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
3. Identify all costs, other than variable costs, for the trade show distribution strategy. Categorize these costs as investments and fixed costs (per trade show and for fiscal 2005).
In the worst case scenario, we assume there is a 5% fluctuation in unit sale price and unit variable
There would still be a net loss in 2006 due to the increase of break-even point, which increased from $7,505 to $8,640.
The advancement and development in delivery of media content has also affected the audience’s behavior in certain manner. In distant past, families use to gather around the only television screen in home and enjoy the prime time programs aired by these limited broadcasters. “Millions of households already have cancelled pay-TV subscriptions - up to 10 million U.S. households are currently broadband-only. And about 45 percent of Americans stream television shows at least once a month, according to research firm eMarketer. That number is expected to increase to 53 percent or 175 million people by 2018.” Anderson, Mae, and Michael Liedtke. "HBO Unleashes Streaming from Cable Contracts." The Charleston Gazette, 16 Oct. 2014. Web.
Write an 8 to 10 page Case Analysis of the following article (which can be found in the Ashford Online ProQuest database):
Total Sales Dollars (for covering each incremental dollar of advertising) = $200,000 / $150,000 = $1.33
b. Does the issue of branded vs. private label enter into this consideration? Why or why not?
[Appendix B shows Pro Forma for Option 1 and Appendix C shows a Pro Forma for Option 2] A1 can also take a reactive approach by increase its advertising while Lawry is running its two-for-$5 promotion. A1 Steak Sauce can pay for more efficient shelf spacing in the retail outlet. This will include end caps, more facings in the stores, larger and increase signage (bigger and better than what they have done in years past). A1 can also use their brand recognition to their advantage by ensuring more restaurants that publically use A1 display their products, rather it’s on the menu or tables. Currently A1 spends roughly 15% of total revenue on advertising. Option 3: A1 could simply increase their percentage of revenue to marketing and adverting from 15% to 20%. This approach will decrease A1’s net profit by roughly 7.5million (with the worst case scenario that A1 will not increase sales at all) but it will allow A1 to increase its brand awareness and make it substantially harder for Lawry to penetrate the market with its new steak sauce. [Appendix D displays A1’s pro forma with the original 15% of revenue funding its marketing while Appendix E displays an increase to 20% of revenue funding marketing initiatives]Recommendation: Based on the financial analysis of each option, Option 2 would be the best approach for A1. Although each scenario is profitable, Option 2 has more
In vertical analysis, it is easier to see elements as a percentage of Revenue. Between 2011-12, the portion that cost of sales takes in revenue has increased however, there is a bigger deterioration in distribution cost. In 2011, 9.21% of revenue remains as profit but in 2012 this figure decreases to 8.14%. Despite reduction in costs is one of the strategies of Ted Baker(part 1.4), analysis illustrates that costs increase each year.
a. Assuming the most current operational cost levels, what sales must it generate to recoup the above investment?
Carefully evaluate the pros and cons of the segment markets and determine the market where the product has definite advantages over other
Thus, we can concluded that the best response goes to hourly rate at $733 with around 10% increases in sales volume and extra revenue increased for $2664 with income improved by $2096 while other variables assuming contains. However, aims to turnaround the situation on shortfall in income, price adjustment to stimulate
In the base case, we assumed 11.0% compounded annual growth rate. This is based on modest growth in domestic sales, and optimistic expectations for the international, Babies R Us, and online sales. Online sales can save relevant costs of physical display of products and associated costs of running a store. EBITDA margin is assumed higher and will be higher in the near future as the sales grow. Capital expenditure and depreciation amortization expenses are assumed fairly constant over the years . Overall operation will generate enough cash to support debt and interest payments. If Toys R Us would be able to specialize some of baby products, video games and
This Assignment will develop your skills in industry analysis. This must be done as individual work, so you must not discuss the case with anyone else before completing the Assignment. Please use the following questions to structure your answer:
This equation is solved for the sales volume in units. c. In the graphical approach, sales revenue and total expenses are graphed. The break-even point occurs at the intersection of the total revenue and total expense lines. 8-2 The term unit contribution margin refers to the contribution that