The Fashion Channel

577 Words Feb 14th, 2013 3 Pages
Case: * Fashion Channel

Read the Fashion Channel case and answer the questions below. Please note the following additional guidance:

The discussion of alternatives indicates that for the first scenario, an investment in programming would be required but the case does not indicate how much that might cost.  You can either assume that this spending was flat or you can assume an increase. In either case, specify your assumption and base your findings on that assumption.

Questions: 1. What is your interpretation of the consumer and market data presented in the case? What key conclusions do you draw from these data? Explain. TFC meets the needs of women 35-54, who have a passion for fashion. As a result of TLC
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Less likely to watch fashion TV. Situationalists Pro: Enjoys fashion Cons: Fickle audience-only pays attention to fashion for specific events Basic Pro: None Cons: Not interested in watching fashion TV nor enjoys shopping

3. What outcomes would you anticipate from each of the segmentation options? Explain and support your findings with what you believe would happen to ratings and average ad revenue pricing (CPMs)under each option. Fashionistas Ratings will decrease as a result of the marketing effort focusing on attracting the viewer who breathes fashion. The programming content may need to shift to focus to differentiate itself from the competition, which will result in increasing its CPM for ad space. Planner& Shoppers Rating will increase as a result of drawing a broader audience who enjoys fashion. As a result of the broad appeal of the programming content, it will have to compete with the competition for the same viewers. This will result in a decrease in ad revenue because channel will have to decrease its CPM to compete with the competitors. Situationalists Rating and CPM will decrease as a result of the fickle audience. Basic Rating and CPM will decrease due to the this cluster’s disinterest in fashion.

4. What segmentation option would you recommend? Explain. I would recommend in focusing its efforts ‘Fashionistas’. They are the most likely to stay loyal to the network as well as provide new

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