Fashional Channel Case Study

July 6th 2010

Marketing Strategy for Fashion Channel

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MBA 610: MARKETING MANAGEMENT

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INDIVIDUAL Assignment

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Sureshkhanna Kumaresan 9748334

REPORT

1) Which course of action do you recommend that TFC adopt?

After evaluating all the four alternatives, I would recommend that TFC should adopt third scenario which targets two Segments: Fashionistas & the Shoppers/Planners.

2) Secure “buy-in” for your recommendation with solid, convincing and focused support. The primary criteria used in deriving your recommendation should be evident in your supporting argumentation.

The primary reasons for recommending scenario 3 are as follows,

* Projected Margin is High (39%) when compared to all other alternatives.

* Targeting two segments (Fashionistas and the Shoppers/Planners) is a better choice to make when compared to first two alternatives, which do not focus on any particular customer group (MARKETING PARADIGM 7) and scenario two, which does focus on Fashionistas but has a lesser projected margin than scenario 3.

* Ratings increases by 20% (1.2) in both scenario 1 as well as scenario 3, but in the case of scenario 1 with same viewers and strong marketing campaigns will result in a 10% drop in the CPM. Furthermore, the projected margin of scenario 3 is 10% higher than the scenario1.

* CPM price increases by 25% ($2.50) and would increase further in future as more than 50% of women aged 18-34 are under the two segments targeted, which in turn will make the advertisers to pay premium CPM and also the network will have advertising revenues grow substantially.

* Risks are comparatively low when compared to scenario 2 which focuses on only one segment and other scenario does not offer any advantage as the revenue and margin decreases in spite of increasing the programming expenses.

*...