1. Which alternative (i.e. course of action) do you recommend that FASHION CHANNEL adopt? I recommend the scenario that is focused more on the fashionistas.
2. Secure “buy-in” for your recommendation with solid, convincing and focused support. The primary decision criteria used in deriving your recommendation should be evident in your supporting argumentation, and the latter should be built around those criteria.
After calculation (Result seen below), we can estimate that: 2007 without any change of marketing strategy will result in a margin decrease of 6%, from 30% to 24%. Scenario 1 (Broad appeal) will increase the revenue. But the margin will drop to 28.4% Scenario 2 (Fashionista focus) will increase the margin by 7.45% to 37.45% Scenario 3 (Fashionista and shoppers/planners focus) will increase the margin by 9.72% to 39.72%
Reason for choosing scenario 2:
1. Scenario 2 has a more focused target audience. It’s the correct segmentation for TFC to pursue. It will be difficult to compete the broad appeal with CNN and Lifetime because they’re known for that. But if we focus on one segmentation we stand the chance of taking on competition. 2. With a small twist it can be a strategy targeting both fashionistas and fashion forward gay man, the audience increase on man will fall also into premium CPM. 3. The channel will invest less on programming cost.
4. Since it’s Dana Wheeler’s first shot at the marketing plan. It will be wiser for her to propose the board with a less provocative plan. Plus it will give her the buy in that she need. And she will build more trust with the team and increase her opportunities in the future
Different marketing tools to help the buy in:
It shows on the exhibit 2 GFE Association’s survey result that the audience’s tie with TFC is only on medium level. I think Dana wheeler need to maybe explore more marketing tools to help bring people’s awareness up. We shouldn’t just focus on the TV...