Know and Respect Your Ethnic Customers

To help retailers sell in a multicultural world, the Coca-Cola Retailing Research Council of North America sponsored a study, "Grow with America: Best Practices in Ethnic Marketing and Merchandising."

The study took place across 10 months in 2001 and 2002. One of three steering committee members, Scott McClelland of H.E. Butt Grocery Co. in San Antonio, told Supermarket News that rethinking merchandising to account for shifting demographics makes sense. "There's no such thing as an 'average American consumer,' and to the extent we learn more about [what] people of different ethnic origins eat, we will all do a better job meeting their needs."

The research, which included interviews with more than 40 retailers, was conducted jointly by Cultural Access Group and About Marketing Solutions, two Los Angeles-area consulting firms.

What Are The Best Practices?

• Learn about your ethnic customers so you can serve them better.
  How old are they? Where are they from? How long have they been here? A first-generation Chinese immigrant will look for familiar Chinese brands and products. A third-generation Chinese-American may crave familiar flavors but be less inclined to cook from scratch, says Stephen Broad of Annie Chun's Inc., which makes noodles and sauce kits to satisfy their cravings.
  
  
• Define your ethnic look and organize to execute it.
  Nash Finch looked to Mexican architecture, textiles and street signage to develop its Avanza concept. It's designed to look like the small stores and streetscapes of Mexican towns. Flexible category management, the study says, will help achieve the right ethnic assortment.
  
  
• Tailor your offering to appeal to your target customers.
  Fresh ingredients rule—fresh meats, produce, fish. Don't make the mistake of assuming that "all Hispanics" buy red potatoes in 5-pound bags or "all blacks" eat soul food. Diversity within racial and ethnic categories is enormous, and what tastes like home for a Cuban-American may just be weird to a Mexican-American.
  
  
• Enhance the in-store experience and connect with the community.
  Quality and quantity of interaction both count here. Outreach to the community needs to come from a member of management who's a native speaker. Make an effort to buy from local ethnic businesses.
  
  
• Recruit and retain a diverse staff to help you successfully serve your target customers.
  Says the Coca-Cola study: "You are building the first generation of ethnic supermarket professionals—invest in the resources to achieve it."
  
  
• Develop a marketing plan that communicates value at all target points.
  Ethnic marketing is not event marketing—it requires commitment 365 days a year. What you do in your own parking lot, and in your own neighborhood, means a lot to the people you'd like to be your customers.
  
  

  —L.E.