Gf K Marketing Mix Evaluator MME How we

Gf. K Marketing Mix Evaluator (MME) How we evaluate advertising effectiveness Gf. K South Africa +60 A ction © Gf. K March 2017 | PRC Marketing Mix Evaluator -50 +70 -65 +25 1

1 Elements of the perfect marketing mix 2 Why is it so important to get your mix right? 4 Time to remix © Gf. K March 2017 | PRC Marketing Mix Evaluator 2

Synergy Study Situatio n Situation To measure the relative effects of different advertising strategies across media channels and with particular impact that print plays in ROI Approach 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 Outcome 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. © Gf. K March 2017 | PRC Marketing Mix Evaluator 3

How did we get all this valuable data? Gf. K 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 2015 B and Stats SA annual mid-year population estimates fully representing 13. 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 2250 Household incidence across 6 months data used • • PRC supplied Gf. K 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 © Gf. K December 15, 2016 | Remaster your trade marketing to create the perfect promotional tune © Gf. K 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 r 2 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 © Gf. K March 2017 | PRC Marketing Mix Evaluator 5

1 Elements of the perfect tune 2 Why is it so important to get your mix right? 4 Time to remix © Gf. K March 2017 | PRC Marketing Mix Evaluator 6

Gf. K selected 40 product categories and 154 brands for synergy analysis – specific criteria were implemented to conduct the study: 1 2 3 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 Category/ product selection qualifying criteria: • Product monthly penetration greater than 4% in panel data • Total media ad spend greater than R 100 k • Significant variance in the data 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 R 1. 00 spent what the return is on your Rand But what was conclusively proved was that Its all about SYNERGY to achieve optimum ROI! © Gf. K March 2017 | PRC Marketing Mix Evaluator Competitive advantage profitable sales higher ROI 7

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 R 1. 00 spent what is the return on your Rand For every R 1. 00 we get… Beverages CSDS – Coca Cola Energy Drinks Tea – Five Roses, Freshpak R 1. 01 100% R 0. 45 45% Dry Groceries Soup – Knorr Soup Sauces – Tabasco Sugar – Huletts R 0. 10 10% TV & PRINT TV, RADIO & PRINT TV & RADIO *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. © Gf. K March 2017 | PRC Marketing Mix Evaluator 8

1 Elements of the perfect mix 2 Why is it so important to get your tune right? 4 Time to remix © Gf. K March 2017 | PRC Marketing Mix Evaluator 9

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 400 350 20 300 250 15 200 10 150 100 5 50 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Household purchases (R’m) Adspend (TV R’m Others R’ 000) 25 R 0. 01 purchases 8 x R 0. 08 purchases R 0. 00 purchases Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 10

Synergy Analysis: TEA Print in the Total Tea category delivers a measurable effect Print delivered a 68 times larger effect 350 300 10 250 8 200 6 150 4 100 2 50 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Household purchases (R’m) Adspend (TV R’m Others R’ 000) 12 R 0. 01 purchases R 0. 68 purchases 68 x R 0. 00 purchases Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 11

Synergy Analysis : Five Roses Tea Print advertises delivers 36 times the effect of TV advertising! Print delivered a 36 times larger effect 70 60 2 50 1. 5 40 30 1 20 0. 5 10 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Household purchases (R’m) Adspend (TV R’m Others R’ 000) 2. 5 R 0. 00 purchases R 0. 36 purchases 36 x Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 12

Brand Case Study : Freshpak Print advertises delivers 33 times the effect of TV advertising! 80 70 2 60 50 1. 5 40 1 30 20 0. 5 10 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Print delivered a 33 times larger effect Household purchases (R’m) Adspend (TV R’m Others R’ 000) 2. 5 R 0. 05 purchases R 1. 65 purchases 33 x Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 13

Synergy Analysis : SUGAR Continuous presence increased incidence and spend for the sugar category 1. 8 Adspend (TV R’m Others R’ 000) Print delivered a 15 times larger effect 580 560 1. 6 540 1. 4 520 1. 2 1. 0 500 0. 8 480 0. 6 460 0. 4 440 0. 2 0. 0 420 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator Household purchases (R’m) 2. 0 R 0. 06 purchases R 0. 88 purchases 15 x R 0. 00 purchases 14

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

THANK YOU Molemo. Moahloli@gfk. com Sally. rothman@gfk. com Joe. Boniaszczuk@gfk. com © Gf. K March 2017 | PRC Marketing Mix Evaluator 16

Appendix © Gf. K 2012 | Title of presentation | DD. Month 2012 17

Full set of brands analysed: Baking & Preserving • • Anchor Blue Ribbon Other • Bakers Barni • • • Oreo Other Ryvita • • • Canned/Bottled Goods Bull Brand • Dursots • Glenryck Koo Sasko • • Lucky Star Rhodes Other Carbonated Softdrinks • • • Coca Cola • Coo EE • Fanta • • Jive Kingsley Other Pepsi Cereals • • • Belvita • Bokomo • FUTURELIFE • Iwisa Jungle Morvite • • Refreshhh Sparletta Sprite Twizza • Other . Chocolate Slabs • • Tabasco Creamer • Albany Other Beacon Cadbury © Gf. K March 2017 | PRC Marketing Mix Evaluator • . Edible Oil • • Score Fresh & Frozen Poultry Clover Fairview • • ACE Iwisa • • Super B White star . Instant Coffee • • • Farmer Brown . Fresh Cheese • • Mc Cain Grain. • Sea Harvest Mc Cain • Drinks Lucozade Red Bull Fish & Seafood . Frozen Vegetables Excella Sunfoil . Energy Parmalat Ultra Mel Frozen Potatoes Products Dried Fruit & Nuts Safari • • Clover First Choice . Frozen Cremora • Deli Cold Meats Enterprise Eskort Fresh Desserts Cold Sauce Bread & Rolls • • Cadbury Biscuits & Rusks • • . Fresh Cocoa . Golden Cloud • Moirs Café Enrista Ciro Jacobs Kronung • • • Laager Nescafe Wiesenhof Lancewood Parmalat 18

Rice. Jam • • • Rhodes Robertson Appeltiser Below Zero Bibo Capri Sun Ceres • • • Dewfresh Drink O Pop Elvin Frutus FUSION Halls • • Liqui Fruit Marble Gold Rani Rascals Roses Sir Juice Tropika Zoom Ketchup • • Tastic • . . . © Gf. K March 2017 | PRC Marketing Mix Evaluator . BOS Five Roses Freshpak Glen • • • Higher Living • Joko • Khoisan • Soup UHT Milk & Cream • • • Knorr Royco Lipton Tetley Trinco Bonnita . Yellow Fat Knorr Aromat Robertsons • First Choice Spreads Black cat Illovo • • Melrose Nole Stock • First Choice . Pasta Products • Fattis & Monis • • Knorr • • Milk Jamaika Oros Tea Sauces & Gravies • • • . Syrup • House of Coffees Kloof Hellmans Clover • Golden Delight Spekko . Spices Mayonnaise . • • • All Gold Heinz • • Roasted Coffee Juices & Still Drinks • • • Akila Aunt Caroline Knorrox Sugar • Huletts 19

Synergy Analysis: Huletts sugar print advertising delivers increased incidence and spend 2 200 1. 8 180 1. 6 160 1. 4 140 1. 2 120 1 100 0. 8 80 0. 6 60 0. 4 40 0. 2 20 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Household purchases (R’m) Adspend (TV R’m Others R’ 000) Print delivered a 14 times larger effect R 0. 06 purchases R 0. 83 purchases 14 x R 0. 00 purchases Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 20

Advertised Brand JUICES & STILL DRINKS Liqui-fruit KETCHUP All Gold MILK Clover PASTA PRODUCTS FATTI S & MONIS RICE Spekko RICE Tastic SOUP Knorr SPICES & HERBS Robertsons SPREADS Black Cat STOCK Knorrox SUGAR Huletts TEA Five Roses TEA Freshpak TEA Glen YELLOW FAT Rama YELLOW FAT Stork YOGHURT Nutriday Adspend Total Adspend Print Adspend Radio Adspend TV Share Print Share Radio Share Got. Print Got. Radi Go. TVSp TVand. Pr TV& TV Spend o. Spend int Radio 26 360 200 100% 6 371 400 100% 449 767 438 085 97% 728 958 460 000 22 400 63% 3% 16 630 980 412 180 14 939 600 2% 90% 7 147 919 34 019 857 500 6 256 400 12% 88% 17 955 870 39 300 3 065 020 14 851 550 17% 83% 29 545 849 83 814 29 462 035 100% 7 030 500 5 709 191 514 691 5 194 500 9% 6 445 320 503 286 3 197 000 8% 6 464 048 217 248 6 246 800 3% 97% 5 178 300 65 800 5 112 500 1% 99% 890 623 2 092 300 91% 14% 2 092 300 40 831 458 199 943 351 788 54 989 261 154 351 1 237 445 39 092 100 3% 50% 100% 96% 100% 54 609 910 99% TV & Radio TV Only & Print Only 21

34 brands met the criteria: Advertised Brand BAKING & PRESERVING Golden Cloud BISCUITS & RUSKS Bakers BREAD & ROLLS Albany BREAD & ROLLS Sasko CANNED / BOTTLED GOODS Koo CANNED / BOTTLEDGOODS Lucky Star CARBONATED SOFTDRINKS Coca Cola CEREALS Jungle COLD SAUCE Tabasco CREAMER Cremora EDIBLE OIL Excella EDIBLE OIL Sunfoil ENERGY DRINKS Redbull, Lucozade & Score FRESH DELI COLD MEATS Enterprise FRESH DESSERTS Ultra mel GRAIN Ace GRAIN Adspend Total Adspend Print 9 122 793 Adspend Radio Adspend TV Share Print 1 251 484 7 832 500 14% 38 243 512 164 872 38 078 640 22 522 355 1 346 992 740 316 20 411 245 18 372 144 72 870 2 965 694 15 261 500 1 572 589 1 519 249 53 340 23 326 735 2 592 654 4 808 419 149 760 589 2 096 725 35 338 728 8 472 404 1 779 222 102, 510 10 019 190 323 840 6% Share Radio Share Got. Print Got. Radi Go. TVSp TVand. Pr TV& TV Spend o. Spend int Radio 86% 100% 3% 91% 16% 83% 97% 3% 14 977 900 11% 21% 64% 83 409 773 1% 24% 56% 6 693 182 21% 79% 100% 9 695 350 2 855 000 3% 97% 2 855 000 100% 757 305 46 555 2 750 708 000 6% 16, 362, 701 387, 050 2, 531, 871 12, 927, 820 2% 10 806 226 854 026 9 952 200 8% 4 266 749 93% 15% 79% 92% 4 266 749 100% 9 703 251 988 212 94 366 8 331 556 10% 1% 86% 27 692 078 665 421 1 306 599 24 983 750 2% 5% 90% Print Only 22 TV & Radio TV Only & Print

7 product category/brands selected: Advertised Brand CARBONATED SOFTDRINKS Coca Cola COLD SAUCE Tabasco ENERGY DRINKS Redbull, Lucozade & Score SOUP Knorr SUGAR Huletts TEA Five Roses TEA Freshpak Share Got. Print Got. Radi Go. TVSp TVand. Pr TV& TV Spend o. Spend int Radio TV & Radio TV Only & Print Adspend Total Adspend Print Adspend Radio Adspend TV Share Print Share Radio 149 760 589 2 096 725 35 338 728 83 409 773 1% 24% 102, 510 16, 362, 701 387, 050 2, 531, 871 12, 927, 820 17 955 870 39 300 3 065 020 14 851 550 6 445 320 503 286 890 623 3 197 000 8% 6 464 048 217 248 6 246 800 3% 97% 5 178 300 65 800 5 112 500 1% 99% 56% 100% 2% 15% 79% 17% 83% 14% 50% Print Only 23

Synergy Analysis : ENERGY DRINKS This suggests continuous print advertising delivers much better results 80 6 Adspend (TV R’m Others R’ 000) Print delivered a 10 times larger effect 90 70 5 60 4 50 3 40 30 2 20 1 10 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Household purchases (R’m) 7 R 0. 00 purchases R 3. 09 purchases 10 x R 0. 30 purchases Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 24

Synergy Analysis : CARBONATED SOFTDRINKS Print delivering 16 times a larger effect than TV or radio 1200 30 1000 25 800 20 600 15 400 10 200 5 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Household purchases (R’m) Adspend (TV R’m Others R’ 000) 35 R 0. 01 purchases 16 x R 0. 16 purchases R 0. 00 purchases Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 25

Synergy Analysis: SOUP Print advertising returned good investment for this category 250 Adspend (TV R’m Others R’ 000) 4 200 3. 5 3 150 2. 5 2 100 1. 5 1 50 0. 5 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator Print delivered a 62 times larger effect Household purchases (R’m) 4. 5 R 0. 01 purchases R 0. 62 purchases 62 x R 0. 00 purchases 26

Synergy Analysis: Knorr Soup Print advertising for Knorr soup is more positive than TV or radio 4 160 3. 5 140 3 120 2. 5 100 2 80 1. 5 60 1 40 0. 5 20 0 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Household purchases (R’m) Adspend (TV R’m Others R’ 000) Print delivered a 10 times larger effect R 0. 00 purchases R 0. 10 purchases 10 x R 0. 00 purchases Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 27

Synergy Analysis: COLD SAUCES/Tabasco 80 140 70 120 60 100 50 80 40 60 30 40 20 20 10 0 Household purchases (R’m) Adspend (TV R’m Others R’ 000) Advertising only in print is measurable for Tabasco Sauce R 1. 76 purchases N/A 0 May Jun Adspend_TV (R'm) Jul Adspend_Radio (R'000) Aug Sep Oct Adspend_Print (R'000) Purchases (Rm) Panel purchases value, Adex Adspend, Multiple Regression © Gf. K March 2017 | PRC Marketing Mix Evaluator 28