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Essay about Fashion Channel Case Analysis

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Fashion Channel Questions Please answer the following questions in no more than 3 pages single spaced or 6 pages double spaced using a 12pt font. Exhibits such as your excel results do not count against the page limit. Please note that the column “2007 base” in the excel spread sheet assumes you do not segment the market. It is critically important that you communicate your reasoning clearly. You MUST NOT talk about the case in depth with anyone else. 1. How would you interpret the consumer and market data if you were Dana Wheeler? Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each. (1) With the total 110 million TV householders with televisions in the United States, the channel reached …show more content…

Finally, it could achieve an increase of about $1million in net income than year 2006, but this scenario could not show much more potential in improving margin. In a word, this scenario brings least profits and no additional expense to TFC among three scenarios. The second scenario would bring 0.20% decrease in average rating but average CPM of $3.50, best CPM among three scenarios, leading to higher ad sales of $322,882,560 and get to $404,482,560 in total revenue. In addition, it would produce incremental programming expense which is $15,000,000 and reach $252,986,477 in total expense. Finally, this scenario could achieve net income of $151,496,083 and considerable margin of 37%. The third scenario is expected to achieve 1.2% in average rating and $2.50 in average CPM, behave not bad in both, and reach the total as sales of $345,945,600. So its revenue is highest which $427,545,600 in total is. What’s more, although this scenario brings highest expense in programming which is $75,000,000, it achieves highest net income which is $168,867,232 and highest margin which is 39%. This scenario could be better generate revenue by using its programming expense. 3. If you were Dana Wheeler, what would you recommend and why? I would recommend choosing the second scenario, which focus more on the Fashionistas. Firstly, I would like to talk about why I do not choose the first scenario. From the Alpha research which showed that TFC performed worse than CNN and

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