FAIRPLAY'S SOFTER SELL WOOS HISPANICS

PAT NATSCHKE LENIUS

OAK BROOK, Ill. -- Fairplay Finer Foods, a Chicago-based independent, learned the hard way that the strategy to "be yourself" is the key to winning over Hispanic customers.

The eight-unit operator, in essence, tried too hard to compete with local Hispanic food merchants, diluting its mainstream groceries emphasis and not meeting the target market's expectations, said Mike Kozlowski, general manager of Fairplay, speaking at a meeting here of the Merchandising Executives Club of Chicago.

The theme of the meeting was Hispanic food marketing, and Fairplay is now known as a successful marketer to local Hispanics. But at first, it missed the boat.

Indeed, Fairplay's first attempt at serving a largely Hispanic customer base was so poorly received by its target market that gift certificates were returned to the store, Kozlowski said.

"We knew we would have a tough job. We knew Hispanic consumers are very loyal to their local merchant, so we thought we should do everything possible to become a local merchant," he said.

Fairplay executives visited those local merchants, including shops where pinatas and sombreros are made, and even flew to Texas to see stores operated by Fiesta Mart, he said.

At Fiesta, the Fairplay people had seen the tortilla-making machines at work, noted the bright colors in the store decor and the emphasis placed on meat and produce.

"Back in Chicago we set up a tortilla machine so we could make fresh tortillas. We painted the store in bright colors. We set up radio and TV ads on Spanish language stations. We visited local churches and distributed gift certificates. We met with the alderman and gave fruit baskets to needy families. We planned a grand opening with give-aways," Kozlowski said. "We opened the store. We didn't do very well. Sales were terrible," he said. "We were not accepted. We had tried to become a local merchant and forgot that we are Fairplay. We went back to being Fairplay and began to supply Hispanic customers with what they need without trying to become a local merchant. We gave them Fairplay quality and friendly service."

Now, no Fairplay stores have a tortilla-making machine because it was too costly and difficult to repair and run. Instead, the retailer's marketing strategy includes large end displays of 20-pound bags of rice and gallon containers of vegetable oil.

Brands such as Goya and La Preferida are prominent in the grocery aisle. Hispanic grocery items are allocated more than 64 feet, he said. Candles are given a generous space allocation near the front of the store, in deference to the religious leanings attributed to Hispanic consumers. The store tries to offer general merchandise with Hispanic brand names. In the produce department, ethnic-oriented items get special attention. But overall, its stores' atmosphere is still like a supermarket, not like a forced, oversized bodega.

On the wall behind the checkouts both the words "Muchas Gracias" and "Thank You" are spelled out for customers to read as they leave the store. Fairplay, a member of the Certified Grocers Midwest wholesale cooperative based in Hodgkins, Ill., operates seven supermarkets under the Fairplay banner and one Sav-A-Lot unit comparable to an Aldi food store.