Confidential and Proprietary The Transformation of America Playing to Win in a Multicultural Nation Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. No More “Joe Consumer” Hiya!Hiya! In the nation’s 10 largest cities no racial or ethnic category describes a majority of the population. Copyright © Univision Communications Inc. All rights reserved. Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. 3 Concept of “Average American” Is Obsolete The iconic American family – married couple with children – will account for a mere 22% of households. Copyright © Univision Communications Inc. All rights reserved. Advertising Age White Paper, “2010 America: What the 2010 Census Means for Marketing and Advertising” October 12, 2009

Confidential and Proprietary Diversity Is the Norm for Young Americans Copyright © Univision Communications Inc. All rights reserved. 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

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. 5 Definition of “Mainstream” Has Changed I have a feeling we’re not in Kansas anymore! Copyright © Univision Communications Inc. All rights reserved.

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Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. 7 A Closer Look at Multicultural America Copyright © Univision Communications Inc. All rights 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 Copyright © Univision Communications Inc. All rights reserved. Change We Can Believe In

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Change We Must Believe In

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Growth You Can Count On

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Hispanics Are Largest & Fastest-Growing Segment

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Hispanics Are Leading Multicultural Growth HispanicAsianAfrican American Non-Hispanic White +40% +35% +10% +3% % Population Growth 2000–2010 Source: U.S. Census Bureau Interim Projections August Asian American includes Asian, Hawaiian, Pacific Islanders. Other includes Native American, Aleut, Eskimo, 2 or more races or some other race.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Your Growth Engine Source: U.S. Census Bureau National Population projections August 2008 Hispanic Share of Total U.S. Population Growth Non-Hispanic Hispanic

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Hispanic Consumers Are Essential for Success

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. LA55% SF31% NY27% MIA51% HOU43% CHI28% DAL36% You Can’t Win In The U.S. Without Hispanics Source: Nielsen Universe Estimates, 2010, A18-34 DEN27% Without Hispanics, the Math Doesn’t Work PHX38% Hispanic Share of Adult 18–34 Population

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. A Country Within a Country 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) 2009 Population (in millions)

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. 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.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. A Growth Engine Here at Home U.S.Hispanics Brazil Russia China India RBCI+ H =-BIRCH

Confidential and Proprietary Why did I take French? Copyright © Univision Communications Inc. All rights reserved. I don’t have enough resources Aren’t all Hispanics assimilating? Where do I even start? Your Inner Voice Copyright © Univision Communications Inc. All rights reserved. Is this really happening to me? My budget is already stretched too thin I guess I can’t put this off any longer

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Confidential and Proprietary No More “Joe Consumer” Three Approaches HEAD IN THE SAND CHECK THE BOX Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary No More “Joe Consumer” Toe in the Water, 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 More “Joe Consumer” Three Approaches HEAD IN THE SAND CHECK THE BOX TOTAL MARKET PLANNING Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Make It a Strategic Business Imperative 1 Key Principles For Success: Total Market Planning Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. It’s Time to Jump the Line

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. What About Hispanic? Integrate Hispanic At Every Stage of Business Planning

Confidential and Proprietary Make It a Strategic Business Imperative 1 Key Principles For Success: Total Market Planning 2 Identify Right-To-Win Brands and Best Approach To Go To Market Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary “First Mover Advantage” Opportunity to break into Hispanic market ahead of category Grow Category Expand category awareness among Hispanics to generate further sales growth Drive Brand Awareness Generate trial of product to boost position within category Defining Your Hispanic Brand Strategy Copyright © Univision Communications Inc. All rights reserved. Increase Loyalty Fuel frequency of brand usage Maintain/strengthen leadership position within category B A D C HIGH BDI HIGH CDI

Confidential and Proprietary 6 Drive Overall Relevance In Your Communication 5 Engage Consumer At All Touchpoints Make It a Strategic Business Imperative 1 Key Principles For Success: Total Market Planning 3 Ensure Focus & Consistency Over Time 2 Identify Right-To-Win Brands and Best Approach To Go To Market 4 Concurrent Launch of New Initiatives 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 Copyright © Univision Communications Inc. All rights reserved. Spanish Is Here to Stay Source: Global Insight, 2009 Hispanic Market Monitor (language usage based on population 5+)

Confidential and Proprietary Spanish Connects Community CultureContent Country Spanish Connects Copyright © Univision Communications Inc. All rights reserved. Spanish Is The Language Of The Heart Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Source: The Nielsen Company, NPM-H. All Ad-Supported broadcast & cable networks. All programming excluding breakouts and programs under 30 Total Day M-Sun 7a- 2a Season (09/22/08-09/20/09) and Season (09/20/93-09/18/94). Live+SD. *Bilingual includes Demo Lang Spoken = Mostly Spanish, Spanish English Spanish-Language Content Increasingly Popular Season 37 of Top 50 inSpanish Top TV Shows Among Hispanic Adults 18–49 Copyright © Univision Communications Inc. All rights reserved Season 49 of Top 50 inSpanish Season 46 of Top 50 inSpanish Among BILINGUAL Hispanic Adults 18–49

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Source: July 2009: Target Now You’re Speaking My Language Spanish Connects With Consumers “The bilingual consumer’s appreciation for in- language experiences results in a more favorable impression of those commercials which deliver them.” Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Spanish Extends an Invitation Copyright © Univision Communications Inc. All rights reserved. Source: MadLogic Qualitative Consumer Research 1Q, 2003

Confidential and Proprietary Spanish Creates Motivation Copyright © Univision Communications Inc. All rights reserved. Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006

Confidential and Proprietary Spanish Demonstrates Respect Copyright © Univision Communications Inc. All rights reserved. Source: Open Mind Strategy Qualitative Consumer Research 4Q, 2006

Confidential and Proprietary Spanish Establishes Trust Copyright © Univision Communications Inc. All rights reserved. Source: MadLogic Qualitative Consumer Research 1Q, 2003

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Marketing in Spanish Helps Grow Businesses Packaged Goods Automotive Retail Movies RestaurantsTelecom

Confidential and Proprietary No More “Joe Consumer” Leading the Way Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. 50 It’s Not Just the Marketers With the Largest Budgets

Confidential and Proprietary No More “Joe Consumer” Leading With Multicultural Copyright © Univision Communications Inc. All rights reserved. Ethnic Insights form Foundation of McDonald’s Marketing By Emily Bryson York November 6, 2009 Neil Golden CMO, McDonald’s USA

Confidential and Proprietary “The Hispanic market today is a huge opportunity. I would challenge you to find another dollar opportunity that’s as big and as promising.” Leveraging Hispanic for Growth Mark Addicks CMO, General Mills, Inc.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Benchmarking Success

Confidential and Proprietary Demography Is Our Destiny Copyright © Univision Communications Inc. All rights reserved.

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Can I afford to invest money and resources in the Hispanic market?

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved. Can I afford NOT to? Could I be doing more?

Confidential and Proprietary Copyright © Univision Communications Inc. All rights reserved.