Project Runway Junior Marketing Plan

Paula Beltrán Narváez

Professor: Stephan Langdon

Student: Paula Beltrán Narváez

Date: November 10, 2017

Class: International Marketing

 Executive Summary

Consumer trends have changed in Colombia in recent years, and people is subscribing
less to television services, due to the global impact of economy. Although that,
Colombians gives a significant part of their monthly budget for entertainment such as
cable television or online web portal, as Netflix, and are able to pay extras for having vip
services. Project Runways Junior in Colombia, is a program in which children between 7
and 13 years old, design line clothes under some limitations such as time, budget or
materials.

The target, mainly are families that have as tradition to watch television, students, of
school, or fashion programs, or others, that like the fashion industry, women from forty to
fifty-five years old, that like to watch programs in which they can have an opinion on what
others do, and, people from the third age, which don’t have much to do at nights, and like
to watch television programs.

There are some challenges, as that is true that people need a television for being able to
watch Project Runway Junior in Colombia, but it is also true is that Colombians of low
income, prefer to buy a television that a bathroom, and their priorities aren't always to
take care of fundamental needs. Colombians, also follow tends, and in many occasions,
people start to watch television programs just for not felling exclude of conversations
about it, and for understanding what people are talking about.

Finally, the judges, need to be well recognized people, so the project must achieve to
hired people such as, Silvia Tcherassi, Amelia Toro, Hernán Zajar, Haider Achermann,
Esteban Cortáza or Adriana Santacruz.
 Table of Contents

0.0. Introduction.............................................................................................................. 4

1.0. Market and Situation Analysis .............................................................................. 6

1.1. Economic Environment ..................................................................................................6
1.2. Social Environment....................................................................................................... 11
1.3. Technical Environment ................................................................................................ 14
1.4. Industry Environment ................................................................................................... 16
1.5. Competitive Environment ............................................................................................ 18
1.6. Political Environment ................................................................................................... 21
2.0. Market Segmentation and Customer Analysis ................................................. 24
2.1. Market Segmentation .................................................................................................... 24
2.2. Target Market Segment Characteristics ..................................................................... 25
2.2.1. Geographic. ....................................................................................................................... 26
2.2.2. Demographic ..................................................................................................................... 26
2.2.3. Psychographic .................................................................................................................. 27
2.2.4. Behavioral .......................................................................................................................... 28
2.3. Marketing Research Findings ...................................................................................... 29
2.3.1. Products and services ..................................................................................................... 29
2.3.2. Customer needs and wants ............................................................................................ 29
3.0. Objectives and Goals ........................................................................................... 30
3.1. Mission Statement ........................................................................................................ 30
3.2. Objectives ...................................................................................................................... 30
4.0. Strategies and Tactics .......................................................................................... 31
4.1. Pricing Strategy ............................................................................................................. 31
4.2. Product Strategy ........................................................................................................... 31
4.3. Place Strategy................................................................................................................ 31
4.4. Promotion Strategy ....................................................................................................... 32
4.5. People Strategy ............................................................................................................. 32
4.6. Priorities, Responsibilities, and Timeframes ............................................................. 33
5.0. Budgets and Control ............................................................................................ 34
5.1. Sales, expenses and Marketing Budgets ................................................................... 34

6.0. Bibliography .......................................................................................................... 37

0.0. Introduction

Project Runway is a reality for television, that started in United States, and was first launch
on December first of 2004. It is a reality competition on the fashion industry, in which
participants fight with each other through creating the best clothes on a certain amount of
time, with particular rules for materials, their budget and theme of their design. They are
judged by experts and well recognized people in the fashion industry. Each episode, it is
eliminated a contestant until they remain two or three, which will have the opportunity to
present a complete collection for New York Fashion Week.

It attempts to demonstrate spectators the details and indoors of the fashion industry.
Fashion is a prosperous industry, backed up and presented by wealthy and well-known
people. Participants are below continuous public scrutiny, not just because of their fashion
logic, but also because of their own lives. Project Runway, is a television reality of a
challenging competition in which participants must demonstrate their designing skills and
capability to work with pressure.

As what is in fashion today or in this month, can be different to what will be in fashion in
a year, Project Runway shows unique designs to viewers. Many designers that have not
get to high levels of the fashion industry have been supported by gaining a self-
confidence, because Project Runway had helped to inspire people. In some part, this
reality show had been very successful because a lot people are, in some way, are
ambitious, and they want a realization early in their life. That someone provide you a way
in which your dreams can be true, always is going to be amazing.

Project Runway had help to improve the number of people entering the fashion industry,
that because through this reality, viewers have direct and actual information on what is
required to succeed in this business. From its first four years, this reality has increase the
numbers of its viewers, and the audience include a lot of fashion students. If a fashion
student or a fashion fan, get to enter to the reality, they will be competing against their
peers and gain important experience.

The circumstance that Project Runway license has been renewed too many times shows
that its success and viewer base will continue to grow. Some countries, including France,
Israel, Jamaica, Finland, Canada, Brazil, Belgium, Arab World, Australia, and some
others, had make local versions of Project Runway. Nowadays, some of the participants
that pass through Project Runway have launched their personal brand of clothes. Project
Runway’s target viewers varieties significantly, from college students to top fashion
executives.

Project Runway had had 17 seasons, they had been very successful, the main judge had
been Heidi Klum, and it had had the participation of Michael Kors, Nina Garcia and Tim
Gunn. Due to the successful of this reality, it has developed alternative realities, such as
Project Runway Junior, which is basically the same outline, but participants are from 13
to 17 years old. This one, is having a great reception and it is becoming very recognize.
This year, Vietnam launch its own Project Runway Junior.
1.0. Market and Situation Analysis

A situational analysis usually gives the bases of a marketing plan, it reviews internal and
external factors influencing a business. It is very helpful because it creates an outline of
the company, and it will lead to a better understanding of the factors that will mostly
influence it when it is applied. Firstly, we are going to study the economic environment,
which refers to different key economic variables that must be monitored. For Colombia,
we are going to study how it is changing and making a shift toward a service economy,
how nowadays is the availability of credit, the level of disposable income, the propensity
of people to spend, the interest rates, the inflation rates, the money market rates, the
federal government budget deficits, the gross domestic product trend, the consumption
patterns, the unemployment trends, the worker productivity levels, the value of the dollar
in world markets, the stock market trends, the foreign countries economic conditions, the
monetary policies, the fiscal policies, the tax rates, imports and exports, demand shifts
for different categories of goods and services, income differences by region and
consumer groups and price fluctuations.

1.1. Economic Environment

In first place, the service industry is growing worldwide, and it is now being considered as
a sign of an economic progress of a country, since all developing nations have had a shift
from agriculture to industry, and finally to the service sector. As economies develop, the
importance of the service sector continues to grow, and the service companies vary more
each day, they can go from international corporations of airlines or hotels, to local
restaurants or small size businesses.

According to DANE research, in the April - June 2017 quarter, eleven of the fifteen
subsectors of services registered positive annual variation. The main variations were
recorded in the subsectors of Advertising, Administrative and support activities of office
and other activities, and Production of cinematographic films and television programs
(2014, Dane). Since Project Runway is going to be in the service sector, it is important
for the company to consider if the importance of the service sector is growing or not.

Second, the availability of credit, refers to the amount of credit to which a borrower has
access at a specific time. It describes the capacity to obtain resources by borrowers, with
normal levels of risk. Access to credit is good for economic development, since it allows
new investments to exist, and allows people to purchase more things. However,
excessive lending can end up in financial crises.

During the second quarter of 2017, financial intermediaries saw decreases in the demand
for loans in the commercial and consumption modalities (2017, Gómez). It is highlighted
that the strongest contraction was presented in loans to companies, a situation that is
reflected in the slowdown presented by the commercial portfolio. In contrast, although the
balance sheet has remained negative for the consumption modality since December
2015, there has not been a significant slowdown in this portfolio

For banks, export, construction and service and industry sectors are the ones with more
access to credit. And by the other hand, for finance companies and finance cooperatives,
service, industry and commerce sectors, and natural persons are the ones with more
access to credit. All three groups of financial intermediaries say that if the demand for
credit rises because of a growth in the economy of the country, they are in conditions to
meet excess demand. Never the less, they would establish more conditions to grant
credits, especially for PYMES. (2017, Castro) The availability of credit can represent an
opportunity for the project, since it can have access to more resources, to improve its own
business or invest in more marketing strategies.

Thirdly, the level of disposable income refers to the amount of money that an individual
has available for spending and saving, after all taxes and mandatory expenses have been
paid. It is an important economic indicator of economic health. The real rate of expansion
of Colombia’s per capita disposable income and spending eased in 2016, due to the
deceleration of the Colombian economy (Euromonitor, 2017). Due to the long-term rise
in disposable income levels, Colombian consumers are increasingly giving more
importance to quality and service levels in their purchasing decisions.

The peace agreement signed in 2016 is expected to support growth of the Colombian
consumer market and the expansion of the middle class over the long term. Over 2017-
2030, income inequality in Colombia is forecast to decline, due to the country’s expected
economic growth over this timeframe, which will help narrow the income gap between
urban and rural areas. Single-person households will be the strongest-growing
consumer market and is expected to demand for categories like communications,
hotels and catering, and leisure and recreation over the long term. (2017,
Euromonitor)

According to the World Bank, Colombia have had an annual increase in the average
income per capita of 4.1%, as shown in Table 1.
Table 1. Average income increases in Colombia

Note Source: World bank. (2017). Data-Colombia. Recovered on October 25, 2017,
from http://databank.worldbank.org/data/reports.aspx?source=2&country=COL,UMC#

The level of disposable income means that colombians have money available for making
expenditures in things different than the basic needs, not big enough for travelling to other
countries, but enough for making plans each weekend. Therefore, people will have money
available to spend in the services sector.

Fourthly, the propensity of people to spend, refers to the rate of earnings that are used
on goods and services instead of reserving it. Periods where propensity to spend is high
can boost the economy, since more goods and services are purchased, hence, more
people is employed and the conditions for business are more favorable.
For the period from 2017 to 2030, the forecast to consumer expenditure is to rise 4% per
year, since disposable income levels are expected to rise in that period too. When
propensity of people to spend increases, people are prone to spend money in things
different than those related to the basic needs. This means that individuals will spend
money on things related with leisure time. This fact can be an opportunity to Project
Runway.

Fifth, the interest rates, refer to the cost of money through time, or a rate which is charged
for the use of it. It is declared as an annual rate of the entire money, and are a mechanism
to control inflation. The lower the rates, the higher the interest from individuals to get
loans, in order to make investments and other expenditures. The Intervention rate, as
Table 2. shows, established by the “Banco de la República” in 2017, is of 5,00%.
Table 2. Intervention rate Colombia

Note Source: Banco de la República. (2017).Tasa Intervención Política Monetaria.

Recovered on October 25, 2017, from http://www.banrep.gov.co/tasa-intervencion-
politica-monetaria
It is important for the industry to consider if the interest rates maintain stable or not, since
this can affect the possibility of firms to get loans in order to invest those resources.
Nowadays, The Central Bank, think that they were having its inflation expectations under
control, so reduced interest rates, but that has not yet stimulated domestic consumption,
because these rates didn’t fall as the market was expecting.

Sixth, the inflation rates mean that there is a rise in the average price of goods and
services in the macroeconomy. The primary reasons of inflation are or too much
accumulate demand, what leads to an increase in economy very quick, or cost drive
elements. It is important to keep the inflation rate into account given that average prices
may rise, while some others have been falling, therefore we must track the basket of
goods and services in the index that matches our buying patterns. The reports show that
in Colombia the IPC increase until 4% in September and the total inflation of 2017 is of
3,5%. (2017, Macro)

Seventh, the gross domestic product trend, is the value in monetary terms of only finale
products and services produced in an individual country in a period. GDP includes both,
private and public consumption, government expenditure, contribution and exports less
imports. It is important to be aware of this value since is one the primary indicators used
to understand the health of a country's economy.

The Gross Domestic Product (GDP) in Colombia was worth 282.46 billion US dollars in
2016. The GDP value of Colombia represents 0.46 percent of the world economy (2017,
Trading Economics). An improvement in the economy is expected in the next two years.

Eighth, the price of the dollar in our country has been increasing and forecast said its
value is going to increase. This value is important for the service sector because they
may see affected for good or for worse depend on the tourism or the imports they may
need for the performance of their services.

In conclusion, taking into account the previous variables, we can understand that the
economy is in recession even if the government has not yet accepted it, however, this is
not a total impediment for this project, given that as opportunities we can find that there
will be available staff with whom to work. In the same way, even if the economy is affected,
for this business in the colombian culture does not create a great impact, due to that other
expenses decrease, but not those for television.

1.2. Social Environment

Second, we are going to continue studying the social environment, which include cultural,
demographic, and natural environment forces. In first place, the childbearing rates, refers
to the total of births that occur in a thousand people. In 2017, there had been 311.972
births reported in Colombia (2017, DANE).

According to the World Map of Family 2017, Colombia is the country with the highest
percentage of couples living together without being married, as well as the country with
less marriages in Latin America. Nowadays, 27% of child only life with one parent and
11% life with no parents. (2017, World Family Map). According to Ana Romero(2013),
director of the Family Institute at Universidad de La Sabana, the number of marriages
could have an impact on the national economy because a family consumes in a more
stable way, since it wants to increase their economic stability. Also, married people invest
more money in food, health, and life insurances than single individuals.

The number of divorces has increased on a 39% since 2014, and for each three civil
marriages, there is a divorce in Colombia (2017, Dinero). These previous statistics, lead
to the majority of people living alone, even when they try to get married, many end up
being divorced, which leads to many spending more on services and less on food, health
and life insurance products. In this year, 2017, had have accumulated 98,546 deaths,
with a distribution by sex where 52.7% corresponds to men and 47.3% are women (2017,
DANE). In September 2017, a total of 1,121,176 (2017, Migración Colombia) people
entered or left the country, this figure includes both foreigners and nationals. This rate
could affect the industry, since it can have consequences in unemployment, if too many
people is entering or leaving the country, or consequences in the decrease of labor force.
Another aspect, are the social programs, which have direct influence in life conditions of
the population, since they have an impact in different social aspects, such as education,
health, poverty reduction, and creation of jobs. According to the “Departamento de
Planeación Nacional”, the Social Policy in Colombia, aims to achieve that every
Colombian has access to quality education, social security, and the labor market, by
formalizing actual jobs, or supporting entrepreneurship. This national policies are created
in order to reduce poverty, and increase jobs as well as social equity. This affects the
industry, because it has to do with the conditions of living of the colombian people. If this
condition improve, individuals will have more money available to spend, and there will be
better conditions for promoting entrepreneurship. In this special case, people will have
more access to television.

Also, the location of retailing, manufacturing, and service businesses, have an important
impact on business. Outsourcing indicates the technique that have place when a brand
employs external people or business, so that it can take care of a component of the entire
process. The outsourcing had increased in Colombia, rising the foreign investment in the
country, as well as the creation of jobs, since colombian people is generally service
oriented, and the relation quality-price offered by the country is competitive for the market.
However, it is necessary to strengthen bilingualism in order to have more tools to satisfy
the demand. This can affect the services industry, because outsourcing brings foreign
investment to the country, and can increase competence for this exact project.

Attitudes towards business and entrepreneurship generally perceived by the public, affect
the industry. Colombians tend to judge too much hygiene and work process that
companies tend to have, by reputation or what other people say about it they follow a lot
tendency and a bad rumor will be spread easily. This is much more common in small
companies, of which many doubt that they fulfill with all necessary regulations, even
though this can happen on big companies. In many opportunities, they believe there are
legal settlements, that are not trustful.
The lifestyle of consumers and their families are defined as living conditions, behavior
and habits that are typical of them. The benefits of having it clear, is that the way a
consumer expresses his / her needs and desires represent opportunities for
entrepreneurs, and brands or projects wondering to enter a country. Colombians tend to
eat at home mostly, they prefer homemade food and eating out at restaurants mostly on
weekends, they are very familiar and like to spend time together. Families that by their
schedule can, share time every day together, eating and watching television. Families
that don't have much availability of time, minimum spend time together once a week.

In what refers to the country in general, a lot of colombians don't trust in the country they
live in, and in fact they want to live in another country. It’s important for businesses to take
the risk of developing businesses in Colombia in order to provide jobs to people, give
financial security and promote the overall consumption of product and services. But also,
it is an opportunity, because international brands are very good received, because of the
dream of living in another country. The attitude toward government shapes the
environment in which businesses are created and run in the long term either by nationals
and by foreign people. The perception of the government comes from different kinds of
media such as the internet and tv, so the attitude toward government is influenced, most
of Colombians think that Colombia is going badly and the majority have a desfavorable
image of the president. In general, colombians are known for being hard-working and
committed, but lack of punctuality is also something that identifies them.

Some of the buying habits refer to the products that particular customers usually buy and
the places where they buy them. It is important for entrepreneurs to periodically track
changes in trends of buying habits of consumers. Buyer habits are a reflection of the
economic situation of a society, a reflection of their needs, a reflection of innovation and
a reflection of the cultural environment itself. Consumer trends have changed in
Colombia in recent years, and people is subscribing less to television services, due to the
global impact of economy, and colombian had have their most low expenditures these
last years.

Also, the sex roles, in recent decades has seen a change in Colombia and in the world
about sex roles, women have taken more space in the workplace, and so the same man.
Man, now performs the activities that were previously considered women's work, like stay
at home while the woman go to work, this can change families’ habits.

Colombia has been working in education levels, a few decades ago the percentage of
people reaching college education was very low. In previous decades were very few
people who deserted from schools in both primary and high school. However, this has
been changing, university education is now very important to enter into the labor market,
but the percentage of people continuing to study after college is not as high as expected.

In conclusion, nowadays mostly of the population is between 25 and 54 years old, the
median age is 29.6 years, the official language is Spanish. The income inequality in this
country is one of the highest of the world, even almost the middle of the entire population
life in poverty. They are facing great changes since all the guerrillas are being
incorporate to the civil life and it was sign the peace between opposite parts. Bogotá is
the major urban area and then it is Medellín.

1.3. Technical Environment

The technical environment is the influence that have technology in the business.
Technological change, has had an extraordinary growth in last years in communication,
handle of facts, and shipping technologies. This improvement has benefit globalization
letting brands to grow their global presence at a small expense and facilitate enterprises
a globally production plan. Therefore, if technology affects the entire world, it would affect
every industry in this country, and influence many areas of the company including
strategies, customers, competence, marketing, logistics and even more. That is why
technological forces are so important for the external audit, and all of the industries should
be aware of the great impact that these forces cause in their businesses.

On the internet aspect, there are some positive aspects, such as it has modified some
opportunities and threats by changing the life cycle, rising the agility of distribution, and
taking away some problems of distance between different geographic markets. Also, it
changes economies of scale, turning down some barriers, and creating new types of
relationships between stakeholders. In the same way, it had help to create new products
and services, brands can control a globally production plan, which helps it to be sell
through many countries. Additionally, it can be used as a point of supply of information
of the clients of a brand. Social media must be used to study about the favorites of
customers, for in that way being able to plan campaigns for a precise audience. Similarly,
it let brands to obtain advice from their clients, letting them able to acquire information of
what people think of them. Likewise, it makes simple and earlier to share characteristics
or campaigns about new products or services. Finally, a positive aspect is that it gives a
cheap way to communicate, in which clients are capable to share things related to the
brand, which can turn into a voice to voice.

Some of the negative aspects, are the decline of the humanity on business relationships,
since meetings are taking place through internet. Also, very important information of the
company can be available to hackers, and they can reveal it. Adding to this, the reputation
and honor of a brand can be affected because of bad assumptions on social media.

This shows that for industry and business, it is vital to consider the electronic devices in
the market strategies and competitive advantages, since the majority of people can
access this resource, the industry can take advantage of it.

It is important to take into account that this year, in 2017, there are still being
advancements in technology, which includes sensors, software and a lot of connection
between devices. Green products are on the top of lists, this younger generation take
care of it, and support brands that too. People is also being moved by brands or strategies
that help to have a shared economy, such as Airbnb or Uber. This year, the virtual and
augmented reality had had a big weight and had catch a lot of attention, and if people
can’t afford it, are looking for fitness wearables.

1.4. Industry Environment

In the television industry, there is a lot of factors that have a great and important role in it.
The are key players and too much stakeholders, including artists, authors, composers,
television networks and streaming audiovisual suppliers, and more, and the relationships
between them are very complex. The television networks refer to the component that
create and buy content for transmission, developing content with the purpose of drawing
the highest number of spectators. These ones obtain profit almost totally through publicity
revenue for the advertisements exposed between programs. The cable companies,
deliver the main circulation channel for the television networks, giving programming
subjects to audiences. They obtain most of their profit over customers fees, having a
reduced part from advertising income. It uses the subscription professional model,
gathering once a month fees for a specific service, that even in some cases can contain
television, phone, and internet. In Colombia in specific, the bigger cable companies are
Claro, Directv, UNE, Movistar and ETB. (2016, Comisión de Regulación de
Comunicaciones)

The workshops and production businesses, create material for television. The workshops
are not permanently related with certain networks, that is why it can be seen that, for
instance, television shows from a studio, on different and competing networks. They get
profit by selling material straight to the networks, frequently for a portion of income got.
Because they are the original creators of material, the workshops and production
companies attend as manufacturers for this industry. Finally, the streaming audiovisual
suppliers, are the youngest factor in the television industry, creating television material
accessible online. Streaming audiovisuals may be gathered with cable companies, as a
different channel to deliver content, and they habitually receive a subscription revenue
from online publicity.
For the purpose of understanding how the television industry in Colombia works, it is
important to take into account components such as the factors, the evolution of these
services, the technology, the offers, the rates and customers. Television services on
Colombia, have a categorization, which is mainly divide in two, in close and open services.
The close, are principally by subscription fees, which can be by cable or by satellite. In
cable, there are the following cable companies, Claro, UNE, GLOBAL TV, and 40 more
small companies (2016, Comisión de Regulación de Comunicaciones). And the cable
companies that cover the satellite services, are DirecTV and Telefónica (2016, Comisión
de Regulación de Comunicaciones).

In the other hand, the open services, include national, regional and local, on national
services, there are privates ones, which are Canal Caracol and Canal RCN (2016,
Comisión de Regulación de Comunicaciones), and public ones that are Señal Colombia,
Canal Institucional and Canal UNO (2016, Comisión de Regulación de Comunicaciones).
Then, on the regional services, there are just public ones, such as TeleAntioquia,
TeleCaribe, TeleCafé, TelePacífico, Canal Capital, TV Andina, TRO and Teleislas (2016,
Comisión de Regulación de Comunicaciones). Finally, in the local services, there are two
categories, with profit motive and without profit motive. An example, is here in Bogotá,
CityTV is a local service with profit motive, and without profit motive there 44 cable
companies.

For talking about the evolution of these services, is important to establish that this industry
had been influence by technology, political and market changes. Nowadays, this industry
worldwide had been through big and deep changes, consequence of the increase
creation and development of platforms that offer access to audiovisual contents. This get
to broke market clusters, and change the television business model. Colombia is not the
exception, and had been going through these changes.

The emergence of the Internet, and in general the digitalization of telecommunications

networks, has generated the fusion of networks, services, markets, industries, and
agents, and has produced, among other aspects, new modes of provision of audiovisual
content that impact the management model of traditional television services. Also, mobile
television constitutes a technological advance that allows the wireless transmission and
reception, through mobile platforms, such as smartphones, of audiovisual content,
including television content, through which users enjoy personalized and interactive
television with content specifically adapted to the mobile medium, either through current
mobile networks, or through dedicated mobile television systems based on terrestrial or
satellite networks. Adding, television from the Internet allows to provide services mainly
video store over the Internet through web portals, such as Netflix, Amazon, or Hulu.

In conclusion, Colombians still watch a lot of television nowadays, even though the
economy isn’t helping that much, they are still paying subscription fees for cable
television. Some of them, mostly the young middle-upper class are starting to watch more
through web portals, mostly movies and series, but sports and realities are still being
watch on television.

1.5. Competitive Environment

First of all, there are some factors the make it difficult to define markets in the audiovisual
industry. Audiovisual products typically have high fixed costs at both the content level and
the distribution level. This is, the cost of producing the content, and the infrastructure
required to distribute that content to the end users. However, once produced, the product
can be distributed to any additional person at a cost of zero with respect to the cost of the
content. So fixed costs are very high and marginal costs are low, but the optimal, would
be the contrary. Also, because prices for final consumers don’t have a specific format,
are very variable, and include very different plans. Also, as was said in industry
environment, there is an open service, which is free, so it makes it harder to analyze,
because for comparing it with close television, they are not under the same conditions.

In analysis of the competitive, it can be argued that the Colombian audiovisual market is
a relatively competitive market where different agents offer a variety of content to users
in different price ranges. Therefore, it is possible to identify the following economic
markets, first, multichannel television retail market (2016, Comisión de Regulación de
Comunicaciones) composed of different television packages such as the basic package
and the limited basic package, that is, the products offered by subscription television
operators and community television operators. Second, the wholesale market cluster of
channels (2016, Comisión de Regulación de Comunicaciones) that are distributed
through the traditional multi-channel content distributors. And third, the wholesale market
for broadcasting rights of the open channels (2016, Comisión de Regulación de
Comunicaciones), like RCN and CARACOL, premium channels constitute additional
attributes to these packages.

In this industry, there are mainly two important problems to consider, the false report and
the piracy. The false report, response to the intentional declaration by some operators of
TV services of a smaller number of subscribers than those who actually they have in their
service. Maybe it is for paying less interests, but it is a reality because the data obtain by
DANE said that there are more viewers than the ones report by ANTV (2016, Comisión
de Regulación de Comunicaciones).

The second problem, the piracy, take many forms, from the illegal distribution of channels
for which no royalties are paid, through the use of illegal devices to illegally capture and
decode signals, by the illegal distribution of the entire multi-channel offer, in some cases,
some operators without their consent. All these phenomena impact the number of
subscribers of the service.

Mostly, international competitors are entering through web portals, such as Netflix, or
through Canal Caracol, or Canal RCN. They are producing the TV Reality with Colombian
people, and launching it through Private National television. Other direct competitors, are
launching TV realities through only paid channels on tv, that cover more a regional area,
an example can be Latin-American, and a channel that does this is Glitz. Some indirect
competitors, which also launch TV realities, are the ones who sell the entire season to a
web portal, such as Netflix. These ones, aren’t that important for this project
, because they target a different market, people that want to manage their schedules for
watching television, and don’t have a time of the day for doing it.

With the previous analysis, it is possible to make a Strategic Canvas, comparing Project
Runway with the programs with more rating nowadays, in Canal Caracol and Canal RCN.

Illustration 1. Strategic Canvas Project Runway

And also, a perception map to understand in a way visual how are the strong television
shows on the market.
Illustration 2. Perception Map of actual Television Industry in Colombia

1.6. Political Environment

Is this part we are going to look deeper into political, governmental, and legal variables.
A regulation is a group of decrees or requirement that a business have to do with regard
to the government to keep an order and a unity with all aspects in the country and evade
problems. The principal regulators are, the Ministry of Health, the Chamber of Commerce,
the Superintendence of Industry and Commerce, the National Institute of Food and Drug
Monitoring INVIMA, the Directorate of National Tax and Customs DIAN, and the
Colombian Institute of Technical Standards and Certification ICONTEC.

It is important to consider that in Colombia, there is a legislation on equal employment,

which is a law that protect all people saying that all community must have the same
opportunities of work, and living regardless of the gender, economic conditions, age (with
some conditions), race, etc. The law 1495 of 2011, says that all people have to have the
same salary payment, and there are some mechanisms to avoid discrimination. For an
equal and fair treatment of employment, the colombian laws and regulations include the
following contracts. First, the individual employment contract, which give legal certainty
to both the employer and the employee, which serves primarily to define the working
conditions of workers employed by the employer. Having this agreement is vital because
our labor legislation, favors workers. The second, is the contract to provide services, and
it serves primarily to hire professional services at a lower cost, without the need to enter
the people who provide our payroll. It is important for any company contracts to provide
services and thus define the rights and obligations of the parties, the service what it will
be, how quality will be provided at that time carried out and the consideration to be paid
by that service. The last one, third, is the supply contract, in which there is a part that is
required to complete for another, independent, periodic benefits or repeated things or
services in exchange for payment or compensation, it means, a person is committed to
providing things to services to another in exchange for a payment. It affects the industry
because, as taxes, the government establishes these rules and conditions for equality.
Therefore, every industry in the country should follow the regulations that apply, and for
applying this project they must be follow.

The government fiscal and monetary policy changes affect a lot as in any country, the
changes that the government decreed, affect all industries in the country because they
depend on the interest rate, defined by the Bank of the Republic, which determines the
devaluation of the local currency. At this time the local currency (Colombian peso) is much
undervalued, though the export sector is benefiting much, in case they are making
business.

In general, in the media industry a freedom of expression governs, however it is affected

by the constitution, the supreme law, the statutes, those approved by the legislature, and
by decrees or regulations. There it is a stable political system, there are a lot of licenses
and regulations to take into account, and it is important to consider that it is establish la
Autoridad Nacional de Televisión, a national agency whose purpose is to offer tools for
the execution of plans and programs in the public television service. Also, it is important
to win the support of government and strategical people for being able to enter to this
industry.
The important parts of the analysis, was summarize in the following SWOT analysis.

Table 3. Weighted SWOT Project Runway

2.0. Market Segmentation and Customer Analysis

For the purpose of entering in the correct way to the Colombian market, people, lifestyles
and habits, will be studied, because it is important to firstly understand to whom are we
going to sell, and which are their needs and desires. For doing a successful project, is
important to know what kind of people is going to be target and what strategies are going
to be develop for reaching them. Doing a market segmentation and customer analysis is
crucial for directing the marketing efforts on the greatest groups of people that might be
watch the reality show.

That’s way, there are going to be analyze some characteristics, like segments geography,
demography, psychographic, behavioral, and its relationship with this reality show in
specific. In specific, customers differ the way they consume this product, taking into
account the price or its availability in the market, or how easy it will be for them to consume
it in its home or their work.

2.1. Market Segmentation

As it had been told before, in this market is very difficult to have a precise segmentation
because there are not sufficient information or data because of piracy and false report of
cable companies. But it can be made some kind of general segmentation. Firstly, based
on price, there are people that gives a significant part of their monthly budget for
entertainment such as cable television or online web portal, as Netflix, and are able to
pay extras for having vip services, while there are people that will prefer to have a free
service. On other aspects, some Colombians take into account how easy it is to access
the content, so for ones are very important to watch their movies, series or realities at the
specific time they want, while for others don’t care, and are willing to organize their daily
schedule according to tv programs schedules and start creating their habits around it.
For having a deeper understanding of this, is important to consider that some consumers
watch movies, series or realities on a television, tablet, computer, or smartphone. So,
when a content is going to be produced, it is important to take into account, how and
mostly in which format will viewers consume it, so production can bear in mind it, for
record the visuals in the most appropriate way. Also, the marketing team can launch some
strategies in the most suitable way and get the attention of the desire segments, because
they know through which channel they are mostly connect, through smartphones, mail,
social media, radio, magazines or other. Clearly, each different type of client have diverse
necessities and differ in the price they are willing to give in exchange for the contents.

Certainly, if at the start of a project we have a good understanding of the needs, desires
and expectative of our desires segments, it can be drive the marketing mix for achieving
what people are wondering. Is important to take into account each of the segments that
will be select, because each one will, in a unique way, give growth and income options,
so is important to have the objective of giving to each segment the best offer according
to its unique and personal characteristics.

2.2. Target Market Segment Characteristics

It is possible to understand better the characteristics of the target market segment with
four categories, geographic, demographic, psychographic and behavioral. It is important
that the consumers of a certain segment, or target market, can be easily identify, so a
target market can be measure in terms of number of people, expenditures, age,
nationality, or others. Also, a group should be accessible, and the brand should be able
to reach it, considering it particular situation. If a group of people, can’t be reach, it started
wrong because the marketing strategy to show that the brand or project exists, will never
reach them and they will never be notified. It is also important to study the profitability of
the segment, in total, because the individual is not that important if in general it is rentable.
Business in the lower part of the economic pyramid can be extremely profitable if they are
well planned and execute, because even when people in this segment aren’t willing to
spend a big amount of money, they are very big in terms of amount of people. That is
why, for Project Runway Junior, it’s important to understand Colombian market, and
choose very good their marketing strategies.

2.2.1. Geographic.

This is an important area to take into account, when a project is for people in a specific
area, or when the target responds with diverse preferences depending on where they are
situated. For example, there can exists seasonal products or services, that depending on
the time of the year, are more consume, or they are only bought at one time of the year.
In the television programs industry, the geographic is very important because it help to
define whether or not, particular aspects will get along with the public.

For Project Runway Junior, is important to define that it will be launch for the country
Colombia, in all the cities or places that have access to cable television. So, from all the
countries in the world, Colombia is the one target, in South America. As establish before,
in this country there are around 48.65 million people, which live in different environments,
altitudes and climates. Its limits are with the Caribbean Sea, the Amazonas, the Pacific
Ocean, with Ecuador, Peru, Brazil, and Venezuela. It is divided in five regions, thirty-two
departments, and its Capital is Bogotá. The temperature in this country variates from very
hot to very cold, due to the elevations corresponding to the sea level.

2.2.2. Demographic

Studying the demographic criteria, is fundamental because it includes the age, gender,
education background, family size, family life cycle or income. This help to understand
more the type of customers that this project is going to target. In this case, Project Runway
Junior target mainly individuals, but it is also looking for catching attention of business.

Firstly, the age, is mostly for four types of groups. The first one, are families that have as
tradition to watch the tv realities, series and programs, that the national television shows
at night hours, after doing the activities of each one. The second one, are students, of
school, of fashion programs, or others, that like the fashion industry and its world. The
third ones, are women from forty to fifty-five years old, that like to watch programs in which
they can have an opinion on what others do. And the fourth ones, are people from the
third age, which don’t have much to do at nights, and like to watch television programs,
this people, love programs in which kids are involved. The gender is both, even though,
fashion in Colombia is mostly follow by women, there are also men that like it and are
involve on it.

The education background, isn’t a factor that really affects our target, although, is
important to understand that it isn’t focus on high executives, because in their habits,
hardly ever, is to watch television, maybe for news, but not for entertainment, and this is
a reality for entertainment. The family size, doesn’t affects much, because there are both,
families that watch television programs together and families that never do it, and there
are people that life alone and watch television programs, and others that don’t.

Income, affects in an indirect way, because people for being able to watch Project
Runway Junior in Colombia, need a television, but the true is that Colombians of low
income, prefer to buy a television that a bathroom, and their priorities aren’t always to
take care of fundamental needs. So, mostly of Colombians have a television on their
houses.

2.2.3. Psychographic

This factor, is important and essential, because it really defines what people do,
independent of what their environment says. For example, it can exist a Colombian girl,
studying fashion design on LCI, that is really passionate about it, but hates to watch
television. In this case, even when everything will say that she will watch the program, so
she must be target, it is a waste of time, because she has some characteristics that can’t
be change by a marketing campaign or strategy.
Through doing this, it can be studied the values of Colombians, their personal attributes,
habits, and way of thinking. This data, will increase the understanding of people more
than other aspects, because it will help to know what they will never do, what they value,
what they like, and what is annoying for them.

In this case, psychographics aspects, will be people that is in any social class, it doesn’t
really determine if they consume national television or not, but mostly, people of low social
class, always watch this program. People, that are more sedentary and less sporty, are
more potential viewers than sporty people, because most of them, don’t like television.
Also, personalities that tend to judge, are the ones that are attract to this kind of realities,
or people that like children.

In this, also has to do the family in which people was raised, because normally, people
that like to watch television programs is because their families teach them with their
example.

2.2.4. Behavioral

For this program, as it is a reality, it is focus on people that have the habit of watch an
episode at night, and wait for a week for the next episode. Normally, this people have
friends or close people that also watch it, so the next after they watch it, it will certainly be
a main topic of their conversations. Also, a part of this people, are the type of people that
give their opinion on social media, so they like to post on twitter what they think, of on
instastories on Instagram that they are watching that program and are catching up with
all the details.

In many occasions, people start to watch it just for not felling exclude of conversations
about it, and for understanding what people are talking about. In some cases, this can be
used for completing a social need. Other people, mostly the ones that life alone, used the
television as a company, so they watch television programs as a form of passing time
and having an entertainment at night.
 2.3. Marketing Research Findings

In this part, it will be developed a market research, because, in this way it can be
understand the present products and services, the spending habits, the distribution
channels and competitors that exist.

2.3.1. Products and services

Nowadays, in the market there can been found different options, there is too much variety.
From the way in which people consume it, to the channel in which they consume it, to
what they consume. In Colombian market, there are mainly three types of ways in which
people consume, first, there are the ones that want to watch the episode at the hour they
decide and what to have the option of pausing it. Also, the second pattern are the ones
that have the habit of watching it on the television schedule and are used to watch
commercials and advertisement. And the third one, are the ones that in week days don’t
have time for watching television, but on vacations or weekends, like to get ahead and
watch a lot of episodes continued.

Also, it can be consumed in different ways, from a tablet, from a computer, from television
or a smartphone. And, there are different type of programs, news, movies, realities,
series, sports, documentaries, and more.

2.3.2. Customer needs and wants

Colombians, in this market, have a deep-rooted habit, in which television are for them a
very important part of their daily life, and their habits involved it. For some Colombians,
for the ones in the target, and more, television programs are part of the entertainment in
life, and it is even involved in their personal relationships, in the topics they speak, in how
the distribute their time, and in how they spend time with family or friends.

3.0. Objectives and Goals

Here, it will be developed where the business need to be, so it will be established the
mission statement and different objectives.

3.1. Mission Statement

Project Runway Junior in Colombia want to achieve rating higher than the average,
catching the attention of families, students, and women, for discovering new talents in the
industry of fashion designers, having the opportunity of promoting designers and clothe
brands.

3.2. Objectives

The objective, is to have a bigger rating than the program that will be at the same time in
the competition channel, in Colombian national television.

To be launch on Canal Caracol between 8 p.m. and 9 p.m. at the first six weeks, since it
is introduced.

That Project Runway can have a second season, due to the success of this first one.
4.0. Strategies and Tactics

Through this aspect, is how the plan could become real, so, are the tactical action stages
or phases that will allow that all these plans become reality. This are, in marketing
commonly how as the Ps.

4.1. Pricing Strategy

For developing this strategy, it is important to take into account, several aspects. First, it
is the competition, and in this industry, in the television programs business, prices are
very high for the channels owners, they are high because of the production, edition,
marketing, and all those costs. But, owners of channels are willing to pay that high prices,
because even though, they will give it as a free model pricing strategy for viewers,
companies interest in advertising in commercials between segments of episodes, are
willing to pay high prices for publicity. In this way, revenue can be most of the time assure.

4.2. Product Strategy

The product that will be offer, is a reality competition, call Project Runway Junior, and
international program, originally from United States. Basically, it is in the fashion industry,
in which contestants fight with each other, create line clothes on a certain amount of time,
with specific rules for materials used, and their budget and theme of their design are also
defined. Judges are professionals and well known in the fashion industry. In each
episode, it is eliminated a contestant until they remain two or three, which will have the
opportunity to present a complete collection for Colombia Moda and Bogotá Fashion
Week, hosted by Hotel W.

4.3. Place Strategy

In this case, it will not be involved or implicated, a physical store, as a supermarket, for
example, or an online virtual store, because it is a service, and will be given by television.
The sell, will be directly to Canal Caracol, because is a program that fits perfectly in their
type of programs. Also, it is a very innovative program, and surely, by the target
characteristics, will have an incredible reception. And as it will be sell to Canal Caracol, a
national television channel, in Colombia, this country will be the geographic area in which
it will be available.

4.4. Promotion Strategy

The promotion strategy, is essential due to, that because of it, people, and potential
customers, will found out about Project Runway Junior in Colombia. The way, it will be
done is through advertising. Through commercials on previous day to the launch day, that
will be December 14 of 2017, on the same channel, Canal Caracol commercials. Also,
through advertisement of bus stations, and on advertising fences on strategic places of
cities of Colombia, stronger on Bogotá, Medellín, Cali, Barranquilla, Cartagena,
Villavicencio, Santander, Cucuta, Cartagena, Santa Marta, Bucaramanga, Pereira,
Manizales and Popayan.

4.5. People Strategy

As in any business, it is important to have good relationships with customers, with

suppliers, with employees, and in this project, they are significant. For example, the
judges, need to be well recognized people, so the project must achieve to hired people
such as, Silvia Tcherassi, Amelia Toro, Hernán Zajar, Haider Achermann, Esteban
Cortáza or Adriana Santacruz. Also, is important who is going to be the presenter, for this
show is perfect, Paulina Vega.
 4.6. Priorities, Responsibilities, and Timeframes

Table 4. Priorities, Responsibilities, and Timeframes

5.0. Budgets and Control

5.1. Sales, expenses and Marketing Budgets

Table 5. Sales, expenses and Marketing Budgets

VIDEO PRODUCTION CREATIVE BRIEF
CLIENT

PROJECT NAME Project Runway Colombia

CLIENT NAME Canal Caracol

BRAND Project Runway Junior

PRODUCT Reality competition

PROJECT
PURPOSE | why?

Producing a television reality contest genre to engage, inform, enlighten and entertain

OPPORTUNITY | ultimate impact?

Promotion of designers and clothe brands.

OBJECTIVE
what does the project work to achieve?

To discover new talents in the industry of fashion designers

SCHEDULE
PROJECTED TIMELINE

15 weeks, 15 episodes
 IMPORTANT DATES / DEADLINES

December 14, 2017 – 22 March, 2018

BUDGET
AMOUNT

$ 22,500,000,000 COP

ADDITIONAL FINANCIAL PROJECTIONS / NOTES

$ 1,500,000,000 COP per Episode including production, post production, marketing and event.

TARGET AUDIENCE
PROJECT TARGET | who are we trying to reach?

Multiple target: Colombian women 40-55 years Students 12-30 years Families

BRAND TARGET | who does the brand speak to?

The target varieties greatly, from college students to top fashion industry executives

DESIRED REACTION | what actions do you wish your market to take?

Understand better the intricacies of the fashion industry

 ATTITUDE
PROJECT TONE | what traits are we trying convey?

Explore on designers’ skills and their ability to work under pressure.

BRAND PERSONALITY | what characteristics define the brand?

Competition, bring original designs.

DATE SIGNATURE

6.0. Bibliography

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October 2017 [Table]. Retrieved from http://www.banrep.gov.co/tasa-
intervencion-politica-monetaria

 Castro, F. (2017). “¿Qué necesita el crédito en Colombia para volver a repuntar?”

http://www.dinero.com/edicion-impresa/pais/articulo/cartera-crediticia-en-
colombia-2017-como-sube/247235

 Comisión de Regulación de Comunicaciones. (2016) “Análisis de Mercados

Audiovisuales en un Entorno Convergente” 06 October 2017. Retrieved from
https://www.crcom.gov.co/recursos_user/2016/Actividades_regulatorias/analisis_
mercados_audiov/160401_Documento_Amarillo.pdf
 Dane, “Muestra Trimestral de Servicios -MTS-“DANE Información Estratégica 27
October 2017 Retrieved from http://www.dane.gov.co/index.php/estadisticas-por-
tema/servicios/muestra-trimestral-de-servicios-mts

 Dane, “Estadísticas Vitales Nacimientos y Defunciones” DANE Información

Estratégica 27 October 2017 Retrieved from
http://www.dane.gov.co/index.php/estadisticas-por-tema/demografia-y-
poblacion/nacimientos-y-defunciones

 Euromonitor International from national statistics. (2017). Income and

expenditure Colombia 30 October 2017 [Table]. Retrieved from
http://www.euromonitor.com/income-and-expenditure-colombia/report

 Gómez, E. Banco de la República – Colombia “Reporte de la Situación del

Crédito en Colombia - Junio de 2017”

 Macro. (2017). Datos Macro Colombia. Retrieved 25 October 2017 from

http://www.datosmacro.com/ipc-paises/colombia

 Migración Colombia. (2017) Boletín Migratorio. Retrieved 06 October 2017 from

http://migracioncolombia.gov.co/index.php/es/component/content/article?id=718

 Portafolio. (2013). Colombianos, los que menos se casan en Latinoamérica.

Recovered from
http://www.portafolio.co/economia/cifras-matrimonios-colombia

 TRADING ECONOMICS. (2017). TRADING ECONOMICS. Retrieved 25 October

2017 from http://www.tradingeconomics.com/colombia/gdp
 World Family Map. “Full Report World Family Map 2017” Retrieved 25 October
2017 from https://worldfamilymap.ifstudies.org/2017/files/WFM-2017-
FullReport.pdf

 World bank. (2017). Data Colombia. 30 October 2017 [Table]. Recovered on

October 25, 2017, from
http://databank.worldbank.org/data/reports.aspx?source=2&country=COL,UMC#