1. Hispanic Hair Product Category October 13, 2011

2. Several Slides Taken Out to Maintain Privacy of Client

3. Table of Contents -Hispanic Market Background -Hispanic Market Cultural Insights -Hair Care Category – Lay of the Land -Usage of Hair Care Products for Various Targets -Brand Penetration -Summary and Opportunities

4. U.S. Hispanic Population is Exploding Source: U.S. Census Bureau 19801990200020102020203020402050 (6.4%) (9.0%) (12.5%) (16.3%) (17.8%) (20.1%) (22.3%) (24.4%) CensusProjections Hispanic population has reached a new milestone – exceeding 50 Million With $1 trillion strong purchasing power

5. Mexicans Largest Hispanic Group Source: U.S. Census Bureau & Simmons NHCS Spring 2011 Spanish dominant Hispanics prevail, and majority are low-mid acculturated Language Acculturation

6. Hispanics Are Younger, Larger Households As a whole, the Hispanic population is younger than the general market. Large, close-knit families are typical. Hispanics over-index Non- Hispanics in number of people in HHs. Medium Age Hispanic = 27 Non Hispanic = 37 Source: Simmons NHCS Spring 2011 Where Born Foreign Born = 59% US Born= 41%

7. Top 5 Markets Comprise 38.5% of Hispanic Population With a buying power of $383 billion Source: Synovate U.S. Diversity Markets 2010

8. Hispanics Lower Income Avg. HH Income: $56KAvg. HH Income: $72K The ravaged economy has affected everyone, as a consequence 26% of Hispanics are “facing financial challenges”, meanwhile 24% consider themselves “fiscally fit” Economic Outlook Segments Source: Simmons NHCS Spring 2011 HispanicsNon-Hispanics

9. Hair Care Category: Lay of the Land

10. Opportunity to stand out Drugstore brand advertising mass-marketed - Salon brands more targeted P&G and L’Oreal - biggest hair care advertisers in Spanish-language Hair care is an $80M category in the Hispanic marketing world The Category Hispanics and other multicultural consumers spend $5 billion dollars on hair care products each year 70% expenditures made on regular hair care products, remainder spent on ethnic specific-products Shower clutter: hair care choices blurring Source: Hispanic Market Weekly Industry Info: Hair Care; Hispanic Consumer Trends in Hair Care – The San Jose Group

11. Always busy Recession Want guidance Convenience Culture Careful, Spend wisely Jobs: Move sector/state The Times Forever grateful

12. A lot of this market came to this country for aspirational reasons of self-improvement. To be able to purchase a well-known quality brand is desirable The Hispanic Culture

13. Standards of Beauty Hispanic Voluptuous = Beauty Anglo Thin = Beauty Latinas come in every shape & color from red- head to dark skin Beautiful hair is part of what makes the Latina woman so alluring & captivating Latina achieves beauty through attitude, spirit and passion. She sees the beauty and strength within her and is inspired to pass it on

14. Hispanics Higher Consumption of Hair Care Products With higher leads in hair-color (Latinas) and styling products -Hispanics attend to hair care needs at home rather than at professional salon Source: Simmons NHCS Spring 2011

15. Hairspray Category Dominated by Drugstore Brands 10% of Hispanics are using salon brand hairsprays -PM leads with Nexxus; highest among 18-24 Hispanic target Source: Simmons NHCS Spring 2011 Top 5 drugstore hairsprays among Hispanics = Suave, Tresemme, Aqua-Net, Dove, Pantene

16. Hispanic Men: Viable Business Hispanic men over-index Non- Hisp men on all hair care products Styling products highest lead One of every 5 guys in the country is Hispanic in the coveted 18-49 demographic Source: Simmons NHCS Spring 2011, US Census, Why Latinos Look So Good – Univision 2011 Latinos use hair-styling products an avg. of 3.4 times/week vs. 1.7 times for non-Latinos

17. Goodbye Metrosexual – Hello Vanidoso Source: Why Latinos Look So Good Study – Univision 2011 Hispanic men celebrate “vanidad” (vanity) over machismo. Looking and feeling their best is tied to their self-esteem. “The way people see you is the way people treat you.” Latinos are now routinely engaging in more “refined personal care” with more frequency than Non-Latinos Latinos want to buy masculine looking products. Respondents were more responsive to Spanish- language ads – more relevant, “it gets me”

18. Thank you!