The Fashion Channel Pros & Cons

Overview At the completion of this assignment you testament grasp the spare-time activity module objective 1 . Measure the profit impress of marketing air division strategies. Instructions You pull up stakes be responsible for analyzing the correspond case and posting your individual work in your group watch password forum by the specified due date (see course schedule for details). Post your answers to the case questions 2 to 3 directly in the forum, it leave save you and your teammates some time, and attach the corresponding excel sp empathisesheet with the financial analysis.A word of advice Read the case questions before reading the case. Focus only on the information you need to answer the questions. Do your assignment in countersignature and always save it and then copy it over, you never know when you will be the victim of technology failure. It would withal be helpful if you read the grading rubric before submitting your work. You will know exactly what is pass judgment from you. The Fashion Cannel 1 . What are the pros and cons of the three segmentation scenarios?Read conservatively the case and make a list of the pros and cons of each segmentation scenario. map the following table to summarize your findings. Scenario 1 Broad-based Segmentation Scenario 2 Fashions focusing I Scenario 3 Fashions + I Planners/Shoppers I Targeting Cheapest because of easy implementation and I Compared to the 2007 number this segmentation I Compared to the 2007 numbers this I there is no need to develop rising programming. I produces $100 meg to a greater extent in terms of net Segmentation yields almost $115 million I ISticks with old marketing approach which had I income. I to a greater extent in terms of net income. I caused TFH to grow so chop-chop in the past I This segmentation improved TV ratings from 1. 0% This scenario improves TV ratings from I I land become popular in its early years. Tit 1. 2% 11. 0% to 1. 2 % and average CPM from $2. 00 I I Keeps executives calm why fix something I The average CPM would step-up from $2. 00 to Tit $2. 50 I thats not broken new segmentation TFH could I $3. 50 I With this I Hits the target market of precious 18-34 It would help compete against Lifetime because Differentiate its programming from Females in only clusters. The ages of I current and future competition by existing incorruptible viewing audience 18-34. 150% of fashions are between Ill not get any I producing programs specific to this I audience. I because not more 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 conform to I Results in 0. 2% descend in TV ratings. I Although this segmentation producesI liverymen- TFH will not satisfy anyone. I This scenario requires $1 5 million incremental Desirable numbers in terms of TV ratings I I I essay losing viewers to more targeted I programming expense to cover new programmi ng. Land CPM, this scenario requires a $20 I programs like CNN and Lifetime. This cluster is also the smallest of the four I million incremental programming expense price I CPM is still $0. 20 lower than the current lusters which could mite to a moderate 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 still struggle to compete with I Because this scenario targets the smallest I us households. I Lifetime and CNN without 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 cogency decrease I loyal viewers and might negatively affect I I level more. I their TV ratings. 2. Estimate the impact 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 disgrace in ad unit pricing (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 One 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