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.
No doubt, the U.S. launch of Bedoyecta exceeded expectations. Yet from the start Arámbula Phillips Communications
(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 impor-
tant 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.
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.
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.
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.
Thinking Inside the Box
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.
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.
2009 and Beyond
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 Arámbula Phillips Communications can help you
leverage the power of U.S. Hispanic consumers contact
Carlos Arámbula or Richard Phillips at 310.335.2027.
