Hispanic/Latino BRG: Leveraging BRGs to Impact the Bottom- line - - PowerPoint PPT Presentation

Hispanic/Latino BRG: “Leveraging BRGs to Impact the Bottom- line Efforts”

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Panelists

Sonja Vega Buyer and Chair, Hispanic/Latino BRG

Moderated by:

Carolina Pulido Director of Learning Services, Retail Business Services

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Hispanic / Latino Initiative

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Our strategy

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Objective: Make Food Lion a convenient grocery store of choice for the Hispanic/ Latino shoppers while maintaining our current customer base. Strategy: Build profitable sales in high indexing Hispanic store locations through assortment, merchandising, targeted pricing, talent acquisition and Marketing elements.

Hispanic/Latino Initiative & BRG Project

Value Proposition

• Business Impact to Sales, Customers and Talent
• Community Involvement
• Inclusion to diverse communities
• Learning and development opportunity for ALL participants

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Hispanic/ Latino Initiative & BRG Project

BRG Internal Business Partners

• Category & Merchandising on an Hispanic initiative focused on Fresh, Center Store and

General Merchandise.

• Strategic Positioning, i.e. variety, quality, service, sensory, signage, merchandising,

etc.

• To generate mass awareness, partnered with Marketing on Signage, In Store Radio,

Coupons, Email, Ad Flyer, recipe portal, kiosk videos, demographics.

• Partnered with Talent Acquisition to help recruit talented associates that reflect the

communities and customer base

• Partnered with Retail Services regarding “Front-End Services” needed (i.e. bilingual

associates, western Union, calling cards & phones available for purchase, signage, applications, etc.

• Partnered with Diversity & Inclusion in regards to Community Partnerships/ Events &

Resources, Language Tools, Cultural Awareness and Associate Development (i.e. conferences, trainings, etc.), and demographics & representation.

CRITICAL MILESTONES

Expand Assortment in Segment Voids (candy, snacks, drinks, grab n go, dairy, meat, magazines, greeting cards) Create Formal Promotional Plan Develop & Implement Pricing Strategy on Key Items Evaluate Hispanic Ad Flyer Create & Implement a Total Store International Assortment & Merchandising Strategy (Center Store + Fresh)

2H 2018 Assortment Additions

Goya – 18 New items. Reset begins 10/15/18 Hispanic - 39 New Items. Reset begins 11/12/18

Metrics

2018 Hispanic Center Store Financial Summary

KPI performance –Center Store Hispanic, Hispanic Frozen, Hispanic Dairy

Current Period Period P08 Year to Date P08 Status KPI ACT BGT ACT BGT Sales +13.4% +7.5% +10.2% +7.5% Increased Market Share +99 bps +25 bps +50 bps +25 bps

• Market Share Data for current period is IRI 4 wks ending 9/2/18
• Market Share Data for YTD through WE 9/2/18

Themed/Holiday Events

Fish Taco Event

International Drinks

National Hispanic Heritage Month Mocha Tres Leches Recipe

Day of the Dead

Value of the Hispanic Customer

• Hispanic Buying Power has reached
• Up 167% since 2000
• 91% more growth than non-Hispanic consumers

Account for 50% of U.S. Population Growth 2010-15 18% of U.S. Population & 22%

• f U.S. Millennials

Population expected to double

• ver next 2

generations

Food Lion Target Customer

1st and 2nd generation of Hispanic/Latino of Mexican Descent

Fresh Focus

• Provide our Latino/Hispanic

customers an offering that is relevant, fresh, and affordable, supporting our Food Lion strategy

• Leverage Latino/Hispanic BRG in

creating plans to deliver our strategy

Objectives

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Produce Assortment

Ripe Plantain Cactus Leaves Aloe Vera Juice Green Plantain Aloe Leaves

Produce Merchandising

Create a destination of Hispanic/Latino savory cooking items that allows customers to find the assortment they are looking for at affordable prices that delivers a better shopping experience, builds customer base and enhances Food Lion’s image.

Display will take place of pistachio end cap Pistachios will be merchandised in a different location

Deli

Deli-Bakery Merchandising

Deli

Meat Merchandising

Meat strategy – Merchandise product within current product flow

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Deli

Hispanic Latino Pricing

Pricing/ Promotions

• Identify items that mean the most to the

Hispanic/Latino customer

• Verify that our classifications of Image,

Basket Builders & Enhancers are appropriate

• Utilize competitive checks to Wal-Mart

weekly

• Potentially add competitive checks to

Compare Foods (Minimum once a period)

Deli

Hispanic Latino Marketing

Marketing

• Digital: Display/On-Line Advertising
• In Store Radio Messages
• Kiosk Videos
• Utilize Hispanic/Latino Flyer in these stores
• Tactics will begin in P10

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Hispanic Ad Flyer

• Great Everyday Prices
• Hot weekly deals

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Store #40 Non Garden Cooler

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Store #1699 Garden Cooler

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Panelists

Sonja Vega Buyer and Chair, Hispanic/Latino BRG

Moderated by:

Carolina Pulido Director of Learning Services, Retail Business Services

Juan De Paoli

SVP, Private Brands Retail Business Services, an Ahold Delhaize USA company October 2019

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THE INNOVATION DIFFERENTIATION OPPORTUNITY

Providing services to six East Coast grocery brands:

PROMISE: To innovate solutions by leveraging scale and providing industry-leading expertise, insights and analytics to local brands so they can focus on serving their customers.

THE NEXT GENERATION OF GROCERY RETAIL

The local brands of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast.

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2,000

stores across all brands

30 years

as online grocery leader

$43 billion+

sales

6 million+

annualized online grocery orders

95%

sales from DMAs where an ADUSA brand has leading share*

2 billion+

digital offers in 2018

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Private Brands Portfolio

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Customization for Segments: Multicultural Markets

• Products in current sets to meet multicultural needs
• Limited Time offerings:

–

• Ex. authentic Italian line, fior fiore

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Customization for Segments: Families with Children

Ingredients parents can feel good about

• No more than 500 mg of added sodium per serving
• No more than 40% of calories from added sugar
• No more than 10% of calories from saturated fat
• One or more vitamins and/or minerals at 10% daily

value or higher

Priority Focus: Sustainability

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• Nov. 2018: commitment to remove all artificial

ingredients from private brand products by 2025

• Sept. 2019: commitment to remove priority

chemicals of concern from private brands products and packaging

• Ongoing product renovation and reformulation

Questions?