AHAA presented new research on how Consumer Packaged Goods (CPG) and CPG-driven retail companies are increasing their investment and honing their strategies to better target Hispanic consumers. The outcome of this increased focus is impacting companies overall growth rate and is being noticed by Wall Street analysts.
Some of the companies featured in this new study include:
Coca-Cola, Ralcorp, Groupe Danone, Nestle, Walgreens, Church & Dwight, General Mills, Hormel Foods, Walmart, CVS/Caremark, McCormick, Dean Foods, LVMH Moet Hennessy, Louis Vuitton, Tyson Foods, JM Smucker, Kellogg, Clorox, Target, Pernod Ricard, Campbell Soup, Kimberly-Clark, Diageo, Procter & Gamble, Hershey, Brown-Forman, Unilever, Big Lots, Conagra Foods, Kraft Foods, Pepsico, Henkel Kgaa, Nutrisystem, Newell Rubbermaid, Fortune Brands, and Sara Lee.
The data will show the strong correlation (with a 95% confidence level) between corporate revenue growth and Hispanic marketing -- indicating that the Hispanic market can be a big determinant in corporate success.
As Obi-Wan Kenobi said, “It takes strength to resist the dark side. Only the weak embrace it.” Here is why… Companies cutting Hispanic dedicated media allocation, while increasing allocation to English media, tend to suffer a reduction in their sales growth. In fact, the reduction of the growth is sometimes so large that it could wipe out nearly the entire annual growth attained by all competitors in a category.
The Cost of the Dark Side: Across CPG-Retail, Auto and Financial-Insurance Services categories: a five point cutback in Hispanic media allocation yields a reduction in Total Market revenue growth rate of minus 1.8% per year.
What’s the learning? A near proportional balance of opportunity and investments yields incremental growth rates for products and services. Companies that allow their brands to slash meager budgets and continuously under-invest in the Hispanic segment are minimizing their growth potential at their own peril.
Since 1998, AHAA has been helping its members serve its clients through breakthrough independent studies that
increase understanding of what it takes to win the market,
share new concepts, and identify best practices of marketing to Latinos.
While overall ad spend among the top 500 advertisers increased by 5% from $79.0 Bn to $83.1Bn from 2010 to 2014, marketers made a steep increase in Hispanic Ad Spend, jumping 61% from $4.4Bn to $7.1Bn.
Multicultural segments progressed in 2015 to culminate in a record Holiday season, most likely the highest expenditure Holiday season by Hispanics, African Americans and Asian Americans ever. 8 major reasons are driving Multicultural consumers demand ranging from increases in the labor force, FT employment, income, share of Upscale/Affluent, share of aggregate US incremental income, consumer confidence and planned major purchases.
Restaurant Monthly Update - November 2016Duff & Phelps
Despite the challenging year for the industry amidst the downturn in same-store sales and traffic, restaurant investments continue to flourish, especially for emerging entrants in the fast-casual category who are favored more by the Millennial consumer. Restaurants still remain an attractive investment within the consumer space, as traditional retail has been heavily impacted by the growth of e-commerce.
As Obi-Wan Kenobi said, “It takes strength to resist the dark side. Only the weak embrace it.” Here is why… Companies cutting Hispanic dedicated media allocation, while increasing allocation to English media, tend to suffer a reduction in their sales growth. In fact, the reduction of the growth is sometimes so large that it could wipe out nearly the entire annual growth attained by all competitors in a category.
The Cost of the Dark Side: Across CPG-Retail, Auto and Financial-Insurance Services categories: a five point cutback in Hispanic media allocation yields a reduction in Total Market revenue growth rate of minus 1.8% per year.
What’s the learning? A near proportional balance of opportunity and investments yields incremental growth rates for products and services. Companies that allow their brands to slash meager budgets and continuously under-invest in the Hispanic segment are minimizing their growth potential at their own peril.
Since 1998, AHAA has been helping its members serve its clients through breakthrough independent studies that
increase understanding of what it takes to win the market,
share new concepts, and identify best practices of marketing to Latinos.
While overall ad spend among the top 500 advertisers increased by 5% from $79.0 Bn to $83.1Bn from 2010 to 2014, marketers made a steep increase in Hispanic Ad Spend, jumping 61% from $4.4Bn to $7.1Bn.
Multicultural segments progressed in 2015 to culminate in a record Holiday season, most likely the highest expenditure Holiday season by Hispanics, African Americans and Asian Americans ever. 8 major reasons are driving Multicultural consumers demand ranging from increases in the labor force, FT employment, income, share of Upscale/Affluent, share of aggregate US incremental income, consumer confidence and planned major purchases.
Restaurant Monthly Update - November 2016Duff & Phelps
Despite the challenging year for the industry amidst the downturn in same-store sales and traffic, restaurant investments continue to flourish, especially for emerging entrants in the fast-casual category who are favored more by the Millennial consumer. Restaurants still remain an attractive investment within the consumer space, as traditional retail has been heavily impacted by the growth of e-commerce.
Stiff competition, evolving consumer preferences and a challenging organic growth environment are driving many food retailers to consider strategic alternatives, including M&A, in order to optimize capital allocation and growth opportunities.
May restaurant survey data indicated a -1.1% decline in same-store sales and -3.0% decline in traffic. Although industry same-store sales have remained negative for 13 out of the past 14 months, May results reflected a marginal improvement in traffic from April's results.
The demand for expediency and convenience has impacted nearly all forms of the consumer sector in recent years, and the restaurant industry has found itself right in the middle of this seismic shift in preferences. Delivery orders in particular have become the fastest growing trend in the restaurant industry. Read the report for more detail on industry trends, market indices, public market performance and deal activity.
CPG/Retailers Hispanic Dedicated Media (Spanish/Bilingual/English) skyrocketed between 2010 and 2014. This giant category, spending over $2Bn in Hispanic-centric Media in 2014, outpaced Top 500 advertisers’ peers in Hispanic Media allocation increases shifting 4% of English Ad Spend to Hispanic Media over the period. The study found that a principal reward of shifts from English Media to Hispanic Media comes in the form of increased Total Market topline revenue acceleration. There is a strong direct correlation (@ 99.9% confidence level) between companies’ shifts to Hispanic Media and overall U.S. revenue growth acceleration. Moreover, for every 5 points of shift from English to Hispanic media, companies on average experience a 1.75 points boost in annual revenue growth in the U.S.
Stiff competition, evolving consumer preferences and a challenging organic growth environment are driving many food retailers to consider strategic alternatives, including M&A, in order to optimize capital allocation and growth opportunities.
May restaurant survey data indicated a -1.1% decline in same-store sales and -3.0% decline in traffic. Although industry same-store sales have remained negative for 13 out of the past 14 months, May results reflected a marginal improvement in traffic from April's results.
The demand for expediency and convenience has impacted nearly all forms of the consumer sector in recent years, and the restaurant industry has found itself right in the middle of this seismic shift in preferences. Delivery orders in particular have become the fastest growing trend in the restaurant industry. Read the report for more detail on industry trends, market indices, public market performance and deal activity.
CPG/Retailers Hispanic Dedicated Media (Spanish/Bilingual/English) skyrocketed between 2010 and 2014. This giant category, spending over $2Bn in Hispanic-centric Media in 2014, outpaced Top 500 advertisers’ peers in Hispanic Media allocation increases shifting 4% of English Ad Spend to Hispanic Media over the period. The study found that a principal reward of shifts from English Media to Hispanic Media comes in the form of increased Total Market topline revenue acceleration. There is a strong direct correlation (@ 99.9% confidence level) between companies’ shifts to Hispanic Media and overall U.S. revenue growth acceleration. Moreover, for every 5 points of shift from English to Hispanic media, companies on average experience a 1.75 points boost in annual revenue growth in the U.S.
TitleABC123 Version X1Marketing Plan Outline and TimeTakishaPeck109
Title
ABC/123 Version X
1
Marketing Plan Outline and Timeline
1Marketing Plan Outline and Timeline
Marketing Plan
You are expected to develop a marketing plan, according to the outline below, for a product or service of your choosing. The product or service must be identified by the end of Week 1. The product or service you select is used to develop the assignments for Weeks 2 through Week 6. References must be included for each section.
There are no defined standards for the length of the marketing plan; however, your plan must disclose complete marketing strategies and provide reliable and valid references and data supporting the strategies to convince the target audience. The plan must be written in plain language that would be easily understood by stakeholders.
Marketing Plan Outline
Your final marketing plan must consist of the following sections. Refer to the timeline for due dates for each section and subsection. Assignments may include modifications to these lists. Please use lists provided in assignments only.
· Executive Summary:
· Strategic Objectives
· Products or Services
· Resources Needed
· Projected Outcomes
· Situational Analysis:
· Vision, Mission, Strategic objectives, Values
· Internal Analysis
· Strengths/Weaknesses
· Capability/Capacity
· Competitor’s Strengths/Weaknesses
· Technological Competency
· Product or Service Analysis
· Market Segments
· Research
· Primary Research
· Secondary Research
· Consumer Analysis
· Customer Profile
· Continuous Consumer Monitoring & Research
· Environmental Scanning
· Identify Market, Economic, Technological, Regulatory, Legal, Social, and Ecological Forces
· Current Opportunities
· Potential Future Opportunities
· Current Threats
· Potential Future Threat
· Target Market(s):
· Demographics
· Psychographics
· Ethical Issues
· Legal Issues
· Social Issues
· Product, Place/Distribution, Promotion, and Price Strategies:
· Product Descriptions and Product/Service Mix Strategies
· Product/Service Determinants
· Creating a Brand Image
· Maintaining Brand Image
· Branding Concerns
· Distribution Strategies
· Channels, Mass, Selective, Exclusive
· Promotion/Integrated Marketing Communication
· Advertising Strategy/Objectives
· Push and Pull
· Media Strategy
· Advertising Execution
· Sales Promotion
· Direct Marketing
· Public Relations/Strategies
· Positioning
· Dynamic/Static Pricing Strategies
Marketing Plan Timeline
Week 1: Marketing Plan Topic
· Consider your company and product or service selection in Week 1. You may select an existing type of product or service or a new product or service but it must be global or multi-regional. Once you have selected your product or service, you must define the size and type of company that provides the product or service (available from annual reports). This need not be elaborate but must include total number of employees, production volume, distribution methods, and so forth. ...
1Running head MARKETING PLAN AND SALES STRATEGY2Running hea.docxdrennanmicah
1
Running head: MARKETING PLAN AND SALES STRATEGY
2
Running head: MARKETING PLAN AND SALES STRATEGY
Marketing Plan and Sales Strategy
Amy E. Guy
Dr. Andrea Banto
Business 599
November 11, 2018
MARKETING PLANThe situation of the Existing Market
There exist different types and brands of beverages in Youngsville which are strong in their own way. Different types of people have different tastes of beverages they want which includes, but is not limited to the calorie levels and alcohol percentages whereas others are more sensitive about the side effects which might be caused by these beverages.
The current market situation in Youngsville, North Carolina is very competitive due to the existence of many giant non-alcoholic beverages companies which have colonized an enormous market share posing a threat to startups. These challenges elevate when these famous companies realize that a growing company has started to become a big competitor to them, hence channeling hefty resources to fight back.
Venturing into a market that is well established and full of giants such as is not an easy task. This will require the adoption of a well-founded marketing strategy that will enable us to maneuver through the unfair competition experienced in Youngsville.Target market
The total population of Youngsville, North Carolina is 18,336. Our company is targeting consumers of ages above 10 (This is about 95% of the total population) who want a life full of health. Our brands will serve as a suitable substitute to the existing but much expensive beverages enriched with vitamins and refreshing taste containing calorie and costly energy. The average income per household in Youngsville is $61,104, hence we have made our products considering the different existing economic strength of the people. Engineered with an immense level of quality to promote a healthier living, our products appeal greatly to people who want to support and be part of our company.Demographic Description
Age range: Any person above the age of 10.
Income Range: Persons with income above $ 1000.
Gender: Male, Female.
Social Class: Students, Working Class, Middle Class, Upper Class, Elite Class.
Lifestyle: Modern, Sports, Healthy Persons. Competition Assessment
We are a non-alcoholic beverage production company, a much-crowded venture, so our major competitors are giant companies such as PepsiCo, Nestle and Coca-Cola Company. Other competitors include Red bull and Dr. Pepper Snapple. The existing giant companies have wide market shares which they guard jealously hence they will not allow any other product to pose a threat against their products hence they will dedicate their effort and resources in suffocating their competitors in the market (Porter & E, 1989).
We have made our products to affordable, a way to pull the market since the same companies that offer similar bever.
The fuel behind the American Economy has changed as Multicultural segments continue to drive the growth of overall U.S. employment while White Non-Hispanics drop off the labor rosters. In fact, over a third of the U.S. labor force is now Multicultural, but more importantly, the entire increase in U.S. employment rosters since 2007 pre-recession levels has been generated by Multicultural segments. And, the future gets even more dynamic when one considers that the labor force participation rate for White Non-Hispanics is the only whose decline has accelerated in the last 3 years while that among Hispanics and African Americans has stabilized. Why does this matter to marketers?
Hispanic and Millennials have enrolled in the ACA Exchange at half the rate of all Non-Hispanics. That means substantial opportunity exists behind some cultural and generational barriers. As these newly insured take a journey through your brand’s experience and touchpoints, they will be reassessing their original brand perceptions, forming and sharing new brand opinions with circles of influence that include exchange eligibles for the open enrollment six months ahead.
Marketing ROI Measurement for RestaurantsMichael Wolfe
Case study of how a QSR restaurant used marketing ROI models to identify opportunities to expand growth of their business. In this case, showing how spending more on a new item launch will accelerate business growth.
What are the latest consumer trends? What answers do the biggest names in consumer goods have in store? There’s hardly a better place to learn about what goes through the minds of marketing executives than the CAGNY conference, which, in 2017, brought together leaders of Mondelez, PepsiCo, Coca-Cola, General Mills, Unilever, Nestlé, Tyson Foods, L’Oréal, P&G, Colgate-Palmolive, Johnson & Johnson and other household names.
Our report provides an overview of companies' views on market and consumer trends, and provides over 100 examples of marketing, product and strategic innovation.
Growing business under the Affordable Care Act requires managing change and taking advantage of new opportunities. Our SSG team has helped national and regional leaders in the healthcare sector ready themselves for the changing landscape.
TOTAL MARKET BENCHMARK RESEARCH
Recently, marketers have been experimenting with how best to approach the “total market” to realize synergy and efficiency in programs aimed at the general market and diverse segments. AHAA: The Voice of Hispanic Marketing is conducting benchmark research on the total market approach and how companies are executing it, asking questions such as: are you currently executing a total market strategy in your marketing efforts? Why or why not? What does -total market- mean to you? Have your efforts been successful? Importantly, this is not solely a Hispanic survey: it also includes African-American and Asian respondents. The results will be broad and inclusive and help shape the total market industry standard.
AHAA unveiled the findings of its third study in its Revenue Growth Series focusing on the Technology, Telecommunications and Entertainment categories, including manufacturers of consumer hardware, software, content and connectivity providers. Carlos Santiago, AHAA research chair and CEO of Santiago Solutions Group, along with Dr..Cristina Garcia, professor of statistics at USC, will address the following crucial questions:
*Does Hispanic Allocation yield increased topline Revenue Growth?
*What role does Hispanic Allocation play in the quest to outperform competitors?
*Could further Hispanic investment boost corporate growth rates? By what factors?
*Why are Hispanics vital to the sustainable growth of competitors?
*What are the implications to the future of the Technology, Entertainment and Telecom sectors?
An AHAA Cultural Orientation-Generational Study
Sponsored by AARP and data partners Scarborough & GfK MRI
Discover NEW Hispanic opportunities by exploring specific category and cultural benefits among Hispanic Millennials, Gen X and Boomers
As the lines between the ‘Mainstream’ and the Hispanic market continue to blur, it is more important than ever for marketers to not only understand what makes Hispanics different / similar to non-Hispanics, but to examine the cultural differences between Hispanics, as well.
With underwriting from AARP, AHAA: The Voice of Hispanic Marketing recently commissioned the first study to examine the buying habits and Cultural Orientation of Hispanics and non-Hispanics across three generational groups—Millennials (18-29), Generation X (30-44), and Boomers (45-65).
The results were surprising on many levels, validating that the once popular ‘one size fits all’ Hispanic marketing approach will need to change to fully address the diversity of the Hispanic consumer, moving forward.
What You'll Learn:
• Identify the “best” Hispanic customer for key product categories
• Understand the cultural orientation differences across three Hispanic generational segments
• Increase marketing effectiveness by understanding the cultural diversity within U.S. Hispanics
Moderator: Gaby Alcantara-Diaz – AHAA Education Committee Chair, President, G ADMarketing Communications, Inc.
Panelists:
*Carlos Santiago – AHAA Research Committee Chair, President & Chief Strategist, Santiago Solutions Group
*Dr. Jake Beniflah – Study Academic Counsel, Exec Dir, Center for Multicultural Science
*Scott Willoth –SVP Methods & Analytics, Scarborough Research
Session sponsor: AARP. Study underwriter: AARP. Research Partner: Scarborough.
Orginally presented on July 17, 2012 - AHAA Study: 2012 Hispanic Allocation Impact on Revenue Growth Study Series: Part III -Tech, Telecom & Entertainment Sector (July 2012)
Join AHAA & Nielsen for a closer look into the lives of the Upscale Latino segment, the most influential segment since the baby boomers. Recently released at the AHAA 2013 Conference, the study revealed that this viable and sophisticated market boasts 40 percent of Hispanic Spending Power, lives in a world of cultural duality, and provides lifetime value and upside opportunities for many high-end and luxury brands.
Are you missing a big opportunity by not including them in your marketing strategy?
Learn how Upscale Latinos will drive shifts in category consideration, purchasing behavior and brand relationship and how you can better connect with them.
Putting the SPARK into Virtual Training.pptxCynthia Clay
This 60-minute webinar, sponsored by Adobe, was delivered for the Training Mag Network. It explored the five elements of SPARK: Storytelling, Purpose, Action, Relationships, and Kudos. Knowing how to tell a well-structured story is key to building long-term memory. Stating a clear purpose that doesn't take away from the discovery learning process is critical. Ensuring that people move from theory to practical application is imperative. Creating strong social learning is the key to commitment and engagement. Validating and affirming participants' comments is the way to create a positive learning environment.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
[Note: This is a partial preview. To download this presentation, visit:
https://www.oeconsulting.com.sg/training-presentations]
Sustainability has become an increasingly critical topic as the world recognizes the need to protect our planet and its resources for future generations. Sustainability means meeting our current needs without compromising the ability of future generations to meet theirs. It involves long-term planning and consideration of the consequences of our actions. The goal is to create strategies that ensure the long-term viability of People, Planet, and Profit.
Leading companies such as Nike, Toyota, and Siemens are prioritizing sustainable innovation in their business models, setting an example for others to follow. In this Sustainability training presentation, you will learn key concepts, principles, and practices of sustainability applicable across industries. This training aims to create awareness and educate employees, senior executives, consultants, and other key stakeholders, including investors, policymakers, and supply chain partners, on the importance and implementation of sustainability.
LEARNING OBJECTIVES
1. Develop a comprehensive understanding of the fundamental principles and concepts that form the foundation of sustainability within corporate environments.
2. Explore the sustainability implementation model, focusing on effective measures and reporting strategies to track and communicate sustainability efforts.
3. Identify and define best practices and critical success factors essential for achieving sustainability goals within organizations.
CONTENTS
1. Introduction and Key Concepts of Sustainability
2. Principles and Practices of Sustainability
3. Measures and Reporting in Sustainability
4. Sustainability Implementation & Best Practices
To download the complete presentation, visit: https://www.oeconsulting.com.sg/training-presentations
RMD24 | Retail media: hoe zet je dit in als je geen AH of Unilever bent? Heid...BBPMedia1
Grote partijen zijn al een tijdje onderweg met retail media. Ondertussen worden in dit domein ook de kansen zichtbaar voor andere spelers in de markt. Maar met die kansen ontstaan ook vragen: Zelf retail media worden of erop adverteren? In welke fase van de funnel past het en hoe integreer je het in een mediaplan? Wat is nu precies het verschil met marketplaces en Programmatic ads? In dit half uur beslechten we de dilemma's en krijg je antwoorden op wanneer het voor jou tijd is om de volgende stap te zetten.
Affordable Stationery Printing Services in Jaipur | Navpack n PrintNavpack & Print
Looking for professional printing services in Jaipur? Navpack n Print offers high-quality and affordable stationery printing for all your business needs. Stand out with custom stationery designs and fast turnaround times. Contact us today for a quote!
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Improving profitability for small businessBen Wann
In this comprehensive presentation, we will explore strategies and practical tips for enhancing profitability in small businesses. Tailored to meet the unique challenges faced by small enterprises, this session covers various aspects that directly impact the bottom line. Attendees will learn how to optimize operational efficiency, manage expenses, and increase revenue through innovative marketing and customer engagement techniques.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Remote sensing and monitoring are changing the mining industry for the better. These are providing innovative solutions to long-standing challenges. Those related to exploration, extraction, and overall environmental management by mining technology companies Odisha. These technologies make use of satellite imaging, aerial photography and sensors to collect data that might be inaccessible or from hazardous locations. With the use of this technology, mining operations are becoming increasingly efficient. Let us gain more insight into the key aspects associated with remote sensing and monitoring when it comes to mining.
What is the TDS Return Filing Due Date for FY 2024-25.pdfseoforlegalpillers
It is crucial for the taxpayers to understand about the TDS Return Filing Due Date, so that they can fulfill your TDS obligations efficiently. Taxpayers can avoid penalties by sticking to the deadlines and by accurate filing of TDS. Timely filing of TDS will make sure about the availability of tax credits. You can also seek the professional guidance of experts like Legal Pillers for timely filing of the TDS Return.
Personal Brand Statement:
As an Army veteran dedicated to lifelong learning, I bring a disciplined, strategic mindset to my pursuits. I am constantly expanding my knowledge to innovate and lead effectively. My journey is driven by a commitment to excellence, and to make a meaningful impact in the world.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
2. 2
Hispanic Allocation on Revenue Growth, 3/7/2012
Background
Hispanic Allocation on Revenue Growth
Since 1998, AHAA has been helping its members serve its corporate clients
through breakthrough independent studies that
• increase understanding of what it takes to win the market,
• share new concepts
• and identify best practices of marketing to Latinos.
Most recently, in October 2011, Part 1 of AHAA’s study series on drivers to
growth found a strong positive correlation between allocation of ad resources
and topline growth.
• Hispanic marketing ‘Best-In-Class’ companies have a sustainable competitive
growth advantage over the ‘Laggards’.
3. 3
Hispanic Allocation on Revenue Growth, 3/7/2012
Hispanic Market Highlights
Hispanic Allocation on Revenue Growth
MARKET SIZE
– 2010 Population 50.7M1
– 2011 Hispanic Share of US 17%2, 1 in 6
GROWTH
– Hispanic Population 2000-2010 CAGR v Non-Hispanic 3.6% v. 0.5%3
– Share of Total US 2000-2010 Growth 56%4
– Share of Labor Force Growth 2010-2020 74%7
ECONOMIC
– 2012 Estimated Buying Power $1.2 Trillion5
– Hispanic Buying Power 2000-2010 CAGR v. Non-Hispanic 7.8% v. 3.4%6
4. 4
Hispanic Allocation on Revenue Growth, 3/7/2012
Challenge
• Companies challenged by anemic growth more than ever
– Consumers have changed; more fickle today
– Economic downturn will make consumers more frugal and value-
oriented over the long run
– Technology and new media create both opportunities to reach
audiences and complexity as well
– Possible “Reset” of economy could structurally impact certain sectors
and jobs
– Changing demographics (age) and multicultural trends create new
potential sources for growth
Hispanic Allocation on Revenue Growth
5. 5
Hispanic Allocation on Revenue Growth, 3/7/2012
Challenge
All companies have growing challenge of balancing
competing needs
1. Holding on to ‘General Market’
2. Finding new growth
3. Capturing fair share of growth markets
Hispanic Allocation on Revenue Growth
6. 6
Hispanic Allocation on Revenue Growth, 3/7/2012
About the Author & Sources
Hispanic Allocation on Revenue Growth
• The study was commissioned by AHAA’s Research Committee and developed and
executed by Santiago Solutions Group (SSG), a growth strategy consultancy.
• Independent methodological review performed by Dr. Cristina Garcia, professor of
mathematics & statistics at USC.
• Financial revenue growth data extracted from companies 10Ks.
• Parent company ad spend data for 2006-2010 Hispanic media and non-Hispanic
media collected from The Nielsen Company.
• Consumer habits, attitudes and values by GfK Roper & GfK MRI syndicated studies
with sample of 53K (sampling details in Appendix E)
7. 7
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Study Objectives
Presented by Carlos Santiago,
President & Chief Strategist,
Santiago Solutions Group
Carlos@SantiagoSolutionsGroup.com
(818) 736 5661
8. 8
Hispanic Allocation on Revenue Growth, 3/7/2012
Is there a significant difference in the revenue growth rate attained by
CPG companies which designate higher focus and resources to the
Hispanic market and those that focus less?
What do they do differently?
What factors distinguish companies that capture Hispanic growth
successfully from those that underperform with this segment?
Study Objectives
Hispanic Allocation on Revenue Growth
9. 9
Hispanic Allocation on Revenue Growth, 3/7/2012
Study Variables
Hispanic Allocation on Revenue Growth
Aggregate Hispanic Allocation 2006-
2010: Independent variable
1. The input being changed possibly
impacting Revenue CAGR.
2. The % of total advertisement
dollars spent in TV, Radio, and Print
(per Nielsen tracking) assigned to
Hispanic-centric media channels
throughout 2006 to 2010.
2006-2010 Revenue CAGR: Dependent
variable
1. Revenue CAGR is our dependent
variable which was tested against
different levels of Hispanic
Allocation.
2. Revenue as reflected from topline,
organic US-only consumer demand
per 10Ks.
− may have been adjusted to exclude
extraordinary transactions and
normalize revenue from
acquisitions, if enough clear data
has been stated in corporate
financials.
10. 10
Hispanic Allocation on Revenue Growth, 3/7/2012
Methodology
Hispanic Allocation on Revenue Growth
A main CPG regression with 39
companies was validated by
three other test regression
models with larger sample
sizes.
Four total regression tests
• All confirmed the same findings at
statistical significance
• Details of statistical analysis will follow
after Q&A section.
Aggregate 06-10 Hispanic
Allocation
N=211
Aggregate Hispanic 06-10
Allocation AND Year by Year
Revenue Growth
N=211
Aggregate Hispanic 06-
10 Allocation, Year by
Year Revenue Growth,
AND Super Categories
N=211
CPGs
N=39
12. 12
Hispanic Allocation on Revenue Growth, 3/7/2012
Study Significance
Hispanic Allocation on Revenue Growth
All findings discussed in the presentation are statistically significant at a
95% confidence level or better.
13. 13
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Study Findings
14. 14
Hispanic Allocation on Revenue Growth, 3/7/2012
Are CPGs Growth Rates Related to
Hispanic Focus?
Hispanic Allocation on Revenue Growth
There is a direct &
positive
relationship
between CPG’s
Hispanic ad
allocation and their
topline revenue
growth.
Please see Appendix D (Graph 1) for Detailed Graph and Graphical Analysis.
15. 15
Hispanic Allocation on Revenue Growth, 3/7/2012
Key Findings
Hispanic Allocation on Revenue Growth
• Hispanic Allocation alone explains
about 35% of CPGs change in
topline revenue growth
– The other 65% may include other critical
factors such as brand awareness/equity,
new product development, management
focus, measurement tools, distribution,
sales force, past performance,
community position, organization
structure, talent, overall segmentation
expertise, etc.
– Further analysis is needed to determine
what exactly the other drivers of
revenue growth are.
Hispanic
Marketing
35%
Other
Drivers of
Growth
65%
CPGs & Retailers
Revenue Growth Drivers
For Consumer Packaged Goods and their retailers
16. 16
Hispanic Allocation on Revenue Growth, 3/7/2012
Key Findings
Hispanic Allocation on Revenue Growth
Organic revenue
growth rates
decline sharply
as Hispanic
share of
budgets
decrease and
vice versa.
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
Top Allocation
(≥70th
Percentile)
Middle
Allocation (40th -
70th Percentile)
Low Allocation
(<40th
Percentile)
7.7%
4.7%
0.9%
6.8%
2.2%
0.6%
Allocation Tiers
Average 06-10 Hispanic Allocation Average 06-10 Revenue CAGR
17. 17
Hispanic Allocation on Revenue Growth, 3/7/2012
Top 30 Percentile Hispanic Marketers
By Allocation And Overall Revenue Growth
Hispanic Allocation on Revenue Growth
Top 30
Percentile
Please see Appendix D (Graph 1) for Detailed Graphical Analysis.
18. 18
Hispanic Allocation on Revenue Growth, 3/7/2012
Key Findings
All tests validated the
same findings.
Hispanic Allocation has a
direct & significant
impact on companies
overall revenue growth.
Aggregate 06-10 Hispanic
Allocation
N=211
Aggregate Hispanic 06-10
Allocation AND Year by Year
Revenue Growth
N=211
Aggregate Hispanic 06-
10 Allocation, Year by
Year Revenue Growth,
AND Super Categories
N=211
CPGs
N=39
19. 19
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Why Hispanic Consumers Are So Important
Today?
20. 20
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Much faster household formation has
exponential impact on continued growth
opportunity
Non-Hispanic Hispanic
2.5%/yr.0.4%/yr.Households
CAGR
6x NH CAGR
21. 21
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Much larger Households means heavier
usage
Non-Hispanic Hispanic
Persons
Per
HH1 3.82.5
52% larger HH
22. 22
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Hispanic households food at home expenditures will grow at 5.7% annually,
more than twice the rate for Non-Hispanic households of 2.5%.
Which Consumer Is Worth More?
$-
$20
$40
$60
$80
$100
1995 2000 2005 2010 2015 2020
$27
$33
$42
$59
$78
$94
$Billion
Hispanics Food at HH Expenditures
Historic
CAGR: 5.4%
Forecast
CAGR: 5.7%
23. 23
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
The younger age and larger Hispanic household size contributes to Hispanic
households having the highest consumer spending potential for necessary spending
on Food at Home and Personal Care.
Which Consumer Is Worth More?
Hispanic Personal Care cumulative lifetime
spending is about 33% higher than that of Non-
Hispanic White.
Hispanic Food at Home cumulative lifetime
spending is over 50% higher than that of Non-
Hispanic White.
24. 24
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
More influenced by strong brands
Hispanics are CPG valuable customers
Source: 2011 Doublebase GfK MRI - Base: All (n= 6.6K Hispanics & 46.5K Non-Hispanics)
Top Box: Agree Completely or Agree Mostly or Very Important Hispanic Index
I am more influenced by what seems hot and what’s not 139
Brand name is the best indication of quality 152
I only buy food items that are name brands, not generic brands 150
25. 25
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Less price sensitive
Hispanics are CPG valuable customers
Top Box: Agree Completely or Agree Mostly or Very Important Hispanic Index
I’d pay extra for products that are consistent with the image
I want to convey
125
I tend to make impulse purchases 117
I know the price I pay for most of the foods & packaged goods
I buy
83
26. 26
Hispanic Allocation on Revenue Growth, 3/7/2012
Status & Image Conscious
Hispanics are CPG valuable customers
Top Box: Agree Completely or Agree Mostly or Very Important Hispanic Index
I like to live a lifestyle that impresses others 149
I prefer to buy things that my friends/neighbors would
approve of
167
Seeking the utmost attractive appearance 122
27. 27
Hispanic Allocation on Revenue Growth, 3/7/2012
See Shopping as Fun
Hispanics are CPG valuable customers
Top Box: Agree Completely or Agree Mostly or Very Important Hispanic Index
I enjoy wandering the store looking for new products 131
I’m always first of friends to try new products/services 145
Shopping is a great way to relax 147
28. 28
Hispanic Allocation on Revenue Growth, 3/7/2012
Key Category Influentials
Hispanics are CPG valuable customers
My family/friends often ask for and trust my advice on this
topic
Hispanic Index
Babies/Children 130
Beer 121
Alcoholic Beverages 135
Beauty 138
Cleaning Products 112
New Food Items 126
Food 112
Snacks 123
Dieting 115
Healthy Lifestyle 112
30. 30
Hispanic Allocation on Revenue Growth, 3/7/2012
Key Takeaways
For Consumer Packaged Goods
Statistical evidence demonstrates that:
• Consistent/significant Hispanic marketers drive
superior revenue growth.
• Hispanic as a priority drive sustainable growth into
future.
31. 31
Hispanic Allocation on Revenue Growth, 3/7/2012Hispanic Allocation on Revenue Growth
Implications for Companies
• Real bottom-line benefits come from consistent
approaches.
• Marketing is only the beginning, corporate-wide
integration and investment is key
– Responding to the most appropriate cultural insights
– Broad use of all elements of marketing
– Developing strategies from communications to customer experience
32. 32
Hispanic Allocation on Revenue Growth, 3/7/2012
The U.S. Hispanic Consumer
Opportunity
Robert Moskow,
Research Analyst
Marcela Giraldo,
Research Associate
robert.moskow@credit-suisse.com
(212) 538 3095
marcela.giraldo@credit-suisse.com
(212) 325 6764
DISCLOSURE APPENDIX CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, INFORMATION ON TRADE ALERTS,
ANALYST MODEL PORTFOLIOS AND THE STATUS OF NON-U.S ANALYSTS. U.S. Disclosure: Credit Suisse does and seeks to do business with
companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this
report. Investors should consider this report as only a single factor in making their investment decision.
The materials may not be used or relied upon in any way.
33. 33
Hispanic Allocation on Revenue Growth, 3/7/2012
Top Five Observations
• Wall Street should be paying more attention to the companies that “get
this right”
• Good Hispanic marketing companies attract and retain “best-in-class”
managers
• Commitment from the top and accountability at the bottom are key
• Kraft has engineered a turnaround
• Goya is the premier asset in Hispanic CPG
CREDIT SUISSE (USA), INC.
34. 34
Hispanic Allocation on Revenue Growth, 3/7/2012
Why Does Wall Street Tend To Overlook
Hispanic Marketing Expertise?
Source: Company information. CS estimates
Tier
Approx. % of
Sales To
Hispanics
Growth Rate
With
Hispanics
Growth Rate
With Non-
Hispanic
U.S.
Division
Growth
Rate Companies
Leaders 18% 7.0% 2.5% 3.3% KO, GIS, NESN.VX, MKC
Followers 13% 5.5% 2.5% 2.9% KFT, K, UN
Laggards 8% 4.0% 2.5% 2.6% HNZ, CPB, HSY, PEP, CAG
High/Low Difference 0.7%
+ Most of these companies have 60% of their sales in North America
+ Therefore, an incremental 0.7% to North America growth rate translates to only 0.4% for total company sales
+ In terms of valuation, 0.4% of incremental growth translates to a valuation differential of only 8%
Difficult to isolate the impact of Hispanic marketing on growth rates
Even when you do isolate it, it doesn’t look that meaningful to valuation
Investors attention has shifted to emerging markets
35. 35
Hispanic Allocation on Revenue Growth, 3/7/2012
In reality, “Leaders” have outpaced
“Laggards” in North America by 3.1% on
average
Source: Company information. CS estimates
4.4% 4.6%
3.3%
1.4%
0.7%
1.0%
2.3%
2.9%
1.3%
0.5%
1.4%
-0.1%
-3.7%-4.0%
-3.0%
-2.0%
-1.0%
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
Nestle
McCormick
GeneralMills
Colgate
P&G
Coke
Kellogg
Kraft
Unilever
Heinz
ConAgra
Cambpell
Pepsi
(beverages)
HistoricorganicrevenuegrowthNA(3yrs)
Leaders:
Average 2.6% Followers:
Average 2.2% Laggards:
Average -0.5%
- Translates into a much more meaningful 20%+ valuation differential!
36. 36
Hispanic Allocation on Revenue Growth, 3/7/2012
Good Hispanic Marketing Organizations
Attract Best-In-Class Managers
• Good managers want to be on the cutting edge of marketing
• They create shareholder value
Examples
• Coke shifting their mindset to the Latin American point-of-sale
merchandising approach
• General Mills’ leveraging the “Que Rica Vida” platform and
partnering with Univision
CREDIT SUISSE (USA), INC.
37. 37
Hispanic Allocation on Revenue Growth, 3/7/2012
The trend is to push more of the
responsibility into the brand teams
Stage 1
• Low level of top
management
commitment
• Young brand
managers get
assigned to
monitor the
Hispanic efforts
Stage 2
• Creation of a high
profile
management role
to oversee the
Hispanic efforts
• Creation of a
Center of
Excellence
dedicated to
sharing best
practices
• Support function
with no P&L
responsibility
Stage 3
• Accountability at
the brand level for
Hispanic sales.
• Hispanic
advertising budget
is integrated within
the brands.
• ROI goals for
Hispanic marketing
investment within
the brand teams
- Coke, Wal-Mart, P&G, Unilever are all doing this
- The risk is that upper management lose will some of their control and
visibility
- Maintaining accountability will be the key to success CREDIT SUISSE (USA), INC.
38. 38
Hispanic Allocation on Revenue Growth, 3/7/2012
2.1% 2.4%
4.4%
13.1%
0%
2%
4%
6%
8%
10%
12%
14%
2008 2009 2010 2011 (E)
Kraft Foods Inc Average group
3X increase in
2011
Kraft has engineered a turnaround
• Strong support from top
management
• The strategy is to increase
Hispanic spending on top 10
brands including Oreo, Kool-
Aid and Kraft Singles.
• Re-established their Latino
Center of Excellence in 2008
Risks
• It’s hard to regain momentum
after several years away
• Spin off of companies may
dilute Hispanic efforts and
impact scale advantage
Kool-Aid, in a first for any Kraft brand, has allocated the majority
of its 2011 marketing budget to reach Hispanics
Source: NY Times
Source: Kantar media. KFT’s management comments
Hispanic Advertising Investment as % of Total
CREDIT SUISSE (USA), INC.
39. 39
Hispanic Allocation on Revenue Growth, 3/7/2012
Mexican
65.7%
Other
5.1%Central
American
8.3%
Cuban
3.4%
Puerto Rican
9.0%
Dominican
2.8%
South American
5.8%
Goya is the premier asset in the Hispanic
food space
• 75-year-old family-owned
and family-managed
company
• Approximately $1B in
annual revenues
• Best at understanding
food preferences by
country of origin
• Tailor product portfolio by
region in the US
• Relationships with
bodegas are important
asset
US Hispanic Population by Country of Origin
Source: www.goya.com
Source: U.S. Census 2008
Caribbean
Mexican
Central And South
American
CREDIT SUISSE (USA), INC.
40. 40
Hispanic Allocation on Revenue Growth, 3/7/2012
Companies Mentioned (Price as of 06 Mar 12)
Campbell Soup Company (CPB, $33.04, NEUTRAL, TP $33.00)
Clorox Co. (CLX, $67.92, NEUTRAL, TP $72.00)
Colgate-Palmolive (CL, $93.35, NEUTRAL, TP $90.00)
ConAgra Foods, Inc. (CAG, $26.36, NEUTRAL, TP $27.00)
Danone (DANO.PA, Eu50.58, UNDERPERFORM, TP Eu44.00)
General Mills (GIS, $38.60, NEUTRAL, TP $41.00)
H.J. Heinz Company (HNZ, $53.09, NEUTRAL, TP $54.00)
Hormel Foods (HRL, $28.50, NEUTRAL, TP $32.00)
Kellogg Company (K, $52.09, NEUTRAL, TP $56.00)
Kimberly-Clark Corporation (KMB, $72.66)
Kraft Foods, Inc. (KFT, $38.35, OUTPERFORM, TP $45.00)
McCormick & Company (MKC, $50.82, NEUTRAL, TP $50.00)
Nestle (NESN.VX, SFr55.30, NEUTRAL, TP SFr58.00)
PepsiCo, Inc. (PEP, $62.79)
Procter & Gamble Co. (PG, $66.95, OUTPERFORM, TP $70.00)
Ralcorp (RAH, $74.41, NEUTRAL, TP $75.00)
Reckitt Benckiser (RB.L, 3469 p, OUTPERFORM, TP 3,800.00 p)
Sara Lee Corporation (SLE, $21.24, NEUTRAL, TP $20.00)
The Coca-Cola Company (KO, $69.23)
The Hershey Company (HSY, $60.93, OUTPERFORM, TP $68.00)
Disclosure Appendix
Important Global Disclosures
I, Robert Moskow, certify that (1) the views expressed in this report accurately reflect my personal views about all of the subject companies and
securities and (2) no part of my compensation was, is or will be directly or indirectly related to the specific recommendations or views expressed in
this report.
See the Companies Mentioned section for full company names.
3-Year Price, Target Price and Rating Change History Chart for NESN.VX
NESN.VX Closing
Price
Target
Price Initiation/
Date (SFr) (SFr) Rating Assumption
16-Nov-09 47.88 55
11-Feb-10 49.69 60
30-Nov-10 54.55 N
9-Jun-11 53.15 55
11-Jul-11 52.6 R
16-Dec-11 51.2 58 N
55
60
55
58
N
R
N
35
40
45
50
55
60
7-Mar-097-May-09
7-Jul-097-Sep-09
7-Nov-09
7-Jan-107-Mar-107-May-10
7-Jul-10
7-Sep-10
7-Nov-10
7-Jan-117-Mar-117-May-11
7-Jul-117-Sep-11
7-Nov-11
7-Jan-12
Closing Price Target Price Initiation/Assumption Rating
SFr
O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC=Not Covered
3-Year Price, Target Price and Rating Change History Chart for HSY
HSY Closing
Price
Target
Price Initiation/
Date (US$) (US$) Rating Assumption
3/24/09 35.41 30 U
7/8/09 37.01 33
7/24/09 40.97 43 N
12/31/09 35.79 R
2/1/10 36.81 40 N
4/22/10 48.08 50
7/23/10 47.21 52
2/2/11 48.61 55 O
2/28/11 52.32 56
3/18/11 53.87 58
4/26/11 57.27 64
10/21/11 60.26 70
10/27/11 57.46 68
30
33
43
40
50
52
55 56
58
64
70
68
O
NR
N
U
30
35
40
45
50
55
60
65
70
3/7/09
5/7/09
7/7/09
9/7/09
11/7/09
1/7/10
3/7/10
5/7/10
7/7/10
9/7/10
11/7/10
1/7/11
3/7/11
5/7/11
7/7/11
9/7/11
11/7/11
1/7/12
Closing Price Target Price Initiation/Assumption Rating
US$
O=Outperform; N=Neutral; U=Underperform; R=Restricted; NR=Not Rated; NC=Not Covered
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Risks: Significant movements in raw material costs or currency can impact the business, as can irrational behaviour by either competitors or
retailers. Food scares, shortages, or contamination can also impact the business.
Price Target: (12 months) for (HSY)
Method: Our 12-month target price of $68/share implies a 19x P/E multiple against our 2013 estimate. This assumes that stock maintains the 19-
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41. 41
Hispanic Allocation on Revenue Growth, 3/7/2012
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43. 43
Hispanic Allocation on Revenue Growth, 3/7/2012
Statistical Detail
& Model Validation
Presented by Dr. Cristina Garcia
Math & Statistics Professor at USC
SSG Methodology Advisor
44. 44
Hispanic Allocation on Revenue Growth, 3/7/2012
Methodology Highlights
• Started by looking at the Top 500
overall Advertisers (TV, Radio,
Print) by year and in aggregate
between.
• Matched each parent company
to available published financial
revenue data, and calculated
2006-2010 compounded annual
growth rates.
• Companies which did not have
consistent published financials
such as companies which grew
on M&As that weren’t adjustable
rather than organic consumer
driven growth were eliminated
from the final regression set.
Top 500 U.S. Overall Advertisers
2006-2010
(500)
Public
(418)
Consistent
Advertisers
(220)
Publicly Traded
w/ clear Organic US Revenue
(211)
CPGs
(39)
Unadjustable M&As
Inconsistent Data
(-9)
Inconsistent
Advertisers
(-198)
Private
(-82)
45. 45
Hispanic Allocation on Revenue Growth, 3/7/2012
Test Validations
All models validated the
same findings.
Hispanic Allocation has a
direct & significant
impact on companies
overall revenue growth.
Aggregate 06-10 Hispanic
Allocation
N=211
Aggregate Hispanic 06-10
Allocation AND Year by Year
Revenue Growth
N=211
Aggregate Hispanic 06-
10 Allocation, Year by
Year Revenue Growth,
AND Super Categories
N=211
CPGs
N=39
46. 46
Hispanic Allocation on Revenue Growth, 3/7/2012
Consumer Packaged Goods Regression
Model
• Hispanic Allocation alone explains
about 35% of changes in revenue
growth over a 5 year period for
Consumer Packaged Goods (R2=0.35)
– An R squared of .35, tells us that roughly
35% of a company’s revenue growth is
driven by changes in Hispanic Allocation.
– The expected range for a 1 percent increase
in Hispanic allocation is an increase of .48%
to 1.28% in overall corporate revenue
growth rate.
Revenue Growth over 5
year period (CAGR 06-10)
Aggregate
Hispanic
Allocation
2006-2010
CPG (N=39)
47. 47
Hispanic Allocation on Revenue Growth, 3/7/2012
CPG Model Findings
– For every additional percentage point
increase in Hispanic allocation, we would
expect revenue growth of 0.883% over
the 5 years for Consumer Packaged
Goods
– In other words, on average, a 10%
allocation of a CPG company’s ad spend
to Hispanic media over 5 years would
generate revenue growth of 8.83% over
the 5 year period.
Hispanic
Marketing
35%
All Other
Drivers of
Growth
65%
Revenue Growth Drivers for
CPGs & Retailers
48. 48
Hispanic Allocation on Revenue Growth, 3/7/2012
Test 1: Is Aggregate Hispanic Allocation Important?
YES! Hispanic Allocation directly impacts topline revenue
growth for Top 500 Advertisers
• On average, for every additional
percentage point increase in
Hispanic allocation, we would
expect revenue growth of .40%
over the 5 years.
• In other words, allocating 10%
of the company’s ad spend to
Hispanic media over 5 years
would generate revenue growth
of 4.00% over the 5 year period
Aggregate Growth
CAGR 06-10
Aggregate
Hispanic
Allocation
06-10
TOP ADVERTISERS (N=211)
49. 49
Hispanic Allocation on Revenue Growth, 3/7/2012
TEST 2: Individual Years Growth and Aggregate Hispanic Allocation
Revalidated! Both directly impact topline revenue growth
Revenue Growth over 5
year period
Aggregate
Hispanic
Allocation
06-10
CAGR
06-07, 07-08,
08-09, 09-10
• Of course, each year’s CAGR most significantly
affects the company’s revenue growth over 5
years
• R-square 0.608 In other words, 60.8% of the
variation in growth over the 5 years (CAGR 06-
10) is explained by the ad spend in Hispanic
media over the 5 years and each year’s annual
growth.
• On average, for every additional percentage
point increase in Hispanic allocation, we would
expect revenue growth of .34% over the 5 years.
• In other words, allocating 10% of the company’s
ad spend to Hispanic media over 5 years would
generate revenue growth of 3.44% over the 5
year period.TOP ADVERTISERS (N=211)
50. 50
Hispanic Allocation on Revenue Growth, 3/7/2012
Test 3: Hispanic Allocation, Super Categories and Revenue CAGR
Revalidated Again! Hispanic Allocation Is Relevant to Revenue Growth!
Revenue Growth over 5 year
period
Categories:
Auto, Tech &
Entertainme
nt, Retail,
CPG,
Finance/Insu
rance
CAGR:
06-07, 07-08, 08-
09, 09-10
Hispanic
Allocation:
06-10
• R-square .64, in other words, 64% of
the variation in growth over the 5 years
(CAGR 06-10) is explained by the ad
spend in Hispanic media over the 5
years and each annual year’s growth.
• On average, for every additional
percentage point increase in Hispanic
allocation, we would expect revenue
growth of 0.29% over the 5 years.
• In other words, allocating 10% of the
company’s ad spend to Hispanic media
over 5 years would generate revenue
growth of 2.89% over the 5 year period
TOP ADVERTISERS (N=211)
51. 51
Hispanic Allocation on Revenue Growth, 3/7/2012
1
Hispanic Allocation on Revenue Growth
Conclusions of Tests
• In all tests, Hispanic Allocation consistently comes up as a
statistically significant variable positively affecting revenue
growth rates.
– Along with showing the importance of investing in the Hispanic market,
our model also shows that performance during the turn into the
recession 2007 to 2008 and recovery from the recession 2009 to 2010
time periods serve as good indicators for relative long term
performance (06-10).
58. 58
Hispanic Allocation on Revenue Growth, 3/7/2012
Appendix C
Regression Analysis Results
Test 1 Test 2 Test 3 CPG Model
Variable in Model Unstandarized Beta
Standardized Beta
(Significance)
Unstandarized Beta
Standardized Beta
(Significance)
Unstandarized Beta
Standardized Beta
(Significance)
Unstandarized
Beta
Standardized Beta
(Significance)
CAGR 06-07 NA .038
.189
(.000)
.039
.195
(.000)
NA
CAGR 07-08 NA .291
.511
(.000)
.269
.472
(.000)
NA
CAGR 08-09 NA .019
.202
(.000)
.016
.176
(.000)
NA
CAGR 09-10 NA .435
.581
(.000)
.448
.598
(.000)
NA
Hispanic Allocation
06-10
.396
.143
(.037)
.344
.125
(.005)
.288
.104
(.018)
.883
.592
(.000)
Auto NA NA -5.458
-.128
(.007)
NA
Insurance/Finance NA NA 2.229
.042
(.385)
NA
Technology NA NA 4.095
.112
(.026)
NA
Retail NA NA 1.226
.037
(.459)
NA
CPG NA NA 2.399
.068
(.168)
NA
R-Square .021 .608 .644 .350
N = 211 211 211 39
Dependent Variable CAGR 06-10
62. 62
Hispanic Allocation on Revenue Growth, 3/7/2012
Appendix E
GfK MRI Hispanic Data Notes
• GfK MRI has measured Hispanics within its National Study (Survey of the American
Consumer).
• Since 2003, GfK MRI began translating all survey materials into Spanish and hiring
bilingual interviewers to capture the Spanish dominant Hispanic.
• Other enhancements to data sampling since then include:
– Hispanic language capability sample balanced against Nielsen Language estimates
– Additional Hispanic specific demographics (language capability outside the home, language
capability inside the home, country of origin, foreign born, length of time in the U.S., additional
Hispanic adults in the home, how well do you speak English)
– Hispanic specific media (3 Magazines, 135+ Television Programs, 2 Cable stations, 3 Radio
formats, 3 websites)
– Hispanic specific segmentations (Geoscape Hispanicity, Hispanic Cohorts, Hispanic PersonicX)
– Hispanic Networks/Programs available in NPM Fusion database