UPCOMING WEBINARS Global Convenience Market Symposium – September 13th Diverse Intelligence Insights Series: Asian American Consumers – October 30 th

The French Connection A View Into Québec Carman Allison Director of Consumer Insights August 2012 Cultivating Multicultural Success From Opportunity to Growth

TODAY’S PRESENTER James Russo VP, Global Consumer Insights, Nielsen 19+ years of experience in marketing, sales, business development & research across the retail & manufacturing industries. Leadership role in integrating Nielsen’s broad array of insights & analytics to enhance growth strategies for its clients. One of the today’s leading experts on consumer attitudes & behavior, prominently & frequently featured in the nation’s top business outlets. Frequent contributor to leading media outlets such as: CNBC, Bloomberg News, Fox Business, Wall Street Journal and the Financial Times.

The world has changed

AUDIENCE POLL #1 What is the projected increase in the U.S. Hispanic population from 2010 to 2050? 1.56% 2.142% 3.167% 4.233%

OPPORTUNITY AFRICAN AMERICAN LARGEST ECONOMY 17 th ASIAN AMERICAN LARGEST ECONOMY 27 th HISPANIC AMERICANS LARGEST ECONOMY 12 th

CONNECTING HISPANICSAFRICAN AMERICAN ASIAN AMERICAN texttalk view

CONNECTED = ENGAGED

ENGAGEMENT IS ABOUT SATISFYING DEMAND HISPANICS 143 TRIPS 163 TRIPS 152 TRIPS $51 TRIPS $38 TRIPS $46 TRIPS AFRICAN AMERICAN ASIAN AMERICAN

ENGAGEMENT IS ABOUT SATISFYING DEMAND More Groceries Phone services Apparel Footwear Less Alcohol and tobacco Health care Entertainment New vehicles Personal insurance More Phone services Utilities Groceries Footwear Less Used cars Alcohol Health care Entertainment Pensions More Food Housing Clothing Education Personal insurance Less Utilities Used vehicles Alcohol and tobacco Health care Entertainment HISPANICS AFRICAN AMERICAN ASIAN AMERICAN

AUDIENCE POLL #2 What percent of CPG new product concepts tested, were targeted to Hispanics over the past 10 years? 1.None 2.1-5% % %

BUT THERE IS A GAP InnovationsAd Spending

OPPORTUNITIES WITHIN KEY CATEGORIES Beer Gum Oral Hygiene Sauces Condiments Wine Liquor Candy Ice Cream Breakfast Bars Baby Needs Disposable Diapers Bottled Water Juices & Drinks – Ref & SS Spices/Seasoning/Extracts Dried Vegetables Fresheners & Deodorizers Fragrances (Women) Personal Soap/Bath Additive Ethnic HABA Family Planning high medium low

OPPORTUNITIES AMONG KEY RETAILERS 43% Over performing 57% Average or under performing

REACHRESONATE HOW WE GET THERE

CLOSING THE GAP 96% OF TOTAL POPULATION 192 HRS/MTH $72 b TV ADVERTISING PER YEAR

KEY TAKEAWAYS A successful ad is a successful ad Everybody responds to humorous storylines Prioritize universal drivers over cultural nuances

MULTICULTURAL DRIVERS * Likability Index versus average Asian Ad likability Asian Americans like product features 46%85% OF TOP ADS DISCUSS PRODUCT FEATURES OF BOTTOM ADS DON'T DISCUSS FEATURES

MULTICULTURAL DRIVERS African-Americans respond to humor 42%96% OF TOP ADS ARE HUMOROUS AND RELATABLE OF BOTTOM ADS ARE NOT HUMOROUS OR RELATABLE

MULTICULTURAL DRIVERS Hispanics prefer family references 41%95% OF TOP ADS FOCUS ON THE FAMILY OF BOTTOM ADS DON'T FOCUS ON THE FAMILY

41% INCREASE IN HISPANIC MARKET SALES TOP PERFORMING GENERAL AD RESULTING IN

THERE IS ROOM TO GROW!

HOW DO WE GET TO SUCCESS? WHAT DRIVES GROWTH?

In the first quarter of 2012 Nielsen surveyed 41 CPG, Retail and media companies across North America Objective of the custom study was to understand best practices, organizationally and strategically, that drives growth in reaching the multicultural consumer Survey consisted of 50 questions, delivered in person across multiple functional areas BACKGROUND OF THE STUDY

Survey Focus The study is focused on:

44% Top performing 56% Average – Low performing Rating multicultural consumers as Extremely or Very Important Rating multicultural consumers as Moderately, Slightly, or Not at all Important THE LANDSCAPE

PRIORITIZE How important is reaching multicultural/visible minority consumer groups to your company’s growth strategy? 81 % of companies surveyed feel it is extremely important to reach a specific multicultural group

BE REPRESENTATIVE Getting the mix right, employees and company leadership 27% average % of ethnic employees 17% average % of ethnic leadership

SALES & MARKETING FOCUS Dedicated Roles 45% of top organizations have senior positions dedicated to multicultural sales and marketing 30% of avg to low organizations have senior positions dedicated to multicultural sales and marketing

DIVERSIFIED Reflective of Overall Importance 94% Hispanic 88% African American 53% Asian TOP PERFORMING FOCUS

SEPARATE BUDGET, SEPARATE ACCOUNTABILITY 40% of high performing organizations have a separate budget for multicultural efforts 21% of Avg to low performing organizations have a separate budget for multicultural efforts

LEVERAGE SOCIAL MEDIA 90% in top performing companies 47% in average/low performing companies

UTILIZE HIGH ENGAGEMENT & HIGH FREQUENCY VEHICLES TOP PERFORMING: REACH & RESONATE MEDIA AVERAGE/LOW PERFORMING: REACH MEDIA TV PRINT ONLINE TV RADIO INSTORE

ANALYTICS TO MATCH PRIORITIZATION Which of the following marketing research tools does your company use to support your multicultural/visible minority strategy? 100% Of high performing organizations use segmentation in their multicultural research efforts. 80% Of average/low performing organizations use one on one interviews. Of average/low performing organizations use segmentation 53%

COLLABORATION IS ESSENTIAL 90% overall and 100% of top companies collaborate with retailers/manufactures on specific initiatives.

AUDIENCE POLL #3 What percent of top performing organizations have goals tied to multicultural consumers? % % % %

GOAL ORIENTED 33% 17% TOP GOALS FOR TOP PERFORMING ORGANIZATIONS TOP GOALS FOR AVERAGE/LOW PERFORMING ORGANIZATIONS 17% 30% 35% 22% Consumer focus Brand buildingConsumer focus Don’t Know/None Increase Hispanic share of wallet 5% Don’t Know 9% New Products

OpportunityGrowth Leverage Social media Engagement Be Representative Sales and Marketing Focus Separate Accountability Ongoing goals Prioritization collaboration MULTICULTURAL SUCCESS

50% Companies 82% Companies Targeting Hispanic consumers is Extremely Important Have organizational goals tied to Hispanics THE U.S. HISPANIC LANDSCAPE

HISPANIC POPULATION GROWTH PROJECTED TO OUTPACE ALL ETHNIC GROUPS OVER THE NEXT 40 YEARS * Excludes American Indian, Alaska Native, Hawaiian & Other Pacific Islanders Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative Projected U.S. Population Growth From 2010 to %+142% +56% +1% +42% Total White Non-Hispanic BlackAsian*Hispanic

FURTHER EVIDENCE OF CULTURE SUSTAINABILITY 31% Hispanic Adults say they want to be MORE LATINO 60% Hispanic adults say they want to be BICULTURAL 90% Hispanic parents want their children to be BILINGUAL 72% In 2011, intermarried couples classified their children as HISPANIC vs.. 35% in 1991

LATINOS: YOUNG & CONNECTED WATCH 33 HOURS OF TV PER WEEK SEND / RECEIVE 941 TEXTS PER MONTH STREAM 6:15 HOURS OF VIDEO PER MONTH SOURCE: NIELSEN

WHAT’S IN THE BASKET? Source: Nielsen State of the Hispanic Consumer Report: The Hispanic Market Imperative CategoryHispanic Dollar Index to Total Household Dried Vegetables and Grains221 Hair Care154 Shortening Oil152 Baby Food150 Women’s Fragrances149 Grooming Aids144 Disposable Diapers144 Family Planning142 Photographic Supplies142 Baby Needs137 Top 10 Hispanic Product Categories Purchase Index: Share of Hispanic Dollar Sales Divided by U.S. Household Dollar Share x 100 Source: Nielsen Homescan 01/02/ /31/2011 Private Label vs. Branded For Hispanics, brand loyalty Prevails in three categories ALL CPG: 1.Hair care 2.Baby products 3.Health & Beauty R

HISPANICS: TOP 3 THINGS YOU NEED TO KNOW Culture sustainability: Don’t assume acculturation is a linear progression Language matters: Navigate the world in both Spanish and English Future growth of Latinos: Understand the implications for your brand

Nielsen Diverse Intelligence Insight series In 2011, Nielsen launched a diverse intelligence insight series to help marketers better understand the media and purchasing behaviors of key consumer segments.

Cultivating Hispanic Success From Opportunity to Growth THANK YOU!

Q&A Thank you for attending If you have follow-up questions or want more information, please contact your Nielsen Professional Services Representative. If you are not a current Nielsen client, please contact us: Phone: OR if you have any questions regarding the content of this webinar, you can also contact: James Russo,