COMMUNICATIONS
RAFAELLA DE GUZMAN
Rafaella De Guzman
Master Fashion Promotion, Communication and Media Istituto Marangoni
Investing in the business of Fashion Public Relations My start-up proposal
ABSTRACT The main purpose of the thesis is to provide detailed research and analysis on topics that will aid in the development of a Fashion Public Relations Agency in Ecuador. In order to see how and what the start-up business should take into consideration it is important to understand the basics of Public Relations. Starting with what is Public Relations, why it is important and how it works. Also taking in consideration that in today’s hectic and modern way clients are pushing towards a digitalized world, where clients and consumers want digital experiences. Moreover, there is research conducted on the market of Ecuador. It is necessary and crucial in the development of the PR agency to understand the current situation of the country where it will operate. Therefore, a PEST analysis was executed. Second a deep look on other PR agencies, one in a similar country (Colombia) and one international PR agency. Taking a look at how the PR agencies work and benchmarking from both by understanding what would work from each company in order to execute a new PR agency. Additionally, a SWOT analysis was conducted regarding the country’s situation and the business idea. All the research was aided from online sources as well as primary research. Furthermore, the business proposal was detailed explained using the Business Model Canvas. Which breaks into value proposition,
customer segments, customer relationships, channels, key partnerships, key activities, key resources, cost structure, and revenue streams. Nevertheless, the mission, vision, and values of the start-up were also explained. Branding guidelines were also explored, using colors, logo experimentation, typography, business cards and a mock-up of the company’s stationery. All the research conducted was realized in order to development the start-up company.
TABLE OF CONTENTS BASICS OF PUBLIC RELATIONS 1. What is Public Relations? 2. Why is Public Relations Important? 3. How it Work?
09 11 13
SHIFT INTO DIGITAL LUXURY 4. Digital Experience in the Luxury Sector 5. PR Moving into Digital Luxury Experience
16 18
ANALYSIS OF THE MARKET 6. PEST Analysis of Ecuador 7. Benchmarking 8. SWOT Analysis
21 26 29
START-UP PROPOSAL 9. Business Model Canvas Value Proposition Customer Segementation Customer Relationship Channels Key Partners Key Activities Key Resources Cost and Revenue 10. Mission,Vision, and Values 11. Branding
33 34 35 36 37 38 39 40 41 42 44
RESOURCES 12. Methodology 13. References 14. Bibliography 15. Iconographic 16. Appendix
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BASICS OF PUBLIC RELATIONS
WHAT IS PUBLIC RELATIONS
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Public Relation is one of the most important services that as a matter of fact can change the future of a company (5W PR, no date). According to Pierre Rougier, founder and owner of PR Consulting, it is the ability to combine creativity and business (Chitrakorn, 2017). PR entitles building an image, sending a message, and building perception. It also means to communicate effectively the main message the company wants to transmit to their target customer, at the right place and time (5W PR, no date). PR is to plan and sustain a relationship between an organization and their public, including consumers, shareholders, and employees. PR is information, image creation and influence management (Sebellin-Ross, 2012). PR agencies work together with their clients to build a certain image and reputation and also promote them. So many companies don’t know the power of Public Relations, but PR can help a company succeed or fail (5W PR, no date). There are several methods in which PR differentiates from other marketing areas. PR takes care of events, press releases, and their main goal is to build credibility.
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?
WHY IS PUBLIC RELATIONS IMPORTANT
As previously mentioned PR’s main objective is to create credibility. Winning the trust of the industry and the media is a huge role and responsibility. PR agencies are in charge of making the connection between their clients and media outlets. The way PR agencies increase the company’s credibility is by helping them improve their reputation through proper strategies, influencer connections, and networking (5W PR, no date). Since PR applies Integrated Marketing Communications it could be sometimes confused with other marketing techniques (Seith and Pantoomano, 2015). PR as other marketing techniques helps increase profits and sales. Positive outcomes happen since PR will help enhance the reputation and would also involve different strategies that may be the brand did not think about (5W PR, no date). By developing plans it creates a path for the business to achieve their desired goal (Sebellin-Ross, 2012). Moreover, PR agencies will help their clients craft and send the right message to the right media outlet. That will allow potential and existing customers to know what the company is doing, and what they want to communicate to them. In today’s hectic and modern world a company can get a bad reputation or a bad name simply because today consumers can express their feelings online. PR agencies can help those struggling companies
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to change what people are thinking though communicating more effectively. Related to online presence, PR agencies help the companies get digitally connected. PR can help companies in their offline and online presence (5W PR, no date). What makes PR important in comparison with other marketing tools is that PR must earn the media attention, with PR there is no paid publicity like there is with advertising.The PR office is in charge of creating a creative file with the message they want to convey and maintain a good relationship with the media and community. With PR there is only one opportunity to get the attention and eventually get the media coverage they want (Seith and Pantoomano, 2015).
?
HOW IT WORKS
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1 TYPES OF PR PLANS
As previously mentioned there are several ways in which a PR office can work. It all starts with the PR office creating a plan. There are three types of plans. The first plan is the Annual plan; this consists of a list of objectives the PR clients want to achieve in a longer period. The Account Director or the VicePresident usually writes the Annual plan. The second plan a PR office takes care is the Tactical plan.The Tactical plan consists of planning and strategizing to achieve a one-time goal.The Senior Account Executive or the Account Supervisor can write the plan. The third and one of the most important documents the PR office takes care of is the Crisis Communication plan. The plan is written in advance if there is ever a crisis the company has to respond to. If the crisis never happens then the plan is not used. The Crisis plan is always written in advanced and is written by the Director or someone at a higher level (Sebellin-Ross, 2012). As previously mentioned PR agencies need to maintain a good relationship with media outlets either offline or online. That includes journalists, bloggers, and others. But most importantly they need to know which outlet is better, starting from deciding if online or offline will help achieve the goal (Sebellin-Ross, 2012).
2 3
Annual Plan Account Director Vice-President Long-term Goals
Tactical Plan Senior Account Executive Account Supervisor One-time Goals
Crisis Communication Plan Director In case of crisis
SHIFT INTO DIGITAL LUXURY
DIGITAL EXPERIENCE IN THE LUXURY SECTOR
THREE MOTORS FOR DIGITALIZATION
In today’s frenetic and constantly changing world, marketing offices have to work twice as fast from what they were used to. Therefore many agencies have implemented technology, but most importantly companies now want luxury digital experience. Most importantly the digital transformation in the luxury sector should be done in order to integrate the customer experience with the physical environment (Batat, 2019). Since luxury is all about feelings and emotions, there are many questions regarding the effectiveness of transforming experiences into the digital world. According to Batat in his book Digital Luxury (2019), he mentions that three motors push to the digital transformation. The first one is the technological motor that includes mobile and Internet infiltration. Today everything is about collecting information, big data, and every day there is a bigger connection between daily activities and machines. The second motor is the demographic aspect. Today people push for accessibility and urbanization, technology is available to everyone and that helps in the development of new digital models. The third motor is socioeconomic, in today’s society, digital natives and consumers expect everything to be connected seamlessly (Batat, 2019).
Technological Mobile & Internet penetration Big Data and the cloud Daily activities and machines Devices connected Artificial Intelligence Demographic Accessibility Urbanization Technology availability Development of new digital models Socioeconomic Digital natives: Millennials and Gen Z Expectation of connectivity Shared consumption model Peer-to-peer marketplace (Batat, 2019) 17
PR MOVING INTO DIGITAL LUXURY EXPERIENCE
Luxury companies should rethink their digital marketing communications strategies because as mentioned before today the market is shifting into a digital world. Luxury companies should focus more on creating unique and profitable luxury experiences that work seamlessly offline as well as online. When it comes to creating a luxury experience it should be related to the change in consumer behavior, taking into consideration the changes in society (Batat, 2019). Today we see a shift from product-centric into experiencecentric marketing (Batat, 2019). Today PR agencies are moving into digital experimentation since the consumers of today are interested not only in the product they are purchasing but the experience, since experience allows the consumer to be involved and immerse. It also benefits the company since the consumer becomes more involved and therefore develops more emotions towards the company (Batat, 2019).
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ANALYSIS OF THE MARKET
PEST ANALYSIS OF ECUADOR
POLITICAL - “Consuma Producto Nacional- Primero Ecuador” translation “Consume National ProductsEcuador First.” - 21% in Colombian products - 30% increase on products like ceramics, textiles, appliances, footwear, leather goods, liquors, cigarettes and cellphones. (El Universo, 2007)
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ECONOMIC - Textile indusrty grew 2% in 2015 -Middle class purchasing power has grown - USD 10.8 million in contraband in textiles - Textiles represent 38% of imports (Revista Lideres, no date) - In 2016, USD 112 million in exportation from textile sector (Garcia, 2017) - Estimate grow of 7.2% in fashion -De Prati bought USD 113 million from Ecuadorian market
SOCIAL
TECHNOLOGY
- December 2015 Forever 21 store opened - Do Wong Chang generated around USD 3.7 million - Became the 4th South American market for Inditex - Designer Book an event that invites national fashion designer to participate (Revista Lider, no date) - Low access to raw materials - Lack of knowledge from consumers (Garcia, 2017) - 165,000 persons employeed in the textile sector - Ecuadorians spend USD 2.4 million in production - De Prati, 15 years working local (Altamirano Hernandez, 2018) - Designer Book 10 years working (El Universo, 2017)
- Lack of technology in the sector - Hard to achieve highquality textiles (Revista Lideres, no date) - E-commerce sector will grow in Latin America - Projected 11.9% in sales - E-commerce will represent USD 87.2 billion - “High-risk, high reward” (Fitch Solutions, 2018)
POLITICAL
ECONOMIC
President Rafael Correa had a campaign “Consuma Producto Nacional – Primero Ecuador” that translates to “Consume National Products – Ecuador First.” In 2015 President Rafael Correa added a 21% on Colombian products (in importations). The additional cost in the Colombian products was applied because President Correa wanted to foment the purchase of Ecuadorian products. Countries like Peru pay 7% and China 20%, the main risk was that Colombia could export to other countries like the USA, Canada or Mexico (America Economia, 2015). It was approved an increase of up to 30% on items like ceramics, textiles, appliances, footwear, leather goods, liquors, cigarettes and cellphones (El Universo, 2007).
The textile industry grew by 2% in 2015. The purchasing power in Ecuador from the middle class is growing at a fast rate, especially since they invest in the clothing sector. In malls, there is 60% of international brands and 40% of national brands (Figure 1, see appendix). In 2014 they found around USD 10.8 million of contraband in textiles. Textiles represent 38% of imports (Figure 2, see appendix). When the new tariffs for import were applied there was a reduction of 70% on imports. In 2015 there was an increase in credit for textile and footwear of USD31 million (Revista Lideres, no date). In 2016, there was around USD 112 million in exportation from the textile sector but it only represents 1% of the non-oil trade balance.The textile industry requires a large market to justify the investment in machinery and technology, which is covered by the local industry, while the development of fashion garments requires access to supply and products. It has been restricted or is too expensive to import (Garcia, 2017). There is an estimate that there will be a 7.2% grow in the fashion industry and by 2021 it will surpass the USD220millions in Latin America. De Prati one of the biggest national retailers bought around USD 113 million from the Ecuadorian market and produced around 8 million units for their suppliers (Altamirano Hernandez, 2018).
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SOCIAL In December 2015 it was the opening of Forever 21, one of the largest fast-fashion companies. Also the South Korean company, Do Wong Chang was opened in Guayaquil and generated around USD 3.7million. In November other fast fashion companies opened, Stradivarius, Pull & Bear. Ecuador became the 4th South American market for Inditex, by the number of stores. The main problems are the smuggling, lack of credit and incentives, as well as the need for more skilled labor. According to Deloitte, Christmas time is the highest period for clothing sales in Latin America. Designer Book is an event that invites national fashion designers to participate in a runway show. New national brands have opened stores and there is more initiative in this sector. Local clothing suppliers represent around 70%; this is between companies and national foundations that supply products (Revista Lideres, no date). 50% of the participants on the Designer Book event believes that the main problem is the low access to raw material, which makes them, invest in international markets. The lack of highquality textiles affects the production and competitiveness against other countries. Another big problem is the lack of culture in innovation and lack of knowledge from consumers about national products (Garcia, 2017).
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In 2015 there were around 165,000 persons employed in the textile area (confection and fabrication). In 2015 Ecuadorians spend more than USD 2.4 million in textile products for creating garments and footwear. Largest companies in Ecuador have invested in the development of fashion garments. De Parti, for instance, one of the biggest and oldest retailing companies have worked with national designers for 15 years. The Secretaria de Educacion Superior, Ciencia, Tecnologia e Innovacion provided in a public institution the Fashion Design career (Altamirano Hernandez, 2018). Designer Book in 2017 celebrated their 10 years of being opened. The platform for textile design, fashion design, and design was celebrated with the 18th runway show with the presence of Jose Forteza, editor for Vogue Latin America. In the event, it participated 12 for fashion garments and 4 for accessories and footwear, being a total of 16 national designers (El Universo, 2017).
TECHNOLOGY There is a lack of technology in the sector, which causes designers to import textiles. Since in Ecuador there is not the technology to produce certain fabrics. Also, it is very hard to achieve high-level and good quality fabric since there is little investment in technology to improve them (Revista Lideres, no date). The e-commerce sector will grow in Latin America; there is a projection of an average of annual sales of 11.9% by 2022. The e-commerce sales will represent sales of USD 87.2 billion. Latin America is considered a “high-risk, high-reward� region for e-commerce (Fitch Solutions, 2018: Online).
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BENCHMARKING
ALL IN ONE AGENCY
1: Official Logo (All In One, 2019: Online)
ABOUT
All in One is a Colombian boutique agency that specializes in managing topics related to lifestyle, luxury, and entertainment. They consider themselves trend creators, help relate brands with influential persons and they are storytellers that connect with their public and they collaborate (All In One, 2019).
Coming from a small PR agency, to see how they can work in a country where fashion is still growing. Not only working with local brands but also working with international brands. All In One agency is a good company to benchmark since Colombia is very similar to the Ecuadorian market. All In One agency help creating content as well as telling the brands’ stories. They are able to work with clients that have little budget by gaining the attention from the media and generating free press. They not only work on social media platforms by creating content but also do strategic emails and e-marketing. They work with the tools they have and with the budget their clients give them. All In One agency is proof that a small dedicated PR agency can work in small developing markets. As well as working with the precise media outlets to be effective in their strategy.
ACTIVITIES
Creating launching events, as well as manage the relationship between national and international media outlets, connection with brand ambassadors and influencers as in editors, celebrities, opinion leaders, bloggers,YouTubers, foodies and more. All in One is an agency that likes to collaborate with other businesses. All in One also working in press releases and press conferences. They work in creating different digital strategies depending on the brand and their need. They also create and generate creative content (All In One, 2019). 27
PR CONSULTING
2: Official Logo (PR Consulting, 2019: Online)
ABOUT
PR Consulting is an international agency specialized in Public Relations and digital communications. The agency was founded in 1997 by Pierre Rougier, today he works with his partner Sylvie Picquet-Damesme. PR Consulting has offices in New York, Los Angeles, and Paris (Business of Fashion, 2019).
ACTIVITIES
They are specialized in fashion, beauty, lifestyle, and hospitality. Today PR Consulting is one of the most prestigious PR agencies and works with luxury designers and coveted brands. They have placed themselves in the market as creative, collaborative, an innovative company that is focused on strategy. They have a different approach to press management, communications, and social media. They have worked on special projects, worked in events, press release, press conference and work with international clients (Business of Fashion, 2019). 28
PR Consulting is a great example of a PR agency that has adapted and change with the fast pace of the society. PR Consulting like many PR agencies started as a company that would allow the connection between their clients and media outlets. Before it was all about print press, events and bringing consumers into stores. PR Consulting has been able to merge marketing and consumer experience to help brands tell their stories. Today PR agencies like PR Consulting have shifted into the digital world. They understand that to get to people is about sharing the right content, PR Consulting believes in sharing through social media. PR Consulting as other big agencies know the importance of media planning, because it is not about putting a campaign in social media, there should be a consistent presence, a good website and plan. Pierre Rougier, founder of PR Consulting, believes that a brand should be aspirational by having in the center the creative designer and amazing products.That way consumers will be drawn into the brand, it is not about trying to pull people by selling false messages, but authentic. He understands the importance of data analytics and social media. Also, PR is about consumer acquisition and CRM strategies, factors that now PR agencies have to take in consideration. He also believes that global has become local in terms of teamwork and clients’ goals (Fernandez, 2017).
SWOT ANALYSIS
STRENGHTS
WEAKNESSES
Fashion is starting in Ecuador; it is a fresh business that is not saturated. Entrepreneurs and fashion designers have the advantage of educating the market and making it work the way they want. According to fashion designer F. Davalos, the market is constantly growing and it means there are more opportunities. F. Davalos believes that the Ecuadorian fashion designers one day will be recognized worldwide. Since some designers including her have already been published in known fashion magazines like Vogue (Primary Research, qualitative Interview 2, see appendix). According to Marketing Expert X. Ferro there are Public Relations companies but they lack important aspects (Primary Research, qualitative Interview 1, see appendix). A fashion company, Design Book, has been working for the past 10 years in making the fashion market relevant in Ecuador (El Universo, 2017).
According to Ecuadorian fashion designer F.Davalos,the Ecuadorian market is a small difficult market and it is difficult to enter it and to maintain a business. According to Marketing Expert X. Ferro, the economic crisis affects the social classes that have the purchasing power and therefore potential consumers end up buying abroad. There are already several Public Relations companies in Ecuador. Current PR agencies don’t manage their media relationships how they should do it, so it causes a miscommunication between the client and the public. Also, the products that the different fashion designers offer are very similar to already existing designs and are even more expensive than the originals (Primary Research, qualitative Interview 1, see appendix).
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OPPORTUNITIES
THREATS
Mentioned, as strength the fact there are different companies that lack what their clients want it is an opportunity. Since there is space to create a company that will help its clients achieve their different goals and objectives and have a different perspective. After conducting an interview with fashion designer F. Davalos, she said that it is important to work with a Public Relations agency since it is important to have a team behind and a company that will help on the grow of her business (Primary Research, qualitative Interview 2, see appendix). F. Davalos also mentioned that since the market is still new she has the opportunity to educate the consumer on buying Made in Ecuador. She believes Ecuador is a market you can bet on like an entrepreneur. Moving into PR, X. Ferro believes that if there is a new PR agency it should be an educational process, should make the media know and learn about the brand and that would promote it. Creating relationships with the press since currently, the relationships are not very strong. Lobbying with influencers as well as press (Primary Research, qualitative Interview 1, see appendix). There are clearly a lot of investments in the sector since there are different companies that have grown and have invested. For example, De Prati, which has been working with Ecuadorian fashion designers for 15 years, has generated a lot of jobs in the sector and has really fomented the industry’s growth (Altamirano Hernandez, 2018).
According to X. Ferro the main issue is economic instability. Since consumers don’t invest in Ecuadorian products, that is due to the high prices forcing consumers to be more attracted to buying international products. Moreover, clients that want to work with Public Relations agencies don’t have sufficient budget. Moreover, people from Ecuador are very traditional and they prefer to follow more classic designs, not allowing designers to experiment with different styles; which can cause saturation. There is a high preference in massive brands like Zara, Forever 21, and others (Primary Research, qualitative Interview 1, see appendix). The political changes also affect fashion marketing since there are things fashion designers and fashion companies can’t control (El Universo, 2017).
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START-UP PROPOSAL
BUSINESS MODEL CANVAS
VALUE PROPOSITION KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
COST STURCTURE
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VALUE PROPOSITION Launch a PR agency specialized in fashion in the Ecuadorian market, that will offer high customized and effective strategies for each client. Offer a showroom for clients to showcase their latest work and for industry professionals to visit.
REVENUE STREAMS
CUSTOMER RELATIONSHIPS
CHANNELS
CUSTOMER SEGMENTS
CUSTOMER SEGMENTATION KEY PARTNERS
KEY ACTIVITIES
VALUE PROPOSITION
CUSTOMER RELATIONSHIP
CUSTOMER SEGMENTATION 1. Emerging fashion designers 2. Existing fashion designers 3. Fashion connoisseurs
KEY RESOURCES
COST STURCTURE
CHANNELS
REVENUE STREAMS
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CUSTOMER RELATIONSHIP KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
VALUE PROPOSITION
CUSTOMER RELATIONSHIP For emerging fashion designers they have the opportunity to showcase their work in a space, they will be offered different strategies depending on their goals and budget, and one strategy would be to get retailers to know about the brand in order to sell, help them gain press coverage, make them visible. For existing fashion designers provide them with a space, offer strategies, create strong relationships with press, make them gain visibility as well as make a name for them. Fashion enthusiasts will be able to learn about up-and-coming national designer, possible events, visit the showroom, and get information CHANNELS
COST STURCTURE
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REVENUE STREAMS
CUSTOMER SEGMENTATION
CHANNELS KEY PARTNERS
KEY ACTIVITIES
KEY RESOURCES
VALUE PROPOSITION
CUSTOMER RELATIONSHIP
CUSTOMER SEGMENTATION
CHANNELS Offline: provide a showroom, use media outlets to let people know about the PR activities, press conferences, press release, events, provide strategies Online: Instagram page, email newsletter, press conferences, press release, agency website, create seamless connection between offline and online experience
COST STURCTURE
REVENUE STREAMS
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KEY PARTNERS KEY PARTNERS - Work with fashion magazines like but not exclusively: Cosas Ecuador Vistazo Clubes
KEY ACTIVITIES
VALUE PROPOSITION
CUSTOMER CUSTOMER RELATIONSHIP SEGMENTATION
- Work with newspapers but not exclusively: El Comercio - Journalists - Fashion bloggers - Fashion insiders
COST STURCTURE
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KEY RESOURCES
REVENUE STREAMS
CHANNELS
KEY ACTIVITIES KEY PARTNERS
KEY ACTIVITIES - Get and retain customers - Creation of plan and buying strategies depending on each client - Maintain relationship with media outlets - Provide detail plans (annual, tactical, crisis) - Provide a clean space and creative space for clients - Provide and update agency’s website and social media accounts - Update clients - Pitch stories - Product placement - Organizing events - Special projects/collaborate - Creation of press campaigns - Digital luxury experience - Sample traffic - Provide market results
VALUE PROPOSITION
CUSTOMER RELATIONSHIP
CUSTOMER SEGMENTATION
CHANNELS
KEY RESOURCES COST STURCTURE
REVENUE STREAMS
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KEY RESOURCES KEY ACTIVITIES
KEY PARTNERS
VALUE PROPOSITION
CUSTOMER RELATIONSHIP
KEY RESOURCES - Financial department - Employee communication professionals - Outsource photographers - Outsource graphic designers - Rent a space for showroom/office - Outsource Law firm - Own a website - Own platform, software, and brand - Own strategies and plans - Agreements - Intellectual property - Creative designs - Software (Fashion GPS) COST STURCTURE
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CHANNELS
REVENUE STREAMS
CUSTOMER SEGMENTATION
COST & REVENUE KEY PARTNERS
KEY ACTIVITIES
VALUE PROPOSITION
KEY RESOURCES
COST STURCTURE - Employees’ salaries (internal and external) - Rent of space - Website domain - Legal team - Events (if these are made under/for the PR agency. Clients’ events are under their cost/budget) - Software subscription
CUSTOMER RELATIONSHIP
CUSTOMER SEGMENTATION
CHANNELS
REVENUE STREAMS It will depend since each client will have a different objective. - Standard fee for strategizing - Percentage of sold products (for up-and-coming designers) - Retainer fees (monthly- annually depending on the client) - Offer hourly rates - Project-base fee - Payment-by-result - Amount of exposure/visibility obtained
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MISSION,VISION & VALUES
MISSION PR Communications is an agency that specializes in providing personalized and optimal strategic plans to their clients.Achieving our clients’ goals and overpassing their expectations.We focus on communicating each of our clients’ unique vision to their target. Our clients’ reach will expand trough our important network of media outlets, fashion insiders, and industry professionals. We also focus on creating an organization that works as a team to excel together in marketing and communications.
VISION PR Communications will be one of the most distinguished, prestigious, innovative, and dedicated PR agency in Ecuador and will eventually expand across South America. Fulfilling each of our clients’ goals and maintaining a good relationship between labels and target audiences.
VALUES We value creative minds that want to create specialized and focused plans for clients. We value culture, fashion, and art. We value being different and unique. We value teamwork and collaborations. We value the principle of trust, honesty, respect, commitment, and integrity. We value relationships, innovation, and partnerships. We also value and understand the importance of technology. Most importantly we value continuous improvement, inside the company and for our clients. 43
BRANDING
COLORS
PREDOMINANT According to color psychology, the color orange transmits creativity, fascination, enthusiasm, and friendliness. By being a warm color it also represents energy and positivism. (Nediger, 2019)
SECONDARY The light blue represents trust, loyalty, confidence, and stability. (Nediger, 2019)
TERTIARY
The black color is timeless and it represents elegance, sophistication, prestige, and value.
The three colors were selected for a reason. PR Communications wants to be an agency that is recognized in the market and that its logo evokes the different qualities mentioned.
(Nediger, 2019)
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LOGO EXPERIMENTATION COMMUNICATIONS
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COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
COMMUNICATIONS
TYPOGRAPHY
BUSINESS CARDS
LOGO FONT: FUTURA CONDENSED MEDIUM ABCDEFGHIJKLMNOPQRSTUVWX YZ0123456789 TITLES: GILL SANS REGULAR ABCDEFGHIJKLMNOP Q R ST UVW XY Z 0 1 2 3 4 5 6 789 Body: Gill Sans Regular abcdefghijklmnopqrstuvwxyz A B C D E F G H I J K L M N O P Q R ST UVW XY Z 0123456789
RAFAELLA DE GUZMAN Founder & CEO
T: +593 99 870 4291 E: rafaella@prcommunications.com W: prcommunications.com
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STATIONERY
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RESOURCES
METHODOLOGY For this thesis, qualitative research was conducted in order to get insider information on the topic. The first interview was conducted via email with Ximena Ferro, a Marketing Expert, and today’s Woman to Watch for 2019. X, Ferro provided insider information on the current market position, gave her perspective on the growth of the market, the threats and the opportunities of the market. X, Ferro also pointed out the weakness in which the PR agency would be created. A weak market that could lead to big problems in the creation and development of the agency. Nevertheless, the information X, Ferro provided helped to see another perspective in which the PR agency could work if it was ever launched. The second qualitative interview was with Florencia Davalos, an Ecuadorian fashion designer. The interview was also conducted via email. F, Davalos provided information that was useful since she is a possible client that the PR agency would work with. Since she is already set in Ecuador and has her business for around 4 years, she clearly understands the market in which both businesses would work. F, Davalos provided her perspective on the way the Ecuadorian market functioned for her business. A third qualitative interview was set with Founder of All in One agency, L, De Vivero but due to time differences and busy schedules, it was not possible.
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REFERENCES 5W Public Relations. (no date) “What is Public Relations and Why is it Important?” 5W Public Relations. [Online] [Accessed August 2019] https://www.5wpr.com/new/what-is-public-relations-and-why-isit-important/ All In One. (2019) [Online] [Accessed August 2019] http:// allinone.com.co Altamirano Hernandez, G. (2018) “La Moda Nacional Avanza, Mientras se enfrenta a nuevos desafios.” El Telegrafo. [Online] [Accessed August 2019] https://www.eltelegrafo.com.ec/noticias/desde/1/la-modanacional-avanza-mientras-se-enfrenta-a-nuevos-desafios America Economia. (2015) Ecuador ya esta cobrando el arancel a empresarios de textiles colombianos. America Economia. [Online] [Accessed August 2019] https://www.americaeconomia.com/economia-mercados/ comercio/ecuador-ya-esta-cobrando-el-arancel-empresarios-detextiles-colombianos Batat, W. (2019) Digital Luxury. 1st ed., London: SAGE Publications Ltd.
Business of Fashion (2019) PR Consulting. Business of Fashion. [Online] [Accessed August 2019] https://www.businessoffashion.com/organisations/pr-consulting Chitrakorn, K. (2017) How I broke Into Fashion: PR Consulting’s Pierre Rougier. Business of Fashion. [Online] [Accessed August 2019] https://www.businessoffashion.com/articles/careers/pierrerougier-fashion-pr-consulting El Universo. (2007) Correa: Elevacion de impuestos no afecta a pobres. El Universo. [Online] [Accessed August 2019] h t t p s : / / w w w. e l u n i v e r s o . c o m / 2 0 0 7 / 1 0 / 2 7 / 0 0 0 1 / 9 / E1C2A822492347FC9E4F56F8E577DFF3.html El Universo. (2017) Innovacion ecuatoriana se vera en Designer Book. El Universo. [Online] [Accessed August 2019] h t t p s : / / w w w. e l u n i ve r s o. c o m / t e n d e n c i a s / 2 0 1 7 / 1 0 / 2 6 / nota/6449725/innovacion-ecuatoriana-se-vera-designer-book Fernandez, C. (2017) The Changing Face of Fashion PR. Business of Fashion. [Online] [Accessed August 2019] https://www.businessoffashion.com/articles/professional/thechanging-face-of-fashion-pr
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Fitch Solutions. (2018) Latin America E-Commerce: Brazil and Mexico Most Attractive In a Risky Yet Rewarding Region. Fitch Solutions. [Online] [Accessed August 2019] https://www.fitchsolutions.com/country-risk-sovereigns/latinamerica-e-commerce-brazil-and-mexico-most-attractive-riskyyet-rewarding-region-21-12-2018 Garcia,A. (2017) La industria de la moda de Ecuador enfrenta brechas de innovaciรณn y de acceso a materia prima. El Comercio. [Online] [Accessed August 2019] https://www.elcomercio.com/chic/industria-moda-ecuadorinnovacion-textiles.html Nediger, M. (2019) Everything You Need to Know About Picking and Using Brand Colors. Venngage. [Online] [Accessed September 2019] https://venngage.com/blog/brand-colors/ Revista Lideres. (no date) La Competencia para los textileros ecuatorianos aumenta. Revista Lideres. [Online] [Accessed August 2019] https://www.revistalideres.ec/lideres/competencia-textilerosecuatorianos-aumenta.html
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Sebellin-Ross, S.J. (2012) Public Relations: Everything you need to gert in the door, up the ladder, and to the top. 1.2 ed. Susanne SebellinRoss. Sethi, K. and Pantoomano P. (2015) The Art of Marketing and PR. 1st ed., Brand Now.
BIBLIOGRAPHY Alvarado, AC. (2017) La Moda Ecuatoriana deja su huella en las pasarelas internacionales. El Comercio. [Online] [Accessed August 2019] https://www.elcomercio.com/chic/moda-ecuatoriana-huellapasarelas-disenadores.html Alvarado, AC. (2017) Lo Mejor del Diseño de modas academico fue premiado. El Comerico. [Online] [Accessed August 2019] https://www.elcomercio.com/chic/diseno-moda-academicopremio-ecuador.html Alvarado, AC. (2017) Jose Forteza: ‘La gente todavia quiere ver la revista impresa.’ El Comercio. [Online] [Accessed August 2019] https://www.elcomercio.com/chic/joseforteza-entrevistarevista-vogue-runway.html Alvarado, AC. (2017) Ecuador, en la tienda del World Fashion Week. Revista Lideres. [Online] [Accessed August 2019] https://www.revistalideres.ec/lideres/ecuador-tienda-worldfashion-week.html Batat, W. (2019) The New Luxury Experience. Switzerland: Springer International Publishing.
El Diario. (2019) El Ecuador Fashion Week calienta motores. El Diario. [Online] [Accessed September 2019] http://www.eldiario.ec/noticias-manabi-ecuador/508687-elecuador-fashion-week-calienta-motores/ El Universo. (2018) En Ecuador el diseño se renueva con creativas propuestas. El Universo. [Online] [Accessed August 2019] h t t p s : / / w w w. e l u n i ve r s o. c o m / t e n d e n c i a s / 2 0 1 8 / 0 8 / 1 6 / nota/6907436/diseno-nacional-se-renueva-creativas-propuestas Fitch Solutions. (2019) From Status Symbols to Status Experiences: How Luxury Brands Can Target New Audiences. Fitch Solutions. [Online] [Accessed August 2019] https://www.fitchsolutions.com/corporates/retail-consumer/ status-symbols-status-experiences-how-luxury-brands-can-target-new-audiences-29-05-2019?fSWebArticleValidation=true&mkt_tok=eyJpIjoiTW1SaE9UVmxZMlkwTjJReCIsInQiOiJPTktUbFdJK1M1OW4rVWFZZ2hhaFRwWDliXC82dHNPN3NKYUE0cnU2TnVcL2RrSnJuSmhubSt2UmFrTGQ3aUNadmlUSkFEYW44ZWh0dXNIcDFPd25Cdjh0RUVhZm93Z1pseUJyQzZ0Zjlxa2JJSEZkbk9tTlJkNXhvR1AwWUgzM1Z4In0%3
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Ijelman, C. (2017) En Imagenes: Las Pasarelas Destacadas de Runway. Fashion United. [Online] [Accessed August 2019] https:// fashionunited.co/noticias/moda/en-imagenes-las-pasarelasdestacadas-de-runway/2017052822328 San Miguel, S. (2017) Maria Susana Rivadeneira: ‘En moda hemos avanzado, pero falta mucho por hacer.’ Expreso. [Online] [Accessed August 2019] https://www.expreso.ec/suplementos/expresiones/maria-susanarivadeneira-en-moda-hemos-avanzado-pero-falta-mucho-porhacer-BE1789065 Warner, C. (2015) Public Relation Strategies You Need to Know. Caryn Warner.
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ICONOGRAPHIC 1: All In One (2019) Official Logo. [Online] [Accessed August 2019] http://allinone.com.co 2: PR Consulting (2019) Official Logo. [Online] [Accessed August 2019] http://prconsulting.net Cover: Logo created by Author (2019) Back Cover: Istituto Marangoni (2019) Official Logo. [Online] [Accessed August 2019] http://istitutomarangoni.org/ Pie Charts: Made by Author with Informaton from: Revista Lideres. (no date) La Competencia para los textileros ecuatorianos aumenta. Revista Lideres. [Online] [Accessed August 2019] https://www.revistalideres.ec/lideres/competencia-textilerosecuatorianos-aumenta.html Icons from pages 17: Flat Icon (2019) Wifi. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ wifi_149195#term=wifi&page=1&position=2 Flat Icon (2019) Population. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ population_1457867#term=population&page=1&position=34 Flat Icon (2019) Global. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ global_1876519#term=economic&page=1&position=9
Icons from pages 22: Flat Icon (2019) Capitol. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ capitol_2094021#term=political&page=1&position=14 Flat Icon (2019) Economic. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/economic_1789297 Flat Icon (2019) Social Care. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/socialcare_921305#term=social%20care&page=1&position=1 Flat Icon (2019) Project Management. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/project-management_ 1087927#term=technology&page=1&position=15 Icons from pages 43: Flat Icon (2019) Target. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ target_1589599#term=mission&page=1&position=1 Flat Icon (2019) Company Vision. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/companyvision_1945651#term=company%20vision&page=1&position=2 Flat Icon (2019) Value. [Online] [Accessed August 2019] https://www.flaticon.com/free-icon/ value_944015#term=value&page=1&position=4 55
APPENDIX
TABLE OF CONTENTS: APPENDIX INTERVIEWS 1. Ferro, X: Marketing Expert 2. Davalos, F: Fashion Designer
FIGURES 3. Percentage of Stores in Malls 4. Percentage of Textile Imports
54 56 57 57
OTHER 5. About the Author
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INTERVIEW 1 What services do you think are needed in current public relations companies? There are several Public Relations companies in Ecuador but I think they need to make brand launches that effectively reach the target. Perhaps it is not the fault of the companies as such but of the low budgets they have to carry out the events. Also they don’t manage correctly the different media and not many media cover the events, or broadcast the creation of new companies or products for the general public. Do you think the fashion industry in Ecuador has grown in the last 3 years? It has grown a little. Sadly the economic crisis affects the social class with the power to buy and the majority prefers to buy abroad than in their own country. There are new fashion designers that have launch their brands, however the products end up being very expensive, therefore don’t attract the public. For example, La Tejedora that is the Design District, and it is where several designers have joined to sell clothing. At La Tejedora, you can find imitations and similar products to products you can find abroad at much higher prices than the original international brands. I have seen some fashion companies that have implemented indigenous items from Ecuador, like fajas or accessories resembling the style from Otavalo, and that gives it a special touch that many like, but
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still there are similar products sold in the artisanal market and cost considerably less. According to you what is the main reason of the growth or what is the main reason why it has not grow? I think today there are many designers that have the degree and the enthusiasm to open their own businesses and clothing shops, but there is little or non-acceptance from the public or it is the fact that the products end up being very expensive. The people from Ecuador are very traditional and they follow more classic designs, which does not allow new designers to experiment with different styles. Another reason that I can think has limit the designer to be successful is the high price of commercial stores, which has pushed designers to sell online or in bazaars, that have become popular among Ecuadorians. There is a high preference for massive brands like Zara, Forever 21 and others that sell a lot. If a PR agency is created for fashion what services would you think they should offer? First of all it is an educational process, what I mean is that first the PR agency should make the media/press know and learn about the brand so that the media can promote it through their different channels. That process of lobbying is very important in order to
make the brand recognized in the market. Also, they should make an event to launch the agency, that could include doing a runway show, that project should attract important buyers from the market, people with high acquiring power, and also influencers. The work with influencers is very important since we know that Millennials and Gen Z are very influenced by opinion leaders. The influencers should also be used for lobbying since they can become spokespersons for the company in an active and positive way.The company should also offer social media management and communication that is highly effective, creating content that will attract consumers and position the brand/company in the mind of possible consumers. What would you tell to someone that wants to enter in this sector in Ecuador? That it is a beautiful dream. That is would be marvelous to see Ecuadorians more opened to using unknown brands from independent designer, although it will be hard work to achieve it, it is not impossible‌ only hard.
FERRO, X. INTERVIEWED BY: DE GUZMAN, R (7TH AUGUST, 2019) Ferro, X is a Marketing Expert from Ecuador and considered a Woman to Watch 2019. 59
INTERVIEW 2 As an Ecuadorian designer, what is your opinion in the Ecuadorian market? As an Ecuadorian designer I think the country’s market is a small difficult market, bit that’s the good thing. Although it is small, it moves a lot because we are constantly growing, it means, I have the opportunity to develop more as a brand. Also it gives the opportunity to consumers to be educated over time and get more used to buying Made in Ecuador. It is a market you can bet on like an entrepreneur since you can educate it and help it support entrepreneurs. Do you think that fashion in Ecuador will one day be recognized? Yes surely, and I think it has already been recognized in past years. Vogue has published certain designers (including me). And if we are referring to being famous or having a famous and recognized designer, yes, I think it’s a matter of time! How was your return to Ecuador after being in Spain? My return at the beginning was hard, as for anyone returning from abroad. But if I do a retrospective since I got to where I am now, I realize that although it was hard I saw it on the positive side and I was able to join the market in terms of my work, little by little I was breaking down barriers, creating cloths of the consumer,
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taking risks and betting on my designs! What are some of the challenges and advantages of being one of the few fashion designers in Ecuador? Challenges: enter the market and maintaining a business Advantages: take advantage of everything you can do, be more creative, eat the market, and be different from the rest… I can think of many more. Would you work with a public relations company focused on fashion? Yes I would work with an agency; I feel it is very important to have a team behind. If yes, what would you expect from the agency? And it not, why? I would hope that this creates a link between the brand and the consumers. In other words, there is a strategic communication that seeks to sell, promote, influence, expand the brand, etc.
DAVALOS, F. INTERVIEWED BY: DE GUZMAN, R. (15 AUGUST, 2019) Davalos, F is a recognized Fashion Designer from Ecuador
FIGURES FIGURE 1: Percentage of Stores in Malls
FIGURE 2: Percentage of Textile Imported to Ecuador
Revista Lideres. (no date) Percentage of stores in malls for national and international brands. Revista Lideres.
Revista Lideres. (no date) Percentage of textile imported to Ecuador. Revista Lideres. https://www.revistalideres.ec/lideres/
https://www.revistalideres.ec/lideres/competencia-textilerosecuatorianos-aumenta.html
competencia-textileros-ecuatorianos-aumenta.html
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ABOUT THE AUTHOR Rafaella De Guzman was born and raised in Quito, Ecuador but she has double nationality as Italian. She has a BFA in Fashion Marketing and Management from the Savannah College of Art and Design, Savannah-USA. Where she also obtained two minors, one in Writing and the second in Business Management and Entrepreneurship. At SCAD she graduated Cum Laude. After finishing her studies she went to New York City to work in a PR agency, where she fell deeply in love with the work. The passion for PR made Rafaella go back to school to earn a Master degree in the field. She is pursuing her Master’s degree in Fashion Promotion, Communication, and Media at Istituto Marangoni, Milan-Italy. Rafaella is a dedicated worker, has passion for the communication world and is determined to keep learning from it. After obtaining her Master’s degree she hopes to work in a PR agency in Milan to put into practice her experience and her new knowledge. And eventually, one day be able to open her own PR agency to help brands achieve their goals.
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