The Fashion Channel Pros & Cons

Overview At the completion of this assignment you leave behind achieve the hobby module physical object 1 . Measure the profit rival of marketing variance strategies. Instructions You entrust be responsible for analyzing the equivalent fictitious character and posting your individual work in your group discussion forum by the specified due date (see conformation calendar for details). Post your answers to the case questions 2 to 3 directly in the forum, it pass on save you and your teammates some time, and attach the corresponding excel spreadsheet with the financial analysis.A word of advice translate the case questions before reading the case. steering only on the information you sine qua non to answer the questions. Do your assignment in Word and always save it and because copy it over, you never complete when you leave alone be the victim of technology failure. It would to a fault be cooperateful if you read the rate rubric before submitting your work. You le ave behind know exactly what is expected from you. The Fashion Cannel 1 . What are the pros and cons of the three part scenarios? realise carefully the case and make a list of the pros and cons of each part scenario. practice session the following table to summarize your findings. Scenario 1 Broad-based sectionalization Scenario 2 Fashions focus I Scenario 3 Fashions + I Planners/Shoppers I Targeting Cheapest because of indulgent implementation and I Compared to the 2007 numbers this segmentation I Compared to the 2007 numbers this I on that point is no need to develop vernal computer programing. I produces $100 one million million much in damage of web Segmentation yields almost $115 million I ISticks with old marketing approach which had I income. I more in legal injury of net income. I caused TFH to grow so quickly in the past I This segmentation improved TV ratings from 1. 0% This scenario improves TV ratings from I I impart become popular in its primordial year s. Tit 1. 2% 11. 0% to 1. 2 % and comely CPM from $2. 00 I I Keeps executives compose why fix something I The average CPM would development from $2. 00 to Tit $2. 50 I thats not broken bracing segmentation TFH could I $3. 50 I With this I Hits the target market of valuable 18-34 It would help compete against Lifetime because Differentiate its programming from Females in all clusters. The ages of I trustworthy and future competition by subsisting loyal viewers 18-34. 150% of fashions are between Ill not cram any I producing programs specific to this I audience. I because not much will change. I I Delivers $40 million more in terms of net I I income compared to 2007 base number. I Cons I Luke-warm approach by attempting to revenge I Results in 0. 2% devolve in TV ratings. I Although this segmentation producesI liverymen- TFH will not satisfy anyone. I This scenario requires $1 5 million additive Desirable numbers in terms of TV ratings I I I Risk losing viewers to more ta rgeted I programming expense to cover new programming. Land CPM, this scenario requires a $20 I programs like CNN and Lifetime. This cluster is also the smallest of the quatern I million incremental programming expense toll I CPM is relieve $0. 20 lower than the current lusters which could deuce-ace to a decrease in I account for re-positioned programming. I I CPM.I viewers from the other clusters. I TFH would only be targeting about 50% of I TFH would cool it struggle to compete with I Because this scenario targets the smallest I us households. I Lifetime and CNN without ever-changing the luster, TFH awareness by consumers would not I This could lead to a decrease in their I programming offered by the channel. I change, and their TV ratings might decrease I loyal viewers and might negatively affect I I take aim more. I their TV ratings. 2. Estimate the extend to of each segmentation strategy on the companys revenue.You will have to estimate the financial of the company using the excel the following scenarios 2007 Base No segmentation tumble in ad building block set (average CPM). File. Consider Scenario 1 Multi segments, targeting 3 groups (excluding Basics) increase in ratings, decrease in ad unit pricing (average CPM). Scenario 2 ane segment, Fashions drop in ratings, increase in ad unit pricing (average CPM). Scenario 3 Two segments, Fashions and Shopper/Planner increase in ratings and increase in ad unit pricing (average CPM). Individual Case 2 Questions