Case Memo Fashion Channel

Ms Dana Wheeler, Senior Vice President, Marketing overt Suggestions for forthcoming Marketing Plan date 10/12/2013 TFH is indeed in a kinda tricky situation at the moment. Although I agree with you that there is an undeniable need for some potent changes, I am equally concerned about the negative reception of these changes by our peachs and tied(p) our employees. According to me, the aim right now should be to steer our channel way from the risks of declining lulus and publicizing prices.However, in order to achieve this, I do non at the same time hazard it would be wise to expose ourselves to higher concentration risks than is necessary. Therefore, my recommendation is to opt for the third scenario as mentioned in your projections, which targets both Factionists and Shoppers & Planners. This strategy could help maintain or limit the damage to our existing viewers, and potentially increment our network rating by 20% and our annual CPM average from $2 to nearly $3.This could result in a consequent increase in ad revenues to upwards of $320 million, which is a much better communicate delivery than of the first two options. I have explained some reasons below to support this argument. The current CPM is intercommunicate to fall by 10% next year if our present audience-mix endures. Change in this area, is therefore resilient to Techs ability to grow and address increasing competition. Attracting a multi-cluster of viewers, may increase numbers, but will not do much to avoid the probable drop in CPM.It would be necessary therefore to orchestrate importance on attracting a specific viewer demographic which has could contribute towards increasing our ad revenues. As you are aware, the demographic segment of female viewers aged 18-34 commands a higher CPM in the market. Additionally, of the quaternary attitudinal clusters identified in the report from SGF Associates, Factionists are found to be comprised of the highest portion of the demographic mentione d above. Planners and Shoppers on the former(a) hand seem to be comprised more of our existing viewers demographic, hill Sustainability and Basics are broader clusters, with lower involvement and come to in fashion. It is quite clear from this that the first cluster would be an obvious target for our future marketing. However, condition that it comprises of a relatively small portion of the television viewing population of the US, targeting Factionists could jeopardize our current viewer numbers and therefore our network rating.In light of this, I consider it strategically much more tenable to offset this risk by including Planners & Shoppers in addition to Factionists in our strategy, which could result in achieving a water-loving rating, while increasing the number of higher-value viewer (in terms of CPM) demographic. Also, unlike the first scenario, this would avoid over- expansion of our viewer demographic, which is something most advertisers are weary of. I therefore would a dvise you to seriously consider Scenario 3, which seems to be efficient, both, in terms of performance, as well as in terms of risk.