The Transformation of America Playing to Win in a Multicultural Nation Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary No More “Joe Consumer” Hiya! In the nation’s 10 largest cities no racial or ethnic category describes a majority of the population. Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009 Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. Confidential and Proprietary Concept of “Average American” Is Obsolete The iconic American family – married couple with children – will account for a mere 22% of households. Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009 Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. 3 Confidential and Proprietary Diversity Is the Norm for Young Americans Only 54% of people under age 18 are non-Hispanic whites Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Definition of “Mainstream” Has Changed I have a feeling we’re not in Kansas anymore! 5 Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. Confidential and Proprietary TRANSFORMED NATION TRANSFORMATION 6 Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. Confidential and Proprietary A Closer Look at Multicultural America 7 Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. Confidential and Proprietary Top The Food We Eat Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Fashion The Clothes We Wear Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The Music We Listen To Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The Movies We Love Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The TV Shows We Watch Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The Athletes We Cheer Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The News We Trust Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The Neighbors We Live Alongside Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Top The Leaders We Elect Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Change We Can Believe In Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Change We Must Believe In Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Growth You Can Count On Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Hispanics Are Largest & Fastest-Growing Segment Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Hispanics Are Leading Multicultural Growth +40% +35% % Population Growth 2000–2010 +10% +3% Hispanic Asian African American Non-Hispanic White Source: U.S. Census Bureau Interim Projections August 2008. Asian American includes Asian, Hawaiian, Pacific Islanders. Other includes Native American, Aleut, Eskimo, 2 or more races or some other race. Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Your Growth Engine Hispanic Share of Total U.S. Population Growth 2009-2015 Hispanic Non-Hispanic Source: U.S. Census Bureau National Population projections August 2008 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Hispanic Consumers Are Essential for Success 1 of 5 1 of 5 1 of 4 Moms Young Adults Births Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Can’t Win In The U.S. Without Hispanics WithoutYou Hispanics, the Math Doesn’t Work Hispanic Share of Adult 18–34 Population SF 31% LA 55% CHI 28% DEN 27% PHX 38% NY 27% DAL 36% HOU 43% MIA 51% Source: Nielsen Universe Estimates, 2010, A18-34 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary A Country Within a Country 2009 Population (in millions) Source: U.S. Census Bureau Interim Projections Released August 2008 (U.S. Hispanics based on 2009 population estimates).; U.S. Census Bureau International Data Base Division (population estimates by country based on 2009 estimates and 2050 population projections) Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary An Economy Within an Economy 2008 HH Consumption Expenditures ($ in billions) Source: 1) Global Insight – 2007 Hispanic Market Monitor based on 2008 consumer spending. 2)United Nations, National Accounts 2008 Country Profiles. 3) U.S. Census Bureau Current Population Survey 2008. Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary A Growth Engine Here at Home Russia U.S. Hispanics China India Brazil B I C +H BR- R IC H= Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Your Inner Voice Is this really happening to Why did I take me? French? I don’t have enough resources I guess I can’t put this off any longer Aren’t all Hispanics assimilating? Copyright © Univision Communications Inc. All rights rights reserved. reserved. My budget is already stretched too thin Where do I even start? Confidential and Proprietary TRANQUILOS Copyright © Univision UnivisionCommunications CommunicationsInc. Inc.All Allrights rights rightsreserved. reserved. reserved. Confidential and Proprietary No MoreApproaches “Joe Consumer” Three HEAD IN THE SAND Copyright © Univision Communications Inc. All rights reserved. CHECK THE BOX Confidential and Proprietary No More “JoeWater, Consumer” Toe in the But… …still a separate, below-the-line, LIFO, nice-to-have niche, afterthought “project” that you give to the Hispanic intern to work on after 5:00PM! Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary No MoreApproaches “Joe Consumer” Three HEAD IN THE SAND Copyright © Univision Communications Inc. All rights reserved. CHECK THE BOX TOTAL MARKET PLANNING Confidential and Proprietary Key Principles For Success: Total Market Planning 1 Copyright © Univision Communications Inc. All rights reserved. Make It a Strategic Business Imperative Confidential and Proprietary It’s Time to Jump the Line Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Integrate Hispanic At Every Stage of Business Planning What About Hispanic? Copyright © Univision Communications Inc. All rights reserved. What About Hispanic? Confidential and Proprietary Key Principles For Success: Total Market Planning 1 Make It a Strategic Business Imperative 2 Identify Right-To-Win Brands and Best Approach To Go To Market Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Defining Your Hispanic Brand Strategy B A HIGH CDI Drive Brand Awareness Increase Loyalty • Generate trial of product to boost position within category • Fuel frequency of brand usage • Maintain/strengthen leadership position within category HIGH BDI “First Mover Advantage” Grow Category • Opportunity to break into Hispanic market ahead of category • Expand category awareness among Hispanics to generate further sales growth D Copyright © Univision Communications Inc. All rights reserved. C Confidential and Proprietary Key Principles For Success: Total Market Planning 1 Make It a Strategic Business Imperative 2 Identify Right-To-Win Brands and Best Approach To Go To Market 3 Ensure Focus & Consistency Over Time 4 Concurrent Launch of New Initiatives 5 Engage Consumer At All Touchpoints 6 Drive Overall Relevance In Your Communication Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Acculturation “Salad Bowl” Hispanics Are Acculturating Not Assimilating Assimilation “Melting Pot” TIME IN THE U.S. Confidential and Proprietary Spanish Is Here to Stay Source: Global Insight, 2009 Hispanic Market Monitor (language usage based on population 5+) Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Spanish Is The Language Of The Heart Culture Spanish Spanish Connects Content Connects Country Copyright © Univision Communications Inc. All rights rights reserved. reserved. Community Confidential and Proprietary Spanish-Language Content Increasingly Popular Top TV Shows Among Hispanic Adults 18–49 Among BILINGUAL Hispanic Adults 18–49 1993-94 Season 2008-09 Season 2008-09 Season 37 49 46 Top 50 Top 50 Top 50 in in in of of of Spanish Spanish Spanish Source: The Nielsen Company, NPM-H. All Ad-Supported broadcast & cable networks. All programming excluding breakouts and programs under 30 Total Day M-Sun 7a2a. 2008-2009 Season (09/22/08-09/20/09) and 1993-1994 Season (09/20/93-09/18/94). Live+SD. *Bilingual includes Demo Lang Spoken = Mostly Spanish, Spanish English Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Spanish Connects With Consumers July 2009: Target Now You’re Speaking My Language “The bilingual consumer’s appreciation for inlanguage experiences results in a more favorable impression of those commercials which deliver them.” Source: http://en-us.nielsen.com/main/insights/consumer_insight/July_2009/now_youre_speaking Copyright © Univision Communications Inc. All rights rights reserved. reserved. Confidential and Proprietary Spanish Extends an Invitation Source: MadLogic Qualitative Consumer Research 1Q, 2003 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Spanish Creates Motivation Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Spanish Demonstrates Respect Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Spanish Establishes Trust Source: MadLogic Qualitative Consumer Research 1Q, 2003 Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Marketing in Spanish Helps Grow Businesses Automotive Movies Packaged Goods Restaurants Retail Telecom Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary No More “Joe Leading theConsumer” Way Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary It’s Not Just the Marketers With the Largest Budgets Confidential and Proprietary No More “Joe Consumer” Leading With Multicultural Ethnic Insights form Foundation of McDonald’s Marketing By Emily Bryson York November 6, 2009 Neil Golden CMO, McDonald’s USA Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Leveraging Hispanic for Growth “The Hispanic market today is a huge opportunity. I would challenge you to find another dollar opportunity that’s as big and as promising.” Mark Addicks CMO, General Mills, Inc. Confidential and Proprietary Benchmarking Success Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Demography Is Our Destiny Copyright © Univision Communications Inc. All rights rights reserved. reserved. Confidential and Proprietary Can I afford to invest money and resources in the Hispanic market? Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Can I afford NOT to? Could I be doing more? Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary Sí Se Puede geleta@univision.net Copyright © Univision Communications Inc. All rights reserved. Confidential and Proprietary