The Fashion Channel
Essay by Kavya Hegde • November 30, 2016 • Coursework • 689 Words (3 Pages) • 902 Views
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.
- cross segment of Fashionistas, Planners & Shoppers, and Situationalists
- Focus on Fashionista segment
- 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 |
|
|
Scenario 2 |
|
|
Scenario 3 |
|
|
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 |
|
|
|
|
|
|
...
...