U.S. Supermarket Industry Is Gearing Up to Attract Ethnic America.

A study commissioned by the Coca-Cola Retailing Research Council reveals that supermarkets are increasingly tapping into the growing potential of America’s ethnic grocery shoppers. Recognizing the increasing significance of ethnic populations across the country, many supermarkets are implementing targeted marketing and merchandising strategies for reaching African American, Hispanic, and Asian American consumers — who now represent approximately one-third of the country’s total population.

The report, entitled “Grow With America: Best Practices in Ethnic Merchandising,” is based on over 120 interviews conducted nationally among executives of chain supermarkets, independent grocery stores, food manufacturers, and food distributors. The resulting study spotlights specific best practices that supermarkets have successfully adopted to effectively capture the grocery shopping dollars of ethnic customers. The study will be the focus of a special session at this week’s Food Marketing Institute Show at McCormick Place in Chicago.

“The Coca-Cola Retailing Research Council believed it was important to understand and determine how supermarkets are successfully capitalizing on the rapidly changing demographics of America’s grocery shoppers,” explains Scott McClelland, Chief Marketing Officer at H.E. Butt Grocery Co. and chairman of the Council. “These new consumers are becoming vital customer segments that supermarkets ignore at their own peril.”

Among the best practices identified and discussed in detail are:

— Customized product assortment and merchandising strategies — Retailers that understand and cater to the taste profiles and preferences of targeted ethnic grocery shoppers have experienced tremendous success in gaining the patronage of the local community.

— Creating a store atmosphere that connects to the targeted community — Retailers who have established a store culture-through in-language communications, in-language signage, relevant community outreach, and appropriate community relations strategies — that appeals to targeted ethnic consumers generate credibility and loyalty from ethnic grocery shoppers.

— Diverse staffing strategies — Maintaining and cultivating a diversity philosophy and the recruitment and development of a diverse staff that reflects the surrounding community has been a tremendously effective approach adopted by many successful retailers.

The study was produced by Cultural Access Group, Inc., a marketing consulting firm specializing in ethnic markets in Burbank, CA. Together, both organizations executed a year-long research plan: compiling existing research, convening discussions with manufacturers and distributors, and conducting interviews with leading executives and merchandisers in the supermarket business today.

“The lessons learned here are clear,” states David Morse, President of Cultural Access Group, “Targeting ethnic consumers requires a deliberate, wholesale commitment and effort on the part of supermarkets if they hope to realize the vast potential of these growing customers.”

“Although many supermarkets may believe they have been reaching ethnic consumers for a long time, many of them do not realize that the approaches they have used are not likely to maximize their success with ethnic consumers in the long term,” said Terry Soto, President of About Marketing Solutions, Inc. “This study provides a blueprint for them to build a lasting, successful foundation for ethnic merchandising.”