Problem Statement The Fashion Channel was a successful cable TV network. It wasn’t long before the network realized that other networks were taking note of its success and beginning to add fashion related programming as well. The Fashion Channel needed to boost segmentation, positioning and advertising in order to maintain their current standing. Dana Wheeler was hired to draw on their strengths to help TFC eliminate competitors. TFC realized they need to focus on their target market of women between the ages of 18 to 34 years old.
Overview of Recommended Action
Dana Wheeler should consider the following these steps in trying to increase ad revenue:
1. She can target segmentation and position towards women between the ages of 18 to
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Wheeler first considered examining the segments of Fashionistas, Planners & Shoppers, and Situationalists. She knew that investing in major marketing and advertising campaigns would in turn increase the amount of awareness and viewing of the channel. She was hoping, over time, to boost the ratings by 20%. Alternative 2 was for Wheeler to place more focus on the Fashionistas segment. She knew the strength of this segment and how valued it was in the 18-34 demographic. Although it was smaller than other segments, it was possible to strengthen the value of the audience to advertisers, as well an increase in CPM. Wheeler had also hoped to invest in new programming to attract and retain the interest of this segment. She estimated it would cost an additional 15 million. Alternative 3 for Wheeler was to target two segments-the Fashionistas and the Shoppers/Planners. She figured that targeting both would increase rating to 1.2 with a potential CPM of $2.50. In order for this scenario to work, she would need to spend an additional $20 Million on programming. Doing so would ensure that there were selections aimed at both segments. The best choice for Wheeler to make was Alternative 3. Her main focus should include an increase in: the Fashionistas and Shoppers/Planners, revenue, CPM, and potential TFC ad revenues. Her recommendation would show how her plan will increase the specific areas. It is also important for her to present the financial impact of these choices.