Section 4 - Case Studies
Tecate Campaign
JCPenney
Paragon Cable
Honda
House Foods

Lincoln Mercury
El Pollo Loco

La Opinion
Dinero Seguro
Harris Bank

 


Tecate 1998 Case Study

The Background

Since it first became available in the U.S. in the early 1970s, Mexican import Tecate® beer had achieved steady momentum in terms of U.S. volume share. However, aggressive marketing efforts and large budgets from domestic brewing giants continued to impede Hispanic purchasing by attempting to breakdown their preferences and consumption of import beers.

At the time, the Tecate® creative campaign focused on "A Taste of Mexico." Targeting Mexican-Americans, it attempted to position Tecate® as everything that is Mexican, evoking images and memories of traditional Mexican music, food and other important cultural icons.

To the recent immigrant from Mexico now living in the U.S., however, life was vastly different and more challenging than what "A Taste of Mexico" had to offer. Just like its core consumer, Tecate® was trying to find its niche in the beer industry. Consequently, Tecate® focused its efforts on increasing the market share within the Mexican-American market.

The Objective

In 1998, the objectives were to gain volume-share among Spanish-dominant U.S. Mexican-Americans, particularly those born in Mexico, and to continue to collect additional insight into the Mexican-American segment of the Hispanic market.

The Marketing Challenge

The marketing communications challenge, therefore, was to build brand loyalty by:

Portraying the product in a winning light and establishing recognition for the brand

Making a parallel to the core consumers’ experiences and realities of life in the U.S.

Increasing awareness and designing the advertising message to drive preference of Tecate during the key sales seasons

Reaching the core consumer through a highly targeted and focused media effort.

The Media Strategies

With this in mind, Tecate® launched its 1998 "Llego, para quedarse" (Here, to Stay) campaign.

The campaign focused on Spanish-dominant Mexican-American male consumers.

It was a highly cost-efficient approach that combined national network TV sponsorships, promotional/branding radio spots and outdoor overlays with priority-market emphasis.

The Media Tactics

The TV strategy centered on ensured visibility through property ownership (category exclusivity). All TV sponsorship properties were focused on sports and entertainment programming, with a combined reach that totaled over 60% of the target

Network TV was selected to provide year-round presence for the brand. Cable TV sports programming was selected due to its strong inventory of Spanish-language soccer properties

Increased awareness and brand exposure were the goals of outdoor executions. This impactful program featured 8-sheet, 30-sheet and 14’ X 48’ boards in areas with large densities of Mexican-Americans.

Radio stations with exclusive Mexican regional music formats were selected (i.e., Ranchera, Norteña, Banda and Grupo)

The Promotional Strategies

The radio partners offered volume-driving opportunities through the use of leveraged value-added remotes and promotions

Locally, brand field specialists executed value-added events, grass-roots activity, field marketing and public relations. Previously, local marketing and selling activity was sparse.

The Results

In summary, business growth for 1998 was projected at 25%. However…

Sales grew 56.7% in the Los Angeles Hispanic market (June-December, Nielsen 1998)

In 1998, Tecate® advanced to 8th ranked imported beer in the U.S. from 11 in 1997 (Source: Impact Databank publication)

Tecate® became the #2 import in California (Nielsen, Dec. 1998)


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© 2002 Isabel Valdés - To contact the author, email: isabel@isabelvaldes.com or call (650) 322-1922
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