3. Strengths
- The only network dedicated
to fashion 24/7
- Widely available niche
market reaching over 80
million households
- Unique market
- Constant revenue and profit
growth since almost the
beginning
Weaknesses
- 1.0 Viewer rating, 3.8
consumer interest, 4.1
awareness
- At least 0.4 below the
ratings leader
- Programming is not diverse
- No detailed positioning
strategy or target market
Opportunities
- Male fashion sector is
growing
- Fashion industry continues
to grow
- Advertisers will pay a
premium for higher viewer
Threats
- CNN and Lifetime
are major
competitors with
higher ratings
- Cable companies
may drop The
Fashion Channel if
customer satisfaction
drops too low
4. Objectives
1. To increase viewer ratings
by at least 10% and CPM
by at least 50 cents within
2 years
2. To find a target market
that will be profitable and
at the same time not hurt
our viewer loyalty within
this year
3. To increase Revenues by
at least $50 million this
year
5. Option 1 Broad
based:
Pros: Increase in ratings
from 1% to 1.2%
Cons: CPM drop by 10%
since no change in
viewer type
7. Option 3 :The
fashionistas +
The
Shoppers/Planne
rs
• Pros: Highest
Revenue even
with 20 million
incremental
programming
increase, ratings
and CPM
increase
10. Website
- Fashion News
- Model/Designers to
Keep an Eye Out for (
Up and Comers) -
Model of the Week
- Runway show of the
Week
- Look of the Day
- Look of the Week
- Ask fans to select
between favourite
looks
- Post Video highlights
of runway shows every
day.
H
11. Superbowl Sweepstakes
-Code word will
come on screen
during shows to
enter online
-More codes
results in more
entries
-10 trips for two
to the
Superbowl will
12. Vegas Shopping Spree
-Same format as
Superbowl
competition
-Competition will
take place in the
fall
-10 trips for two
will cost
approximately
$56,000
13. *Code word will come on screen during shows to enter online
*More codes results in more entries
10 trips for two to the Superbowl will cost approximately
Superbowl
Competition
Celebrity
Endorsemen
t
- Get Henrik
Lundqvist to
endorse it.
-He is interested in
the fashion
industry and will
appeal to our new
target segment.
14. Clothes off Our Back
-Organization that auctions
celebrity clothes to raise money
for various charities
Sponsorship:
-Produce and air ads during
programming
-webpage on TFC website
-”Clothes off our Back brought
to you by The Fashion
Channel”
-Alternative side to TFC brand
15. Vegas Shopping
Centre
Mall Promotion: Make the Holiday y
Runway”
- 100 locations at largest
malls in America
- Makeup artists from malls
- Clothes donations from
boutiques
Video Source: Issa Spring/Summer Runway
http://www.youtube.com/watch?v=_t4Ry-_l3wo
Gif Source: http://vogue.tumblr.com/
Photo: http://vogue.tumblr.com/
Chanel Runway
Photo: http://vogue.tumblr.com/
Notes: Pros: Broad-based approach has the ability to deliver $40 million more in net income than 2007 base. The broad based approach also does not require an incremental programming expense. The Fashion Channel would also be marketing to a very large customer segment.
Cons: CPM is 0.2 % lower than the current CPM. Also because The Fashion Channel does not target a specific target segment, and there would be greater risk that other networks like Lifetime and CNN could continue to take away from TFC’s customer base. The total amount of net profits is also significantly lower than the other 2 scenarios.
Photo: http://vogue.tumblr.com/
Notes: Pros: This scenario produces about $100 million increase in net profits compared to the 2007 base. CPM increases to $3.50.
Cons: The fashionista segment results in a decrease of 0.2% in TV ratings. Also because of the smaller segment cluster targeted, customer awareness of TFC would not change. The Fashionista segment is the smallest cluster. Has a $15 million incremental programming charge.
Photo: http://vogue.tumblr.com/
Notes: Pros: The Fashionista/ Shoppers and Planners segment yields about $115 million. This scenario improves TV Ratings from 1.0 % to 1.2%. This also yields the highest amount of net profit compared to the other 2 scenarios.
Cons: Requires a $20 million incremental programming charge. TFC would only be targeting about 50% of US TV households that make up fashionistas/ shoppers and planners.
http://news.yahoo.com/number-active-users-facebook-over-230449748.html
Facebook had 12 million users in 2006. (100% growth from 2005). Setting a goal of 5% of our target audience which is made of 1,100,000 people is very achievable as it is less than 1% of Facebook population users.
Objectives:
Hire: Web Designer and Social Media Coordinator
2) Create new website and brand page on Facebook to interact with viewers and support promotional activities ( Superbowl, Vegas Competition, Clothes off Our Back)
3) Promote Page Costs: To appear at the top of search engines/ social newsfeeds.
Photo Source: http://www.memetics.com/why-knowing-a-good-web-designer-is-so-important/
Website will include:
- Fashion News
- Model/Designers to Keep an Eye Out for ( Up and Comers) -Model of the Week
- Runway show of the Week
- Look of the Day
- Look of the Week
- Ask fans to select between favourite looks - Post Video highlights of runway shows every day. - Photographer of the Year - Designer of the Year - Interviews with Designers weekly
Photo Source: https://plus.google.com/115010473168922369411/posts
1: The Superbowl competition will happen for the month of January and winners will be announced in early February in time for the Superbowl. Having viewers submit the code word online will also bring attention to our Facebook page and website.
2: The Vegas Shopping spree will run for one month in July and the winners will be released in August. The increase in viewers on both of the competitions is estimated to be 0.5%, which will result in an increase of revenues of $1,729,728. With associated costs of $132,000 for the two competitions, there will be an ROI of 12.10.
-By having Henrik Lundqvist to endorse The Fashion Channel an increase in total viewership by 1% or 10,000 people with 75% of these people being males.This would increase ad revenues by $3,459,456 and an ROI of 0.45.* see financials for further details.
-Expenses include $1 million to sign Henrik to a 5 contract, $5000 to make a tier 1 advertisement and $1,381,050 in lost advertising timeslots because of our new promotions and commercials with Henrik Lundqvist in it on our station.
-Henrik Lundqvist is a hockey superstar who is good-looking, fashionable, famous and appeals to our new target market, especially with males.
-We will use him in commercials and other promotions for the Fashion Channel as well as a segment on him in our new show “Beyond The Dressing Room.”
Photo Source: http://www.gq.com/style/blogs/the-gq-eye/2012/09/henrik-lundqvist-wwd-karlie-kloss-topless-scandal.html
Notes: We will be partnering with Clothes off Our Back, an organization founded in 2001 that acquires celebrity clothes and auctions it to the public in order to raise money for various charities including Cure Autism Now, Heifer International, UNICEF and Union of Concerned Scientists. Their auction period runs between September and March. Partnering with TFC will increase awareness about their cause and auction. TFC will sponsor them by producing an ad that will be aired for a total of 6 weeks during their auction period between September and March to promote their auction. The cost of producing the ad will be $5000 and the cost of airing the ad will be $452 655 for a total sponsorship cost of $457 655. These ads will run for a week after the Primetime Emmy’s, Golden Globes, Academy Awards, SAG awards, and Grammy Awards. The ad will be aired two weeks prior to the last date of the auction. TFC will create a page on their website dedicated to Clothes off Our Back that includes information such as the current items being auctioned off and information on the charities that are benefitting from the cause. The objectives of this partnership are to improve the image of TFC and increase traffic on our website. “Clothes off Our Back sponsored by TFC” will increase the awareness of TFC. In order to increase traffic to the website, TFC will place advertisements on the website where people bid for the clothing items; these ads will link to the TFC website.
Sources:
http://www.prnewswire.com/news-releases/celebrity-clothing-auction-raises-87200-for-charity-76346087.
htmlhttp://www.nytimes.com/2007/11/12/giving/12CELEBS.html?pagewanted=print&_r=0
http://www.looktothestars.org/charity/clothes-off-our-backhttp://www.biddingforgood.com/docs/pr/cmarket_golden_globe.pdf
Notes: The “Make The Holidays Your Runway” promotion will begin after the American Thanksgiving and will last until just before Christmas. We will be setting up our Fashion Channel tents in the 100 largest malls in America. We will hire makeup artists from cosmetic or department stores in each of the malls to do makeup consultations and mini makeovers for clientele, while professional photographers take pictures of them trying on clothes from sponsoring stores in the mall. Not only will the cosmetic stores and the clothing stores get free advertising from our event, but customers will be introduced to the fashion channel in a new and interactive way. Mall “Make the Holidays Your Runway”
Financials→ 636,000 Return in Revnues: 6.9 million ROI: 9.881
Mall Space Rental Per 100 SF tent space= 50x100=5000 per mall, so x100=500’000 total rent cost http://www.ask.com/question/how-much-does-it-cost-to-rent-a-spot-in-a-mall http://wiki.answers.com/Q/How_much_is_the_average_mall_rent_per_space
2)Tent rental http://www.thepartyrentalcompany.com/pricePayment/pricePayment.php#price $200-$400 per tent x 100 = 20’000-40’000 in tent rental
3)Set-up Crew 2 people x $20.00/hr x 4 hrs/weekend = $160/venue x 100 = 16’000 for set-up crew
4)Make-up Artists and Photographers 2 artists x 5 hours x 2 days x $20.00/hr x 100 venues 2 photographers x 5 hours x 2 days x $20.00/hr x 100 venues
Photo Source: http://premierguidemedia.com/miami/aventura-mall-fashions-night-out-photos/
In our new segment “Beyond The Dressing Room With…” we will feature various well-dressed sports athletes- male and female- and their wardrobes. We will also visit some of their favorite stores and gain insight on their own unique fashion sense. We will feature professional athletes, and during years with Olympics, we can feature Olympic athletes as well.
Photo Source: http://vogue.tumblr.com/
Notes: In “Dress For The Event” we will be featuring different events or holidays throughout the year that our viewers will be attending. An example would be ‘The Perfect Cocktail Dress For New Years’ for our female viewers or ‘Suiting Up For The Holidays’ for men. In data from the GFE Associate: National Consumer Survey one of the top points
Gif Source: http://vogue.tumblr.com/
On our Facebook page and website we will allow viewers to vote for their favorite outfit of the day uploaded by other viewers. The top 3 photos with the most ‘likes’ will be sent to a fashion show in New York with a friend, be given $500 for a shopping spree, and will be staying for two nights at the Trump SoHo hotel ($550 a night). This promotion will occur twice a year; the winners will be chosen from the top liked pictures from January-May and from May-August. Again from the GFE Associate: National Consumer Survey, our viewers strongly agreed that watching fashion programs on TV is very entertaining and that they are more interested in fashion than other people, therefore, our program with behind the scenes exclusive access will not only engage our viewers, but entice them to become more involved with our channel and programming because of its personal touches. If we feature fashionistas like themselves winning our VIP outfit of the day contests, New York fashion show access, and shopping spree, they will be more likely to continue to participate in our competitions.
http://www.tripadvisor.ca/Hotel_Review-g60763-d1456416-Reviews-Trump_SoHo_New_York-New_York_City_New_York.html
Gif Source: http://vogue.tumblr.com/
** Total ROI is 1.88
Total: $15,000,000
i) http://mausmediagroup.wordpress.com/2011/03/08/how-much-does-it-cost-to-make-a-tv-commercial/
ii) http://www.designquote.net/html/dq_estimate_wizard.cfm
iii) http://www.indeed.com/salary/Market-Research-Analyst.html
iv) http://ca.eonline.com/news/70141/which-costs-more-reality-tv-or-scripted-series
v) Flight cost estimated to be $600 because we don't know where they are flying from
vi) http://www.sunwing.ca/United-States-Travel/Last-Minute-Las-Vegas-Vacation-Packages.asp#
vii) http://www.vividseats.com/nfl/super-bowl-tickets/super-bowl-2-2-1383306.html viii) http://www.ask.com/question/how-much-does-it-cost-to-rent-a-spot-in-a-mall
ix) http://www.thepartyrentalcompany.com/pricePayment/pricePayment.php#price
This positioning map shows the comparison between The Fashion Channel and its two major competitors, CNN and Lifetime fashion programming. This map compares the comparison between consumer awareness and perceived value and uses the telephone survey data provided in the case. As shown, all three networks had high scores in perceived value and awareness that were above the midpoint, which shows that the value and consumer awareness of each channels fashion programming is quite high. However, CNN ranks the highest in consumer awareness and Lifetime ranks the highest in perceived value. TFC ranks lowest in both, and has a score of at least 0.4 less than the other channels. This shows that although the survey results may appear strong for TFC, CNN and Lifetime are much stronger. Also shown, TFC has the smallest amount of the total TV viewing market (1.1M), with CNN having the highest number of viewers out of the three channels (4.4M) and Lifetime in the middle (3.3M).
We combined strongly agree with agree, somewhat agree with somewhat disagree, and strongly disagree with disagree. Looking at the top three scores in strongly agree/agree, we discovered that most people find fashion programs very entertaining, and that people like to shop for clothes for parties and special activities. This lead to us creating the shows “Dress for the Event” and “Beyond the Dressing Room”.
In the top table, the total amount of viewers were calculated in each category. In the bottom table, market share of each channel in each category was calculated by dividing each channel’s viewers by the total viewers. This shows us which viewers prefer each segment – CNN clearly leads the male category and Lifetime is well ahead in the 18-34 year old category. TFC currently only has 13% of the total market.
