Case Study: Bedoyecta
New Product launched into the Hispanic OTC market takes off in the midst of a historic retail downturn.
• Achieved 80% Distribution In Only 18 Months.
• Distribution in Walmart, Target, Walgreens, CVS and Other Major Retailers.
• Consumer Demand Triples, Aided By TV and Promotional Support.
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| Bedoyecta Capsules |
No doubt, the U.S. launch of Bedoyecta exceeded expectations. Yet from the start apcomm saw a clear opportunity for the Bedoyecta multivitamin brand to thrive in the untapped Hispanic vitamin segment. And as the economy continues to suffer, consumer segments, like U.S. Hispanics, become increasingly important to smart marketers.
The following case study details how apcomm helped a pharmaceutical company leverage this dynamic consumer segment through the successful launch of its multivitamin brand into the U.S. Hispanic OTC market — in just 18 months.
Background
In the Spring 2007 Valeant Pharmaceuticals engaged APComm to launch Bedoyecta, the company's
Mexican B12 multivitamin brand, into the U.S. market.
In the Spring 2007 Valeant Pharmaceuticals engaged APComm to launch Bedoyecta, the company's
Mexican B12 multivitamin brand, into the U.S. market.
Brand Activation
apcomm utilized its proven Brand Activation Model, a disciplined and holistic marketing approach designed to introduce products to market, to guide Bedoyecta's U.S. launch. Deploying a wealth of experience and insights on the U.S. Hispanic consumer apcomm synthesized the existing knowledge base, syndicated research and consumer purchasing trends to develop initial rationales and identify knowledge gaps, before conducting any primary research. For example, secondary research indicated Hispanics over-indexed on B12 usage, a clue to the untapped potential of the brand.
apcomm utilized its proven Brand Activation Model, a disciplined and holistic marketing approach designed to introduce products to market, to guide Bedoyecta's U.S. launch. Deploying a wealth of experience and insights on the U.S. Hispanic consumer apcomm synthesized the existing knowledge base, syndicated research and consumer purchasing trends to develop initial rationales and identify knowledge gaps, before conducting any primary research. For example, secondary research indicated Hispanics over-indexed on B12 usage, a clue to the untapped potential of the brand.
Hispanics and Vitamins
Vitamin brands had not been specifically targeting U.S. Hispanic consumers. Mainly due to a lack of serious category research coupled with years of accumulated myths and misperceptions about Hispanic consumer preferences and purchasing behavior. The overriding myth among most distributors and retailers was that Hispanics would never buy an OTC product costing more than $10, much less a multivitamin. This unsubstantiated myth was smashed by Bedoyecta.
Vitamin brands had not been specifically targeting U.S. Hispanic consumers. Mainly due to a lack of serious category research coupled with years of accumulated myths and misperceptions about Hispanic consumer preferences and purchasing behavior. The overriding myth among most distributors and retailers was that Hispanics would never buy an OTC product costing more than $10, much less a multivitamin. This unsubstantiated myth was smashed by Bedoyecta.
Research
apcomm conducted primary qualitative research to fill knowledge gaps and test agreed upon hypotheses developed through the Brand Activation process. The focus groups yielded new insights, confirmed many hypotheses and supported the Bedoyecta Communications Strategy. However, agency research went beyond focus groups, exploring the distribution channel, conducting price analysis and targeted market tours which included interviews with store managers and category buyers.
apcomm conducted primary qualitative research to fill knowledge gaps and test agreed upon hypotheses developed through the Brand Activation process. The focus groups yielded new insights, confirmed many hypotheses and supported the Bedoyecta Communications Strategy. However, agency research went beyond focus groups, exploring the distribution channel, conducting price analysis and targeted market tours which included interviews with store managers and category buyers.
With a limited launch budget it was all about thinking inside, rather than outside, the box. Working creatively within "the box" of available resources, apcomm managed to build an efficient and effective launch effort. Researching the supermarket distribution channel apcomm sourced a distributor capable of providing entry into Walmart and other major retailers, minus costly slotting fees. And a first class TV spot was produced on a coach fare while an innovative media plan and budget were optimized to work in concert with in-store displays and promotions.
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| Bedoyecta 54 Count Power Chute |
In 2008 apcomm's Brand Activation and Marketing Efforts Delivered Results
1. "Proof of Concept" — As anticipated by experience, confirmed by research and established through effective marketing, Bedoyecta is a viable brand with the potential of surpassing its success in Mexico.
2. Drove look-alike products out of reputable retailers.
3. TV creative the key driver in tripling consumer demand for Bedoyecta.
4. Achieved 80% ACV within 18 months, gaining placement at Walmart, Walgreens, Rite Aid, CVS, Albertsons, K-Mart and many other regional chains, as well as independent Hispanic supermarkets and drug stores.
5. Exceeded ambitious sales projections in the launch year.
1. "Proof of Concept" — As anticipated by experience, confirmed by research and established through effective marketing, Bedoyecta is a viable brand with the potential of surpassing its success in Mexico.
2. Drove look-alike products out of reputable retailers.
3. TV creative the key driver in tripling consumer demand for Bedoyecta.
4. Achieved 80% ACV within 18 months, gaining placement at Walmart, Walgreens, Rite Aid, CVS, Albertsons, K-Mart and many other regional chains, as well as independent Hispanic supermarkets and drug stores.
5. Exceeded ambitious sales projections in the launch year.
2009 and Beyond
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| Bedoyecta Website |
- Marketing efforts continue to grow the brand in existing markets while expanding sales growth into new markets.
- Develop line extensions to widen the brand and distribution footprint.
- Bedoyecta is clearly on its way to becoming a premier brand within the U.S. Hispanic market and eventually the mainstream market.
To learn how apcomm can help you leverage the power of U.S. Hispanic consumers contact Carlos Arámbula or Richard Phillips at 310.335.2027.
