First assignment of marketing research Business case: The fashion channel (It won't be correctly displayed in slideshare because of the fonts, I'll try to fix it)

1. TFC
THE FASHION CHANNEL
DANA’S CLUE

2. AN OVERVIEW OF THE CHANNEL
CONSUMER & MARKET ANALYSIS
FINANCIAL ANALYSIS
DANA’S SELECTED SEGMENTATION
PLAN
REVISION OF SCENARIO 3
OUR FORECAST
QUESTIONS AND ANSWERS
THE FASHION CHANNEL’S
CASE STUDY

3. BROADCASTIN
G
TO ALL
PUBLICS
FASHION
DEDICAT
ED
NETWOR
K
THE
CHANNEL
FOUNDED IN 1996
US BASED
UP TO DATE
ENTERTAINING FASHION FEATURES
INFORMATION

4. SOLO PLAYER COMPETITORS MARKET LEADER
TIMELINE OF
TFC

5. CONSUMER AND MARKET
ANALYSIS
MAIN SOURCES OF REVENUE
ADVERTISEMENT 230.6M$
CABLE AFFILIATE FEES 80M$
THE 30%
of viewers are between18-34 years old
FASHIONISTAS
PLANNERS & SHOPPERS
SITUACIONALISTBASICS
EXPENSES
20B$ SPENT IN BUYING SPOTS
IDENTIFY TARGET MARKET THAT IS
FASHION-ORIENTED

6. GENERIC
AUDIENCE
HIGH
INVOLVEMENT
LOW
FASHION ORIENTED
AUDIENCE

7. UNDERSTANDING OUR
COMPETITORS
LESS APPEAL LESS VIEWERS
TIME TABLE PERCEIVED VALUE &
CUSTOMER
SATISFACTION
WEAKNESSES
TFC
24x7
PV: 3,7
CS: 3,8
NO SEGMENTATION AT ALL
LIFETIM
E
M-F
9-11 PM
PV: 4,4
CS: 4,5
LACK OF FEATURES
CNN M-F 8-9 PM
Sat-Sun 10-
11PM
PV: 4,1
CS: 4,2
VERY HETEROGENEOUS
AUDIENCE

8. $0.00
$50,000,000.00
$100,000,000.00
$150,000,000.00
$200,000,000.00
$250,000,000.00
$300,000,000.00
$350,000,000.00
Total Revenue Ad Sales Net Income
2006
2007 Base
FEASABILITY FORECAST (2007)
DOWNWARD TREND IN ALL VARIABLES
SHARP DECREASE BY NEARLY 50% IN THE
NET INCOME
FINANCIAL
ANALYSIS

9. YEAR 2006 2007 BASE
AVERAGE
RATINGS
1% 1%
AVERAGE CPM $2.0 $0.8%
PROFIT MARGIN 30% 19%
SOME OTHER SIGNIFICANT
VARIABLES
DECRESASE OF PROFIT MARGIN DROPS 11%
DECREASE IN REVENUE CPM DROPS 10%
INCREASE OF TOTAL EXPENSES RAISE 15M$ IN
MARKETING AND ADVERTISEMENT
FAILURE TO RAISE RATINGS

10. PROS CONS
SCENARIO
1
Fashionistas
Planners &
Shoppers
Situationalist
Rating boost in 20%
Low incremental programming
expense
Follows the initial TFC mission
Lowest fiscal risk
CPM will remain same as
before
Non-segmented group
SCENARIO
2
Fashionistas
Increases revenues (and ad
revenues)
Highest CPM
Low rating
Drastic segmentation
SCENARIO
3
Fashionistas
Planners &
Shoppers
20% more ratings boost
Stronger connection with cable
affiliates
Less risk of being dropped
Balance of two segments
Targets the right audiences
Highest cost of programming
expenses
High investment expenditures
POSSIBLE SEGMENTATION
STRATEGIES

11. • HIGHEST MARGIN
• HIGHEST NET INCOME
• INCREMENT OF RATINGS
• INCREMENT OF VIEWERS
• GOOD CPM
FINANCIAL
RESULTS
• HIGHLY FOCUSED IN
FASHION
• GOOD AMOUNT OF THE
MOST PROFITABLE
VIEWERS
QUALITY
VIEWERS
SCENARIO 3
DANA’S SELECTED
SEGMENTATION PLAN

12. NEW SEGMENT: TEENAGERS (15-18
YEARS OLD)
ADD SPECIFIC PROGRAMS FOR OUR
TARGET VIEWERS
INTRODUCE SOCIAL
MEDIA
CUSTOMER SURVEY & FEEDBACK
FROM THE NET
REVISION OF THE SCENARIO 3

13. PRIME TIME
NEWS & TRENDS
PROGRAM FOR
TEENAGERS
PROGRAMING
SCHEDULE

14. OUR
FORECAST
INCREASE IN RATINGS
CREATION OF TEEN CUSTOMER
LOYALTY
INCREASE IN CPM
INCREASE THE NUMBER OF VIEWERS
INTERESTED IN FASHION

15. THANK YOU
Dalma Ricci
Luca Flamini
Giulia Venturi
Ilaria Cascione
Cristina Muñoz
Roberto Albanese
Phuong Ly Ly
Nguyen
Q&A