The Fashion Channel

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Luca Mazzi S46465 Marketing case report: The Fashion Channel Dana Wheeler has to face an important decision, TFC (The Fashion Channel) has to change his marketing strategy due to new competitors in the business like Lifetime and CNN that are gradually draining the costumers and subsequently profitable advertising from TFC. The main classes of viewers for TFC are Fashionistas 15% of the total (but also the class with the highest rating for advertising) , Planners and Shoppers 35% (slightly a lower rating than Fashionistas), Situationalists 30% (lower rating than Planners and Shoppers), Basics 20%(lowest rating for advertising rankings) After analyzing various market researches Dana comes down to 3 different strategy scenarios: The first one will be to have a wide segment strategy which will just focus on the three most rated classes decreasing the level of basics viewers, this strategy has no additional expenses in order to be implemented since the strategy will not change much, at the same time the risk of having an advertising downgrading is still present . The second one will be to focus only on Fashionistas who will lead to the higher cost per thousand (CPM), but it’s also important to remind that this is the smaller group targeted by TFC, such a radical change might cost losing a lot of household followers for TFC and there is an additional cost of 15 million to implement new shows for this particular segment. The last scenarios will focus on Fashionistas and Planners and Shoppers, this choice still increases the CPM by a lot but doesn’t decrease as much as the second scenario the percentage of followers, keeping as active following household the largest group (Planners and Shoppers 35%). The downside is that to implement this strategy 20 million will be needed. The forecasted numbers for CPM, rating and implementing costs are given for the three strategies:

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