Fashion Channel

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Q1) How would you interpret the consumer and market data if you were Dana Wheeler?

I would first try to see if I could classify the data into various segments. The fashion channel is very popular among women. Hence, I would differentiate between the women viewers based on age, spending capacity, fashion nerdiness, etc. These will become subsets of the superset “women viewers”. Once, I determine the segments I would look for any noticeable trends in the segments that will prove profitable for the business. For example, some of the trends in the provided market data were: 1. Approximately, 15% of the women viewers were Fashionistas who give lot of importance to fashion and follow the trends closely. These consumers will spend a lot of money on fashion because they care for it (about 50% have an income more than $100k). 2. About 35% of the women viewers were Fashionistas and Planners/Shoppers. This segment consists of a more diverse consumer base. Serving this segment will definitely increase the ratings.

Q 2) What is the expected outcome of each of the targeting scenarios?

-SCENARIO 1: Financial and Viewership: Since scenario 1 deals with a broader segment (Fashionistas, Planners & Shoppers, and Situationalists), the viewership is expected to increase. This increase in viewership will attract more advertisement deals. Hence, the overall ad revenue might increase as compared to 2006 (will depend on the rate of CPM).

-SCENARIO 2: Financial and Viewership: Scenario 2 deals with a “laser” specific single segment. The risk associated with this segment is that there will fewer people comprising it. If this number is less than the last year’s viewership, the viewership rating will drop. However, this scenario will attract ad deals which are willing to pay more CPM rates, hence, the net revenue will increase depending on the rating (0.8% as compared to 1% in 2006).

-SCENARIO 3: Financial and Viewership: Scenario 3 is much more balanced than scenario 1...
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