Essay About Scenarios.Cross Segment Of Fashionistas And Predefined Target Segmentcpm

The Fashion Channel
Essay Preview: The Fashion Channel
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MKTS: Brief case analysisThe Fashion ChannelKavya Hegde                                                                                61710605Dana 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 SituationalistsFocus on Fashionista segmentCombined segment of fashionista and planners-shoppersThe Pros and cons of each of the above scenarios are listed as follows:ProsConsScenario 1Boosting of the rating by 20% (1.0 to 1.2)Sticking to current strategy of TFC – “Fashion for everyone”No additional promotional expense is neededSize of the cluster is almost 80%Awareness will increase as it is being marketed to all the segmentsMargin increase by 29% (Appendix 1)CPM is same as that of predicted for 2007Not targeting specific user segment might dilute the brand valueCompetitors might continue focusing on niche segments making TFC losing out on its major viewersIt won’t improve either marketing strategy or perception of consumers Scenario 2Takes care of the strongly beneficial segment of female of age 18-34Lures advertisers as they can focus on the predefined target segmentCPM will increase to 3.5Heads on with Lifetime channel, as the programs would be focused on their target segment of female with age range of 18 – 34Margin increases by 37%Targeting niche segment might result in drop of viewersRating might decrease to 0.8High programming cost of 15 millionCustomer awareness would not changeNeed of creating the programs catering to focused group of customersScenario 3Tv rating will be increased to 12 (20%)CPM will increase to 2.5 (25%)50% of the TV viewers are covered with this focus segmentMargin will be increased by 39%It will cater to competitor’s segment too along with TFC’s original segment20 million cost must be incurred for new programingAgain, there is a chance of losing out on the major segment of already existing usersNew programming has to be created to cater the targeted hybrid segmentSegmentation and targeting scenario:Based on the calculations in appendix 1, I would like to pick scenario 3TFC gets highest margin of 39% on scenario 3, which fetches the TFC highest financial benefitThis is a segment that caters close to 50% of the viewership base, that is more active on fashion related showsThis caters to the major segment that follows the fashion channel, i.e. the demographic age group of 28-45This segment also plays heads on with competitor segment and thus attracting them towards TFCAdvertisers 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 advantageIt reduces the risk of targeting single segment and losing out on viewershipIt also decreases risk of being catered to whole set of users, diluting the viewership base and viewers loyaltyAppendix 1:Ad Revenue CalculatorAd Revenue Calculator     Current2007 BaseScenario 1Scenario 2Scenario 3TV HH110,000,000110,000,000110,000,000110,000,000110,000,000Average Rating1.0%1.00%1.2%0.8%1.2%Average Viewers (Thousand)1100110013208801320Average CPM*$2.002$1.80$3.50$2.50Average Revenue/Ad Minute**$2,200$2,200$2,376$3,080$3,300Ad Minutes/Week20162016201620162016Weeks/Year5252525252Ad Revenue/Year$230,630,400 $230,630,400 $249,080,832 $322,882,560 $345,945,600 Incremental Programming Expense 001500000020000000