Coke helps Hispanic retailers stand out

Coke helps Hispanic retailers stand out

The Tienda program offers small Hispanic businesses the opportunity to redesign their stores to attract more clients -- and soft-drink buyers.
BY ELENA KENNY
El Nuevo Herald

COCA-COLA'S TIENDA PROGRAM
Little Havana is a far different place than it was 40 years ago when Frank Veloso's grandfather opened a gas station to serve a mostly Cuban clientele. Today diversity is the hallmark of the area, and Veloso has had to devise ways to make the family business stand out.

For that reason, he joined the Coca Cola Co.'s Tienda Program nearly a year ago. The program offers small Hispanic businesses the opportunity to redesign their stores to attract more clients. The soft-drink giant also hopes the program will help fuel its sales in the U.S. Hispanic market.

''Hispanic consumers are very important for Coca-Cola. Out of every four soft drinks sold in the United States, we calculate that one is purchased by a Hispanic,'' said Jorge Espinoza, director for Multicultural Commercialization and Customer Programming of the beverage company.

Coca-Cola is trying to recover from the losses it suffered in the U.S. market, while it continues doing well in emerging markets like Asia and Latin America, according to analysts quoted by Bloomberg.

IN 15 MARKETS

Since the Tienda Program began four years ago, more than 5,000 small businesses have joined from 15 markets with a strong Latin presence, including Chicago, Los Angeles, Miami and New York.

With the program, Coca-Cola provides marketing and sales support, as well as promotional materials. Businesses can get more information through their local Coca-Cola agents, according to the company.

''For me this program has been an excellent opportunity,'' said Veloso, general manager of the Citgo station at the corner of Calle Ocho and 22nd Ave. ''With the support of Coca-Cola, I have put into practice some of my marketing ideas to improve the presentation of their products in English and Spanish,'' added the entrepreneur, a marketing graduate of Florida International University.

Besides fuel, Veloso seeks to offer a mix of products in his store that his customers of Cuban, Mexican, Salvadoran and Nicaraguan origin prefer.

But in redesigning his store to attract more customers, he chose to put the emphasis on Coca-Cola because ``it is such a well-known brand to all Hispanics.''

Veloso's store offers a full range of Coke products, including coffee beverages, Fanta and vitamin water.

So, he decided to install two large posters of classic bottles at the entrance and place a painting of the famous beverage on an exterior wall. The painting was created by a high-school student who participated in a contest promoted by Coca Cola.

According to Espinoza, many participating small businesses owned by Hispanics like Veloso have improved their stores -- and sales.

Espinoza expects to present results of the initiative on Tuesday at the Hispanic Retail 360 Summit at the Intercontinental Hotel Miami.

Also at the summit Monday through Wednesday, other large corporations expected to showcase their strategies for attracting Hispanic consumers are Wal-Mart, Best Buy, Publix, Winn-Dixie, Family Dollar, SuperValu, Navarro Discount Pharmacies, CVS, Advance Auto Parts, Hy-Vee Supermarkets and Kroger.