These blocks were gaining notable ratings among viewers. Theses ratings are the percentage of television viewers watching on average during a measured viewing time. Lifetime had rating of 3.0 and CNN 4.0 in comparison with TFC 1.0 rating (Stahl 5). In addition, there was another major problem. TFC was not as attractive for cable affiliates and operators to, as CNN and Lifetime and was loosing cable affiliate fee revenue to these networks.
29 Dana Wheeler, senior vice president of marketing for The Fashion Channel, has to reevaluate the company’s market positioning. Increased competition from CNN and Lifetime has caused The Fashion Channel’s market share to fall, along with their ad revenue. The Fashion Channel’s competition is strictly within their product category; it is also with the discretionary budget of time that their consumers have to spend to watch TV and well as other forms of generic competitors. Understanding how CNN and Lifetime are capitalizing amongst their market will help them better evaluate their positioning. It seems, however, that The Fashion Channel is only identifying product category as their main competition.
35) to be able to deliver their products and services at an attractive price so as to not deter their customers to their competitors. Some articles I have read had stated because Netflix is cost efficient with more choice offering they were one of the companies that put Blockbuster out of business. Blockbuster found out what the threat of a new entrant (pg. 34) in the competitive market meant. When Netflix felt like they were losing their competitive advantage they in 2010 decided to venture internationally with their streaming-only
The Fashion Channel | Case Study Analysis Executive Summary “The Fashion Channel” with tagline “Fashion for everyone” was started in 1996 which provides 24x7 entertainment and information broadcast regarding fashion only. Its main audience were women of 35-54 age group. The channel had made profits ($310 million) beyond its target in the year 2006 and was the market leader for fashion related programs. There were two main source of income for TFC and that was ad revenue and cable affiliation fees. TFC soon observed that other channels like CNN and Lifetime started telecasting programs related to fashion category which was becoming more popular than programs at TFC.
The average CPM will drop by 10% when compared to the current 2006 CPM ($2.00) Not targeting a specific market group could mean a loss in market opportunities due to specific aggressive competition from the other networks. **Considering 2007’s Base as a non-changing situation on TFC’s current strategy. Scenario 2 Target Group: Fashionistas Expected Ratings: 0.8 Potential CPM: $3.50 Average Viewers: 880,000 Additional expenses: $ 15 M PROS The profit margin will increase to 37% compared to the Base in year 2007** (19%) if this scenario is implemented. Advertisement may become more efficient; therefore CPM could increase to $3.50. (From $2.00) The targeted segment specifically represents better CPM rates than other groups, compensating for the generalized audience loss.
In this case, the management team of The Fashion Channel (TFC) must implement a new stratagic plan, turnning from their old “fashion to everyone” message to a more specific customer segment, so as to re-position TFC to increase revenues. Faced with fierce competition from Lifetime and CNN, TFC must consider a new customer segmentation strategy to increase their network ratings as well as to maintain TFC’s viewer satisfaction level. Alternatives Broad-Based Marketing Pros: The broad-based marketing is the safest alternative, because the old customers (especially those avid female viewers among 35-54 years old) won’t get offensed by TFC’s new change. What’s more, compared with the other two scenarios, this alternative does not require additional expense for programming and advertising. Also, since there are women aged 18-34 in all four clusters, FTC can reach all of the high-valued viewers in this scenario.
This will show us how much customers like our product and if our performance and size fit their preferences. Another estimate that we could have is by multiplying the growth rate by the current unit demand of a segment and then multiply this answer by our current market share. This will give us an estimate according to the increase demand of the population who are interested in this market. Finally, our last strategy was the market share report in the Capstone courier, which we considered our best strategy since it is the most detailed and accurate one. This strategy is more accurate because it shows us in cases where a product stocked out, how much it would have sold since this affects all of the competitors sales for next year.
Strategic Summary Introduction The strategic objectives and measurements for “D’ Roulhac Custom Baskets were outlined in the balanced scorecard and derived from the mission, vision, values and SWOTT analysis. The company having a new and unique concept for creating baskets to customer specifications via the virtual basket will provide serious competition for competitor’s in the industry. The following categories are a summary of the objectives noted in the balanced scorecard. Financial Performance The financial category asks the question, “How should a company be perceived by the shareholders to be successful?” (Pearce & Robinson, 2004). “D’ Roulhac Custom Baskets financial goal is to obtain a moderate percentage of the industry market share locally.
Pre paid plans were unusual because of prohibitive pricing (starting at 35 and as high as 75 cents) In 2001 mobile entertainment represented $10 billion and was projected to increase steadily over the next few years. Alliances with MTV, VH1 and Nickelodeon were going to be Virgin Mobile’s main communication strategies to position the brand with potential customers. Alternatives Virgin was considering three pricing options to introduce the
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.