The Fashion Channel Memo

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The Fashion Channel M E M O R A N D U M To: Jared Thomas From: Dana Wheeler Subject: Market Segmentation Mr. Thomas, as you know, The Fashion Channel is facing several competitive threats in the fashion entertainment TV business. The purpose of this memo is to recommend a new segmentation and positioning strategy for TFC in order to strengthen its competitive strategy Recommendations It is my recommendation that TFC move forward with a dual-segment marketing strategy, focusing the programming efforts on the Fashionistas and Shopper/Planners. These two segments are predominately made up of females, ages 18-34 who could offer a significant boost in our margin and net income. I am also recommending that the majority of the advertising, promotion, and public relations budget for the fiscal year be dedicated to building brand loyalty for the two segments listed above. Data Analysis The data provided in appendix 2 lists all the financials associated with the recommendation above. The dual-segmentation approach offers the highest margin (52%) and highest net income ($325,945,600). The dual-segment is also less sensitive to CPM and ratings forecast misses, as seen in appendix 4. Although the female segment is smaller in number when compared to the broad approach, the CPM rate is higher (appendix 1). Implementation Plan TFC needs to eliminate all programs that are not of interest to the target segments, in order to make room for the new “focused” programs. The most attractive programs for our segments need to be placed in prime time slots for our demographic. The new programming should be specific shows that line up with the special interests that were called out in the market research. Based on the data from GFE, these programs should be on current fashion, party fashion, value fashion and entertaining fashion. Risk/Mitigations The biggest risk that needs to be addressed

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