The follow-up study to the popular 2009 Hispanic Shopper & Retailer study by Mercury Mambo. Read first hand what Hispanic consumers and retailers look for in brand promotions and experiences.

1. 2011

2. Objective
Study Description
To assess the effectiveness of Hispanic
experiential and promotional marketing
Why we did it
Lack of actionable information Set the foundation for better performing work
1 2???????
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2

3. Topics & Themes
3
Store and
Manufacturer
Promotions
Experiential
Marketing
and Events
The Economy
and Shopping
Behavior
$

4. Sample & Method
4
51 large retailers
Consumer Profile
Retailer Profile
Hispanics intercepted at
malls, shopping centers,
special events, flea markets,
and other high traffic areas
Retailers were interviewed face-to-face. Most were selected from the Mercury Mambo retailer database.
Managers who work in-store. Over 90% of the managers we spoke to were of Hispanic origin themselves.
89% of the stores were in areas over 50% Hispanic.
(38 large chain, 13 large independent)
48 small and medium retailers
30% of the sample speaks only Spanish
39% speaks Spanish > English
31% speak both Spanish and English equally
(Excludes Hispanics who speak primarily English.) 46% are adults under 30 years of age,
and the rest are between ages 30 and 40.60% are female
< 30 YRS 30 - 40 YRS
(26 medium independent, 22 small or convenience store)
249 consumers
99 retailers &
LA
TX
MIA
NY
CHI

5. 5
CONSUMERS

6. financial worries lessening
6
Significantly fewer people are as worried about
finances today compared to 2009.
% worried about finances today
80%
16%
3%
highly worried
neutral
not worried
61%
32%
7%
2009 2011

7. remain optimistic about the future
7
Most Latinos are levelheaded about their family’s financial situation.
There is little pessimism about the month’s ahead.
39%
optimistic
46% - I am/spouse is employed
18% - I am in a stable position
14% - I have a positive attitude
12% - Good future prospects
8% - Economy is improving
8%
pessimistic
8% - Likelihood of job loss
8% - No enough work or jobs
8% - Low pay and high prices
53%
neutral

8. cutting cost still a priority
8
Neighborhood and c-stores are taking the hit.
They are also trading down from well-known brands to store brands.
doing less because of the economy
51% 38% 23%
Use small neighborhood or c-stores (+10%)
Buy well know brands (-8%)
Use large drug stores or chains (n/a)
30%
doing more because of the economy
39%
63%64%65%
21%
Buy lowest priced brands like store brands
Participate in discounts, coupons, free offers
Use discount stores like Walmart
Use club stores
Use large grocery stores or chains
Use large drug stores or chains
Participate in concerts, festivals, store events39%58%
(-8%) (-6%) (none) (-15%) (+1%) (n/a) (-13%)(+11%)
(+/- vs. 2009)

9. discounts and retailtainment rule
9
Contests and sweepstakes rate lower, but still have
interest by a quarter to a third of Latinos.
Latinos are attracted to various promotional activities,
leading with discounts. Cell phone offers beginning to peak interest.
% highly interested
77discounts or
coupons
70free samples
63bogos
57co rewards
programs
39
cell phone
offers
35
mail-in
rebate
Almost 40% are interested in cell phone offers, an innovation for most.
*
48Spanish concert
discount
community
festivals-
events
43
& store events
32internet
promo
29
sweepstakes
24
cell phone
promo
23
contests
Discounts & Giveaways
Entertainment & Events In line with past research, discounts and giveaways are the highest rated promotions.
Events rank second.
*
General Promos
Internet & cell phone promos may be ranked
low because they are less familiar.

10. cell phone offers?
10
Most people are interested in cell phone offers for convenience and portability.
Those not interested are skeptical and unaccustomed to using cell phones this way.
39%
high interest
50% - Convenient, won’t forget it or lose, always with you
12% - Saves money
31%
low interest
14% - Don’t use my cell phone for that, don’t text
12% - Don’t like the idea, might not work
9% - Spam, junk mail
7% - Too complicated or difficult“It’s an excellent idea.
I’m always glued to
my cell phone.”
“I would have to see if the stores accept
them. It could take more time and the
cashiers don’t have much patience.”
“That would be more organized. I
wouldn’t lose them or forget them
at home.”

11. promotions & events drive purchase
11
conversion to sales has increased vs. 2 years ago as consumers get
smarter and more tuned-in to their value.
70%
32% 31%
Participated in price
promotions or sampling
in past 6 months
Participated in events
in past 6 months
Participated in both of
these promotions,
resulting in purchase
rates to the side…
(+/- vs. 2009)
=
90%
purchased the product as
a result of the promotion
(+12%)
84%
purchased product for the
1st time
(+21%)
84%
had not planned to
purchase the product(s)
(+32%)
78%
purchased product > 1
time after promotion
(+26%)

12. savings matter
12
Discounts are an important driver of store choice.
% consumers choose one store over another because of discounts or events
18%71%
more entertaining eventsmore discounts

13. size matters
13
hispanics prefer contests with many small prizes
rather than with one large prize.
VS.
65%
34%
prefer contest with
many small prizes
prefer contest with
one large prize

14. bilingual signage is key
14
hispanics don’t necessarily want Spanish or English signage,
they want both.
10%only Spanish
17%Spanish>English
62%
Spanish=English
11%English>Spanish
1%
only English

15. community involvement connects
15
Over half of hispanics say they are more likely to buy a product
if they support the community.
52% Very likely
39% Neutral
8% Not very likely

16. family first
16
Family tops the list of organizations that consumers are interested in supporting.
Education, cancer, Hispanic issues and nutrition are also of interest to Hispanics.
38%
children/youth/
family
17%
education
16%
cancer
10%
Hispanic issues/
immigration
7%
nutrition/health

17. store circulars deliver
17
After discounts and coupons in store circulars , people are most
interested in getting information about education and scholarships.
All topics did well with a third or more hispanics.
68% 46% 39% 37% 32%
discounts &
coupons
education &
scholarships
baby care &
raising family
health &
wellness
recipes &
cooking tips
% highly likely

18. Hispanics embrace technology
18
Technology ownership has improved quite a bit since 2009.
% Technology owned
(+13%)
have laptop
(+2%)
have desktop
(n/a)
have tablet
3%
(+8%) have internet access at home
(-10%)
do not own
computer
have dial up
(+/- vs. 2009)
88%
93%
(+11%)
own computer
52%54%
12%
80%
have high speed internet
(+13%)
13%
(-5%)

19. online surfing crosses boarders
19
Most people surf the web in Spanish and English. Browsing tends to require
English for access to Spanish content so both languages tend to be intertwined.
Avg time spent using the internet by language - 2011
overall in Spanish
overall in English
84%
none-16%
81%
none-19%
37% 34% 13%
in Spanish
for 1hr or less between 1 - 3hrs more than 3hrs
33% 23% 25%
in English

20. cell phones connect & Engage
20
conduct internet searches with their cell which
could be used to facilitate purchasing decisions.
98% of Hispanics in our study own a cell phone and
about 44% seem to subscribe to a data plan.
89% 55% 44% 44% 31% 26%
5%
text email internet search social media youtube other apps 4 square
44%

21. 21
RETAILERS

22. Spirits High Among Retailers
22
Most retailers feel good about their future store sales because of discounting,
steady sales increases, and a sense that the economy is improving.
why?
20% better prices, more sales or promos
19% store is busy, sales trending up
15% changes with weather
13% my judgment or opinion
6% economy improving
6% people have to eat
5% we know how to draw customers in
3% large variety
3% customers shopping better, using coupons
2% store improvement, displays, remodels
62%
optimistic
(0%)
pessimistic
38%
neutral

23. Retailtainment Interest Retailers
23
% highly effective among retailers vs. % highly interested among consumers
(77%)
discounts or coupons
(70%)
free samples
Retailers have a greater interest in events.
Retailers give sweepstakes and contests
much higher ratings than consumers.
(63%)
bogos
(57%)
co rewards programs
(39%)
cell phone
offers
(35%)
mail-in
rebate
(48%)
Spanish
concert
discount
(43%)
community
festivals-
events
(43%)
store
events
(n/a)
radio
remotes
(n/a)
promos that
support
community
(29%)
sweepstakes
(24%)
cell phone
promo
(23%)
contests
(32%)
internet
promo
Discounts & Giveaways
Entertainment & Events
General Promos
(vs. % consumers)
Cell phone offers and rebates are rated higher among consumers than
among retailers. Lack of interest among small retailers minimizes appeal.
*
Similar to consumers, retailers give highest
ratings to price promotions.
78 77 74 54 11 9
*
69 5562 5856
46 37 26 13

24. Make some Noise!
24
Retailers want brand promotions that make noise and attract people to their stores.
They want to offer something for free, encourage purchase through samplings or
discounts, and bring attention to themselves.
16% radio remotes
15% offers with savings or coupons
14% free product samples
13% giveaways, prizes, raffles
12% product demonstrations
8% live music
6% Kid or family events
6% bring live celebrities
4% parking lot events
3% health and wellness events
2% Hispanic holidays or celebrations
2% bogos
1% live girls or models
“Activities that
commemorate relevant
dates in Latin countries.”
“More sampling or outside events
to remind people we’re here.”
“Events with music, raffles for
everyone to participate such as a
tombola, prizes or roulette.”

25. Retailers cautious on Cell Phone Offers
25
Retailers, especially small ones, have 2 concerns:
whether people will use cell offers,
and whether the store could operationally handle accepting them.
11%
high effectiveness
6% - More convenient
5% - Most people use cell phones
3% - I want to try it
2% - Saves money
59%
low effectiveness
26% - Not use cell for that/not text
22% - Privacy concerns
18% - Skepticism about how it works
18% - Store too small, no coupons accepted
“I don’t think so, they
could be counterfeited
or duplicated.”
“People will not want to pay for
that service.”
“If they send cell offer messages, it
would be more effective. I constantly
check my cellphone, I’m more aware
of them and it’s faster.”

26. Online Store Promotions New Territory
26
Some retailers are using online promotions to attract Hispanics,
but others are skeptical.
26%
high effectiveness
12% - People are on internet
2% - Easy, quick & efficient
41%
low effectiveness
11% - Customers don’t have internet
7% - Not tech savvy, older
6% - Store is too small, can’t do it
4% - Prefer traditional way
4% - Skeptical, never heard of it

27. Hispanic Specific Promotions and
Merchandising Preferred
27
Retailers rate Hispanic specific promotions as more effective than
Gen Mkt extensions, but both are seen as important. Retailers are
more satisfied with Spanish or bilingual merchandising and displays.
They prefer promotional activities designed just for Hispanics.
% who rate promotion as
highly effective
74%
Promotions designed
specifically for the
Hispanic market
55%
Hispanic promotions
that are extensions or
variations of GenMkt
Note: Large chains are most satisfied with all types of store promotions vs. small stores
% retailers highly satisfied
34%
English GenMkt
promotions
63%
Hispanic
promotions
Spanish or bilingual
merchandising & displays
72%

28. Savings Top the News
28
% highly effective among retailers vs. % highly likely among consumers
Similar to consumers, retailers are most interested in discounts and offers for
their store circular . Retailers do not rate education as highly as consumers.
83% 39% 44% 47%
(68%)
discounts &
coupons
(46%)
education &
scholarships
(39%)
baby care &
raising family
(37%)
health &
wellness
(32%)
recipes &
cooking tips
44%
(vs. % consumers)

29. Entertainment Advantage
29
% retailers believe their consumers choose one store over another for events or discounts
Retailers believe store entertainment gives them an advantage over other stores,
even though consumers may not acknowledge it.
32%72%
(18%)
more entertaining events
(71%)
more discounts
(vs. % consumers)

30. Star Performers
30
Latino brands do a good job promoting products in-store. Beverage, cheese, dairy
and tortilla categories get good marks for effective promotions.
17% Goya
10% Cheese and Dairy
6% Maseca
5% El Mexicano
4% Tropical
4% Jarritos
4% Tortillas
15% Coke/
other soft drinks
15% Bud Light/
Corona/other beer

31. 31
SUMMARY

32. What does this all mean?
32
Although optimistic, cutting cost is still a priority - store
brands strong momentum, small stores taking hit.
Promotions and store events are remain critical tools, as
evidenced by higher purchase conversion.
Events have a secondary, but important role, especially to
retailers who need to create excitement.
Hispanic cultural relevance has great value to retailers.
Technology is here to stay, creating new channels that facilitate
brand building, engagement and portability.
Consumers respond to community involvement, especially if
related to family, children, education and cancer-related issues.
Key findings
Consider cross-promo/merchandising with store brands, stock-
up strategies, small store strategies.
Move conversation beyond price promotions to consumer
“value” and engagement - trial, purchase, repeat.
Maximize activations by leveraging store events before, during
and after the activation.
Link activations to cultural insights to connect with consumers
and retail partners alike.
Innovation welcome when coupled with a concrete benefit
(like savings) for consumers and turnkey execution for
retailers.
Cause marketing allows brands to connect with consumers
on a deeper level, differentiate, and add value in a unique and
powerful way.
Implications

33. 33
about

34. About Mercury Mambo
34
To motivate consumers to take action!
Seasoned team of marketing junkies with experience in
segment marketing and sales activation
We understand the nuances of distribution, sales and
marketing
Dedicated Mambo-trained Market Ambassadors in top
Hispanic markets delivering brand experiences and gathering
consumer insights
MBE, WBENC, HUB Certified
Named to Inc. Magazine’s 500/5000
Fastest Growing Companies, Promo 100
MISSION
accolades

35. About Mercury Mambo’s HispaniPoll
35
Utilizing Mercury Mambo’s proprietary network of bilingual brand ambassadors
and local market experts, HispaniPoll allows marketers to gather field
intelligence in a quicker more cost-effective manner than traditional research
studies. HispaniPoll teams are trained to conduct everything from store audits,
to consumer and trade surveys, to creative spot checks.
CONTACT FOR MORE INFORMATION
TM
Liz Arreaga
Mercury Mambo | Agency Partner
1107 S. 8th Street, Austin, Texas 78704
liz@mercurymambo.com
512.447.4440 x122

36. 36
Appendix

37. Interview questions
37
(slide 6)
How has the economy affected your shopping habits compared to the past? Are you doing more, less or the same
of the following…? Top 2 boxes: more = much more + somewhat more; less= much less + somewhat less.
(slide 7)
On a scale of 1 to 10, how interested are you or your family in…
Highly Interested: Rating 8-10, 10=extremely interested
(slide 8)
Why are you interested/not interested in special offers or discounts on your cell phone?
(slide 10)
How often do you choose one store over another because they have…? Almost always/frequently
(slide 11)
Which of the following promotions do you prefer? Entering a contest where they give away one large prize to
one winner, or entering a contest where they give away many small prizes to many winners?
(slide 12)
What language do you prefer for signs & displays inside a store?
(slide 13)
How worried are you about having the resources to buy the basic needs for your household? 1=not at all
worried, 10 = very worried; highly worried = 8-10, neutral = 5-7, not worried = 0-4.

38. Interview questions
38
(slide 14)
How optimistic or pessimistic do you feel about your family’s finances over the months ahead? 1=extremely
pessimistic, 10 = extremely optimistic; optimistic= 8-10, neutral = 5-7, pessimistic = 1-4.
(slide 15)
How much more likely are you to buy one product over another if you know the company supports the
community? 1=not at all likely, 10=extremely likely. 8-10=very likely; 5-7 = neutral; 0-4 = not likely
(slide 17)
On a scale of 1 to 10, how likely would you or your family be to use this store newspaper for information
about…? High likelihood: Rating 8-10, 10=Extremely likely, 1= Not at all likely
(slide 22)
On a scale of 1 to 10, how interested are you in/effective is…? highly Interested/effective: Rating 8-10,
10=extremely interested/effective
(slide 23)
On a scale of 1 to 10, how effective is…? high effectiveness: Rating 8-10, 10=extremely effective, Rating 1-3, 1
= not at all effective
(slide 25)
On a scale of 1 to 10, how effective is…? high effectiveness: Rating 8-10, 10=extremely effective;
low effectiveness: Rating 1-3, 1 = not at all effective

39. Interview questions
39
(slide 28)
How would you rate the effectiveness of the following promotions at helping influence Hispanic customers?
highly effective= rating 8-10, 10=extremely effective, 1= not at all effective
(slide 29)
How satisfied are you with…? Extremely or very satisfied
(slide 30)
On a scale of 1 to 10, how likely would you or your family be to use this store newspaper for information
about…? High likelihood: Rating 8-10, 10=Extremely likely, 1= Not at all likely
(slide 31)
How often do you/you think consumers choose one store over another because they have…? Almost always/
frequently
(slide 32)
How do you feel about your store’s sales volume over the month’s ahead? very optimistic = 8-10, very pessimistic
= 1-3, neutral = 4-7, 1= extremely pessimistic, 10 = extremely optimistic

40. 40
(slide 8)
“It’s an excellent idea. I’m always glued to my cell phone.”
“I’m not a coupon clipper but I may start if they make it that easy.”
“That would be more organized. I wouldn’t lose them or forget them at home.”
“I don’t want companies to have my number.”
“If you give them your number, they will keep sending you junk.”
“Then if they call you, you don’t know who it is. The other day they called my uncle to tell him he had won something and
it was all lies.”
“It would be annoying to be at work & keep hearing the texts come in.”
“I would have to see if the stores accept them. It could take more time and the cashiers don’t have much patience.”
(slide 14)
“Because we all have work and we don’t owe that much”
“I don’t feel that our situation is that bad even though the job market is low but with Gods help we will overcome things.”
“Because my husband and I are working and I have a son that just started working and he will help us with the bills.”
“For the family we have to be good and positive, I have always try saving coupons, up to the max.”
“I know a lot of people that now have jobs and getting back on their feet.”
“If I don’t find a real job I’ll be worried, now I just have part time work and I just had a baby. I’m scared my mom will
kick us out.”
“I am a single mother and the cost of living is expensive. I barely have enough for the essential things and my ex doesn’t
help me at all.”
“We have to limit ourselves to buy things like we did before. The economy is bad and there is not enough money.”
interview quotes

41. interview quotes
41
(slide 23)
“Because it would be good for customers to have more opportunities than the ones they already have.”
“If they send cell offer messages, it would be more effective. I constantly check my cellphone, I’m more aware of
them and it’s faster.”
“People don’t like being bothered.”
“I don’t think so, they could be counterfeited or duplicated”
“People will not want to pay for that service.”
“I think it seems somewhat complicated.”
“I cannot imagine cell phone being used for coupons, and I doubt we will be able to accept those. How?”
(slide 25)
“At first I was hesitant about the internet, but people are online more.”
“Everything is done online. People find us online, then call for specific items.”
“Our coupons are available online at lafiestasupermarkets.com”
“People might go on the internet to see sales on other items like clothes or shoes but not so much for groceries.”
“Not everyone has internet. We have a website and people go check it out but they prefer to find offers in our
sales paper.”
“Perhaps the higher volume stores in the suburbs would use it but …our customers would rather come to the
store to find our sales.”
“There is a lot of fraud with coupons online. We only accept manufacturer or store ad coupons.”

42. sample demographics
42
72% parents with children under age 18 in HH
44% HHs with children under age 6
30% HHs with children 6-12
18% HHs with teenagers
25% single
61% married/living together
13% divorced/separated
32% US born
69% Foreign Born
23% new arrivals of total sample (<10 yrs)
30% Speak Only Spanish
39% Speak Spanish More than English
31% Speak Both Equally
47% Mexican
46% Under 30
54% 30 and over