The Fashion Channel
As-Is Circumstances
TFC is confronting hard competitive risk. Lifetime and CNN are eroding TFC's fashion programming share and there customer satisfaction are higher than that of TFC's. The conditions will lead to TFC's net income down. Lifetime is targeting women aged 18-34, also CNN is targeting men of all ages as there marketing target. These 2 groups are high valued demographics for advertisers. TFC, by contract, has no specific marketing target and strategy at present. Relatively, TFC becomes less attractive media for advertisers. CPM will decline in 2007 from the current $2.00 to $1.80. It will cause net income drop $39 million. Jared Thomas, TFC's founder and CEO, hired Dana Wheeler to breakthrough this harsh reality and future risk. The change is inevitable.
1. The key consumer and market data
Key consumer
The key consumer for TFC is women aged 18-34. The reason is that advertisers pay more for this specific groups than for the As-Is unintentional viewers, women aged 35-54. Also the men of all ages attract advertisers, but from the analysis of GFE Associates, targeting younger women is the rational choice than the men.
Key market data
The key market data are viewership(ratings) and advertising pricing(CPM). These figures are directly affect advertising revenue and net income.
2. Pros and cons of each scenarios
Scenario 1: Continue Broad appeal pros: Increasing $40 million net income. cons: Unresolved any future risks. Would disappoint Jared Thomas's expectations.
Scenario 2: Focus on the Fashionistas segment pros: Increasing $96 million net income. Strong in the highly valued 18-34 female demographic. cons: Smallest cluster(15% HH) compared to the other scenarios, it might arise unfavorable future risk.
Scenario 3: Focus on the Fashionistas and the Shoppers/Planners segments pros: Increasing $114 million net income. Appropriate demographic size(50% HH). cons: None.
3. 3 recommended solutions
Develop brand new
TFC is confronting hard competitive risk. Lifetime and CNN are eroding TFC's fashion programming share and there customer satisfaction are higher than that of TFC's. The conditions will lead to TFC's net income down. Lifetime is targeting women aged 18-34, also CNN is targeting men of all ages as there marketing target. These 2 groups are high valued demographics for advertisers. TFC, by contract, has no specific marketing target and strategy at present. Relatively, TFC becomes less attractive media for advertisers. CPM will decline in 2007 from the current $2.00 to $1.80. It will cause net income drop $39 million. Jared Thomas, TFC's founder and CEO, hired Dana Wheeler to breakthrough this harsh reality and future risk. The change is inevitable.
1. The key consumer and market data
Key consumer
The key consumer for TFC is women aged 18-34. The reason is that advertisers pay more for this specific groups than for the As-Is unintentional viewers, women aged 35-54. Also the men of all ages attract advertisers, but from the analysis of GFE Associates, targeting younger women is the rational choice than the men.
Key market data
The key market data are viewership(ratings) and advertising pricing(CPM). These figures are directly affect advertising revenue and net income.
2. Pros and cons of each scenarios
Scenario 1: Continue Broad appeal pros: Increasing $40 million net income. cons: Unresolved any future risks. Would disappoint Jared Thomas's expectations.
Scenario 2: Focus on the Fashionistas segment pros: Increasing $96 million net income. Strong in the highly valued 18-34 female demographic. cons: Smallest cluster(15% HH) compared to the other scenarios, it might arise unfavorable future risk.
Scenario 3: Focus on the Fashionistas and the Shoppers/Planners segments pros: Increasing $114 million net income. Appropriate demographic size(50% HH). cons: None.
3. 3 recommended solutions
Develop brand new