Marketing - Fashion Channel Case Study HBR Case #2075 The Fashion Channel Market
ID: 400132 • Letter: M
Question
Marketing - Fashion Channel Case Study
HBR Case #2075 The Fashion Channel Market Segmentation. Help with answering the following questions.
1. Option Analysis. Define the segmentation scenarios considered by Dana Wheeler and discuss the pros and cons of each scenario
Option 1: state what it is Pros: list each one; Cons: list each one;
2. What is the expected financial outcome of each targeting scenario?
3. Recommendation. Based on your analysis, and putting yourself in the place of Dana Wheeler, which option would you recommend to the Management team? Support your recommendation: why do you make the recommendation?
Explanation / Answer
1. Dana Wheeler, Vice president of marketing of The Fashion Channel (TFC). TFC was the cable TV network and the onlu network dedicated towards the fashion up to date new trends in fashion and broad cast information 24 by 7 and the most entertaining feature in TV industry.
Her plan was to make the strtegy for segmentation and wanted to use it as a base to apply all other marketing tools on it. She want reach out all the target consumers with integrated positioning messages with the help o promotios, internet and traditionl advertising , public relations etc. Advertsing was TFC primary growth opportunuty. According to the Dena Weeler , the multi segment approach was the main target more on the fashionistas. The segment was based on highly the 18-34 femal demographic. The target decided was relatively small then other segments. 15% of households were targetting that may be reduce the number of viewers but it will enlarge the value of the audience.
However, she target a segment on young female oriented fashioinsta. There were the increase in the total revenue as compare to the base year 2006 to that of base year 2007 as per the TFS financial reports. There were tremendous increasein the cost of operations, net income and net profit from 2006 to 2007.
There were cons as well as prons in each schenerio
Prons
* The total revenue grows 2% per year with the population and grows 3% per year with inflation
* The increment in 3% of add sales revenue.
Cons
* As the cost of operations and programming increase the incremental programming expence also increases.
* In marketing and advertising there were increses spending of 15M.