Essays24.com - Term Papers and Free Essays
Search

The Fashion Channel

Essay by   •  November 30, 2016  •  Coursework  •  689 Words (3 Pages)  •  893 Views

Essay Preview: The Fashion Channel

Report this essay
Page 1 of 3

MKTS: Brief case analysis

The Fashion Channel

Kavya Hegde                                                                                61710605

Dana Wheeler, Senior vice president of marketing for The Fashion channel used the reports from National Consumer Study and report prepared by GFE study for analysing the segments. The unique clusters supported by the reports were - Fashionistas, Planners & Shoppers, Situationalists, and Basics. Per the quantity of the viewers, advertising revenue potential and competition, Wheeler came up with three scenarios.

  1. cross segment of Fashionistas, Planners & Shoppers, and Situationalists
  2. Focus on Fashionista segment
  3. Combined segment of fashionista and planners-shoppers

The Pros and cons of each of the above scenarios are listed as follows:

Pros

Cons

Scenario 1

  1. Boosting of the rating by 20% (1.0 to 1.2)
  2. Sticking to current strategy of TFC – “Fashion for everyone”
  3. No additional promotional expense is needed
  4. Size of the cluster is almost 80%
  5. Awareness will increase as it is being marketed to all the segments
  6. Margin increase by 29% (Appendix 1)

  1. CPM is same as that of predicted for 2007
  2. Not targeting specific user segment might dilute the brand value
  3. Competitors might continue focusing on niche segments making TFC losing out on its major viewers
  4. It won’t improve either marketing strategy or perception of consumers

Scenario 2

  1. Takes care of the strongly beneficial segment of female of age 18-34
  2. Lures advertisers as they can focus on the predefined target segment
  3. CPM will increase to 3.5
  4. Heads on with Lifetime channel, as the programs would be focused on their target segment of female with age range of 18 – 34
  5. Margin increases by 37%
  1. Targeting niche segment might result in drop of viewers
  2. Rating might decrease to 0.8
  3. High programming cost of 15 million
  4. Customer awareness would not change
  5. Need of creating the programs catering to focused group of customers

Scenario 3

  1. Tv rating will be increased to 12 (20%)
  2. CPM will increase to 2.5 (25%)
  3. 50% of the TV viewers are covered with this focus segment
  4. Margin will be increased by 39%
  5. It will cater to competitor’s segment too along with TFC’s original segment
  1. 20 million cost must be incurred for new programing
  2. Again, there is a chance of losing out on the major segment of already existing users
  3. New programming has to be created to cater the targeted hybrid segment

Segmentation and targeting scenario:

Based on the calculations in appendix 1, I would like to pick scenario 3

  • TFC gets highest margin of 39% on scenario 3, which fetches the TFC highest financial benefit
  • This is a segment that caters close to 50% of the viewership base, that is more active on fashion related shows
  • This caters to the major segment that follows the fashion channel, i.e. the demographic age group of 28-45
  • This segment also plays heads on with competitor segment and thus attracting them towards TFC
  • Advertisers can be benefitted in a better manner as the target segment of users tend to shop and plan more along with being interested in fashion. So, this is the added advantage
  • It reduces the risk of targeting single segment and losing out on viewership
  • It also decreases risk of being catered to whole set of users, diluting the viewership base and viewers loyalty

Appendix 1:Ad Revenue Calculator

Ad Revenue Calculator

 

 

 

 

 

Current

2007 Base

Scenario 1

Scenario 2

Scenario 3

TV HH

110,000,000

110,000,000

110,000,000

110,000,000

110,000,000

Average Rating

1.0%

1.00%

1.2%

0.8%

1.2%

Average Viewers (Thousand)

1100

1100

1320

880

1320

Average CPM*

$2.00

2

$1.80

$3.50

$2.50

Average Revenue/Ad Minute**

$2,200

$2,200

$2,376

$3,080

$3,300

Ad Minutes/Week

2016

2016

2016

2016

2016

Weeks/Year

52

52

52

52

52

Ad Revenue/Year

$230,630,400

$230,630,400

$249,080,832

$322,882,560

$345,945,600

Incremental Programming Expense

 

0

0

15000000

20000000

 

 

 

 

 

 

...

...

Download as:   txt (5.2 Kb)   pdf (133.2 Kb)   docx (13 Kb)  
Continue for 2 more pages »
Read Full Essay Save
Only available on Essays24.com