Core Competencies Presentation

SPOTLIGHT:Hispanic Shopping Highlights

April 2011

1

Contents…

SPOTLIGHT: Hispanic ShoppersMulticultural PopulationHispanic CPG Spending

BRANDWEEK On Hispanic RetailHispanics & Food ShoppingDon’t Mess With Hot Mama: The Latina Shopper

Hispanic Retail Channels & Some Retailers Doing It Right

ShopShop Core CompetenciesBackgroundBrand & Marketing KnowledgeFOCUS: Shopper Marketing Expertise

Consumer-Based Retail Planning Approach Flexible Working ModelContact Information

2

3

4

By 2050, more than half of the US population will be non-white,

(African-American, Asian, or Hispanic)

representing both a historic cultural shift and huge economic opportunity.

Source: The Nielsen Company, 2010

Multicultural Population: SNAPSHOT

Hispanics will account for 44 % of the nation’s population growth

Limited Black population growth will be predominantly in the South

Asians, the fastest growing group, will grow mostly in the West & Northeast

5

Source: US Census, Estimates & Projections of the Population by Sex, Race, and Hispanic Origin for the United States: 2010 to 2050 July 1, 2009

ETHNICITY 2009 % 2015 % 2050 %

TOTAL POPULATION 307,007 325,540 439,010

HISPANIC 48,419 16% 57,711 18% 132,792 30%

BLACK 39,641 13% 42,137 13% 56,944 13%

Asian 14,014 5% 16,527 5% 34,399 8%

33% 36% 51%

Multicultural Population: SNAPSHOT

6

California Ranked #1 as state with largest population

#1 Hispanic Population & Population Growth

#1 Asian Population & Population Growth

New York, Texas, Florida Significant MC Growth

CALIFORNIA 2009 % 2015 %

TOTAL POPULATION 36,962 40,123

HISPANIC 13,681 37% 16,411 41%

BLACK 2,454 7% 2,933 7%

Asian 4,690 13% 6,962 17%

56% 66%

7

The multicultural business opportunity for brands is projected to reach$520 billion by 2050, up 74% from $299 billion today.

Source: The Nielsen Company, 2010

The nation's 45+ million Hispanics outspend non-

Hispanics on CPGs by 13%, spending $34 billion annually,

projected to jump 53% to $52 billion by 2015.

Hispanicstoday…

Source: Symphony SRI Group, May 2010 8

9

“Shift ad spend from TV to in-store merchandising. The store shelf, where 70% of purchasing decisions are made, is the last frontier for swaying purchase behavior.

An LCD screen on a shopping cart may be a more direct way to woo Hispanics than the ads on the big screens in their living rooms.”

Brandweek, Hispanic Shopper Marketing Do's and Don'ts, April 30, 2009

…on hispanic retail activation.

10

Hispanicsand food shopping…

Shop groceries 26x per month vs. 8.8 for GM

Spend $133 per week vs. $91 for GM (+32%)

1/3 Participate in in-store promotions

78% purchased the featured product

Prefer stores that resonate with the sights, sounds, smells and sensibilities of their homeland

Sources: Food Marketing Institute (FMI), 2010; Brandweek, Hispanic Shoppers Turn to Promotions, Feb 2, 2010; Nielsen, 2007

Shopping is a family outing for all ages from abuelos to niños

DON’T MESSWITH HOT MAMA.

The Latina Shopper

11

12

She’s a highly food-involved, smart, efficient and value-oriented shopper— a consumer group that brands ignore at their own peril.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia.

13

She’s far less satisfied with her shopping experiences than the

general market consumer;

3X as many Latinas say they wished they’d gone to another store.

Source: Selig Center for Economic Growth, Terry College of Business, University of Georgia.

Top 10 Satisfaction Drivers:

14

1. STAFF FRIENDLY/HELPFUL 55%2. FUN PLACE TO SHOP 533. ENJOYED TRIP 424. ENJOYABLE MUSIC PLAYING 395. SERVICE PEOPLE CAN HELP DECIDE 396. ITEMS IN-STOCK 387. SHUTTLE SERVICE 388. CAN GET IN/OUT QUICKLY 379. EMPLOYEES HELP FIND 3610. INVOLVED IN LATIN COMMUNITY 34

Source: Unilever Research, 2007

15

Latinas are far more aware(by a 48% to 36% margin) of specials before

going to the store than GM shoppers.

Sources: HOT (Hispanic Opinion Tracker), 2008; Food Marketing Institute (FMI), 2010

60% rely on direct mail grocery fliers vs. 38% for GM

16

Even within the store, her awareness of specials is higher

than the general market’s.

Source: HOT (Hispanic Opinion Tracker), 2008

Location, Location, Location.

17

1 in 4 Latina shoppers walk or take public transport, compared to just 1 in 33 of general market consumers.

Store proximity is the #1 reasonfor store selection; a 4:1 margin over low prices, the #2 reason.

That’s significant, considering her constant search for value.

Source: Unilever Research, 2007

18

She knows her needs beforehand, hence a full 56% of her trips are routine vs. 26% in the general market.

54% of her total grocery spending occurs on routine trips vs. 22% in the general market.

20% of her routine trips are for today vs. virtually zero for the general market.

Source: Unilever Research, 2007

WHERE THE RUBBERMEETS THE ROAD.

Retail Stores

19

20

chan

ne

ls

Supermercado

PRIMARYCHANNEL FOR

94% OF HISPANICS

…although they are more likely to

shop multiple retail channels for

foods and consumer goods than non-Latinos.

Massy

Super Store

In areas where mass

merchandisers and supercenters

have a strong presence…

HALF OF ALL HISPANICS

VISIT THEM AT LEAST ONCE A

WEEK

Farmacia

#3 CHOICE FORHISPANICS

RESTOCKING THEIR PANTRY

Latinas don’t associate low prices with the

drug channel, just hot deals.

Source: Food Marketing Institute (FMI), 2010

21

chan

ne

ls

Tiendas de Club

Latinas look to club stores for special

occasions, routine, and urgently needed items.

3 OF 5 CLUB STORE TRIPS ARE WITH

SOMEONE WHO’S NOT A MEMBER

Convenienciay

Gasolineras

ACCULTURATED HISPANICS VISIT

2X’S AS OFTEN AS UNACCULTURATED

24% of Hispanics spend $26-$50 when

shopping compared to 14% for non-Hispanics.

“Health Food”Y Orgánicas

Latinas are willing to pay a price for the

ready-to-eat foods and quality produce that

are hard to find.

HISPANICS SHOP HEALTH FOOD

STORES 2X’S AS OFTEN AS THE GM

Source: Food Marketing Institute (FMI), 2010, Mintel 2007

CoreCompetencies

22

23

Jacqueline B. ReynoldsCEO, Expert Shopper

– 25-Year Hispanic Marketing Veteran

– Puerto Rican & 100% Fluent Latina

– 10-Years @ The Coca-Cola Company

– CPG, Media, Agency, Technology, Retail

– 500+ Retail Activation Programs

– Experience w/ All Retail Channels– Grocery & Bodegas

– Mass Merch

– Super Stores

– Drug Channel

– Convenience / Petroleum

– Club Stores

– Education

– Theatres

– Arenas

– Concessions

– Department Stores

– Online, E-Commerce

24

Small Multicultural Shopper Marketing Consulting Practice

• Established Nov 2009

• US Hispanic, African American, Asian

• Los Angeles-based

• 25+ Years of Expertise

• Strategic Alliances in MC Community

• Minority-Owned (to be MBE Certified)

25

Key Strategic Alliances• Awarded Multicultural Experience

• Seamless Activation to Clients

• Innovators In Their Field:• Hispanic Marketing

• Insights

• Planning

• Retail Activation

• Design

26

Marketed The World’s Biggest Brands

• Consumer Packaged Good (CPG’s)• Top Global Retailers• Multicultural Agencies• Multicultural Media• Technology• Entertainment • Health & Beauty• And Every Other Category

AdrenalinaAlbertsonsAll StateAlma DDBAmerican AirlinesAOL LatinoAT&T Armor All Barq’s RootbeerBermuda Dept of Tourism Blockbuster VideoBromley CommunicationsBrown FormanBush’s BeansCalifornia LotteryCarnival Cruise LinesCasanova PendrillChrysler CloroxCoca-Cola CLASSICColombia PicturesCorona Cricket DasaniDell Diario Las AméricasDiesteDiet CokeDisney Dodge Eckerd DrugsExitoExxon Mobil FantaFedEx Ford Motor Co.Fox TVGeneral MillsGeorgia PacificGlobalHue LatinoGlad GlaxoSmithKlineHidden Valley HostessHR Block Jack Daniel’sJeep Johnson & JohnsonKeeblerKingsford Charcoal

Kohl’s L’OrealLucayan Beach Resort & CasinoMad River Teas McDonald’s MeijerMerck MGM Microsoft Motorola Mr PiBBMTV Tres Navarro PharmacyNationwide InsuranceNesteaNestleNickelodeon Payless Shoe SourcePepsiCo Pine-Sol PowerAdeProgresso SoupsPublixPurdue Red BullSears, Roebuck & Co.Sedano’sSíTV Sony MusicSpriteState Farms InsuranceSubway Sunkist Growers SurgeTABTelemundo Networks Terra Tommy Hilfiger Univision United AirlinesUS Army US Census US Navy Vanilla CokeVerizon WalmartWinn-DixieXboxYoplait

27

Deep Understanding of Marketing Mix

• Research• Planning• Creative Development• Advertising• Promotions• Events• PR & Community Relations• Cause Marketing• Sports Marketing• Branded Entertainment• Product Placement• Measurement / ROI

28

FOCUS: MC Shopper Marketing

• Customer & Brand Planning• In-Store & E-Commerce• Merchandising• Sampling• Retail Holiday Activation• Occasion Based Bundling• Consumer Promotions• Grand Openings & Events• System Communication• Brand Market Tours• Category Management• Program Measurement • ROI Modeling

ApproachConsumer-based Retail Activation Planning

29

• Competitive Landscape

• Consumer ResearchSituation Assessment

• SWOT AnalysisOpportunity ID

• S.M.A.R.T. ObjectivesObjectives

• High-level StrategiesStrategies

• Exactly What Will Be Done, With Timing & CostsTactics

• Month-By- Month Retail Activation OutlookCalendar

• All Costs: OOP, LaborBudget

• ROI Model

• VolumetricsMeasurement

30

Flexible Working Model:

• Detailed Scope of Work (SOW)• Formal Estimates• Market Tests• Project Work• Monthly Retainer• Billed Hourly or By Project• Weekly Reporting• Direct Communication w/ CEO• An Extension Of Your Team

31

theshopshopinc(310) 374-SHOP

jreynolds.theshopshop@verizon.net

32