What business are we really in?

(Market Definition)
Company: Elgourmet.com

Main Industry: Content creation for pay-TV users and subscribers of Elgourmet.com’s other ventures

Sub-Industry: Information & Entertainment

Sub-Industry: Gastronomy & Travel

Main Competitors: – CasaClubTV

– Utilísima

– Fox LIFE

– TLC (Travel & Living Channel)

Possible Substitutions (in decreasing order of competition): – Utilísima

– TLC (Travel & Living Channel)

– Fox LIFE

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 Analysing the factors that are external yet crucial to
make decisions affecting the company’s overall growth
Viewers/Subscribers:-
➢ Infotainment channels became an area of interest for viewers
where they could get insights to improve their overall wellness
(podcasts revolving around family well-being and home
improvement) along with treating themselves with a dose of
entertainment (travel and food content)
➢ EG.C went beyond their usual from just cooking recipes to
showcasing travelling experiences, customs and programs that
featured local and renowned chefs, making their podcasts
multi-format and engaging for viewers.
➢ Viewers could find their content not only through scheduled TV
shows but also on EG.C’s official website, food magazines, expos,
their wine club – ‘Club del Buen Beber’, making the content widely
accessible and interactive throughout various platforms.
➢ TV subscribers who paid for their cable service were generally
categorized on the basis of their household type and were offered to
choose from various cable packages as per their suitability.
The Competition & Insights:-
➢ Casa Club TV, owned by the media industry giant MGM Studios Inc.
with a balanced positioning in the market, hosted shows in similar
domains as EG.C that were hosted by Latin celebrities and were
available in multiple languages.
➢ Having Spanish roots and Latin hosts, Utilísima had broadcasts on
home-making concepts targeting the Latin American region but later
spread widely throughout the North American, Australian and
Colombian geographics.
➢ TLC’s shows focussed on both travel and living styles that were said to
inspire people and offer a sense of entertainment, while offering
content in English.
➢ The target audience of Fox Life was middle-aged people of any gender
and also had broadcasts with Spanish subtitles, catering for travel
and general interests.
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The Market:-

➢ The rising gourmet cooking trend brought more big companies in the food culture, generating competition
within the industry.
➢ Latin America boasted of having 74.9 million households and almost 42% of them had a cable TV service. But
certain deflectors laid out as a drawback for EG.C since there was a significant number of households that were
socio-economically unreachable.
➢ From 2011, the U.S. saw a rise in the Hispanic population in region as well as their purchasing power for various
activities, with the majority of them using Spanish as their primary language. Cable operators provided special
Latin packages for serving the majority.
➢ PRAMER, a media production and distribution company, broadcasted their signals to nearly 20 million viewing
households in 24 countries. Elgourmet.com became its most successful and widely used channel during that
time.
➢ EG.C’s stakeholders, including Pramer itself was dependent on its demographic and geographic expansion,
based on the risk of market viability and attaining a significant market share among newcomers.

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Elgourmet.com can turn into a key player in the
gastronomy industry with the Spanish-speaking
population with the right choice of future path.
Alejandro Harrison's dilemma is to figure out how to use the global gastronomic momentum to Elgourmet.com's (EG.C) benefit.
This issue has a direct influence on EG.C's growth, since there are a big number of pay-TV users or cable/satellite TV service
customers who are not within EG.C's coverage, the impact of which falls on the channel because there is an untapped market
accessible for the channel's growth. A viable alternative would be to select between expanding in the EG.C's already established
Latin American market and exploring the US Hispanic market, which is currently filled by significant companies such as Utilisima,
Fox LIFE, TLC, and CasaClubTV. Leaving aside the investment, EG.C's reach in both instances will expand greatly, which will
benefit the whole Cable & Satellite TV business, which includes pay-TV channel providers, satellite providers, and subscribers.

Elgourmet.com has always been able to capitalise on the regionality of its material and its hosts to gain from it. The intentions to
grow in the "native" market or in a new market will result in a vigorous struggle between EG.C and its competitors to occupy as
much of the industry as feasible.

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El Gourmet’s needs to focus on getting the 1 out of 3 who got away, while
tapping into the unexplored market.
Short term objectives
● Hook viewers using the regional approach,
content that speaks to sets of groups directly.
● Project that they’re not focused on one audience
section but have the ability to cater to all culture
types across Latin and North Americas.
● Develop content while taking feedback from
viewers, especially with new markets. People
need to know that El Gourmet listens, in order
to get them comfortable with the brand
● Re-evaluate offerings and prices for markets
where competitors have a sway.
Long term objectives
● Increase overall individual subscribers across
regions by 20-25%. Try to increase visibility.
● Become a household name when it comes to food
and cooking through paid TV in North America and
Latin Americas. Work hard to eventually get
customers to speak for the company. Loyal
customers are the best advocates of a company.
● Develop traveling content to intrigue viewers and
promote traveling while trying to collaborate with
prospective travelling agencies or companies.
● Curate recipes not just by cuisines or cooking
styles, but with dietary preferences/ restrictions
such as vegetarian, gluten free, vegan, etc. Provide
a one-stop for all experience.
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 Arrows in El Gourmet’s quiver
● Well seen:
El Gourmet has more exposure in the existing market
than any other. In fact, El Gourmet’s penetration is
two-fold than the rest of the market combined.
● Multiple channels approach:
Besides having a dominating position in the market of
information and entertainment, it’s the incessant
attempts to reach customers and increase engagement
over different platforms and channels that gives El
Gourmet an edge.
● More than entertainment:
El Gourmet has an effect on viewers that is more than a
background channel/ content, viewers are also looking
for an escape and is naturally associated with wellness.
Food is a source of comfort and travel is exhilarating.
● A force to reckon with:
The sheer ability to allocate funds and resources like no
one in the game let’s El Gourmet to comfortably take the
risk and experiment in spaces and regions where
competitors may not even think of entering due to
whatever limitation they may have.
Insights about the company
● The primary focus of Elgourmet.com is
gastronomy-related information. As a result, EG.C
can leverage its previously built market to pose as
an ideal gastronomic channel.
● CasaClubTV, although under the same merged
company, drives competition for EG.C. Since EG.C's
primary focus is gastronomy, CasaClubTV is not a
direct competitor for them.
● U.S Cable TV operators are much harder to bring
on board than Latin America operators, so the
initial investment to target US Hispanic market
will be high.
● People spend almost 12 hours listening to radio
broadcasts, so EG.C needs to figure out a way to
drive the audience to spend less time on radio and
more its TV channel's content.
● US Cable TV operators are professional
companies, so EG.C needs to understand the
market before entering it.
Alternatives/Crit Does this definition define our
eria customers well enough?
Lifestyle and Food Yes, our company works well towards
relatable cooking content that our
audience can relate to and are within
their reach.
Media Company No, since it narrows what our
company provides and doesn’t
include other services we provide.
Latin America Yes, as we provide the best
Lifestyle experiences in the latin America
Entertainment region and we have a pretty good
positioning in the market here.
TV production No, since it doesn’t include all the
experiences we provide for.
TV & Event No, since it won’t include refined
Production cooking content which are customers
look forward to.
Does this alternative define a
growing market?
Yes, There is always a growing
aspect to this alternative where
we could cater our customers
well when gastronomy trend is
booming.
Yes, since audience engagement
rate is in the increasing direction.
Yes, because of the growing
population in the latin America
region and their increasing
engagement rate.
Yes, since a there is an increase in
the engagement rate of the
customers.
Yes, since it will engage all the
larger section of audience with
high engagement rate
Will this definition help the
company generate future
opportunities?
Yes, because of the gastronomy
trend there are lot of
opportunities generated to ace.
Yes, because it will help the
company explore the other
markets throughout the world.
Maybe, because with this
alternative we could only use the
advantage of the growing
population in the latin America
region but not tap the
opportunities in the other parts of
the world.
Yes, since it will help our company
explore the untapped
opportunities all over the world.
Maybe, because it will be able to
capture the audience with high
engagement rate but won’t
capture those who thrive for
refined cooking content.
Does this definition co-relate
with the customers need ?
Yes, this alternative delivers the
similar needs what are customers
are thriving for.
No, this doesn’t deliver what our
customers are looking for.
No, this doesn’t satisfy the need
of the customers looking for
refined cooking content,
No, this alternative doesn’t
provide the experiences and
content our customers are
looking for.
No, since this wont capture our
core customers thriving for
refined cooking content.
Summary
This is the most appropriate market
definition for our company since it
checks all the important criteria.
This is not a suitable market
definition since it doesn’t
accommodate other experiences
we cater for our customers.
This could’ve been an idol market
definition but since it doesn’t have
enough room for innovation and
expansion, we couldn’t select this
alternative
This is a narrowed down market
definition where this alternative
couldn’t satisfy all the criteria.
This alternative cannot be the
perfect market definition for our
company because this doesn’t
capture our core customers and is
too narrow in nature with little
room to expand.
Appendices 1:VRIO Analysis
Resources Is it adding Is it Rare? Is it a competitive Is it hard to
Value? advantage imitate?

Ability to create an aspirational Yes No Yes Yes

value

International Audience Reach Yes Yes Yes Yes

Multiple ventures Yes Yes Yes No

Financial backing Yes Yes Yes No

Having an existing brand image Yes Yes Yes No

Summary :-
The brand seems to have a greater impact on the Hispanic community and with an existing market presence and multiple
ventures it is all set to enter a new and a highly competitive market like the United states.
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Appendices 2 : 6 forces Analysis of the Cable TV industry
Threats from new Bargaining Bargaining Threats from Complementor Competitive
entrants power of buyers power of substitutes s rivalry
suppliers

•In the cable television •Buyers in the •There seems to •In the tv market •None of the •The main
market is a mature industry holds a be limited there is no as such producing rivals of EG.C in
industry where already very decisive power players in the a threat to the companies Latin America,
have a lot of players in when it comes to market which can industry but OTT provide any free excluding
the market and hold a influencing the also give control platforms can be services. Brazil
significant market overall dynamics of to the suppliers. the one who can •Customers' •Large
share. the market. •This will give have the ability to interest in overseas
•The other factor is that •The sales is high level of steal the spot. gourmet cuisine is production
getting in such business generally driven by power in the •So, according to growing as a businesses are
is very difficult as I the number if hands of the the current result of the increasingly
involves high level of subscribers a suppliers. market situation gourmet cooking dominating the
investment. company has there is a trend. The threat American
•Hence, threats form a retained. moderate level of from market. The
new entrant is •Hence, the threat of an complementors is threat from
comparatively low. bargaining power of substitute. The low. competitors is
the buyer seem to level of threat is high.
very high. high. 10