1. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com 20/20 for Hispanic Marketing 2020

2. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Northern California LEAD Conference ‘07 by NSHMBA August 18, San José, CA

3. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Presentation Flow latinos - the growth opportunity today best practices In-culture ! GenAge © segments; managing growth and acculturation

4. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com 1986 vs 2006*

5. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com 42.7 + Puerto Rico = 46.7 - 2.1 million new consumers - 65 billion more in income! - half a million new HHs! projected hispanic growth every 12 months

6. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com in 2007 44 million latinos + puerto rico = 48+million

7. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com total USA from 7 trillion to 9.9 trillion… African Americans $ 589 billion to $ 853 US Latinos $ 491 billion to $ 926 Asians $ 255 billion to $ 455 American Indians $ 36 billion to $ 57 Source: Selig Center for Economic Growth, 2002 *Buying Power or Disposable Personal Income : Total Personal Income after taxes exponential disposable income growth income growth estimates 2000 to 2007

8. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com exponential disposable income growth Projected Evolution of Hispanic Buying Power through 2010

9. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com income by country of origin 2004

10. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com median age by ethnic group 2005

11. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Household income # of Hispanic households. (in ‘000s) % of Hispanic households. % growth 2000- 05 100,000+1,0988.8%97.5 % 75,000-99,9991,0298.244.9 50,000-74,9992,15917.228.4 35,000-49,9992,14117.125.4 25,000-34,9991,87415.031.8 15,000-24,9992,03116.215.1 Under $15,0002,18617.520.0 [i] [i] Source: U.S. Census Bureau income distribution, hispanic households 2000-2005

12. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com median age by ethnic group 2005

13. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com latinos by country of origin

14. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com geographic distribution

15. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com StateHispanic Share of Total Buying Power (%) New Mexico 29.5% Texas 19.2 California 17.2 Arizona 15.2 Nevada 13.2 Florida 14.3 Colorado 10.8 New York 9.5 New Jersey 8.6 Illinois 8.1 [i] [i] Source: Selig Center for Economic Growth, Terry College of Business, The University of Georgia, July 2005 ten states with most concentrated Hispanic buying power 2005

16. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com challenges exist!

17. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com “The Nation’s Report Card: Reading 2005” and “The Nation’s Report Card: Mathematics 2005”, National Center for Education Statistics percent of students below basic national achievement levels in math and reading

18. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com presentation flow best practices In-culture ! GenAge © segments Managing growth and acculturation

19. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com culture is the “programming” that sets up our values, beliefs, expectations, etc. and the chain reaction begins... Source: Adapted from Fons Trompenaars culture is…

20. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Culture creates beliefs. Beliefs create attitudes. Attitudes create feelings. Feelings determine actions. Actions create Results Culture is our programming

21. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com is a marketing approach that … “capitalizes and leverages cultural differences through-out business planning, value proposition - marketing strategy development and execution. By doing so, we touch and engage consumer’s emotions building “HeartShares for long-term MarketShare ™ ” Source:, I. Valdes, 1995, 2000, 2002, 2007 “in-culture” marketing works!

22. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com

23. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com 199020002010202020302040 0 10 20 30 40 50 60 70 199020002010202020302040 Fourth generation Third generation Second generation Foreign-born a generational view

24. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Source: Valdes, I., Marketing to American Latinos, 2000 US born first, second, third generation brand, category “mature” marketing savvy foreign born recent arrivals vs Long-term brand heritage/lack off advertising, information “hungry” generational diversity

25. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com population pyramids

26. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Less than 9 th Grade 9 th to 12 th Grade High School Graduate Some College College Graduate Total Hispanic (in ‘000s) 5,446 (24.0%) 3,742 (16.5%) 6,121 (27.0%) 4,577 (20.2%) 2,785 (12.3%) U.S.-born Hispanic / 2 nd Generation, 3 rd Generation, and Greater (in ‘000s) 932 (9.8%) 1,432 (15.0%) 2,919 (30.6%) 2,748 (28.8%) 1,504 (15.8%) Foreign-born / First- generation Hispanic (in ‘000s) 4,513 (34.4%) 2,311 (17.6%)3,202 (24.4%) 1,829 (13.9%) 1,281 (9.8%) Total U.S. (in ‘000s) 11,790 (6.2%)17,990 (9.5%) 55,907 (29.6%) 51,865 (27.5%) 51,378 (27.2%) Note: “College graduate” refers to a person who has attained at least a bachelor’s degree. Source: Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey. [i] [i] Hispanics at Mid-Decade, Pew Hispanic Center tabulations of 2005 American Community Survey. hispanic educational attainment by U.S.-born and foreign-born generations age 25 and over - 2005

27. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com present day Hispanic market is composed of consumers in different stages of acculturation to American mainstream culture levels and rates of acculturation vary between sub-ethnic groups, (Cuban, Mexican, etc.) generations, regions and even within families! latinos and “acculturation ”

28. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Machismo (Man’s role) Leads Provides Marianismo (Woman’s role) Keeps family together Chicoismo (Children’s role) Family legacy Familismo Familismo Family Unity is Imperative (Family Centered) latino cultural imperatives

29. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com   Babies: birth, christening  Children: birthday, First Communion  Family: Mother’s Day, Father’s Day  Romance: Anniversaries (20, 25, 50…)  Religion: Catholic Holidays marketing in-culture

30. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com an approach to deliver emotionally relevant messages that build HeartShares ™ in addition to the right communications strategy, visuals, tonality, etc. - to touch the “whole person” - not just the mind or pocket! Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002 in-culture and in-language = $$$$!

31. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com “A message must convey the emotional significance of the sentence, in addition to the phonetic message, in order to convey the “full” message.” language relevance

32. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com English? Spanish? Bilingual? Spanglish? language value?

33. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com variations in language usage today

34. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com “Marketing In-culture has a measurable effect on the choices consumers make, the volume they purchase and where they shop!” Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002 measurable results

35. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com $ Index Mexican Tortillas Brand A Brand B Brand C CTL Brand 100 661 2665 115 8895 183 1003 4330 54 18172 211 500 2107 127 3774 100 297 528 207 220 267 NON-HISPANIC TOTAL ------------------- LANGUAGE SEGMENTS --------------- MARKET HISPANIC SPANISH ENGLISH HOUSEHOLDS HOUSEHOLDS ONLY/PREFERRED BILINGUAL ONLY/ PREFERRED. ACNielsen Homescan Delivers Consumer Insights Hispanic Shopping Behavior Mexican Tortillas: What Do Hispanics Buy? March-Aug Hispanic Consumer Panel - LA Market

36. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Source: AC Nielsen 52 weeks ending 1/26/02 “store x” nectar category growth

37. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com In-culture Brand Positioning and Value Proposition Merchandising Distribution Retailing IT Database Affinity/ Cause-Related Direct Response Promotions Event Mktg Public Relations Grassroots/ Guerrilla Product Innovation Customer Service / CRM Loyalty/Winback Online Hiring - Training In-culture Integrated Marketing Model Source: Valdes, M.I., Marketing to American Latinos, 2000, 2002

38. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com presentation flow GenAge © segments managing growth and acculturation

39. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Introducing …. Hispanic Customers for Life; a Fresh Acculturation Review by M. Isabel Valdés Available Q4 2007 www.isabelvaldes.com

40. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com “the” generational changes

41. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com latino age by generation

42. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Latinos by Age and Place of Birth 2006 in “Latino Customers for Life; A Fresh Acculturation Approach”

43. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Hispanic GenAge® Segments – 2006 in ”Customers for Life; A Fresh Acculturation Approach”

44. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com GenAge™ Segments 2006

45. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com GenAge® Segmentation by Nine Age -Sub-Segments and Generation 2006 GenAge™ Segments 2006

46. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com GenAge © segments growth

47. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com Los Bebès - Ages 0-5 GenAge ® Segments 2006

48. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com latinos/as - Ages 20-39 GenAge ® Segments 2006

49. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com In sum …. Latinos 2020; great business opportunity challenges need to be addressed ! In-culture marketing works! the generational crossover is here tools to manage growth, and acculturation exist! e.g.: GenAGe™

50. © M. Isabel Valdes DO NOT USE or COPY WITHOUT THE AUTHORS’ WRITTEN CONSENT www.isabelvaldes.com by M. Isabel Valdés, IVC Paramount Market Publishers. Ithaca, New York www.Isabelvaldes.com