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In this video, the creator demonstrates how to design a Christmas poster in Word. They refer to a sample poster throughout the tutorial for guidance. The first step involves adding a red background by inserting a rectangle shape in a blank document. For those with non-borderless printers, it's highlighted that the poster will print with a white border, so caution is advised not to position graphics too close to the edges. Instead, it's suggested to leave some space to avoid alignment issues when placing the graphics in the center of the poster.