The Fashion Channel Case Study

1416 WordsApr 13, 20146 Pages
Marketing Problem / Objective: The Fashion Channel (“TFC”) needs to decide if it should continue with its broad customer targeting approach or pursue an alternative target segment(s) in order to best maximize the Company’s advertising revenue and ensure sustained growth. Solution: The Fashion Channel should target both the “Fashionistas” and the “Planners & Shoppers” segments in order to put TFC in the best position to maximize advertising revenue and ensure sustained growth. Rationale: By positioning their marketing plan toward both the “Fashionistas” and “Planners & Shoppers” (“P&S”) segments, TFC would be able to maximize advertising revenue and ensure growth. Specifically, TFC would be able to increase both its viewership levels and audience appeal to potential advertisers by targeting both the Fashionistas and the P&S’s. First, targeting both the “Fashionistas” and the “Planners & Shoppers” segments would allow TFC increase its overall viewership levels. Collectively these two segments make up approximately 50% of all US Television Households; targeting these two segments enables TFC to reach a large audience and increase viewership. Further, the Fashionistas and P&S’s are the most interested in fashion-related TV programs of the four cluster segments—with Indexes of 140 and 110, respectively—and thus are more likely to be interested in TFC’s programming. Specifically, TFC’s Ad Sales team estimates that a dual targeting approach of these two segments would drive ratings to 1.2, compared to the Channel’s current rating of 1.0. Ultimately, targeting the Fasionistas and Planners & Shoppers clusters would provide TFC the best opportunity to obtain strong viewership levels given the large size and high interest level of these two segments. Also of importance is that TFC currently has the lowest rating regarding consumers’

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