Retail Research Final

2010 RETAIL RESEARCH CAPTURES KEY SHOPPING INSIGHTS FROM HISPANIC MOMS

Todobebé & Viva la Familia’s latest research reveals where Hispanic moms shop for family purchases, what factors influence their choice of store, and where they prefer to shop most frequently for different product categories.

The research captured insights from more than 2,500 Spanish-speaking moms with self-identified interest in mom, pregnancy and parenting content. In addition to the closed end questions, respondents also shared their personal opinions on what they most wanted to see from their retailer of choice.

The overarching objective of the study was to provide media partners, retailers and product marketers with greater insights into what real Spanish speaking moms with children 0 to 5 years old in an objective and trusted context say they care about and what choices they make when they are shopping for their families.

Why are these insights important for the industry? Product manufactures who have been leaders in co-op and retail marketing for decades using traditional English language general market strategies have been working to build Hispanic and multicultural programs that tie into retail, but there are few case studies and success stories to work from or they have been too small or difficult to measure in terms of incremental products sold. On their side, retailers have found it hard to justify allocating bandwidth to work with product manufacturers and media partners to scale demographic specific programs.

What’s different today? The secret is out; Hispanic families alone make up 25% of children 0 to 5 years old and 35 to 55% in several major urban markets. The crisis changed consumer behaviors and put the spotlight on institutionalized marketing programs that were no longer working. As the market emerges from the economic crisis, and retailers, product manufacturers and major broadcasters begin to collaborate to reach multicultural moms, there is great potential and opportunity for industry wide growth: to unlock the bottleneck of the huge but hard to capture market of multicultural moms.

The following types of questions answered in this preliminary survey, have the potential to help retailers and product marketers further refine, adapt, and confirm their own efforts to drive store visits and product purchases:

What % of moms shops at both Walmart and Target, versus most frequently at one or other? Which products that Walmart carries are now being bought at Club stores and Dollar stores more frequently? In what categories are Pharmacies and Groceries making inroads? What product categories could be growth areas for other retailers that now have national coverage and already have a high % of store traffic from moms, if not on a most frequent basis? How can product manufacturers partner both with retailers and media partners to leverage their brand and media budgets to break the bottleneck and create successful retail driven programs that capture the growth inherent in the Hispanic and multicultural markets?

The following pages outline key findings.

Copyright Todobebé, Inc. 2010. Proprietary. All Rights Reserved. Confidential. 1

A few key highlights of the survey findings are listed below:

Demographics of average respondent:

Over 85% are women ages 18-34 Over 75% married or living with a partner 70% are Spanish-dominant or -preferred 50% say country of origin is Mexico More than 90% have at least 1 child under 18 in HH More than 70% have at least 1 child between 0-5 in HH 67% state HH income of $45,000 or less 60% are stay-at-home moms

Average weekly spend on family purchases:

More than $250 per week 6% $200 – $250 11% $150 – $200 24% $100 – $150 31% $ 50 – $100 22% Less than $50 per week 3% I prefer not to respond 4%

For more detailed panel findings, please see pages below. To discuss research opportunities, contact Lois Mosgrove, VP Marketing of Todobebé at [email protected].


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TODOBEBE PROPRIETARY RESEARCHRETAIL AND SHOPPING, APRIL 2010

GENERAL RETAIL PATRONAGEIn which of the following stores do you do your shopping for your family? (Select all that apply)

o Walmart 81%o Target 59%o Pharmacy (CVS, Walgreens, Rite Aid) 48%o Membership or Club Store (BJ’s, Costco, Sam’s Club) 48%o Babies R Us 39%o Dollar Stores 33%o Grocery store or supermarket chain 31%o Electronics store (Best Buy, Radio Shack, etc.) 25%o Kmart 24%o Sears 23%o Neighborhood store 15%o Other (specify) 6%

RETAIL PREFERENCE: STORE WHERE MOMS SHOP MOST OFTENIn which of the following stores or types of stores do you make your purchases most often? (Select only one answer)

o Walmart 53%o Target 16%o Grocery store or supermarket chain 11%o Membership or club store 10%o Neighborhood store 3%o Pharmacy 3%o Other (specify) 2%o Kmart 2%o Dollar Stores 1%

KEY MOTIVATORS: WHY MOMS SHOP AT PREFERRED STOREWhy do you shop at the store previously indicated? (Select all that apply)

o It has the best prices 71%o It has the widest selection of products 49%o It is located near my work or my home 43%o It has a clean and organized environment to shop 38%o It has the brands I like 30%o It has the best service (customer service/speed at checkout) 19%o Other (specify) 2%


TOP STORE CHOICES ACROSS CATEGORIESSummary: Top three stores where moms shop most frequently across 25 key product categories.

Product Category Store #1 % Store #2 % Store #3 %

DVDs/movies/video games Walmart 61% Target 20% Category Store 3%School supplies Walmart 61% Target 18% Dollar Store 12%Fresh foods Grocery 56% Walmart 33% Club Store 11%Haircare products Walmart 52% Target 20% Pharmacy 12%Medicines/pharmacy/OTC Pharmacy 51% Walmart 35% Target 8%Children’s toys Walmart 51% Target 24% Category Store 17%Plastic food containers Walmart 51% Target 21% Dollar Store 17%Creams and lotions Walmart 50% Target 21% Pharmacy 14%Batteries Walmart 49% Target 13% Dollar Store 11%Cosmetics/make-up Walmart 49% Target 22% Pharmacy 19%Hhld cleaning/laundry Walmart 48% Club Store 20% Target 12%Baby items/furnishings Walmart 47% Category Store 23% Target 22%First-aid items Walmart 46% Pharmacy 30% Target 13%Diapers Walmart 45% Club Store 21% Target 16%Breakfast cereals Walmart 45% Grocery 34% Club Store 12%Canned foods Walmart 45% Grocery 35% Club Store 11%Kitchen ingredients Grocery 45% Walmart 39% Club Store 11%Snacks/novelties Walmart 44% Grocery 34% Club Store 9%Paper products Walmart 42% Club Store 29% Target 10%Juices Walmart 42% Grocery 38% Club Store 12%Pop and sodas Walmart 42% Grocery 36% Club Store 13%Milk Grocery 41% Walmart 40% Club Store 10%Party supplies Walmart 40% Dollar Store 35% Target 12%Phone cards Grocery 39% Walmart 33% Dollar Store 14%Children’s apparel Walmart 38% Target 27% Category Store 27%

KEY FACTORS IMPACTING STORE CHOICE – FAMILYWhen you choose a store to buy family items, how important are the following factors?


KEY FACTORS IMPACTING STORE CHOICE – BABYIf a store has a Baby Department, as a mom, how important is it that it offer you the following elements?

INFLUENCERS OF STORE VISITSWhat sources or activities to you rely on to receive information about a store and the products/services it offers you and your family?

MOM SHOPPING VISIT DYNAMICSDo you do your weekly shopping with your family?

o Yes 77%o No 3%o Sometimes 21%

If yes or sometimes, how long do you take to do your shopping with your family?

o Less than one hour 3%o 1–2 hours 46%o 2–3 hours 33%o More than 3 hours 12%o It’s an all-day event 6%


WHEN STORE VISITS HAPPENWhat day of the week do you do the majority of your family shopping?

o Monday 9%o Tuesday 5%o Wednesday 7%o Thursday 4%o Friday 12%o Saturday 43%o Sunday 20%

WAYS A STORE CAN BETTER MEET MOMS’ NEEDSOPEN RESPONSES – MOST COMMON MENTIONS

o Bilingual employees/Spanish-speaking personnelo Better customer service/treatmento Family-friendly bathrooms where I can change/feed babyo Area where my kids can go/play/childcare while I shopo More economical priceso More Latin items/products from my countryo All baby items together in one areao More variety of children’s clothing/shoeso Special offer days/promos on baby/family itemso Parking area for moms with small children


Retail Research Final

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