U.S. Hispanic Market Overview May 5, 2009. U.S. Hispanic Trends, Statistics, Demographics Hispanic...

U.S. Hispanic Market OverviewMay 5, 2009

• U.S. Hispanic Trends, Statistics, Demographics

• Hispanic Shopper Insights and Retailers

• La Curacao

• Toy Brands Targeted to Hispanics

• What other Brands are Doing

• Appendix

2

Agenda

U.S. HISPANIC TRENDS, STATISTICS AND DEMOGRAPHICS

44.3 million Hispanics, 14.8% of total U.S. population of 299 million

Between 2000 and 2006:• Hispanics accounted for one-half of the nation’s growth • Hispanic growth rate (24.3%) was more than three times the growth rate of

the total population (6.1%)

25% of the country’s children under age 5 are Hispanic

Current U.S. Hispanic population trends

4Source: U.S. Census Bureau, Population Estimates July 1, 2000 to July 1, 2006

Total U.S. Hispanics at a glance

5

MARKET SIZE (1)

12.7 Million Hispanics Households

11% of the Total U.S.

INCOME & CONSUMER SPENDING (2)

HispanicDisposable HH Income

HispanicConsumerSpending

HispanicDisposable

Income

$68,219 $845 Bil. $890 Bil.

Hispanics Are Projected to Save/Invest Approximately $45 Billion This Year!

Source: (1) 2009 Nielsen Universe Estimates; Hispanic TV Households by Language Strata, includes Speaks Only Spanish, Mostly Spanish, Spanish and English Equally, and Mostly English (based on Persons 2+); (2) Global Insight - 2007 Hispanic Market Monitor (income reflects average); (3) Geoscape AMD 2009 Series, Census 2000, 2009 Estimates, 2014 Projections

88% of Hispanics Speak Spanish at Home (1)

The Hispanic Population Is Expected to Grow 55% from 2000 – 2014, Accounting for

48% of the Total Population Growth!

43,303,0008,537,0004,551,000

13,928,00022,678,00018,670,000

15%21%18%20%17%15%

HispanicPopulation

% Hispanic of Total

Persons 2+Children 2-11Teens 12-17Adults 18-34Adults 18-49Adults 25-54

HispanicPopulation

% Hispanicof Total

13%16%17%

200020092014

35,238,50048,628,40054,780,900

Total U.S. Hispanics at a glance cont.


POPULATION GROWTH (3)POPULATION DEMOGRAPHICS (1)

6

7

One in Four People will be Hispanic by 2050One in Four People will be Hispanic by 2050Percent Hispanic of the Total Population in the U. S.Percent Hispanic of the Total Population in the U. S.

*Projected Population as of July 1

ProjectionsCensus

Source: U.S. Census Bureau, 1970, 1980, 1990, and 2000 Decennial Censuses; Population Projections, July 1, 2010 to July 1, 2050

1980 2000 2020* 2040*

Many immigrants are bypassing traditional gateway states in the Southwest, while many U.S.-born Hispanics have left states like California.

Children of Latin American immigrants are helping offset a decline or slower growth in the school-age population in states such as Georgia and Iowa.

Spreading to other States

9

Hispanic Market

10

Hispanic Population Persons 2+

1,001,000

1,165,000

1,341,000

1,427,000

1,689,000

1,785,000

1,862,000

4,015,000

7,297,000

1,883,000

Harlingen-Wslco-Brnsvl-McAlln

San Antonio

Phoenix

San Fran-Oak- San Jose

Dallas-Ft Worth

Chicago

Miami-Ft Lauderdale

Houston

New York

Los Angeles

Sources: 2009 Nielsen Universe Estimates

11

Hispanic Origin by Type

Type of origin Number PercentTotal 44,252,278 100.0

Mexican 28,339,354 64.0

Puerto Rican 3,987,947 9.0

Cuban 1,520,276 3.4

Dominican 1,217,225 2.8

Central American 3,372,090 7.6

South American 2,421,297 5.5

Other Hispanic 3,394,089 7.7

Source: U.S. Census Bureau, 2006 American Community Survey

Median Age by Sex

12

Me

dia

n A

ge

Source: U.S. Census Bureau, 2006 American Community Survey

U.S. Hispanic Household

13

Non-HispanicHousehold

2.3

HispanicHousehold

3.1

The average Hispanic household has 3.1 people while the average non- Hispanic

household has 2.3 people.

Source: 2007/2008 Nielsen and Simmons Market Research Bureau

Market Total Hispanic Households

% of the total DMA

1 Los Angeles 1,854,810 33%

2 New York 1,242,160 17%

3 Miami 658,490 43%

4 Houston 549,890 26%

5 Dallas 488,150 20%

6 Chicago 485,270 14%

7 San Antonio 382,990 47%

8 Phoenix 381,180 21%

9 San Francisco 377,730 15%

10 McAllen-Harlingen

291,220 83%

Top Ten Hispanic DMAs(Ranking by TV HHs)

14Source: (1) 2009 Nielsen Universe Estimates; Hispanic TV Households by Language Strata, includes Speaks Only Spanish, Mostly Spanish, Spanish and English Equally, and Mostly English (based on Persons 2+); (2) Global Insight - 2007 Hispanic Market Monitor (income reflects average); (3) Geoscape AMD 2009 Series, Census 2000, 2009 Estimates, 2014 Projections

Percent of Total U.S. Hispanic Population by State

15

8,385,139

3,646,499 3,139,4561,886,933

13,074,156

19% 8% 7% 4%29%

California Texas Florida New York Illinois

Source: U.S. Census Bureau, U.S. population estimate, Jul. 1, 2006

Los Angeles #1 market in Hispanic Consumer Spending

16

$85.6

$44.7 $39.8 $35.3

$135.1

11% 6% 5% 4%17%

Los Angeles New York Miami Houston Chicago

% of Total U.S.

Hispanic

Hispanic Total Consumer Spending Estimates (Billions) CY2008

Source: Global Insight Hispanic Market Monitor 2008; Consumer Spending Estimates

U.S. Hispanic Media Consumption & Attitudes

17

• Roughly six in ten (59%) of Hispanics say they "enjoy looking at or listening to advertising,"

• Compare that with 30 percent of non-Latino whites who feel this way.

• But only 25% of those surveyed feel that today's marketing is personally and culturally relevant to their lives.

• "Authenticity is required. The messages have to be real and relevant to the Hispanic consumer."

• Hispanics' need for preserving cultural elements has heightened in the past 4 years:

In 2003, 48% of Hispanics surveyed said it is important to preserve music and songs

In the 2007 study, it was 62%

• Language is important - but relevance and content are as or more important.

Source: Hispanic Market Weekly, "A Hispanic Vote For Advertising," September 24, 2007

HISPANIC SHOPPER INSIGHTS AND RETAILERS

Hispanics' purchase decisions are more likely to be influenced by in-store promotions and advertising with 34% saying they are influenced by in-store ads and coupons vs. 14% of total shoppers.

More than 34% of Hispanic shoppers also claim to be influenced by in-store price reductions compared to 22% of non-Hispanic shoppers.

At 44.3 million people, Hispanics are the largest ethnic group in the United States, and they currently boast a buying power of nearly $1 trillion.

The U.S. Hispanic Shopper

19Source: 2007 TNS’ Hispanic Shopper 360 study

Internet usage influencingpurchasing decisions

51%

59%

63%

56%

61%

59%

63%

70%

74%

63%

69%

64%

68%

72%

72%

70%

75%

77%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Make Final Decision onBrand to Buy

Compare Prices

Learn Where Item isAvailable

Get Advice on WhichBrands to Buy

Learn About Features %Benefits of Specific Brands

Learn About AvailableBrands of Products

2004 2005 2006

Hispanics who use the internet are increasingly relying on it to make purchasing decisions

Source: 2006 AOL Hispanic CyberStudy

Low prices - 77%

Convenient location - 72%

Wide range of merchandise - 71%

Employees who speak Spanish - 54%

Products relevant to Hispanic consumers - 52%

Spanish signage - 47%

Product packaging and labels in Spanish - 43%

21

Top Factors among U.S. Hispanics for Choosing a Shopping Destination

Source: 05-06 Hispanic OmniTel Retail Study

Top 12 Retailers where Hispanics have Shopped

22

Retailer % of total respondents

1 Wal-Mart 56%

2 Target 34%

3 J.C. Penney 20%

4 Kmart 20%

5 Dollar General 19%

6 Dollar Tree 18%

7 Sears 17%

8 Kohl’s 16%

9 Sam’s Club 15%

10 Macy’s 15%

11 Best Buy 15%

12 Family Dollar 14%

Source: 2007 Scarborough Research: Shoppers were surveyed within a 12-month period. Respondents answered that they have shopped at “x” store within the past 30 days

Retailer Highlights

Wal-Mart Spending about $45 million per year in Spanish-language advertising

Target Partnership that calls for the retailer's ad inserts to be placed in La Opinión and La Opinión Contigo, two of Los Angeles-based newspapers

J.C. Penney Awarded Hispanic students with college scholarships — at Spanish-language network Univision's annual Premios Juventud awards show

Kmart Launched exclusive brand by Mexican pop star Thalía Sodi at select stores nationwide

Kohl’s Launched exclusive collection, including sleepwear,shoes and clothing from actress-model Daisy Fuentes

Hispanic Marketing Initiatives

23Source: 2007 Scarborough Research:

Many top retailers chosen have several initiatives in place to specifically target Hispanic shoppers.

LA CURACAO

La Curacao is best known as a growing chain of large format department stores of 100,000sqf each.

With a Hispanic focus, La Curacao ranks among the top 100 electronics and appliance retailers in the U.S.

Locations: CA - Los Angeles, South Gate, Panorama, Huntington Park, San Bernardino, Lynwood, Chino, Santa Ana and Anaheim. AZ - Phoenix.

Additional services catering to the Latino community, include:• CuraTel local and long distance telephone service• Pasito.Com internet access • Travel services• Export services• Sister company - Pollo Campero

restaurants

La Curacao Company Overview

25Source: LaCuracao.net/spanish/retail.htm

Retail locations have a warm and colorful atmosphere, along with live entertainment inside the stores.

Adults can participate in raffles and various contests, or even dance to the music of local bands on the weekends.

Children can enjoy a safe play area, with qualified supervisors who will teach them computer and reading skills.

Redefines shopping as an all-day activity for the whole family.

La Curacao Retail Atmosphere


Television and Radio Spots feature such celebrities as Renán Almendárez (radio DJ) and Don Francisco (Univision’s Sabado Gigante host), both huge celebrities in the Hispanic media.

Puntos Program – Frequent Loyalty Shopper program where customers accumulate points and can exchange for gifts.

Bilingual sales associates which are well educated of every product in their department.

La Curacao credit account.

Occasional direct mail promotions.

La Curacao Marketing Strategies


TOY BRANDS TARGETED TO HISPANICS

Dora the Explorer’s popularity among Hispanics:– She is Latina – Her vocabulary is peppered with Spanish words, but her

bilingual abilities have made her — and toys like her — favorites among all parents who may see Spanish as an asset for their own children

Dora the Explorer

29

Toys that include Spanish phrases are appealing to

Hispanic moms who want to retain their language and

cultural heritage.

Source: Brandweek – Toy Treatment article. Feb 2007

Launched Tickle Me Elmo in Spanish.

Hispanic advertising campaign for all of its toys includes TV, print, out-of-home and event marketing.

Fisher-Price's marketing also includes a toy guide placed in Spanish-language newspapers.

Works with retailers to create on-shelf promotions in Spanish targeting stores that over-index with Latino households.

Fisher-Price

30Source: Brandweek – Toy Treatment article. Feb 2007

Conducted a promotion with 300 high-density Hispanic Wal-Mart stores in the weeks leading up to Three Kings Day.

On Jan. 6. The "retailtainment" event centered on the holiday, which celebrates the arrival of the Three Wise Men

31

Fisher-Price in-store promotion

In-Store Activities Writing a letter Coloring Maze-solving

Tie-in PromotionLimited-edition, eight-piece Little People play set that

included three kings, a camel and a Hispanic family(of four) bearing gifts.


Little Mommy doll line includes a Latina baby who asks for her teddy bear and bottle, plays peek-a-boo and even requests a diaper change — all in Spanish.

32

Mattel

Barbie Rebelde - based on the hottest sensation pop-rock music group RBD from

Univision’s soap opera Rebelde, include the show’s popular characters.


Leap frog

33Source: Brandweek – Toy Treatment article. Feb 2007

Learn & Groove Counting Maracas shake for lights and sounds

& helps tots count from one to 10 in Spanish and English

play musical activities in both languages

Leapster Learning Game System platform features 12 new game titles

in Spanish, including Dora the Explorer Piñata Party

WHAT OTHER BRANDS ARE DOING

Supermercado de Wal-Mart

Wal-Mart will open its first Hispanic-focused supermarkets this summer in Phoenix and Houston.

Supermercado de Wal-Mart will carry specialty foods, including popular national brands from Mexico and the U.S. as well as an in-store cocina (kitchen) where families can dine.

The 39,000-square-foot store will carry approximately 13,000 products, including a wide assortment of fresh tropical fruits and vegetables and a bakery that offers more than 40 traditional sweet breads and fresh corn tortillas. A meat department featuring specialty meats designed to meet the specific preferences of local Hispanic customers.

Including a pharmacy with hundreds of $4 prescriptions, health and beauty aids, a Walmart MoneyCenter, a baby center and a party center

Source: Brandweek.com May 1, 2009 35

Carl’s Jr. Sizzles with Univision Novela Pitch

Carl’s Jr.’s new Hispanic TV campaign include four versions of mininovelas promoting different Carl’s Jr. products

Spots airing on Univision and Telefutura’s prime time in 11 CA, AZ and TX markets

It has all the elements: a beautiful young woman lying next to a handsome man wearing only a towel. The pair are interrupted by the man’s father, who was the woman’s former lover and was supposed to be dead. All three end up in bed together noshing on Kentucky Bourbon Burgers (complete with signature crunch) as the announcer intones: “Because not only the most manly men watch novelas, all of us do. Enjoy them with the delicious Kentucky Bourbon Burger from Carl’s Jr.”

Deseos

Source: Brandweek.com March 23, 2009 36

Express Your Hispanic Heritagewith Kleenex Brand Art Contest

In an effort to help celebrate Hispanic Heritage month, tissue maker Kimberly-Clark launched a Hispanic-themed packaging design contest.

Participants submitted original artwork that celebrates Hispanic Heritage through the use of culturally relevant designs, themes and/or motifs. The winning tissue patterns will appear on Kleenex boxes in September 2009

Winners were selected in 2 rounds: (1) – panel of judges; (2) – public voting

Prizes: 3 grand prizes of $5,000 cash each; and 9 first prizes of $500 cash each

Expresa tu Hispanidad

Source: Brandweek.com March 9, 2009 37

Oscar Mayer Sabor de MamáRecipe Contest

For many Hispanic families living in the U.S., the American hot dog has evolved into an ingredient for their traditional meals.

To celebrate its heritage, Oscar Mayer launched in April 2009 the Sabor de Mama recipe contest. Teaming up with Oscar Mayer to find the best recipe is Maggie Jimenez, host of Telefutura's cooking show ¡Qué Sabor!

Hispanic consumers can log on to sabordemama.com for a chance to win by sharing their favorite traditional recipe featuring the quality of Oscar Mayer hot dogs and why it's special to the family.

Grand Prize winner will receive $5,000 and the opportunity to join Jimenez at an event to showcase his/her winning recipe. The winner will also enjoy an exclusive photo shoot with Jimenez to be featured in Kraft fall issue of Comida y Familia magazine.

First Prize (5) one year supply of Oscar Mayer hot dogs and Second Prize (50) Party Pack including apron, cooking utensils and serving tray.

Sabor de Mama

Source: HispanicPRWire.com April 15, 2009 38

Verizon Torneo Clausura 2009 Futbol Mexicano Sweepstakes

To build awareness among its subscribers about consulting the most relevant information about Mexican Soccer tournaments on their mobile phones, Verizon Wireless launched the Torneo Clausura 2009 Futbol Mexicano Sweepstakes.

Sweepstakes is open during the timing of 2009 Mexican Soccer tournament

Verizon Wireless subscribers text in FLM to 3560 for a chance to win one of ten kits which include one LG Dare™ phone, soccer ball and jersey from a Mexican Soccer team

Sweepstakes is promoted on Univision.com website

Source: Univision.com 2009 39

Source: univision.com 2009

Verizon Torneo Clausura 2009 Futbol Mexicano Sweepstakes

40

Additional Samples

Direct Mail – Kmart and Glade

FSIs – Huggies, Knor, Splenda, Anthony’s Pasta & Scott Tissue

Roto Ad – Home Depot

41

Summary

Hispanics are the fastest growing minority population in the U.S.

25% of the country’s children under age 5 are Hispanic.

1 in 4 people will be Hispanic by 2050.

About 59% of Hispanics enjoy looking or listening to advertising.

Messages have to be real and relevant to the Hispanic consumer.

Hispanics enjoy shopping with the entire family and shop at places where products are relevant to their needs.

42

APPENDIX

1,854,810 Hispanic Households33% of the DMA




$77,415 $149.3 Bil. $155.8 Bil.

7,297,0001,480,000

806,0002,287,0003,813,0003,170,000

43%56%51%54%47%42%


HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


Hispanics Are Projected to Save/Invest Approximately $6.5 Billion This Year!

HispanicPopulation

% Hispanicof Total

40%45%46%

200020092014

6,466,9007,881,1008,419,800

Los Angeles


MARKET SIZE (1)


Hispanics Have Larger Households!

3.9 Persons vs. 3.0 Total Market

#1 Hispanic DMA(Ranking by TV HHs)

New York


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

1,242,160 Hispanic Households17% of the DMA





$67,230 $89.5 Bil. $94.0 Bil.

4,015,000684,000395,000

1,180,0002,094,0001,799,000

20%25%24%26%23%21%


19%21%22%

3,751,0004,407,6004,632,100

200020092014

Miami


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014

658,490 Hispanic Households43% of the DMA





$75,476 $48.9 Bil. $50.8 Bil.

1,862,000226,000142,000441,000892,000834,000

45%41%43%50%49%48%


40%47%49%

1,575,7001,972,6002,121,600

Houston


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014






$73,010 $38.5 Bil. $40.6 Bil.

1,883,000387,000201,000615,000

1,003,000829,000

32%41%37%42%36%32%


28%34%36%

1,414,8002,068,8002,397,500

Dallas


MARKET SIZE (1)





HispanicDisposable

Income


HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014






$67,334 $30.4 Bil. $32.6 Bil.

1,689,000362,000179,000585,000930,000754,000

25%34%30%35%29%25%


20%27%29%

1,174,8001,931,4002,312,600


Chicago


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014






$77,719 $37.7 Bil. $40.0 Bil.

1,785,000365,000194,000613,000967,000773,000

19%26%24%27%22%19%


16%20%22%

1,497,6001,986,5002,199,700

San Antonio


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014






$63,088 $24.3 Bil. $24.6 Bil.

1,165,000214,000125,000324,000560,000486,000

53%61%60%59%55%52%

Hispanics Are Projected to Save/Invest Approximately $300 Million This Year!

51%54%55%

1,032,1001,305,2001,461,700

Phoenix


MARKET SIZE (1)





HispanicDisposable

Income


HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014




The Hispanic Population Is Expected to Grow 113% from 2000 – 2014, Accounting

for 47% of the Total Population Growth!

$57,287 $20.3 Bil. $21.7 Bil.

1,341,000309,000151,000447,000700,000566,000

27%40%36%38%31%27%


23%29%32%

899,0001,541,6001,912,300


San Francisco


MARKET SIZE (1)





HispanicDisposable

Income



HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total

200020092014






$87,118 $33.3 Bil. $35.0 Bil.

1,427,000279,000145,000445,000740,000609,000

22%31%28%31%24%20%


19%23%24%

1,288,6001,582,4001,717,600

McAllen-Harlingen


Source: (1) 2009 Nielsen Universe Estimates; (2) Global Insight - 2007 Hispanic Market Monitor (income reflects average); (3) Geoscape AMD 2009 Series, Census 2000, 2009 Estimates, 2014 Projections


MARKET SIZE (1)


#10

Hispanic DMA(Ranking by TV HHs)


HispanicDisposable

Income


HispanicPopulation

% Hispanic of Total


HispanicPopulation

% Hispanicof Total






$53,377 $15.1 Bil. $15.3 Bil.

1,001,000214,000110,000281,000475,000402,000

86%90%90%91%90%90%

Hispanics Are Projected to Save/Invest Approximately $200 Million This Year!

88%89%90%

856,6001,101,0001,237,100

200020092014

15147 Woodlawn Avenue

Tustin, CA 92780

Fax: 714/258-2409

54

CONTACT INFORMATIONCONTACT INFORMATION

Cristina VázquezAssistant Account Executive

714/258-2400 [email protected]

U.S. Hispanic Market Overview May 5, 2009. U.S. Hispanic Trends, Statistics, Demographics Hispanic...

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