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Marketing Project

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MIDDLE CLASS The structure of Colombia was created based on traditions from the sixteenth-century Spain. It was classified in three categories at this time. First, well-defined class membership. second,pronounced status differences. third, limited vertical social mobility. In the urban sector the levels were categorized as, flexible social system, growing middle class, and greater participation of the population in national politics. In Colombia, speaking about social classes was a difficult topic. Due to the fact that there were feelings of cohesion and exclusiveness attached that were unevenly connected to social status in Colombia. Recently, in Colombia four social classes were recognized. The upper class with 5 percent, middle class with 20 percent, lower class with 50 percent and finally the masses with 25 percent. In Colombia, social classes are identified by their occupations, lifestyle, family background, level of education, income and the position of power. The social classes’ limits were set up with more flexibility in the industrialized areas than in the rural communities. According to The World Bank website, Colombia middle class has grown 50 percent in Latin America from 2003 to 2009. Colombians were able to improve their economic system by 54 percent in the last years. The average of academic school years attended by the middle class people in Colombia is 10 years. In the last years, Colombians changed their regular social economic status for a higher social status.

EDUCATION Education has been one of the key instruments for reducing poverty. This is known around the world, but Colombia is planning on investing Also education gives the opportunity of reducing inequality and gives a chance to grow the economy of a country. As education rises the

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better decisions an individual can make. However, is not only on the best decision or choice one can make but the ability to know when, where,how can they obtain a product. Currently, Colombia holds about 30% of the young working population. According to WorldBank, 39% of young Colombians never continue studying after secondary school. Moreover, only 17% of young working Colombians are unemployed, which the country holds a high unemployment rate of 9%(2016). Colombia’s goal is to bring students from whichever background to the highest level of education. Colombia wants to prepare the youth, to be well prepared to obtain a bachelor's degree or master's degree. Socio-economic and geographic differences affect colombia, only about 9% of students from the poorest families enroll in tertiary education. We have to compare these with 53% that do attend the tertiary education, which is from the wealthiest. Colombia has in place a “functional grant system for students’, which this classifieds them on their socio-economic situation, to give the help to those that needed the most. Major achievements have been met at Colombia, with now about 50% enrollment rate to tertiary education which is double from a decade ago. Many other challenges are still face by Colombia with enrollment rates lower in the rural areas than urban ones 26% and 48% respectively.

Technology In Colombia, internet is not sparse. There’s a preconceived notion when reading statistics about Colombia’s connectivity, that they primarily use landline connections when it comes to connecting to the world. However, just like many people from the U.S., Colombians primarily use their mobile phones to stay in touch with friends/family and connect to the internet. According to a report from 2013 by Global Telecoms Business, Fabio Laguado from GlobeNet commented that “there are 47 million people in the country and mobile voice penetration is

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reaching 100%" says Laguado” (GTB 2017). As a representative of GlobeNet in Colombia, Laguado helps us grasp the idea that mobile telecommunications is the main channel for communicating in Colombia. While it is ambitious to say that it would be reaching 100% soon, we know that in the year of 2014, the International Trade Centre reported that about half of the population in Colombia has a mobile cellular subscription (Intracen.org 2017). The ambition could be due to the president’s promise of improving Colombia’s overall infrastructure. While the statistic does not say if it includes both talking minutes and data, we know that half the population has the ability to make and receive phone calls anywhere as long as they have reception. In addition to Laguado’s comment, in 2013 he reported that in 2010, around 2.2 million people had access to internet (GTB 2017). We can infer from the previous statement that internet accessibility has increased due to the technological advances of mobile telecommunications and services. One example would be the introduction of 4G networking, which allows high speed internet access through mobile terminals such tablets or cell phones. In combination of Colombia’s ever increasing use of social media, it could be easier to find marketing opportunities for Paillasse. In today’s advertising setting, mobile advertisements are becoming prevalent for any country. Pain Paillasse could use this to their advantage and gain the upper hand in terms of drawing in sales.

RELIGION Colombia is an overwhelmingly Christian nation, over 90% of Colombians profess to the Christian faith, 5% being atheist, and the other 5% being a mix of Jews, Muslims, African animistic religions, syncretistic faiths consisting of a blend of Catholicism with African animism,

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and a small portion of Taoist. Breaking down the Christianity faith, 75% is Roman Catholic Christianity, 15% is Protestant Christianity. Some of these religions prohibit you from eating a certain food for either a period of time, or your whole life. Catholics have lent, which starts on Ash Wednesday and lasts around six weeks, before Easter Sunday. It is a practice where they fast a certain food or certain luxury to replicate the sacrifice of Jesus Christ's journey into the desert for 40 days. Muslims can’t eat pork, it it against their religion.

VALUES AND ATTITUDES In countries such as Colombia, a person is part of a large group, meaning that people tend to be in groups rather than individualism. In the familial aspect, Colombians are extremely family oriented and pressure by family members to take decisions.People tend to make decisions while being influenced by the group -- in some cases, even seeking to satisfy the group. It is important to understand that people from Colombia can be extremely sensitive to prices when buying a product and this could be affected depending on their social status. People from lower class and middle class are very discreet buying products except all their necessities and basic or essential purchases for living expenses such as bread. In the Marketing case of Paillasse Marketing SA, selling this product in a bakery in Colombia should work perfectly fine because as I mentioned before Colombians spend quality time with groups such as family. This means that family gather and eat together, and they need a product such as Paillasse to share. Colombians are well known for drinking coffee and bread. Paillasse should not be an exemption if it has an affordable price it will be a perfect combination for Colombian coffee.

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BRAND NAME PERCEIVED We believed that Paillasse Marketing Company will work efficiently in Colombia because this country does consume bread. However; Colombians have about 12 different recipes to consume bread and Paillasse should not be an exception to be added in their top categories to consume bread. Paillasse is a great brand that could be positioned in the Colombian consumer side as being a basic consumer product to be competitive with their traditional bread recipes. (Sam’s point of view) It can be challenging for an outsider to come into this particular market, because of Colombians rich culture. Nevertheless, partnering with a local bakery will be ideal. A mom and pops place will work perfectly, because they know their customer base. This older establishments know the culture and know what sells and what does not. Making bread that is similar to the ones make by local bakeries will put them in a competitive advantage. This will help them incorporate to the market and learn about the likes about the people in Colombia.

Work Cited "Broadband Growth Stimulates Demand for International Capacity." Global Telecoms Business, no. Supp 1, 02 Jan. 2013, p. 39. EBSCOhost, mimas.calstatela.edu/login?

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url=http://search.ebscohost.com.mimas.calstatela.edu/login.aspx? direct=true&db=buh&AN=109026326&site=ehost-live.

"Colombia - Infrastructure." International Trade Centre, www.intracen.org/country/Colombia/ Infrastructure/. Accessed 27 Sept. 2017.

Youngblood-Coleman, Denise. “Colombia: People.” Login - EZ Proxy Server - Primary, www.countrywatch.com.mimas.calstatela.edu/home/searchresult?Type=text&CountryID =38&Topic=CLPEO&q= Middle Class in Colombia. Accessed 27 Sept. 2017.

Youngblood-Coleman, Denise. “Country Review: Colombia.”CountryWatch.com,2016, http://www.countrywatch.com.mimas.calstatela.edu/Intelligence/CWTopic?Type=text& CountryID=61&Topic=POPCO

World Bank. (2017). Colombian Middle Class grows over past decade. [online] Available at: http://www.worldbank.org/en/news/feature/2012/11/13/colombia-middle-class-growsover-past-decade

http://www.worldatlas.com/articles/religious-beliefs-in-colombia.html

http://www.worldbank.org/en/news/feature/2013/01/24/colombia-more-success-in-highereducation- more-opportunities- for-youth (Education)

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http://www.mycolombianrecipes.com...