPLEIN FMCG SECTOR

16

KEY MESSAGES

Source:Team analysis

The results presented in this document were obtained during a pilot in the FMCG sector (for player A); media involved were DM, unaddressed mailing, and Free Press, all with coupons; an ATL campaign (press) was running in parallel, focusing on brand equity building; target customers were Hard Discount shoppers

The results of the market research show that DM is a well suited medium to trigger coupon usage, as well as to build brand image.

– A Direct Mail campaign increases intention to use coupons compared to unaddressed and Free Press (+88% for DM versus Free Press)

– Media with coupons improve brand perception on all brand attributes and help to bridge the gap with Hard Discounters products.

– DM shows a better recall rate than ATL media

17

DM AND DISTRIPOST HAVE HIGHER RECALL RATE THAN OTHER MEDIA

DM

Distripost

ATL (press)*

Delta Media

Free Press

Internet banner**

*Respondents from reference group to avoid influence of other media**Respondents with internet connection at home or work recalling banner on websiteSource: Market research on 2001 customers; Team analysis

3

25

27

32

47

47

+74%+90%

"Do you remember seeing any ad in Free Press /receiving a mailing for Player A recently?"

Percentage of respondentsDISGUISED EXAMPLE

IN FMCG SECTOR

18

MEDIA WITH COUPONS SCORE BETTER THAN ATL ON ALL DIMENSIONS

'To which extend do you agree with the following statements concerning the ad for Player A?*' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

The ad/mailing convinced me to purchase more often

The ad/mailing provides credible information

DM

DistriPost

DeltaMedia

Free Press

0

20

40

60

80

100

ATL only (press)

The ad/mailing improves my perception of Player A

The ad/mailing provides me with new information

I like the ad/mailing

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agreeSource: Market research on 2001 customers; Team analysis

Percentage of respondents recalling mediaDISGUISED EXAMPLE

IN FMCG SECTOR

19

DM IS THE MEDIA WITH COUPONS WHICH IMPROVES BRAND PERCEPTION THE MOST

'To which extent do you agree with the following statements concerning player A?' Rating on a scale 1 to 4*; % Completely or somewhat agree (% of 3 or 4)

DM

DistriPost

50

70

90

110

Percentage of respondents

DeltaMedia

Free Press

ATL only

* 1: I completely disagree, 2: I somewhat disagree, 3: I somewhat agree, 4: I completely agree; Does not take into account respondents answering ‘Don’t know’Source: Market research on 2001 customers; Team analysis

Brand I trust

Brand I feel close to

Brand offering healthier products than other brands

Attribute 4

Very tasty productsNutrition specialist

Plays a role in our society

Offers good value for money

Brand bringing something more than other brands to my food

Essential for my daily food

DISGUISED EXAMPLEIN FMCG SECTOR