The Fashion Channel Case Study

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The Analysis of TFC Case

Answer 1:
Shoppers/Planners segmentation
Pros:
Firstly, this segmentation focuses on the cluster audience, also aim to maintain the 18-to-34 year old female, who are the main targeting audience of TFC, and could give return to the advisor; because of their ability of purchasing and their desire of make/dress up. So the focusing of this scenario does not miss the main customer by the broad appeal based audience segment. Secondly, it increases the rating from 1.0% to 1.2%. The increase could be interpreted as more audience watching THC at a same timing; this shows the support of increase opportunity of the advertising information attached to more customer. Meanwhile, it could help the TFC increase the advertisement price by argue that the advertising effect is increasing in TFC lead to the competition in advertiser. Cons:

Obviously, the disadvantage under this scenario is the 10 percent drop of CPM, although it could make a higher advertisement revenue compare to the current one. The worse of the decrease is that TFC may not get enough viewership to maintain the 1.00 dollar subscribe fee. This is not only the chance to increase the probability that TFC’s competitor join the CPM competition, it may also lead TFC lose the chance to make growth in revenue while the viewership is one of the key points in the TFC revenue model of growth.

Fashionistas segmentation
Pros:
It is easily to find out the higher net income in this segmentation compare to 2007 base, the result of nothing doing with market segment (151.4 million dollar compare with 54.6 million dollar, nearly 100 million dollar in gap). Another valuable improvement is the Fashionistas segmentation scenario increase the CPM increase (from 2.00 dollar to 3.50 dollar). The reason of the CPM increase is that the Fashionistas segment is mainly targeting in the Fashionistas, the highly engaged in fashion, have the thinking and enjoy attitude of fashion. The character of more...
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