COMMUNICATION PLAN
Author: Luis Enrique Maldonado Vazquez Tutor: Emilia Casanova Calatayud
DEGREE IN BUSINESS ADMINISTRATION AE1049 – FINAL GRADE WORK
2020-2021 COURSE
1
ÍNDICE
A. TABLE INDEX
Table 1. First reference market table ... 10
Table 2. Second reference market table ... 11
Table 3. Characteristics of key competitors ... 17
Table 4. Strengths and weaknesses of key competitors ... 18
Table 5. Segmentation criteria ... 20
Table 6. Segmentation profiles ... 20
Table 7. End consumer segments ... 22
Table 8. Segments to which the product is directed ... 25
Table 9. Key competitor images ... 27
Table 10. Application schedule ... 54
B. INDEX OF ILLUSTRATIONS Illustration 1. First drawings example ... 5
Illustration 2. Pollos Hermanos logo from Breaking Bad ... 7
Illustration 3. Art Tech99’s Logo ... 7
Illustration 4. Art Tech99’s Typography... 7
Illustration 5. Advertising campaign with Mahou ... 8
Illustration 6. 1º Reference and relevant market ... 11
Illustration 7. 2º Reference and relevant market ... 12
Illustration 8. Types of consumers ... 12
Illustration 9. Geographical and age classification ... 14
Illustration 10. Classification by gender ... 14
Illustration 11. Need to learn to draw ... 16
Illustration 12. Need for entertainment ... 16
Illustration 13. Market targeting strategies ... 24
Illustration 14. Audience-quality positioning map ... 27
Illustration 15. Art Tech99’s SWOT ... 29
Illustration 16. Porter's strategic advantage ... 33
Illustration 17. Ansoff matrix ... 36
Illustration 18. 4P’s Mk Mix ... 37
2
Illustration 19. Product of Art Tech99 ... 38
Illustration 20. Distribution of Art Tech99 ... 39
Illustration 21. Communication strategy of Art Tech99 ... 43
Illustration 22. Interactive Mupi ... 46
Illustration 23. 10 Point winner ... 47
Illustration 24. Ranks according to participations ... 48
Illustration 25. Drawing contest frame on YouTube... 49
Illustration 26. Prismacolor classification frame ... 50
Illustration 27. Classification by countries frame ... 50
Illustration 28. Participant database ... 51
Illustration 29. Raffle of Art Tech99 ... 52
Illustration 30. Statistics of First Contest 1 ... 57
Illustration 31. Statistics of First Contest 2 ... 57
Illustration 32. Statistics of First Contest 3 ... 58
Illustration 33. Statistics of First Contest 4 ... 58
Illustration 34. Statistics of First Contest 5 ... 59
1. INTRODUCTION ... 4
2. ART TECH99 ... 4
2.1. ¿What is it and how did it come about? ... 4
3. MARKET AND DEMAND ANALYSIS ... 9
3.1. Reference market, relevant market, product-market ... 9
3.2. Types of customers and consumption characteristics ... 12
4. COMPETITION ANALYSIS ... 14
4.1. Levels of competition in the sector ... 14
4.2. Characteristics, strengths and weaknesses of direct competitors ... 17
5. SEGMENTATION AND POSITIONING ANALYSIS ... 19
5.1. Segmentation criteria ... 19
5.2. Identification of the different segments ... 20
5.3. Segmentation strategy that Art Tech99 follows in the product-market ... 23
5.4. Attributes of positioning in the product-market ... 25
5.5. Positioning map... 26
6. SWOT ANALYSIS ... 28
3
6.1. Strengths ... 29
6.2. Weaknesses ... 29
6.3. Opportunities ... 30
6.4. Threats ... 30
7. OBJETIVES SET BY ART TECH99 ... 31
7.1. Mission, vision and objectives ... 31
8. STRATEGIES FOLLOWED BY ART TECH99 ... 32
8.1. Strategies according to competitive advantage ... 32
8.2. Strategy in response to competition ... 34
8.3. Intensive growth strategy ... 35
9. MARKETING MIX ... 36
9.1. Product ... 37
9.2. Price ... 38
9.3. Distribution ... 39
9.4. Communication ... 40
10. COMMUNICATION PLAN ... 40
10.1. Definition of communication objectives ... 40
10.2. Definition of communication strategies ... 42
10.2.1. Creative strategy ... 42
10.2.2. POEM ON and OFF media strategy ... 43
10.3. Definition of the actions to be carried out and execution... 44
10.4. Budget ... 52
10.5. Application schedule... 53
10.6. KPI's definition and measurement ... 54
10.7. Contingency plan ... 59
11. BIBLIOGRAPHIC REFERENCES ... 60
4
1. INTRODUCTION
In this final degree project in Business Administration, we are going to analyse the Art Tech99 company from a business and strategic point of view to a marketing point of view so that, finally, we develop a communication plan to achieve a series of previously marked objectives.
We will begin the study introducing the company, its origins and activity. We will explain what the reason for its existence was and how the idea was carried out. We will then proceed to the analysis of its market, indicating its reference, relevant, and product-markets. We will study their types of clients, their profiles, and behaviours regarding the brand.
Later, we will make a study of competitors, according to the levels of competition and characteristics. Then we will go on to analyse the segmentation and positioning of the company. We will carry out an analysis both internal and external to the company, detailing its strengths and weaknesses, and the opportunities and threats posed by the environment through a SWOT. Later, we will see what is the mission and vision of Art Tech99 and its general objectives. Finishing with the analysis of the situation of the company, we will do a more strategic analysis, defining which are the strategies carried out by the company and we will determine the 4Ps of the marketing mix. Once we get to the communication study, we will fully enter into its communication plan. We will divide this plan into different phases. First, we will define the main communication objectives in a smart way. By this we mean determining the purpose of the plan, the objectives we want to achieve. Having clear the objectives, we will go on to design the strategies, that is, how these objectives are going to be achieved and in what way. We will define each of the actions that will be carried out and how they will be executed, setting a budget. To keep track of the actions that will be carried out, we will determine a series of KPI’s that will indicate the results that we are obtaining with respect to some variables. And finally, we will draw up a contingency plan, that is, a correction plan if the results are different from those desired.
2. ART TECH99
2.1.
¿What is it and how did it come about?The idea of Art Tech99 arises on May 7, 2020, in the middle of home confinement due to the Covid-19 pandemic. During the quarantine, both my older brother and I, having so much free time and unable to leave the house, we decided to try drawing for entertainment. We had always liked to do small doodles, but we had never spent hours on a drawing project.
Therefore, we wanted to learn new techniques and styles of drawing to improve our results and make our stay more entertaining and productive. The way we had to acquire knowledge
5
from home was through the internet, social networks and especially the YouTube content platform. On this platform we discover many explanatory videos on how to draw, for beginners.
First, was to gather the appropriate material that we found at home, from when we went to school and required the material. During the following days we watched all the videos we found about techniques and little tips to improve the results of our drawings, and we put into practice the knowledge we acquired.
Figure 1: First drawings example
Source 1: Own elaboration
As we practiced, we became fonder of this form of hobby we had discovered and achieved better results. So, the days before May 7, I thought I could leave the drawings shown in a social network, to have a kind of gallery of the designs that we were doing. The first social network we chose was Instagram, since I had a personal account already created and knew how the application worked. The next step was to find a name for the new brand that we wanted to be found. We inform ourselves online that, to have an easily recognizable name, in terms of its content, it must carry some indication of it. We observed that several paint and drawing brands bore the word "art". This was the perfect indicative our name should bear so that the brand was recognizable and easily appeared in search engines. The next expression we came up with was "tech", short for the word "technology", since we wanted to relate the two fields, art and technology, when publishing and editing our drawings on the internet. We finally realized that the name "Art Tech" was already in use, so we decided to add 99 because of is my year of birth. Once we had the name chosen, it was time to publish photos of our drawings. To do this, we looked for information on how to take photos so they were attractive and what applications we could use to edit and give effects to the images. Having already taken the photos and having edited them in a way that we seemed striking, we only had to publish them on our new Instagram company account. Putting the account in company mode was of great importance since a series of KPI’s appeared that the application shows as determined. These
6
first KPI’s made us realize that we needed to find some way to reach more audience. We opted for the option of following followers of other famous drawing accounts, since the target would be like what we were looking for. This caused a few hundred people to follow us back and be interested in the content we were uploading. Once we managed to boost the account a bit, people had a “snowball effect”, commenting by word of mouth about our designs to acquaintances of them. At that point, we had to be in charge of being constant and continuing to publish the content that the followers were interested in. Once we achieved this dynamic and the account we had created was consolidated, we decided to diversify and create content for the YouTube platform, just like the people we had learned from. For this, it was necessary to learn about video editing, and we did it in the same way we learned to draw, viewing YouTube content. We found many videos of people explaining how they edited the videos, the program they used, how they created the cinematic effects, how they used the timeline, speeds, transitions, etc. Another issue that we had to address was the way we recorded ourselves to make the videos, this was one of the things that took us the most time to adapt, since until today we are not used to drawing with a camera in front of us and a timer. We had to buy a tripod for the camera and find the correct angles in the room so that the lighting was as desired, and no shadows were created to disturb the work. Thanks to having consumed YouTube content, we were able to start publishing our first videos on the platform, which had a lot of support despite of being unknown people, since we were able to bring a lot of audience than we had gotten on Instagram to YouTube. These first videos reached the figure of a thousand views in just a few days, something unthinkable for us. Then we began to publish the content that we were creating on other social networks such as Twitter and TikTok. The brand still did not have a logo or a typography, so, using a graphic tablet that we had acquired, we created the logo taking as a reference the logo of a brand called “Pollos Hermanos” from the “Breaking Bad” series. In the logo, both my brother and I appear caricatured. For the typography of the letters, we tried different fonts and colour combinations until we were satisfied with the choice.
7
Figure 2: Pollos Hermanos logo from Breaking Bad
Source 2: blog-eeuu.com
Figure 3: Art Tech99’s Logo
Source 3: Own elaboration
Figure 4: Art Tech99’s Typography
Source 4: Own elaboration
8
The reason for creating content on social networks and YouTube was initially for entertainment, but once we saw we managed to gather a few thousands of people, we became interested in finding out the forms of income we could get. This was something quite abstract for us because we did not know how those worlds worked. So, again we went to inform us on the Internet about the ways to generate income by creating content for social networks and YouTube. One of the traditional ways was by selling the drawings to interested people, setting a price according to the hours of work or making commissioned drawings according to what the client wanted. In addition, we discovered several influencers traffic companies that were in charge of connecting commercial companies with these content creators to advertise their brands. So, we decided to sign up for “SocialPubli”, which would become the main source of income so far, since we still could not monetize on YouTube. Through this company, we were able to do advertising campaigns with companies such as Samsung, Burgo de Arias, Mahou and some others. The income was not very high, but it serves us to cover expenses and invest in new resources for the company. The revenue figure depends on the number of followers you have on social networks and platforms such as YouTube and the level of "engagement"
with consumers, that is, the number of interactions and the quality of these when they remain in the social network viewing your content.
Figure 5: Advertising campaign with Mahou
Source 5: Own elaboration
9
To be able to monetize the content that we uploaded to YouTube, we had to reach the figure of 4.000 hours of viewing of our content by consumers and 1.000 subscribers to our channel.
As of today, we already exceed two figures, and we can monetize the content that we upload to the platform. The income is highly variable since it is monetized differently in each country and depending on where the views come from. It also depends on whether people see the ad at the beginning of the videos and the clicks on the ad. Therefore, we have seen that it is of great importance the number of followers and the "engagement", or behaviour of these, that we get to achieve profitable benefits. So, this is a good introduction to know the purpose of this work and the purpose of the communication plan.
3. MARKET AND DEMAND ANALYSIS
3.1. Reference market, relevant market, product-market
We refer to the reference market as that set of substitute products or services that manage to satisfy specific needs of all potential consumers. Within this market we find three different dimensions:
- Buyers: Refers to all those customers who want to satisfy the same generic need. We can classify them into three different categories: individuals, companies and public administrations.
- Functions or needs: We refer to need as that aspect is essential for the consumer and can satisfy him with the product or service he sees fit according to his criteria.
- Technological alternatives: It refers to all those forms and technology in which the generic need can be satisfied.
Once we go on to analyse the different reference markets that we have chosen for the Art Tech99 company, the set is this:
The two needs that we are going to analyse are: learning to draw and entertainment. Each of these has a different reference market, therefore, we have developed two, one for each. In each of these reference markets we have studied the needs for each type of potential customers, which could be individuals, companies and public administrations, in addition to analysing the different technological alternatives or existing ways to satisfy each of the needs.
10
As a relevant market we understand it as the set of products-markets where the company has decided to act and compete, based on its different technological alternatives and macro-segments to which it is directed. Therefore, these product-markets refer to the set of consumers who have the specific need and make use of a specific technological alternative of all the possibilities to satisfy the need.
There are different hedging strategies for the reference market, so they are used to choose the relevant market. In our case, Art Tech99 employs a partial coverage strategy as it tries to specialize in different product-markets with a similar relationship.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
FIRST REFERENCE AND RELEVANT MARKET: NEED TO LEARN TO DRAW For the need to learn to draw there are different technological alternatives such as tutorials on platforms such as YouTube, private or personal classes, academies, practicing, colleges and institutes, universities and their degrees in drawing, and learning through family and friends according to their experience. The relevant market of Art Tech99 for this need is to provide the alternatives of the tutorials, addressing both individuals and companies (since it is a very accessible service and there may be cases in which they need the help of some concept or drawing techniques to their activity), and private or personal classes that are aimed only at individuals.
First reference market table
LEARN TO DRAW BUSINESS INDIVIDUALS PUBLIC ADMIN.
TUTORIALS PRIVATE CLASSES
ACADEMIES PRACTICING COLLEGES AND
INSTITUTES UNIVERSITIES FAMILY AND FRIENDS
Source 6: Own elaboration
11
SECOND REFERENCE AND RELEVANT MARKET: NEED FOR ENTERTAINMENT For the need for entertainment there are different technological alternatives such as the content that is uploaded to the YouTube platform, social networks such as Instagram, Twitter and TikTok, where content such as photos and drawing videos is published. Other alternatives are video games, television, sports, the casinos, and hanging out with friends. Art Tech99's relevant market for this need is to provide YouTube and social media alternatives, targeting only individuals (since it is a leisure service where companies and public administrations do not play a leading role).
Second reference market table
ENTERTAINMENT BUSINESS INDIVIDUALS PUBLIC ADMIN.
YOUTUBE SOCIAL MEDIA
VIDEOGAMES TV
Source 7: Own elaboration
Figure 6: 1º Reference and relevant market
12 SPORTS
CASINOS HANGING OUT WITH
FRIENDS
Source 8: Own elaboration
3.1. Types of customers and consumption characteristics
Figure 7: 2º Reference and relevant market
Source 9: Own elaboration
Figure 8: Types of consumers
Source 10: Own elaboration
13
As we can see in the scheme and as a result of the previously exposed markets, Art Tech99 offers its products and services to both companies and individual clients. Creating "business- to-business" and "business-to-consumer" relationships. Next, we are going to detail the target and explain what the purchasing behavior of potential consumers is like.
Consumers who have a more secondary role are companies, the most notable YouTube, since our company creates content for this platform, which is in charge of putting ads on the videos and generating income. There are many companies, geographically distributed, that act as “partners” on YouTube and are in charge of recruiting content creators as would be our case and generating income from placing ads. Of that income, a percentage is for partner companies and another for content creators. Therefore, there is also the relationship of YouTube to end consumers. Other types of companies would be, for example, Burgo de Arias, Mahou and Samsung, with headquarters in Spain, which commission services such as, for example, creating creative advertising designs for their brands. Finally, the main customers are individual consumers, they consume the content we publish on our social networks and YouTube generating income. They also make purchases of some of our drawings or ask us for private lessons online. In addition, there are other types of individuals who make purchases on commission of some designs that they would like us to do, be it portraits, clothing designs, drawings of their pets, etc. These are widely distributed geographically, concentrating most of them in Latin America and Spain. Its purchasing power varies greatly depending on your situation but is usually medium-low. They are usually people with a passion for art, who have artistic studies or simply seek entertainment in drawing. Below, you can see two graphs taken from the social network Instagram, where it indicates the percentage of consumers and potential customers according to their geographical location, by age and gender.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
14
4. COMPETITION ANALYSIS
All companies need to get competitive advantages that allow them to stand out from the competition, so it is of great importance to identify, know and evaluate other competitors and market participants. In our case, we are going to study the competitors in the drawing market.
Next, we will analyse the different key competitors.
4.1. Levels of competition in the sector
We are going to develop 3 different bullseyes for each need where we will locate the four existing levels of competence.
The four existing levels of competence are:
Product form level: This is where we include all those products and brands cover the same need and for the same market segments.
Category product level: Includes all those products and brands cover the same need.
Budget level: At this level we group those brands and products that compete for the same competitor's budget.
For the needs we have analysed, our levels are the following:
Source 11: Own elaboration
Figure 10: Geographical and age classification
Source 12: Instagram Figure 9: Classification by gender
15 NEED: LEARN TO DRAW
Competition in product form: At this level we find all kinds of drawing tutorials on platforms such as YouTube and social networks, the key competitors of the brand are ArteMaster, Harold Artist, Draw with Jazza, Jako del bueno, Arganza and Esteban Arts.
Competition in product category: We have as competition in product category the drawing academies and private teachers who impart artistic knowledge.
Generic competition: At the generic level we have the way of learning by oneself, observing and practicing.
Competition at the budget level: Everything that competes for the same budget, such as furniture, vases, mirrors and curtains.
NEED: ENTERTAINMENT
Competition in product form: At this level we find all kinds of drawing tutorials on platforms such as YouTube and social networks, the key competitors of the brand are ArteMaster, Harold Artist, Draw with Jazza, Jako del bueno, Arganza and Esteban Arts.
Competition in product category: We have as competition in product category all those television entertainment programs have to do with drawing and art, such as "Art Attack" and all kinds of board games based on drawing, such as "Pictionary".
Generic competition: At a generic level, we find different ways to entertain ourselves, such as practicing sports such as football, casinos, television and going out with friends.
Competition at the budget level: Everything that competes for the same budget, such as furniture, vases, mirrors and curtains.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
16 Need to learn to draw:
Need for entertainment:
Source 13: Own elaboration Figure 11: Need to learn to draw
Figure 12: Need to entertainment
Source 14: Own elaboration
17
4.2. Characteristics, strengths and weaknesses of direct competitors
As we have been able to analyse previously, the key competitors of our company are those that compete directly, that is, they offer the same products and services and target the same macro-segment, satisfying the same needs. Therefore, we find different brands that are responsible for creating artistic content both on the YouTube platform and on social networks.
We are going to classify the competitors according to the number of followers on Instagram and subscribers on YouTube, according to the country where they operate and the competitive advantage.
Characteristics of key competitors ARTEMAS
TER
HAROLD ARTIST
JAKO DEL BUENO
ARGANZ A
DRAW WITH JAZZA
ESTEBAN ARTS
Instagram Followers
275.000 400.000 85.100 61.600 454.000 96.600
YouTube subscribers
3.46 M 4.33 M 111.000 231.000 5.51 M 769.000
Competitive advantage
Differentiati on
Differenti ation
Differenti ation
Differentiat ion
Differentiati on
Differentiati on
Country Spain EE. UU Spain Spain Australia Venezuela
Source 15: Own elaboration
Now we go on to analyze in depth the strengths and weaknesses of the key competitors:
18
Strengths and weaknesses of key competitors
Weaknesses Strengths
ARTEMASTER
- Shy when it comes to collaborating with other
competitors.
- Little constancy and diversification of content.
- It does not carry out custom projects.
- Hyper realistic drawings.
- Coloured with all kinds of materials.
- Formal and clear when speaking.
- Very detailed explanations.
- Great image quality.
HAROLD ARTIST
- Little constancy.
- Way of speaking sometimes too childish.
- Few explanations.
- Hyper realistic drawings.
- Coloured with all kinds of materials.
- He tends to innovate and look for new trends.
- Great image quality.
JAKO DEL BUENO
- Content for a very specific audience.
- Lack of motivation.
- Sometimes on the verge of stopping their activity.
- Hyper realistic drawings.
- Great graphics tablet handling.
- Very detailed explanations.
- Formal and clear when speaking.
- Great image quality.
ARGANZA
- Content for a very specific audience.
- Humour for older people.
- Sometimes on the verge of stopping their activity.
- Hyper realistic drawings.
- Great graphics tablet handling.
- Very detailed explanations.
- Formal and clear when speaking.
- Awareness about the collectives
- Abuse humour. - Great ability to caricature.
19 DRAW WITH
JAZZA
- Few explanations. - Dexterity with brush tip.
- Own drawing style.
- Great variety of content.
ESTEBAN ARTS
- Scarce resources due to the geographical area in which it lives.
- Various health problems that stop your activity.
- Great dexterity with anime-style drawings.
- Closeness with their audience.
- Very detailed explanations.
- Formal and clear when speaking.
Source 16: Own elaboration
5. SEGMENTATION AND POSITIONING ANALYSIS 5.1. Segmentation criteria
As for the criteria we are going to select for the segmentation of the drawing market, we are going to divide them into groups based on differentiating characteristics and features. The profiles we have chosen are of final consumers classified according to the behaviour of their purchase and the preferences they have regarding the services offered. The criteria we are going to differentiate are divided into primary and secondary, in the primary we have according to the consumption behaviour and according to the benefit they seek. Regarding the secondary ones, they are personal and psychographic characteristics.
We understand segmentation as the process where different consumers are divided and analysed with the same series of preferences. This is done to assign a specific offer for each segment.
This process is divided into three different phases, the first is to identify the segments based on certain segmentation criteria. The second of the phases consists of selecting the target market, evaluating the attractiveness of the segments, selecting a target audience, and choosing the coverage strategy. Finally, the third phase consists of the positioning of the product or service where it is identified, selected and the positioning chosen for the service and market is elaborated. Next, the table is shown where we segment according to the primaries criteria, consumption behaviour (observable criterion) and sought benefit (latent
20
criterion), and according to the secondaries criteria, personal and psychographic latent characteristics.
(Kotler y Armstrong, 2012)
Segmentation criteria
PRIMARIES SECUNDARIES
OBSERVABLE S
CONSUMER BEHAVIOR
• Consumption level
• Brand loyalty
PERSONAL CHARACTERISTICS
• Demographic
• Socioeconomics
LATENTS
BENEFIT SOUGHT
• Benefits sought
• Preferences
• Attitudes
• Perceptions
PSYCHOGRAPHIC CHARACTERISTICS
• Personality
• Lifestyles
• Sociocultural values and beliefs
Source 17: Own elaboration
5.2. Identification of the different segments
These are the groups of profiles that we have extracted according to the criteria described above:
Segmentation profiles
GROUPS Description
PASSIONATE ABOUT ART They are passionate about art and as such,
21
when they find an artistic work that catches their attention, they need to acquire it. They tend to consume audio visual content on networks but prefer to observe the works in person. They acquiree and order projects.
WHIMSICAL High quality of life, they are not big fans of
art, but they come across a work and feel the need to acquire it to improve their image or ego. They also often commission portraits of themselves, family members, or pets.
IDLERS Standard lifestyles, art fans to a lesser
extent (than passionate about art ones) and consume it as a hobby on platforms such as YouTube and social networks.
FANATICS Big fans of things, they like to admire the
works they find and praise their authors, they do not acquire the works, but they consume and attract public to their idols.
ADVERTISERS Companies that need images for their new
advertising campaigns and commission cartoonists and creative companies for these aims.
DECORATORS With structured families who seek to
decorate their homes with artistic works.
They want to improve their image.
APPRENTICES With an entrepreneurial spirit, they
visualize the most technical and
22
explanatory content to increase their knowledge and practice according to other people drawings. They consume content such as tutorials and do not usually acquire works, since they try to reflect them themselves.
Source 18: Own elaboration
End consumer segments VARIA
BLES
Passionat e about
art
Whimsic al
Idlers Fanatics Advertisers Decorators Apprentices
Gender Male or female
Male or female
Male or female
Male or female
Business Male or
female
Male or female
Age Between 30 y 50
Between 25 y 50
Between 8 y 35
Between 8 y 20
Between 35 y 60
Between 8 y 30
Consu mption behavi
our
Very observant and
acquirer of the works.
Acquisiti on on a whim.
Content consume r as a hobby.
Content consumer and seeks interaction with creators.
They
commission works for advertising purposes on their brands.
They acquire or
commission works to decorate their domestic spaces.
Content
consumer to learn to draw.
23 Prefere
nces
They look for the highest quality and those works that awaken feelings.
They look for the highest quality and attractive ness of the works for their decoratio n.
They look for entertaini ng and quality content.
They look for eye- catching content.
They look for the highest quality and creativity, with touches of humour to make it eye- catching.
They look for striking works that match their spaces and house designs.
They look for explanatory
and very
technical content.
Purcha sing power
High Medium-
high
Medium Low Very high Medium Medium-high
Source 19: Own elaboration
5.3. Segmentation strategy that Art Tech99 follows in the product-market
We differentiate four market segmentation strategies:- Mass marketing strategy: This seeks to offer the product to the largest number of market share. It is a suitable strategy for companies that sell products focused on the generic public.
- Differentiated segmentation strategy: In this, we select two or more specific market segments.
- Custom segmentation strategy: This is what considers a type of consumer as a segment to create marketing campaigns in a totally personalized way.
- Concentrated segmentation strategies: This only focuses on one segment of the market or very few.
24
Figure 13: Market Targeting Strategies
Source 20: Welp Magazine
The segmentation strategy used by Art Tech99 is personalized since the company intends to create personalized campaigns according to consumer tastes. This is the brand's way of having a close relationship with consumers and that they feel they are considered. Thanks to this personalization strategy, the brand can increase its prices to a certain extent. Those with a high reputation manage to raise their price for labour, but this is very relative. As we described in the first sections, Art Tech99 creates content for social networks and YouTube, this content is monetized because of the visualizations and clicks on the advertising placed by the partner companies, therefore, the price of the activity is highly variable. It varies based on the amount of content posted and the interactions they receive. Another form of income that the company has is that of taking private virtual classes and selling the drawings or making orders for drawings. These prices can vary greatly from the competition since each bidder sets its price per hour or per project according to its reputation, number of followers, experience, titles, etc. Therefore, we have prepared a table according to the service or product that is offered, and we have marked for which buyer segments they are directed.
(Isart, 2021)
25
Segments to which the product is directed VARIABLE
S
Passion ate about
art
Whimsic al
Idlers Fanatics Advertis ers
Decorators Apprentic es
YouTube content
Social Media Content
Advertising
Private classes
Sale on request
Sale of created
works
Source 21: Own elaboration
5.4. Attributes of positioning in the product-market
In this section we are going to determine what will be the appropriate positioning attributes for the brand. The attributes that we are going to choose are audience (referring to the number of followers on Instagram) and quality (this is a bit relative, but we will be guided by people's comments, number of audience and technical aspects of the content). In this audience-quality positioning map we will include the most direct competitors that are the creators of content for
26
social networks and YouTube. The reason why we cannot take the price attribute is because of the great relativity that exists regarding it.
5.5. Positioning map
In the positioning map we have prepared, it appears according to the attributes we have defined previously, where each of the competitors that act in the market in the form of a product is located, that is, those that offer the same services and products as us. All of them share the characteristic that they create drawing content both for the YouTube platform and for social networks. These maintain the same content themes, tutorials and videos making drawings in an entertaining way. In addition, we have added the groups of profiles most related to each brand according to their preferences and consumer behaviour, placing them in the closest areas of the associated competitors.
Advertisers would be located in the area where the channels with the largest audience are, since they do not require quality content, but rather they need their spokespersons to have as many people from the target audience as possible. In this way they will be able to reach a greater share of the market with their advertising campaigns. Idlers tend to be less selective and are guided by those creators who are more popular and have a more varied and entertaining content. Apprentices look for all kinds of explanatory content to gain as much knowledge as possible about the sector, therefore, they are not looking especially for creators with many followers or with content that is of high quality, but rather they are looking for the largest number of contents of any kind that can help them. Fanatics is a case like the previous one, they seek to connect with the person and try to help them in a way that they feel useful and spokespersons for the content of their idols. Passionate about art are the most selective of all, they are not guided by the amount of audience that the content creator has, but rather they look for the highest quality and those works that awaken them feelings. They seek excellence. Finally, we have the whimsical, these, like the previous ones, are not guided too much by the popularity, but rather they come across those works, whether of higher or lower quality and feel the need to acquire them.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
27
Key competitor images
IMAGE NAME
ESTEBAN ARTS
DRAW WITH JAZZA
Source 22: Own elaboration Figure 14: Audience-quality positioning map
28
ARTEMASTER
JAKO DEL BUENO
ARGANZA
HAROLD ARTIST
Source 23: Own elaboration
6. SWOT ANALYSIS
To analyse the situation of the company we are going to make use of one of the most characteristic and useful tools which is the “SWOT analysis”. For this analysis we will study the situation of the company from both an internal point (strengths and weaknesses) and external (opportunities and threats).
29
6.1. Strengths
1. Proactive learning: Constant search for content to increase knowledge.
2. Constancy: Publications on social networks daily and on YouTube on a weekly basis, to keep up the activity.
3. Enthusiasm: Willingness and passion for the activity that takes place.
4. Teamwork: Great capacity for cooperation between the two members of the brand.
5. Recognize mistakes and accept criticism: Taking mistakes as a learning system and not as a backwardness.
6. Closeness with followers: This is the main strength. Answering all kinds of comments from followers in the most polite and close way possible. With this it is possible to increase the engagement and create relationships.
6.2. Weaknesses
1. Unrecognized brand: The brand is little known compared to the competition.
2. Lack of resources: With only two members in the company, with different main activities, the ability to acquire resources and invest is very limited.
3. Initial inexperience: We start without previous knowledge about the sector or artistic studies.
Figure 15: Art Tech99’s SWOT
Source 24: Own elaboration
30
4. Time shortage: Difficulty maintaining constancy due to having other main activities such as studies and work.
5. Not professionalism: As they do not have prior knowledge or the necessary resources, it is very difficult to achieve a quality that matches the competition that has been in the sector for more years and dedicates all their time.
6.3. Opportunities
1. Relationships with people in the sector: Having managed to interact with people from the competition, such as Esteban Arts and ArteMaster, it can be of great help to know their experiences, how they have achieved the recognition that they possess and possibility to carry out some collaboration with them to make the brand known.
2. Covid-19: The pandemic crisis, despite being a very negative aspect, for the issue of social networks and online content can be a plus since people spend more time at home and consume more of this type of content.
3. Protagonism of new platforms and social networks: More and more, the importance of social networks and platforms such as YouTube and Twitch is increasing, therefore, more and more people are making use of this.
4. Protagonism of anime series and movies: Series and movie platforms such as Netflix and HBO are increasingly betting on those of anime style, that is, made through animation and artistic designs. So many people are fond of the style of drawing and make this field relevant.
5. New cartoonists: The new generations of cartoonists make the market grow and continue to develop.
6. Fanatics: Those people who are fond of cartoonists and make the content reach more people through their interactions and voice. They often share the work of their idols and increase popularity.
7. Follow trends: Making content related to trends and viral makes that content more accessible and easier to find, since it is in all search engines.
8. Trend of learning online: People are increasingly used to learning through the internet, with online courses and tutorials, because they are cheaper and more convenient to view.
6.4. Threats
1. Not adapting to new platforms: The environment is increasingly changing, and novelties and new platforms emerge in a short time, therefore, the fact of not being able
31
to adapt to innovations and where the market is going can be a threat and the brand could become outdated.
2. Excess competition: Being an easily accessible and attractive market, it makes many people want to create content online, therefore, there are countless online content creators.
3. Loss of importance of YouTube and Instagram: The brand is active on Instagram and YouTube, two quite old platforms, but still relevant. As new platforms like Twitch appear, there is a possibility they will gain prominence.
4. Digital drawing: As technology has advanced so much, it has made it possible to make artistic designs in a more comfortable and striking way using graphic tablets and drawing programs, so that traditional drawing can gradually lose its prominence.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
7. OBJETIVES SET BY ART TECH99
In this section we are going to determine what is the mission and vision of Art Tech99, in addition to introducing what are its general objectives, which will be related in the future with those of the communication plan. With a mission, we understand the activity carried out by the company and the image that it intends to project to exterior. The vision, on the other hand, is how the company wants to see itself in the future.
(Florido, 2021)
7.1. Mission, vision and objectives
Mission: Create content constantly to entertain and encourage the learning of the artistic world to the followers.
Vision: Reach as many people as possible with increasingly higher quality content.
General objectives:
- Reach an average figure of key competitors in the number of Instagram followers and subscribers on YouTube.
- Create higher quality content, with superior technological resources.
- Increase the number of sponsors and brands to act as spokespersons.
- Have a striking studio, adapted and in better conditions to improve the image of the brand.
32
- Obtain the necessary resources to streamline the editing videos processes.
Specific corporate objectives:
By 2023:
• Get the annual sale to be 20.000 euros.
• Reach a number of subscribers on YouTube greater than 100.000.
• Reach 50.000 followers on Instagram.
Relationship objectives:
By 2024:
• Consumer satisfaction, accumulating figures of 10.000 “likes” and 1.000 positive comments related to the brand in videos and publications.
• Attract 1.000 new clients who acquire works or orders.
• Improve the relationship with suppliers by lowering costs by 15%.
Commercial objectives:
By 2023:
• Get deliveries abroad of less than 10 days duration.
• Reach a number of impacts in advertising campaigns of 1,000,000.
• Lower shipping costs by 15%.
Financial-commercial objectives:
By 2023:
• Increase the prices of orders and private classes by 20%, a cause of gaining prestige and using higher quality resources.
• Get 30 students per month for private classes.
33
8. STRATEGIES FOLLOWED BY ART TECH99 8.1. Strategies according to competitive advantage
We understand competitive advantage as everything that makes a company have a unique, perceived and temporarily sustainable advantage, so that it can be defended against consumers and leaves it in a superior position over the competition.
Strategies are the set of processes that are carried out to get a competitive advantage in the market. These competitive advantages are possessed when a product / service or brand has certain attributes that give it superiority over competitors. This advantage must be sustainable over time and defensible against the competition. There are three types of competitive advantages: cost leadership, differentiation and specialization.
Companies design competitive marketing strategies to deliver superior value to customers.
There is not only a competitive advantage for all companies in the sector, but each of them will create it according to the characteristics of their company and the product / service it offers.
These advantages seek to have a higher profitability than other competitors. This image shows the competitive strategies according to Porter:
Figure 16: Porter’s Strategic Advantage
Source 25: Research Gate
Now we are going to differentiate the different types of strategy according to Porter:
• Cost leadership strategy: This competitive advantage is possessed by those companies that manage to have both lower production and distribution costs, which
34
means they can lower their sales prices and increase the quantity they sell and, therefore, market share. To reach this point, it can be reached in several ways, offering a basic product to the market and having a privileged geographical location (so that distribution costs are low).
• Differentiation strategy: The competitive advantage is obtained when a product / service differentiated is offered, that is, with distinctive characteristics of the competitor's products / services. The differentiation can be both the product or service, as well as the image, the personnel and the distribution channels. Thanks to this differentiation, the company can increase the sale price since consumer loyalty allows it.
• Focus or specialization strategy: This competitive advantage is achieved when efforts are concentrated on offering to a few or a single market segment, without the intention of covering the rest of the market.
Art Tech99 has a competitive advantage of differentiation, since, as we have described previously, within the art and drawing sector, prices are very relative and creators must have some differentiating feature to stand out from the competition. Differentiation is an essential characteristic that is in the pursuit of all consumers. By not being able to innovate too technologically, the competitive advantage of cost leadership is not usually used in this market, therefore, most companies seek to create their own works with that identifying feature awakens them sensations. We seek to make a format of drawings with our own style, leaving our own stamp on each project we develop. In addition, another feature that differentiates it from the competition is the closeness and participation that followers are allowed, making them participants and protagonists in the brand.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
8.2. Strategy in response to competition
There are different strategies that can be adopted in response to what the competition is doing:
• Leader: The leading brand occupies a dominant position in the market, is recognized as such and makes it a reference company for other rival companies that strive to attack, follow or simply avoid. This company has the largest share of the market.
35
• Challenger: This company is trying to aggressively expand its market share by directly attacking the leader or similar or smaller companies. There are different ways of attacking: "frontal, flanking, bypass, bypass and guerrillas”.
• Follower: This has a lower position than the leader and has an adaptive behaviour.
They seek to coexist with the leader.
• Specialist: Specialized in market segments or niches. They are usually small companies that operate in specific locations with little appeal to large companies and seek to compete as little as possible with market leaders.
For Art Tech99, its response strategy to competition is of a challenger nature, since it seeks to achieve market share from the largest by making a similar product / service, seeking to stand out in some characteristic respects and innovating with formats that attract the audience.
The leader brand in the sector is Draw with Jazza, with the largest market share and content for all audiences. The brands that have a follower strategy, have a lower position, but have an adaptive behavior is ArteMaster and Harold Artist, with content like the leader. Lastly, the Arganza, Jako del Bueno and Esteban Arts brands follow a specialist strategy, concentrating on very specific market segments or niches. These specialize because they create a more technical content to learn to draw and it is not for all audiences.
(Vallet, Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
8.3. Intensive growth strategy
When companies decide to grow, the first thing they must evaluate is the options they have.
Therefore, one of the most used tools is the Ansoff matrix. In relation to this matrix, there are four strategies that companies can consider when increasing their sales. There are as follows:
- Market penetration: This is the easiest to implement, as it consists of increasing sales with current markets and products. We can achieve this strategy when current consumers consume more of our product or if new customers appear within the same segment.
- Market development: For the application of this strategy of intensive growth it is necessary that we open the range of consumers, that is, expanding the company in new geographical areas or looking for new segments within the area of influence.
- Product development: It applies to the same segment of current consumers but launching new products (functionally or in applications), since the needs and tastes of customers have changed.
36
- Diversification: This is the most delicate strategy to apply. It is about launching a new product for a new market. There are different levels of uncertainty when applying this strategy, depending on the range of products and the sector, whether related or totally different.
The strategy that Art Tech99 uses is market penetration, as it seeks to increase consumption and sales in the current market and with current products.
Figure 17: Ansoff Matrix
Source 26: Polinomi Media
(Martin, 2027)
9. MARKETING MIX
We refer to marketing mix as the analysis of the internal strategy is developed in companies.
Four variables that are basic in the development of its activity are studied, which are: product, price, distribution and promotion.
37
Figure 18: 4P's Mk Mix
Source 27: Cleverism
9.1. Product
The product is everything we can offer in a market for consumers to acquire, use or consume and satisfy a desire or need. These include tangible objects, services, people, places, events, ideas, etc. Art Tech99 offers tangible artistic products such as works already made or commissioned, either for acquisition and own use or for advertising campaigns, as well as intangible services such as learning to draw through tutorials and private classes.
To classify the products we offer, according to the characteristics of the end consumers, they are classified into: convenience products, comparison products, specialty products and non- wanted products. In the case of our company, the products are specialty, consumers must be willing to make a great effort to purchase the product. The image of the brand is of great relevance and decisive in the purchase decision. They are very specific or select products. It is not a routine purchase, but it is made at very specific times. As for the intangible services offered by the company are entertainment and learning. The entertainment service offered is audio-visual content for social networks and YouTube, showing the process of drawings with background music. This service does not require great effort or purchase planning as it is "free"
and for a wider audience. As for the service of learning to draw, they are through the same audio-visual content, but with detailed explanations of how the drawings have been made so that people can put it into practice. The private classes to learn to draw are for a more select
38
audience which wants to dedicate themselves to the artistic world. The latter must make a greater effort than the former, since it is a higher price and they must analyse its possibilities and purpose.
Lastly, the branding strategy used by Art Tech99 is unique brand since the products are marketed under the same brand. The reason is because it facilitates consumer loyalty and avoids confusion between them.
(Muente, 2019)
9.2. Price
The price is the sum of money that the consumer must pay to acquire and enjoy the product / service. This price not only refers to the value of the product, since it encompasses the value of the brand, feeling of belonging, perception and the value that the customer gives it. In the case of our company, the price of tangible products (works made and commissioned) is something very relative, as we have repeated on several occasions, since it depends on many
Figure 19: Product of Art Tech99
Source 28: Own elaboration
39
things and the world of art is something very subjective. The way to set a price for Art Tech99 is according to the difficulty of the project or for "x" euros per hour of work, depending on what the client is willing to pay and if the brand accepts the deal. In the case of private classes, the price is competitive, analysing the prices of the competition it is offered at a substantially lower price due to the lack of professionalism and experience. In our case it is 7 euros per hour.
(Vallet Bellmunt, Casanova, Del Corte, Estrada, Fandós, Gallart y Monte, 2015)
9.3. Distribution
Product distribution is an important process to achieve corporate and strategic objectives. The reason is because all the sales that are made are sustained from this phase and must have adequate planning and be geographically located. In the case of Art Tech99, the distribution is very simple, since the members of the company themselves are in charge of personally sending the product to the end consumers, through the “Correos” or without the need for intermediaries. This is because of making very sporadic sales.
Source 29: Own elaboration Figure 20: Distribution of Art Tech99
40
9.4. Communication
To achieve an optimum communication mix we must ensure that they reach the different segments and types of clients, be able to face the environment and new competitive situations and meet the objectives that have been previously set in the most efficient way possible.
To do this, we are going to carry out a communication plan so that it is as complete and
“Smart” as possible to achieve the different objectives set by the company. First, we will define the communication objectives that will be related to the most strategic and corporate ones, having analysed in the SWOT what are the most relevant aspects to consider and be able to get the most out of it. Then we will go on to define the communication strategies, both the creative strategy and the POEM media strategy. Once we have this clear and defined, we will design the most operational part of the plan, the actions that we will carry out and how to execute them. Finally, we will set the total budget for the actions and strategically design the application schedule to make it as efficient as possible. Finally, we will select the KPI's we will use to carry out a control of the actions carried out and a contingency plan, to have possibilities of rectification in case things do not go as expected.
10. COMMUNICATION PLAN
10.1. Definition of communication objectives
As a result of the analyses that we have been able to extract from the current situation of the company, we can set a series of objectives to face the main problems of the brand and take advantage of the opportunities. The main problem we have observed is that of having a little- known brand, which reaches a very small audience. The opportunity that we could exploit is to enter a new market niche that is that of digital drawings and take advantage of the proximity with the followers to enhance engagement and make this a competitive advantage of differentiation.
The objectives that we are going to define for the Art Tech99 communication plan are these:
- Increase the notoriety of the brand and thus be able to increase 50% more online traffic on social networks and YouTube, in addition to increasing total sales by 10% for 6 months.
- Increase the audience target by increasing to 50,000 followers on Instagram and 100,000 subscribers on YouTube for one year.
41
- Reinforce the image of the brand and the quality of the content created through advertising campaigns for one year.
- Increase the engagement of Instagram followers, from a current 6.44% to 12%, and on YouTube from 17.63% to 25% in 6 months.
- Make promotions of designs and orders throughout the year to increase national sales by 20%.
The communication MIX tools that we will use will be:
▪ Sales promotion: This tool incorporates the offer of short-term incentives for consumers and / or distributors, so that there is the possibility of an immediate response from them. Specifically, we will use two very practical techniques, raffles and contests.
This tool can be very effective with proper use, on the other hand, if they are not used correctly, they can be counterproductive in terms of your image. In contests, participation in a competition is required to achieve a prize based on abilities or skills, in our case it will be drawing. Raffles are similar in nature to the above, but are entirely a matter of chance, and do not involve skill-based or dexterity-based participation. This involves less the consumer with the brand, but implies a lower risk than contests, in terms of image.
▪ Advertising: Communication process in which the company issues a message to the environment, through mass media, resulting in different consumer behaviours. We will create a more extensive ad, along with a shorter adaptation for different platforms. This tool tries to inform, persuade and remember the advertising message that we have issued in a unilateral, impersonal and massive way to a recipient of the profile of our target audience.
▪ Marketing of events and experiences: The last of the tools that we will use in our communication plan will be experiential, an interactive experience in a mupi, so that in addition to showing the characteristics of the service and the benefits, the consumer will connect with the brand and experience a unique and interesting experience. This tool is increasingly useful, as it adds added value to the way of advertising and the consumer feels it much more attractive.
(Kotler and Keller, 2012)
42
10.2. Definition of communication strategies 10.2.1. Creative strategy
Communication strategies can be differentiated into three types:
- Cognitive strategy: That in which arguments are presented rationally to consumers.
We associate it with informative advertising or rational persuasion.
- Affective strategy: That generate feelings or emotions that are related to the product or the brand.
- Conative strategy: That in which a response is directly induced by the consumer, to provoke a behaviour in this.
Given that the product is of an artistic nature, we consider the best option would be to opt for an affective strategy, to create emotions and sympathy for the product. This advertising will be emotional to try to awaken strong emotions in consumers and to provide a memory and selection of our product. The emotions we want to awaken are those of trust and friendship, so that they are attracted to the product and create a bond with the creators, who know that they can be entertained while learning about drawing. The self-confidence that we will seek to generate is so that people are able to achieve a goal such as drawing and making themselves known.
The resources that will be used will be emotions and humour, so that we can create confidence in consumers and they can be entertained while learning. Humour is very useful to create bonds and that consumers can feel comfortable.
The framework of execution will be animation, where images of the favourite anime-style series and movies will be shown and then our cartoon characters persuading the consumer to want to learn to draw with us, and request orders. The source and spokespersons will be the members of the company.
Finally, the appropriate slogan for the product being offered is the following: "Art Tech99, learn, create and have fun."
43 (Kotler and Keller, 2012)
10.2.2. POEM ON and OFF media strategy
In this section we are going to determine the means that we will use for the actions, they can be differentiated according to the POEM system as paid, own and earned media. In turn, these can be distinguished as ON media (if they are online media) and OFF media (if they are physical media). Regarding paid media, we will use ON media with an ad on YouTube and an adaptation for Instagram stories where a budget will be set so that it is promoted by the same platform. In addition, regarding the OFF media, we will do a kind of interactive advertising in a mupi at the Atocha Station in Madrid.
Turning to our own media, we will do a series of contests and raffles. Finally, the earned media will be generated thanks to the engagement and online traffic that we get with the campaigns, with the interactions of the followers, the times they share the content, etc. As mentioned above, resources are limited and it is important that we get “viral” in our content and word of mouth advertising.
(Kotler and Keller, 2012)
Figure 21: Communication strategy of ArtTech99
Source 30: Own elaboration