ns for the

growth
of Elgourmet.co
m in a rapidly
changing
business
environment.

Submitted to: Professor Lori Ann Matthews-

Ferrara  | MKM805 – Strategic Marketing
Management | SBB | Seneca College, Fall 2021
 •
Table of
Identification of Problem Statement
• Situation Analysis of Both Markets

Contents
• Market Definition
• Growth Opportunities
• Alternatives and Evaluation of Alternatives
• Segmentation
• Targeting
• Perceptual Mapping of Subscribers
and Advertisers
• Positioning
• Recommendation
• Appendices
In light of the rapidly changing market conditions, determining strategic
opportunities and taking proactive steps to grow is critical for Elgourmet.com

Despite a strong business performance, the lack of a broader understanding of the Latin American
market is a key challenge facing PRAMER. This affects the company’s ability to leverage market
insights to properly segment consumer bases and has made additional share penetration difficult in a
market increasingly dominated by the major players. Taking action to grow the business in the short-
term proves crucial for business survival, and this is reliant on the company’s ability to efficiently
leverage the best-suited growth opportunities. This will ensure a more diversified strategic position
and new revenue sources for PRAMER.

02/03/2022 3
PRAMER faces a dilemma of whether to expand business in the Latin American
Market or enter the U.S. Hispanic Market.
 Currently, PRAMER S.C.A. is a big player among the smaller competitors and a small player among the bigger ones. As the
larger players further consolidate to gain more power, there’s a need to grow the business and do so quickly.

 Given the success of the Elgourmet channel showcasing hassle-free cooking content in Latin America, the channel has
gone beyond the traditional concept of a food channel, bringing in chefs from around the world and offering an exquisite
combination of dishes, beverages, local consumers, travel experiences, and colorful stories that reflect the channel's
slogan, "a love of fine living."

 Along with the unparalleled gastronomic boom, leveraging EG.C to tap into new market opportunities and ensure
company growth will be critical.

To establish the best suited strategic opportunities for growth, a deep dive into the company’s situation, to highlight challenges,
strengths as well as key opportunities was done.

02/03/2022 4
A thorough assessment of the situation, highlights the fast-growing Hispanic
population and gastronomy boom present as key opportunities for growth
Customer Insights
 Due to the gourmet cooking trend, Customers are increasingly
interested in gourmet cooking
 High switching potential among viewers – as viewers could
easily switch across many signals everyday.
 Spanish language often a common feature among customers.
 U.S Hispanic audience growing at a fast rate.
Channel
 Key channel relationships with Programmers, Cable operators &
advertisers
 Marketing team with a strong grasp of the Latin America market
 Highly dependent on Cable operator strategy
 Relied on Affiliate partners for more than 70% of their revenue.
 Partner with renowned Latin America Chefs for content creation
 Cable operators' technical limitations & intuitive approach
affecting reach & value proposition in L. America
 Second-tier cable operators in L. America proving difficult and
expensive to lure.
02/03/2022
Company
 Strong business performance in Latin America, with additional business
ventures.
 Spanish/ Spanish subtitled entertainment -EG.C only channel 100%
dedicated to Latin America’s regional cooking.
 Unique “regional “ approach – with capability to scale into other
markets
 Needs to allocate resources efficiently as there are resource constraints.
 Multiple revenue sources – but no revenue from VOD
Climate
 Global gastronomy boom – rising levels of interest in food and
associated cultural issues globally.
 High growth rate (43%) of the U.S. Hispanic population, with an
increasing purchasing power.
 Almost half – 42% of the Latin America region subscribed to Cable or
satellite TV, with a 75% subscribed in the U.S Hispanic market.
 A lot of the U.S Hispanic population originated from Mexico – a market
PRAMER is familiar with.
5 5
A look at the competition reveals that a unique value proposition would increase
EG.C’s differentiation & appeal – as most competitors are focused on general wellness.
Competitor insight
 Competitive market - increasingly dominated by Larger-sized international players.
 Threat of new entrants is low as the competitive rivalry within the market is high. (Exhibit 1)
 Asides FOX, all competitors feature Spanish/ Spanish subtitled programming in Latin America & the U.S.
Key Competitors

Competitors Analysis
Broadcasts in Spanish and Portuguese to Latin America countries, Focuses on family, looks, home, palate and dreams.
CASA CABLE TV

UTILISIMA Focused primarily on home-making topics (crafts, cooking, interior design, do-it yourself).
Focuses on travelling, with a fresh, young, entertaining and relaxing flair. They broadcast in English in the U.S., but they
FOX LIFE only target middle-aged audiences of any gender.
Focuses on telling compelling human stories and lifestyle. TLC also offers entertainment through no-in studio cooking
TLC shows.
A key point of differentiation is that Elgourmet is 100% Latin with a focus on gastronomic culture, this can be leverage to
FINDINGS further set the brand apart as it prepares for growth.

02/03/2022 6 6
While there are key competitive advantages that can be leveraged, PRAMER
must also bear in mind key strategic issues that need to be addressed.
Competitive Advantage (Exhibit 2)
Key Strategic issues
 Only 100% Latin channel focused on gastronomic culture  Resource constraints – Owing to this limitation, while
 Attainable recipes
there’s a need to grow the business quickly, resource
 Low production cost
allocation must be done efficiently to ensure business
 Brand reputation
sustainability.
 Production capability - Ability to create appealing content
reaching large markets.  Limited Latin American market intelligence – Cable
 Significant subscriber base operator programming and purchase decisions are
largely based on intuition leaving little room for a
This has led El Gourmet to enjoy temporary competitive advantage, rational analysis of consumer needs to create and
allowing them earn above average returns. deliver added value..

Short-Term Objectives (1-3 years)

 To increase subscriber count by 3 million within 1 year
 To determine an optimal target audience for growth. With an understanding of the strategic issues facing
 Raise brand awareness. PRAMER, a variety of potential growth opportunities
 Secure key channel relationship to increase current network. would need to be evaluated to arrive at a best-suited path
Long-Term Objectives (3-5 years) for business growth.
 To capture remaining market share of Hispanic Latin America
 To expand globally
 To survive in competition
 Introduce new business ventures.

02/03/2022 7
A comparative analysis of the two obvious paths forward reveal that the ‘potential’
within both markets is great but with implications on the business resources.
The Latin American Market vs. U.S Hispanic Market
U.S Hispanic 3-year projected revenue $23.97M
75% vs. Latin America 3-year projected revenue $42.4M
42%for both potential markets
Pay TV penetration
Summary of Table 1 & 2: showing projected 3-year profit

 The Latin American market appears to be larger (74.6 million households), however, Pay TV penetration is 42%, whereas the U.S Hispanic
market with a smaller yet growing market of 12.9 million households boasts of a 75% pay TV penetration rate.

 Using the above penetration rates, the Latin American market expansion which requires an initial investment of $4,032,000 is projected to
yield a 59.53% profit in the first year. Comparatively, the U.S Hispanic market requires an initial investment of $1,256,780 and is projected
to yield 218.84% profit in the first year. Overall, projected profit in Latin America over a three-year period (Table 2) far outweighs that of
the U.S Hispanic market (Table 1), but the Latin America requires more resource allocation.

 The U.S Cable operators are more sophisticated and complex than the Latin American operators. This means that sales processes in the
U.S would entail longer procedures than what PRAMER is accustomed to in the Latin American market. Yet, targeting the second-tier cable
operators in the Latin America is a lot harder and requires hefty investment.

 $7.5 million of incremental advertising revenue will be generated from US Hispanic Market. (Table 1)

The potential for growth within both markets is apparent, yet it will be critical to evaluate all reasonable options for growth in the
short-term.

02/03/2022 8
 Firstly, identifying what market the business occupies will be key to positioning for
emerging growth opportunities; and there are 5 key market definition alternatives
What business are we in?

Alternative Alternative Alternative Alternative Alternative

1 2 3 4 5
Food & Lifestyle TV production Latin American Media Company TV & Event production
entertainment lifestyle entertainment

Elgourmet is in the Elgourmet is in the Elgourmet is in the Elgourmet is in the business Elgourmet is in the
business of delivering business of producing, business of delivering of media; Involved in the business of broadcasting
Food & associated marketing and media and entertainment, production of a variety of TV content and producing
lifestyle experiences via distributing video content specifically highlighting media content for mass lifestyle events.
Television content and for Television. the Latin America culture. distribution.
events.

02/03/2022 9
 Based off the alternative analysis, Food & Lifestyle entertainment best describes
Elgourmet’s market.
Criteria Does this
market
Is this how Will the market Is the market definition
Summary
Alternativ consumers would Can we provide us with growing? address similar
e define the participate in this untapped customer
market? market? opportunity? needs?

1. Food & Yes. EG.C is focused Yes. This Yes. The global boom Yes. The Yes. It addresses This is the best-suited
Lifestyle on refined cooking encompasses the in gastronomy gastronomy trend similar customer market definition as there
entertainment content & associated soul of EG.C with provides ample is spurring growth needs with is room to offer more
experiences. room for growth to opportunity to tap of consumers delivery of experiences aligned with
serve customers into new audiences. interested in this. distinctive value. customer needs
needs

2. TV No. This narrowly No. EG.C has Yes. Generic TV Yes. This market is No. It does not This definition is too
production defines EG.C & omits already grown production will growing with address customer narrow leaving no room
other experiences beyond this scope & present opportunities engaged need for offline to serve emerging
they deliver. this limits the to explore non- Latin audiences lifestyle customer needs
business. markets globally. experiences.

3. Latin Yes. EG.C is scope is Yes. This is aligned Yes. However, this Yes. There is a No. It does not This definition is too
American Latin America & is with EG.C’s scope puts limitations on rising L. America address customer specific leaving little
lifestyle the soul of EG.C’s with ample room to the business to serve population in key need for variety of room to expand & serve
entertainment proposition. serve new customer only Latin culture markets. refined cooking. emerging customer
needs. lovers. needs

4. Media No. This narrowly No. EG.C has Yes. As a more Yes. This market is No. It does not This definition is too
company defines EG.C & omits already grown general field, it will growing with address customer narrow leaving no room
other experiences beyond this scope & present opportunities engaged need for offline to serve emerging
they deliver. this limits the to explore non- Latin audiences lifestyle customer needs
02/03/2022 business. markets globally. experiences. 10
 Haven defined the business we are in, a critical evaluation of 5 potential growth
opportunities is needed to determine the best path forward.
Strategic growth opportunities for PRAMER

Alternative Alternative Alternative Alternative Alternative

1 2 3 4 5
Maintain Status quo Latin America Market U.S Hispanic Market Simultaneously expand Web-based TV
Expansion Entry in L. America & Enter the channel/ OTT platform
U.S Market
No changes should be PRAMER should leverage PRAMER should take PRAMER should leverage
made, as the business is the success of EG.C to Leverage the demand for advantage of both EG.C to reach a global
doing well with its drive additional share Latin entertainment opportunities to expand and audience by creating an
successful EG.C channel. penetration in the Latin among the growing U.S enter a new market at the EG.C TV channel on
American Market Hispanic population to same time. YouTube.
enter the market.

02/03/2022 11
 U.S Hispanic market entry satisfies the criteria and offers the best potential for
business growth in the short-term.
Criteria Does this allow
Will this improve for efficient
PRAMER’s Is the brand Will this attract Is it too risky? allocation of Summary
Alternativ competition equity new customers in business
es position? transferable?  the short-term? resources?
1. Status quo No. Doing nothing N/A: There will be no No. If anything, Yes. Not doing N/A. There will be For business
puts the business at change. PRAMER would lose anything ignores no change. sustainability, this is not
risk of going under customers in the the important option PRAMER should
or being acquired in long run. threat to the consider.
the long run business.

2. Latin Yes. It will increase Yes. This builds on Yes. This increases Yes. Requires a No. Initial This will allow for
America PRAMER’s relative the business market penetration hefty sum of investment is high business growth, just not
market market share and reputation and targeting new investment with and in the most efficient way.
expansion business growth established loyalty customers. limited market
in the market. intelligence.

3. U.S Yes. New market Yes. Loyalty could Yes. Tapping into a No. The barriers Yes. This requires The untapped
Hispanic entry provides arise largely from new audience base to entering this the least potential in this
market entry PRAMER with the fact that EG.C is will increase market is low and investment with market is great and it
significant a ‘special’ Latin subscribers & there’s already maximum profit represents the best-
opportunity for channel. profitability within a demand. potential. suited growth option
growth. year. for PRAMER.

4. Explore Yes. If achieved, It Yes. The focus on Yes. An expansion Yes. Business No. This requires This would guarantee
both options will increase Latin America’s and new market resources are hefty growth, but PRAMER does
simultaneousl PRAMER’s relative cooking will increase entry gives access to limited to investments, not have the resources to
y market share and relevance within this new customers. accommodate putting the achieve this.
business growth market. both business under
02/03/2022 simultaneously pressure. 12
 Using a need-based segmentation, it is apparent that EG.C will most optimally satisfy
the need of the ‘Indulger’ segment within the U.S Hispanic market.
Do our Is this segment Can we
Criteria Does this
Do we address competitors aligned with our consistently
resonate with Summary
the need of this target this business deliver this
our customers?
Interests segment? segment? definition? benefit?

1. indulge Yes. Delivering No. They appeal Yes. Food & Yes. EG.C deliver Yes. Current This is an
Desires ‘me-time’ refined cooking to mostly Lifestyle TV & offline customers indulge attractive segment
or to indulge in content fulfils this general encompasses this experiences in EG.C to explore for
personal interests wellness. people indulge in. growth in the U.S
Hispanic market

2. Escape No. EG.C is Yes. The Yes. Food & No. EG.C value is No. This does not EG.C is not a prime
Looking to lose engaging but does wellness focus Lifestyle not hinged on completely choice for this
themselves in TV not specialize in provides an encompasses this delivering this resonate consumer segment
or offline binge-worthy TV. avenue for need.
experiences escape

3. Unwind No. Requires Yes. The Yes. Food & No. EG.C value is No. This does not EG.C is not a prime
Driven by the routine  content to wellness focus Lifestyle content not hinged on completely choice for this
need to chill out wind-down and provides an can be used to delivering this resonate consumer segment
and relax possibly sleep off. avenue to unwind. need.
unwind

4. Experience  Yes. EG.C offers a No. They do not Yes. Food & No. EG.C delivers No. This does not EG.C is not a prime
Wants immersive variety of deliver Lifestyle offerings a variety which completely choice for this
experiences. experiences immersive can be may not always resonate consumer segment
experiences. immersive. be hinged on
experiences

NEED- 5. in-touch Yes. EG.C provides No. They appeal Yes. This is No. EG.C value is Yes. EG.C keeps Comparatively, this
BASED  02/03/2022
Desires to keep general info & to mostly aligned with Food not hinged on customers in is not an attractive 13
abreast of local entertainment. general & Lifestyle. delivering this touch with Latin segment for EG.C
 Within the ‘Indulge’ segment, EG.C should target audiences with an interest in Latin
Lifestyle & Gastronomy.
Criteria Can this target Does serving
Is EG.C relevant to help achieve Will these this audience Is this audience
Summary
this consumer short- and long- consumers be leverage our growing
Target
audience?  term goals? loyal?  competencies?

1. Food & Yes. These are flavor Yes. Consumers of Yes. Consumers of No. It does not Yes. There’s a Their interest is limited to
beverage seekers interesting this segment are this segment are maximize use of growing interest food & beverage,
interest in cooking generally the regular loyal to an extent.  our core in food. therefore is not fully
customers.  competencies aligned with EG.C

2. Travel & Yes. They are always Yes. This audience No. Any platform with No. It does not Yes. Consumers Their interest is limited to
Lifestyle on the go and would can subscribe such content would maximize use of are increasingly food & beverage,
interest like the EG.C regularly, and the be compete for their our core interested in this. therefore is not fully
recipes. content resonates.  loyalty. competencies aligned with EG.C

3. Lavish Yes. This consumer No. They’re more No. They will not be Yes. EG.C caters No. This audience They are lovers of all
Lifestyle audience like fine interested in loyal as they have a to their lifestyle is more exclusive things fine & lavish,
Lover dinning.  premium & would taste for variety. preferences. and smaller. therefore would easily
easily switch. opt for alternatives.

4. Yes. EG.C serves this Yes. This opportunity No. Any platform with Yes. EG.C caters Yes. There’s a This audience is much
Infotainmen audience who just would support our such content would to general info & growing interest too generic and has
t lover want to enjoy goals be compete for their entertainment. in infotainment. ample options to choose
infotainment loyalty from.

5. Latin Yes. EG.C content is Yes. The uniqueness Yes. EG.C specifically Yes. EG.C is the Yes. The This is the most ideal
Lifestyle & relevant and would of EG.C’s offering caters to their only Latin channel gastronomic trend audience base to target
Gastronomy  delight them. would make them interest which focused on & consumer as it leverages EG.C
regular subscriber. increases loyalty gastronomic interest is on the unique value proposition.
culture. rise

02/03/2022 14
 Our target audience is US Hispanic people interested in Latin Lifestyle & Gastronomy

 Mindset of the audience:

"Part of the secret of success to eat what you like and let the food fight it out outside."
"Good Food, Good Life"
"life, laugh and explore"

 Attributes:
• People who like to cook Latin American food and wine

Our target audience

• Travel enthusiasts who like to explore – travel contests

is US Hispanic • People who work long hours every day and do not want to
People with desire Looking for easily
people interested in cook anything complicated
to explore places / prepared cooking
good latin food
receipes and
latin lifestyle recipes • Love to have a leisure lifestyle and visit places
content • Also includes people who like to learn gourmet cooking from
renowned chefs

02/03/2022 15
 A unique positioning will be essential to appeal to the identified
Target audience
Factual • El Gourmet provides factual
Entertainment El Gourmet Viewers
entertainment for its viewers.
TLC Viewers
• El Gourmet provides all its content in Utilisima Viewers
Spanish for its viewers.
Speak Spanish Fox Life Viewers
Never Speak
Spanish All the time
Casa Viewers

HBO, Star Movies

Fictional
Entertainment

Hispanic

• El Gourmet's content has Hispanic cultural

influence.
Complicated Accessible
• El Gourmet provides content with easy recipes Recipes Recipes
which are accessible to its audience rather
than complicated recipes which audience
cannot make at home. Providing opportunity
to learn and apply learning in daily routine.
Global

02/03/2022 16
 Among the options, the Latin food & travel positioning is the most
optimal positioning to enable differentiation from competitors.
Interested in Food
and beverages El Gourmet Viewers
This perceptual map best defines the
positioning of El gourmet Channel for its TLC Viewers
Interested in Travel and viewers.
Utilisima Viewers
general interest
• El Gourmet provides Food and beverages Fox Life Viewers
related content to its audience. Casa Viewers
No Focus on travel
and general interest
• El Gourmet provides Travel and general
interest related content to its viewers.
No focus on food
and beverages

Specific
Interest

• El Gourmet focuses on specific

infotainment rather than general
infotainment.
Regionalized
Global
• El Gourmet limits its content to region
specific and not provides global
content.
General
Infotainment
02/03/2022 17
 El Gourmet's Positioning for Subscribers
Infra-
structure
What I get? Who am I?
Educated with new info Purpose Product or
Specified Infotainment that can be applied in Hispanic individual service
content related to daily routine, who wants to learn
Hispanic food, entertained and about different
beverages, travel and culturally connected. cultures of Latin
American region. Experience Process
general interest.
How I feel?
Personality

For Latin lifestyle & gastronomy lovers (target), El Gourmet Channel (brand) is an
infotainment channel (category) offering Hispanic gastronomic, travel, and general interest
content (point of difference) so subscribers can use the information to cook for themselves
and feel entertained. (end benefit) El Gourmet distinguishes itself by providing viewers the
opportunity to indulge with easily attainable recipes and other immersive lifestyle
experiences. (reason to believe).

02/03/2022 18
 Segmenting the Advertisers based on need, it is apparent that they need to advertise
to attract new customers and increase sales by telling potential customers about EG.C.
Criteria Will this help in
increasing revenue?
Target Segment
No, the company has not
identified any revenue
Videos on Demand from it.
Yes, this will help EG.C to
have the most reach in
informing potential new
Advertising Spot Sales customer and the current
ones about their new
contents and recipes.
Yes, this will help in
increasing revenues as
Other media including more people can be
internet and magazines targeted using internet.
No, this does not bring in
more revenues as not
Trade Shows, Events and many events are
Fairs organized for such
business.
Infomercials Yes, informercials can help
increase revenues by
promoting
02/03/2022
Would this help to increase
traffic/ viewership?
No, the foot traffic would not
increase substantially enough
through on-the-spot sales to
subscribers, concerts, etc.
Yes, through this source they
can attract more subscribers
by offering product packages
and new content for them to
keep watching.
No, it is heavily reliant on
internet connectivity and
bandwidth.
No, trade shows and events
can only act a good means if
they are constantly held and
if all users turn up.
Yes, this can help increase
customers, however due to
exaggerated claims on their
product most users don’t
indulge.
Will this help stand out
from the competition?
No, not many companies
use this source to
showcase their
product/service.
Yes, in congested
markets, advertising can
help your EC.C stand out
and showcase more
content.
Yes, an effective use of
internet source and other
media sources can
creatively help them
stand out.
Yes, events and fairs will
help in increasing more
awareness of the
customers.
No, as infomercials are
downright expensive not
many companies adopt
this. This will also not be
a cost-effective means.
Will this efficiently improve
brand reach and awareness?
No, spot sales to subscribers
would reach only those who
intend to go and buy at a store/
visit an event.
Yes, with different ads being
displayed – it will help the
customer know about our
product and thereby inquire
about it, thereby increasing the
awareness of the brand.
No, this will not be efficient as
not many people had the access
to internet or other media. This
will bring down the scope of
customers that are targeted.
Yes, this will help in increasing the
audience reach as people will
attend shows and intend to know
more about the product/service.
No, most people tend to pause
and then fast-forward
through commercials due to their
longevity and boring creative
reducing audience reach.
Summary
Choosing this alternative
would not suffice the need
for Pramer to increase
their customer base.
This is likely the most
suitable option for the
company entering the new
market as ads will help
customers become aware.
Due to lack of good means
to access internet and bad
bandwidth many viewers
won't be aware if EG.C
chooses this alternative.
Going with trade shows,
events will not help scale
up the business growth as
much as needed.
This would not be a viable
option for the company as
it is costly and not that
efficient for increasing
user engagement.
19
 Within the advertising spot sales segment, the Food + Travel Industry
represent the most attractive target audience base for Elgourmet.
Criteria
Does advertisers' product Is the viewership of this Can EG C crate
category align with our category big enough to competition among Summary
target audience? attract advertisers? advertisers
Target Advertisers
Content is aligned and
viewership is big but
No, just food
Yes, 67% of EG C's content Yes, Most viewers have competition among
Food Industry industry focused
is food focused interest in gastronomy advertisers is low which
advertisers
increases bargaining power
of advertisers
Content is aligned but
viewership and competition
No, just travel
Yes, 33% of EG C's content No, Viewership for Travel among advertisers is low
Travel Industry  industry focused
is travel focused industry on EG C is lower which
advertisers
increases bargaining power
of advertisers
Content is not aligned;
viewership is low and
competition among
No, Service sector does not No, viewership does not No, just service
Service Industry  advertisers is low which
align with EG C's content align focused
increases bargaining power
of advertisers

All factors work in favor and

Yes, EG C has content both Yes, Covers 100% Yes, food + travel bargaining power od
Food + Travel Industry 
about food and travel viewership of EG C both advertisers  advertisers is reduced by
increasing competition 
02/03/2022 20
 For the positioning to advertisers, 2 positioning options are being considered

High Market • El Gourmet provides high market

Exposure exposure to its advertisers because of Video On Demand
its wide audience reach. Spot Ad
Other Media: Internet/
• El Gourmet provides cost effective ad Magazine
platform to its advertisers.
Trade Shows/Events
Cost
Expensive Infomercials
Effective
Level of interest
in Food (High)

Low Market Food + Travel

Exposure Level of interest
Level of interest Food
in Travel (High) in Travel (Low)
Travel

Service

• El Gourmet provides exposure to

audience who are interested in food
and travel to its advertisers. Level of interest
in Food (Low)

02/03/2022 21
 The Food + Travel Positioning to Advertisers is most optimal as it
highlights El Gourmet’s depth in this area for content display and reach

Infrastructure
What I get? Convenient to target Who am I?
the audience that Purpose Product or
service
Hispanic viewers maybe interested in Hispanic food or
interested in food and product. travel related
travel product or service
How I feel?
Experience Process

Personality

For Hispanic food or travel-related product or service providers (target), El Gourmet Channel
(brand) is an advertising medium (category) that offers a Hispanic audience (point of
difference) so advertisers can conveniently reach the target audience (end benefit) because El
Gourmet viewers are interested in Food and travel (reason to believe).

02/03/2022 22
The recommended route for growth is to enter the U.S Hispanic Market targeting
subscriber audiences with an interest in Latin Lifestyle & Gastronomy

 Food & Lifestyle entertainment best describes Elgourmet’s market.

 Among all growth opportunities evaluated, U.S Hispanic market entry offers the best potential for business growth in the short-term.

 Using a needs-based segmentation bases for subscribers, the most attractive segment is the ‘Indulger’ segment. Within this segment, EG.C
should target audiences with an interest in Latin Lifestyle & Gastronomy.

 A glance at the competition suggests that EG.C's distinction and attractiveness will be enhanced by a unique value proposition of being
100% Latin and gastronomic culture focused.

 Among the advertisers segmented on a need bases, the most attractive segment is the advertising spot sales segment. Targeting the on-
spot TV advertisers will prove beneficial for the business.

 The three-year financial model for the U.S Hispanic market yields a projected profit of $23.97M, that is a 218.84% profit.

Targeting the Hispanic market in the United States will help the business achieve it’s objectives as well as deliver the growth needed
to ensure business sustainability.

02/03/2022 23
 Appendices
Table 1: Three-year Financial model for US Hispanic Market
Revenue
Total US Hispanic population subscribed to Latin TV packages 97,00,000 Total Households to be scaled by EG C. 72,75,000
Out of which 45% will be scaled in year 1, 30% in year 2 and 25% in
Total households that won't subscribe to EG C. 25% year 3
Revenue per subscribed household per month $0.102
Total Households that can be scaled by EG C. 72,75,000
Revenue per subscribed household per year $1.224
Investments

$770,000 will be spent on cable operators over a period of three years Incremental
Total households Revenue from advertising Total Revenue
scaled subscribers revenue
$707,000 would be overhead expense for first year and will increase at the rate of 10% every
year. Year 1 $3,273,750.00 $4,007,070.00 $ - $4,007,070.00
Year 2 $5,456,250.0 $6,678,450.00 $2,250,000.00 $8,928,450.00
Investment in Cable TV Overhead Expenses Total Expenses
Year 3 $7,275,000.00 $8,904,600.00 $5,250,000.00 $14,154,600.00
Year 1 $ 549,780.00 $707,000.00 $1,256,780.00
Total $ 19,590,120.00 $7,500,000.00 $27,090,120.00
Year 2 $164,780.00 $777,700.00 $942,480.00
Year 3 $55,440.00 $855,470.00 $910,910.00 Profit Profit%
Year 1 $27,50,290.00 218.84%
Total $770,000.00 $2,340,170.00 $3,110,170.00
Year 2 $79,85,970.00 847.34%
Year 3 $13,243,690.00 1453.90%
Total $23,979,950.00 771.02%
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 Appendices
Table 2: Three-year Financial model for Latin America Market
Total number of households 7,49,00,000 Revenue
Households with TV (Total target households in latin america Total households that can be scaled by EG C.
31,300,000 2,45,35,000
subscription market) Out of which 30% will be scaled in first year, 40% in second year and 30% in third
Technical Deflectors 430,000 year
Financial Deflectors 235,000 Revenue per month per household $ 0.0555
Strategic Deflectors 6,100,000 Revenue per year per household $0.6660
Total Deflectors 6,765,000 Incremental
Total households scaled Revenue
Total households that can be 24,535,000 from advertising Total Revenue
scaled by EG C. subscribers Revenue
$ $
Year 1 73,60,500 $4,902,093.00 15,30,000.00 64,32,093.00
Investments Year 2 17,174,500 $11,438,217.00 $5,100,000 16,538,217,00
5.84 million would be allocated for advertising and promotions over Year 3 24,535,000 $16,340,310.00 10,200,000 26,540,310
the period of 3 years Total $32,680,620.00 16,830,000.00 49,510,620.00
Overhead expenses are $382,000 for first year and 10% and will
increase 10% every year

Advertising and Overhead Total Profit Profit%

promotions Investments Investment Year 1 $ 24,00,093.00 59.53%
Year 1 $ 3,650,000.00 $382,000.00 $40,32,000.00 Year 2 $ 1,42,90,097.00 635.65%
Year 2 $1,827,920.00 $420,200.00 $2,248,120.00 Year 3 $ 2,57,10,170.00 3097.09%
Year 3 $367,920.00 $462,220.00 $830,140.00 Total $ 4,24,00,360.00 596.33%
Total $5,845,840.00 $1,264,420.00 $7,110,260.00

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Appendices
Exhibit 1: Six forces analysis of the company
SIX FORCES EFFECTS

Buyers won’t have the power to bargain as in this specific industry the subscription rates as fixed, but it would be proven
BUYERS costly for Parmer to acquire new customers in the U.S. market.

Parmer would face a stiff market competition as foremost competitors had already ventured into the U.S. market, but in
INDUSTRY COMPETITORS Latin American market Parmer would have upper-hand in the market as they are already established over there.
Threat of new entrants would be low in the Latin American market because of stiff market competition and of the regional
POTENTIAL ENTRANTS cable operators' companies, which were owned and managed by single individual with a very intuitive approach, whereas
the risk of potential entrants in the U.S. market would be high because of seamless process of broadcasting.
Buyers would have the option to substitute because of the large amount of content available to watch on Television
SUBSTITUTES (Threat would be between medium – high).
Suppliers won't have the power over the Parmer in the U.S. market, but suppliers in the Latin America could dominate the
SUPPLIERS broadcasting because of the Technical Limitations and regional cable operators’ who have typical Latin idiosyncrasy.

PRAMER earn 15% of their revenue from ventures like Club del Buen Beber ( EG.C’s Wine Club), magazines, and from the
COMPLEMENTS main event Expo Elgourmet.com, which was held in Mexico and Argentina.

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Exhibit 2: VRIO Analysis of the business

CORE COMPETENCIES VALUABLE RARE COSTLY TO ORGANISED TO BE IS IT A COMPETITIVE

IMITATE EXPLOITED ADVANTAGE ?

Recipes Yes Yes No Yes Yes - temporary

Greater influence on viewers Yes Yes Yes Yes Yes

Low production cost Yes Yes Yes Yes Yes

Brand Reputation Yes Yes Yes Yes Yes

Ability to create appealing content Yes Yes No Yes Yes - temporary

Significant number of subscribers Yes Yes No Yes Yes – temporary

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