1. A-Plus: understanding the customer and leveraging your relationship with them

2. Agenda

• Who are our Club Members

• Club Benefits

• Club Magazine, Supplements and Calendar

• Leveraging Events

• Managing the Process

• A recipe for success

3. Background/setting the scene

• The A-Plus Card and Club was launched 1994 in Ackermans.

• 314 000 active A-Plus Cardholders

• Launched A-Plus Card in multi-brands of The Baby Company, Home Comforts, Hang Ten, Jay Jays, Cube and Shoe City in 2006

• 115 000 Club members

• Club available in Ackermans and Shoe City

• Current model: Opt in paid for club for A-Plus Card holders only

• Club members pay R14.50 p/m for a host of benefits

4. Club Demographic breakdown Gender Club members Club % Female 80009 69% Male 35546 31% Unknown 0 0% Language Club members Club % Unknown 15168 13% Afrikaans 29124 25% English 71263 62% Age Brackets Club members Club % less than 18 0 0% 18-24 3092 3% 25-34 30243 26% 35-44 42413 37% 45-54 26144 23% 55-64 10200 9% 65 or older 3463 3%

5.

• They keep their accounts for longer

• • Main account retention = 62%

• • Club members = 84%

• 40% of account holders are also club members

• They spend more

• They keep their accounts more up to date

Why are Club Members more valuable?

6.

• A-Plus Club Magazine, Account Protection Plan and Competitions and lucky draws were regarded as the most valuable benefits.

• 28% of A-Plus Members also belong to other retail clubs (eg. Foschini, Jet and Edgars)

• 61% of respondents rate the A-Plus Club better than other retail clubs.

Findings of Club research April 08

7. Club Benefits

• A-Plus Club Magazine every second month and 2 Supplements a year

• Funeral Cover of up to R10 000 (R6000 for the main member R4000 for the Spouse)

• Free access to our Dial-a-teacher tutoring service

• Free bursaries to the value of R25 000 every 2 nd month

• Discounts of up to 20% on GPs consultations fees

• Free Roadside Assistance

• Access to the A-Plus Helpline

• Invitations to exclusive members only club events

8. Club Magazine: History First Club Magazine launched in 1996

9. Club Magazine: Today

10. Club Magazine: Refreshed Sept 2010

11. A-Plus Supplements

12. A-Plus Supplements

• Increased communication with our club members

• Engagement strategy:correct product - correct content - correct target market

• Merchandising: showcasedepth of product range/s

• An effort to continually drive feet-through-the door

• Advertising revenue opportunity including sponsorships

• Increased paper quality on supplements to lift image and appeal of Ackermans

• Widening the net: utilisation of other focused/targeted mediums like CT/Dbn/Gauteng Child Magazines

13. A-Plus Calendar

• R275 000 sponsorship deal with Old Mutual in 2008

• R325 sponsorship with Hollard Direct in 2009

• Reward club members with gifts that add value to their lives

• Interactive concepts eg Recipe Calendar; Art etc

• Branding opportunity for Ackermans and third party

• advertisers that has longevity

14. A-Plus Calendar

15. Club Magazine: Ad Revenue 360% growth over a 5 year period!!!!

16. Club Magazine: The Reader She is confident, secure, and open to new solutions that will enhance her familys lifestyle. She has a busy life and is able to juggle her many roles and responsibilities.

17. AMPS Competitor information A-Plus Jet Edgars Foschini

18. AMPS Competitor information A-Plus Jet Edgars Foschini

19. AMPS Competitor information A-Plus Jet Edgars Foschini

20. AMPS Competitor information A-Plus Jet Edgars Foschini

21. AMPS Competitor information A-Plus Jet Edgars Foschini

22. Club Magazine: New Positioning

• The 2010 Customer, no frills affluent

• They are not battling; but

• they are budgeting, making money stretch further;

• coping - buying what they need, buying fewer, but better;

• resistant to debt; dont want credit

• labels less important; those who buy into labels

• less seasonality, more longevity

• try new brands

• emotional - more emotional sell, more investment

• When times get tough, the tough get efficient!

• Source: Anthony Swart, Director, The Brand Union

23. New Positioning

• Emotional comfort

• real everything people, buying experience;

• stories give them something to talk about;

• expectations reality;

• integrity dont make me buy what I dont want;

• value to the point of even valuing how you invest in CSI

• activity

• Anxiety around recession is subsiding.

• Source: Anthony Swart, Director, The Brand Union

24. New Positioning: Editorial Strategy

• To be the readers go-to guide.

• Provide:

• • support.

• • solutions.

• • advice.

• • competitions.

• Communicate:

• • benefits.

• • brands available

• • VALUE

25. New Positioning: New directions

• Benefits.

• Reader generated content.

• Sense of community.

• Editorialise merchandise pages.

• Celeb cover story.

• Longer articles.

• Kids page.

26. New Positioning: New directions

27. New Positioning: New directions

28. New Positioning: New directions

29. Leveraging events: Club Workshops

• Club Workshops launched in 2007

• Hosted a total of 13 workshops (just under 1500 people)

• Focus on the key pillars of the Ackermans brand

• • ie. Fashion and Parenting

• Hosted in CT, Jhb, George, PE etc

• Open to club members and family and friends for small fee

• Expert speakers, lunch, goodiebags, celebrity guests etc

• In 2010, events will alsobe held in Durban. Each event has

• shown increased patronage in each area

30. Leveraging events

• At the parenting event in 2010, introduced signing up for club membership at the actual reader event, with 100 people signing up immediately after the event.

• Events increase customer loyalty - evidence is the demandto attend,eg Cape Town sold out in first week

• The workshops are themost intimate touch point with the reader. The reader gets to meet the Club Manager, Marketing & Editorial teams.

• Winning formulae: Reward, Delight, Surprise, Spoil, Acknowledge club members

31. Craft and Food workshops 2009

32. Fashion workshops 2009

33. Parenting workshop 2010

34. How do we manage the Magazine

• Internally we have the merchandise experts

• Externally we have the Customer Magazine experts

• Always bear in mind what needs to work for product but also be relevant to the reader

35. Recipe for success

• Good Planning

• Open and Honest Communication (good AND bad)

• Understand our customers

• Be prepared to take risks

• Always needs to support core strategy of Ackermans