The Fashion Channel Case Study

Powerful Essays
Knowledge and Marketing Management Seminar
The Fashion Channel Case Study: Friday, 18 October

Please read and analyze this case on market segmentation and targeting options for a cable television network dedicated to fashion programming. No research into the industry or firm is necessary. Please use only the information provided by the case.

Each team should complete Exhibit #4 “Ad Revenue Calculator” and Exhibit #5 “Estimated Financials for 2006 and 2007” and submit a copy of their team’s work at the beginning of class. A spreadsheet is provided to help you with this assignment.

Exhibit 4: Ad Revenue Calculator

Ad Revenue Calculator

Current
2007 Base
Scenario 1
Scenario 2
Scenario 3
TV HH
110.000.000
110.000.000
110.000.000
110.000.000
110.000.000
Average Rating
1,0%
1,0%
1,2%
0,8%
1,2%
Average Viewers (Thousand)
1100
1100
1320
880
1320
Average CPM*
$2,00
$ 1,8
$ 1,8
$ 3,5
$ 2,5
Average Revenue/Ad Minute**
$2.200
$1.980
$2.376
$3.080
$3.300
Ad Minutes/Week
2016
2016
2016
2016
2016
Weeks/Year
52
52
52
52
52
Ad Revenue/Year
$230.630.400
$207.567.360
$249.080.832
$322.882.560
$345.945.600
Incremental Programming Expense

$ -
$ -
$ 15.000.000
$ 20.000.000

* Revenue/Thousand Viewers

** Calculated by multiplying Average Viewers by Average CPM

2006 Actual
2007 Base
Scenario 1
Scenario 2
Scenario 3
Assumptions
Exhibit 5: Financials

Revenue

Ad Sales
$230.630.400
$ 207.567.360
$ 249.080.832
$ 322.882.560
$ 345.945.600
Insert scenario results from revenue calculator
Affiliate Fees
$80.000.000
$81.600.000
$81.600.000
$81.600.000
$81.600.000
Grows 2% per year with population
Total Revenue
$310.630.400
$289.167.360
$330.680.832
$404.482.560
$427.545.600

Expenses

You May Also Find These Documents Helpful

  • Powerful Essays

    CASE STUDY: The Fashion Channel Case study: The Fashion Channel Opening Lacking of detailed segment, branding and positioning strategy and increasing competitors which have put forward the similar fashion program forced TFC to change its marketing strategy for future growth. Therefore, targeting and positioning the market are of great importance. However, TV ratings and advertising revenue are necessarily to be accomplished by segment TFC. Key…

    • 1356 Words
    • 6 Pages
    Powerful Essays
  • Better Essays

    Fashion Channel Case Study

    • 1096 Words
    • 5 Pages

    The Fashion Channel Marketing Analysis XXXXXX XXXXX Abstract The Fashion Channel (TFC) has enjoyed a calm journey on the top of the fashion-programming niche for almost 10 years. However, there is a frontal attack from market-challengers of two other cable networks to capture market share and revenues from TFC. The CEO is keenly aware that TFC needs a new marketing strategy if they want to remain the market leader. Therefore, he hired a senior vice president of marketing…

    • 1096 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    Case Study – The Fashion Channel Abstract In this paper I will discuss the pros and cons of segmentation of each of the segmentation options presented by Dana Wheeler for improving The Fashion Channel’s marketing plan. The Harvard Business School’s Case study included a wide variety of consumer and market data that must be analyzed to assist with drawing the best conclusion as to what is the best course of action to take. After reviewing the data and looking at the options presented, I will recommend…

    • 1186 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    The Fashion Channel – Case Study Exercise 1: What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios) Exhibit 4: Ad Revenue Calculator TV HH Average Rating Average Viewers (thousands) Average CPM1 Average Revenue/Ad Minute2 Ad Minutes/Week Weeks/Year Ad Revenue/Year Incremental Programming Expense 1 Revenue/Thousand Viewer 2 Calculated by multiplying Average Viewers by Average…

    • 1037 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    The Fashion Channel Case

    • 1980 Words
    • 6 Pages

    The Fashion Channel Case Due Date: 9/30/2013 Here at The Fashion Channel (TFC), the management team needs to decide which customer segments that we should target when implementing our new marketing strategy. Based on current environmental trends, state of the economy, current cultural, social, and political conditions, we as team need to find a way to position ourselves to ultimately increase company revenue. In doing this we need to focus on ways to increase our share of the market (targeting…

    • 1980 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Fashion Channel Case

    • 3519 Words
    • 15 Pages

    Dana Wheeler, Senior Vice President of marketing for the Fashion Channel is reviewing a new marketing segmentation and positioning strategy. The Fashion Channel Company needs to strengthen its competitive position and is willing to spend an estimated $60 Million on advertising, promotion, and public relations in 2007. TFC’s main focus has been solely on fashion which is broadcast all hours of the day 7 days a week. This channel reaches close to 80 million viewers in US households with their main…

    • 3519 Words
    • 15 Pages
    Powerful Essays
  • Satisfactory Essays

    The Fashion Channel Case

    • 276 Words
    • 2 Pages

    Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC) must create a strategy which would help deal with the current marketing challenge. Wheeler’s major challenge is to choose an explicit target market in which her team can market towards in order to increase revenues for The Fashion Channel. The key Point’s of The Fashion Channel case include: 1. Build strong Target Market - In order for TFC to maintain and increase their advertising revenue model they must build…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    The Fashion Channel Case Analysis Problem Statement: The case of the Fashion Channel exhibited possible failures and multiple problems. After thorough review of the case I felt the core problem is the failure to focus on a specific demographic. TFC had run off the marketing strategy of “something-for-everyone” for plenty of years and found success in this untouched niche of fashion television. Without competition, this marketing mentality had been very profitable, and started drawing up attention…

    • 2069 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    The Fashion Channel Case

    • 863 Words
    • 4 Pages

    MBA-532: Marketing Management Case Report-1: The Fashion Channel Ahmet ÇAVUŞ 1- After completing the Ad Revenue and Financial tables for three different scenarios, it can be concluded that the third scenario has the most amount of outcome in financial domain. The outcomes of the scenarios with respect to net income and total revenues are: 1.Scenario: Total Ad. Sales Revenue: $249,0 M Total Net Income: $94,9 M 2.Scenario: Total Ad. Sales Revenue: $322,8 M Total Net Income: $151,5 M…

    • 863 Words
    • 4 Pages
    Powerful Essays
  • Satisfactory Essays

    Fashion Channel Case

    • 432 Words
    • 3 Pages

    PROBLEM STATEMENT Dana Wheeler, The Fashion Channel’s (TCF) senior vice president of marketing, must focus on TCF’s segmentation, branding, and positioning strategy. BACKGROUND TFC is a cable TV network specially devoted to the latest fashion broadcasted 24 hours per day, 7 days per week. TFC was successful and experienced constant revenue and profit growth above the industry average. TCF was one of the most common niche network, shared with 80 million U.S. households. A LT E R N AT I V E…

    • 432 Words
    • 3 Pages
    Satisfactory Essays