Acculturation, the process by which immigrants become familiar with and adapt traditions in a new country, is a key agent for change in the Hispanic market—and should have the same impact on grocers’ game plans, too.

For Hispanics, the structure is driven by the progress of generations. “As the Hispanic market matures and evolves, there are dramatic socioeconomic demographic shifts,” says Isabel Valdés, author of Hispanic Customers for Life—A Fresh Look at Acculturation.

Supermarkets that today market mainly to first-generation immigrants and their children may soon find their primary target has shifted to second-generation adults and their children, with an evolved set of needs, notes Valdés, who heads Isabel Valdés Consulting, a San Francisco-based firm that advises corporations on cultural marketing and business.

Grocers that get it

The large concentration of Latinos from many countries in Florida has prompted Publix Super Markets and Winn-Dixie Stores to try hard to stay current with cultural trends and needs.

Winn-Dixie has identified its Hispanic stores as part of a larger “Neighborhood Marketing/Merchandising” program. “We have further segmented this cluster as Cuban, Mexican, Central American, etc.,” observes Jim Carrado, v.p. of neighborhood marketing for the Jacksonville, Fla.-based chain.

“Our merchandising and marketing plans are dependent upon the level of penetration in each neighborhood and the maturity of our program. For example, the penetration of Cubans in the Hialeah market is very high, so we have a very mature program directed toward that demographic.”

The chain is considering creating sets in some stores for Peruvian, Brazilian, and Caribbean shoppers. Yet within this framework, identifying second- and third-plus-generation Hispanics is challenging, notes Carrado, since households tend to acculturate at different rates within the same neighborhood.

Still, “since our clustering efforts revolve around the buying patterns and product potentials in a given neighborhood, we feel comfortable that we’re capturing the acculturation paradigm,” he says. “Our multicultural marketing specialist, Andrea Rodriguez, works closely with our field reps, PR, and advertising agencies to target opportunities and execute programs.”

At Publix Super Markets, based in Lakeland, Fla., Hispanic marketing varies by store. “In some stores, Hispanic products are integrated throughout the aisles with traditional products,” explains company spokeswoman Maria Brous. “In other stores, we have specific sections for ethnic foods.” The chain’s two Publix Sabor locations focus on Hispanic and Caribbean products, and two more are planned for south Florida.

Further west, most of Woodland, Calif.-based Nugget Markets’ Hispanic merchandising takes place in its three Food 4 Less stores, a price-impact format that offers national brands at prices “at least 10 percent below those of conventional stores,” according to Saj Khan, director of grocery operations.

One mistake grocers often make when marketing to Hispanic customers, says Khan, is trying to undercut preferred brands on price. “You will have initial success,” he says. “But when you order more of this other brand, you won’t get repeat sales, because the item is not the same as the brand that has their loyalty.”


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Bi-Lo's Hispanic marketing strategy

Chris Caldwell, category merchandiser, specialty/condiments for Mauldin, S.C.-headquartered Bi-Lo, considers research detailing the demographic needs surrounding each store before choosing products for that store's planogram. "We have many areas within our markets that have a higher concentration of Hispanic population, such as northeast Georgia, Hilton Head Island, and the Charlotte area. The stores within these areas have larger sets in order to fulfill shopper needs," she explains. These expanded sets are based on category trends and new offerings in the marketplace. Country of origin is also considered when merchandising some Bi-Lo stores.
 
Bi-Lo's center store Hispanic brands include Herdez, Jumex, Del Valle, Valentina, Jarritos, La Preferida, Maseca, and Goya. "We also have Goya and El Sembrador frozen offerings in several locations plus LaLa yogurts, LuLu gelatins, and Biokult beverages in dairy," Caldwell points out. The grocer also carries HBC lines such as Grisi Shampoos and Conditioners and products from La Bella and Vanart.