Brookshire Grocery Company implemented a comprehensive multicultural marketing strategy across its Brookshire's and Super 1 Foods stores that involved departments working together towards a common goal. Research informed product assortments, signage, and community events tailored to local Hispanic and African American populations. This approach helped increase company sales by almost 30% in three years.

1. Reaching the Multicultural Consumerfor Brookshire Grocery Company
Everything in Texas is big. For Tyler, TX-based Brookshire Grocery Company, this includes a cross-
departmental multicultural initiative that has allowed the chain to grow company sales in its Brookshire’s and
Super 1 Foods stores by almost 30 percent in three years.
Cut-to-order butchers and wider arrays of pork and other products are important components of the new
strategy.
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——————–Ivette Zavarce and other members of BGC’s cross-functional multicultural team will be
featured presenters at this year’s Multicultural Retail 360 Summit, being held Aug. 12-14 in Anaheim, Ca.
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By Debby Garbato
Competition for ethnic consumers’ dollars is stiff, with retailers like H-E-B, Walmart and Kroger well
entrenched in major African American and Latino markets across Texas and Louisiana. But despite these
seemingly formidable rivals, regional supermarket chain Brookshire Grocery Company’s (BGC) new
multicultural strategy has helped it increase sales by almost 30 percent in three years.
BGC’s “secret” is a cross-functional ethnic marketing platform in which executives from multiple departments
work towards a common goal. The team’s efforts are guided and complimented by extensive research, outside
experts and changes that touch everything from products and packaging to staffing and training. While the
retailer has targeted multicultural consumers in the past, it has never taken such a comprehensive approach.
“Brookshire’s and Super 1 Foods saw huge potential in the Hispanic and African American markets,” said
Ivette Zavarce, multicultural marketing coordinator for the Tyler, TX-based grocer. “While the company has

2. targeted ethnic consumers before, we didn’t have all the expertise or the right knowledge of which brands
resonate. And we did not target these consumers in such an all-embracing way.”
BGC’s top-down, team approach involves weaving the functions of multiple departments and disciplines into
the fabric of the entire organization. That way, each function is supported by another. “Many efforts fail
because the retailer just hires a manager of Hispanic marketing,” said Zavarce. “A successfulstrategy is like
driving a car. Every wheel is part of the organization—category management, operations, marketing and HR.
You can’t go forward on three wheels.”
This type initiative facilitates marketing and promotional funding. But when efforts are “siloed” under one
person, budgeting can be difficult. “You need a budget and an allocation for media,” said Zavarce. “You must
have everything ready before you start the engine. It has to have the whole company’s support.”
TUNING THE ENGINE
According to The U.S. Census Bureau, 27 Texas counties have Hispanic populations of 65 percent or higher.
In some areas, Latinos account for more than 95 percent of residents. Further east in Louisiana, 32.4 percent of
people are African American, more than twice the national average. Whites represent just 63.5 percent of the
Louisiana populace, more than 10 points below the national average of 77.7 percent.
Before turning the ignition key, BGC spent six months evaluating its stores in these areas. The company
looked at ethnic population percentages and other demographic factors like income, assimilation levels and
geographic variables. It also examined existing assortments, merchandising, signage and shopping baskets.
And it counted each store’s number of bi-lingual associates. San Jose Group, an expert in multicultural
marketing, provided consumer insight studies that helped shape the strategy.
Brookshire’s operates more than 150 locations in Texas, Louisiana and Arkansas under the Brookshire’s and
Super 1 Foods banners. Research revealed that 30 percent of the company’s total stores are in high density
Hispanic neighborhoods; 49 percent exist in heavily African American areas. Ninety percent of its Hispanic
customers are Mexican or of Mexican descent.
BGC determined what size Hispanic assortment each location needed based on how many Latinos live in an
area: Assortment A, 20 percent or more Hispanics; Assortment B: 15 to 20 percent; and Assortment C, 10 to
15 percent. “C” stores receive the most basic Latino assortments while “A” stores get the largest, said Zavarce.
She noted that the Hispanic part of the program is further developed than the African American portion.
Research also found that many Hispanics wanted cut-to-order butchers, bi-lingual meat labels and more in-
store sampling and items, increased pork offerings and more regional Cajun fare in Louisiana. They also
wanted certain brands in some instances. African Americans’ preferences in Louisiana were often different
than in Texas and Arkansas.

3. In-store and community events like this Dia de las Madres serenade attract customers and create trust and
bonding with area residents.
On the supplier end, BGC held a vendor summit where it presented its strategy and met with suppliers that
have well-developed ethnic initiatives. Companies included large mainstream suppliers like Procter and
Gamble, Purina, Kraft, General Mills and Kellogg as well as Hispanic food and beverage purveyors such as
Jarritos, Bimbo and Mission.
In addition, Brookshire’s executives spent three days in California meeting with and learning from Hormel,
which has extensive ethnic marketing experience. They also held a summit with the PepsiCo team to learn
about their best practices in the multicultural market. BGC then drew up business plans with vendors to
identify and promote brands that resonate with Hispanics, said Zavarce.
IMPLEMENTING THE PLAN
In developing appropriate assortments, packaging (or lack of it) plays key roles. Sweet Mexican bread, for
example, was removed from its packaging and put in self-serve cases. And beans were offered in bulk. “It’s
not just certain products consumers want but the way they shop for them,” said Zavarce.
Bulk offerings created housekeeping concerns among management. But the company found that Mexican
customers embrace this type of merchandising. “Bulk beans can be difficult to manage,” said Zavarce. “With
the bread, there were concerns about people touching the product and not using the bags and utensils. But this
is how Mexican stores sell these items. When we put bread in a case, sales went up.”
Part of Brookshire’s initiative involves not “scaring off” Anglos. Hence, products favored by ethnic shoppers
are part of general assortments. And while décor in Super 1 Foods stores is brighter than in the Brookshire’s
locations, it is not “screaming Hispanic.” Brookshire’s stores also use less Spanish signage than Super 1

4. Foods. Where bi-lingual signage is implemented, English is in larger letters than Spanish “so as not to offend
anyone,” said Zavarce. Super 1 Foods stores also stage weekly promotions.
Brookshire’s addressed nuances within specific Hispanic sub segments. For example, many Brookshire’s
banner stores attract large numbers of bicultural Millennial Hispanics. At some Super 1 stores, on the other
hand, “many Hispanics are less acculturated and don’t speak English at all; they’re very different than
Hispanics in Dallas.”
In produce, products like fresh nopales (type of cactus) are particularly important among less assimilated
Latinos.
Marketing communications must transcend language. Hence, Brookshire’s employs a good deal of TV and
radio, using images and verbal messages. Much advertising is done on Telemundo La Vida, which “most of
them watch,” said Zavarce.
Widespread use of local radio and local promotions, noted Zavarce, is one way in which BGC’s ethnic efforts
differ from those of Walmart or H-E-B. Local radio, she added, is extremely popular among Latinos.

5. On the employee end, BGC has spent the last two years teaching associates what it calls “supermarket
Spanish,” which is taught online as well as in stores. “It helps them learn about the language and culture,” said
Zavarce. “They are taught basic words to welcome customers and to help them in some areas like produce.”
THE GOOD NEIGHBOR
Engaging Hispanics and African Americans through social and community events is important, too. Zavarce
describes this as “part two” of multicultural marketing. In part one, the customer is drawn into the store; part
two involves building trust and long term relationships.
“Two years ago, we put in place a strategy to connect,” said Zavarce. “Now we need to communicate and
engage, which is the hard part. We’re trying to do this in every town and city where we have stores. We want
to teach store directors how important it is to connect with different community activities.”
In high density Hispanic stores, “Fiesta” events feature games, sampling and other activities. “Everybody likes
it,” said Zavarce. “These things aren’t just aimed at African Americans or Hispanics. We have to be sensitive
about how people react.”
BGC also uses radio remotes and parking lot activations. One event, Fútbol de las Rosas, has been going on for
five years. Sponsored by Super 1 Foods, the Tyler Hispanic Business Alliance and 15 national vendors, it
involves a faceoff between two Sub20 Mexican soccer teams and a game involving two local leagues. Vendors
participate with booths. On-site entertainment includes games, product samples and door prizes. Super 1 Foods
said the event attracts thousands of people from East Texas and surrounding areas. Fútbol de las Rosas is
promoted via end caps, in-store signage, radio and TV.
In-store sampling is particularly effective when targeting Latinos.
BGC also partners with local schools and African American churches during Cinco de Mayo and Black
History Month. These celebrations involve dance teams, gift cards and other festivities. “We engage parents

6. along with the kids, who will be customers in the near future,” said Zavarce. “Relationships are a matter of
trust. If you enhance the store experience and welcome them, you establish the relationship and always have
the doors open.”
LA TIENDA DE MANAN͂ A
On a per store basis, Hispanic-focused Brookshire’s locations experienced average weekly sales increases of
54.2 percent in 2014 and 36.3 percent in 2015 across key Hispanic subcategories. At Hispanic-oriented Super 1
Foods stores, Hispanic subcategory sales grew an average weekly of 9.2 percent (2014) and 3.9 percent (2015).
“I’m seeing more Hispanic faces,” noted Zavarce.
But moving in a new direction was a major shift and investment for an 85-year-old company. Executives and
store employees had to learn new ways of doing things. This often involved changes in roles and attitudes,
with people having to listen and learn from each other as well as from experts and outside advisors. “It’s not
easy for everybody to understand,” said Zavarce. “It requires much communication and support.”
Moving forward, BGC wants to further improve product assortments in African American markets while
continuing to engage with both the African American and Latino communities—despite the seemingly
formidable competition.
“There are seven Walmarts in Tyler alone,” said Zavarce, “Four now plus three under construction.
Competition is getting more aggressive every day. We want to keep trying to establish that connection with the
consumer, build loyalty and keep these customers for the next 20, 30 years.”
- See more at: http://www.multiculturalretail360.com/brookshires-texas-teamwork/#sthash.tIcOrEqA.dpuf