I would consider female “Fashionistas” and “Shoppers/Planners” aged 18 -34 as the key consumer, and the data I would think most notable is CPM value for those segment. Q2. Consider 3 primary options presented. Discuss the pros and cons of each. A2. Pros of option 1: – The Fashion Channel (TFC) can keep its theme for marketing programs, “Fashion for Everyone”, and the most of colleagues probably will not oppose this strategy accordingly. – The rating expects to be boost from 1. 0 to 1. 2 by investing in a major marketing and advertising campaign with the program to gain viewing of consumers.
TFC can save time and costs for creating new type of programs. Cons of option 1: – CPM will not be valued highly compared with other options. – Because TFC does not change its performance essentially, it may need to drop a unit price of advertising by 10% or more and there is still the risk that the competition will continue to penetrate the premium segments and further erode TFC’s pricing ability. Pros of option.
Fashionista segment contains many highly valued 18-34 female demographic, and the CPM for this option will be $3.50, about twice as high as that of option 1. – Whatever change it is, advertisers will value and pay attention to TFC than before, which might be an important key to strive the fierce competition with CNN and Lifetime. Cons of option 2: – The rating drops to 0. 8 because of the smallness of this segment. – Additional $15 million per year on investing in new programming to attract and retain the interest of this segment will be needed. – Many co-workers might not support this option considering the risk to narrow the target too much.
The Essay on Cosmetic surgery cons and pros
With the development of technology and medical systems, changing one’s appearance is something which is very normal. People chose to go under some kind of cosmetic surgeries have different reasons, but cosmetic surgery do really change some people to a better life. We are surrounded by advertisements, movies, magazines which usually have pictures of stunning models. The media and those kind of ads ...
However loyal the Fashionistas are, they might shift their interest to other categories than fashion in future. Then the rating might get lower and TFC might lose distribution support from the cable network. Pros of option 3: – Both rating and CPM value for this option are high and well-balanced compared with option 1. – Since the two target segments, Fashionistas and the Shoppers/Planners, are broader than option 2, CEO and other members of the leadership team might willingly agree with this option. Cons of option 3:
Additional $20 million is needed to ensure that there are selections aimed at both segments. Q3. If you were Dana Wheeler, what solution would you recommend and why? A3. I would recommend the 3rd scenario stated above. As a result of calculation of the impact of rating and CPM increases on potential TFC ad revenues, it became clear that taking the 3rd scenario would yield the largest net income in the three options, about $168. 9 million. Expected net income of scenario 2 also marks high value of $151. 5, however, this scenario has a defect that can’t be ignored — its low rating.
There is an obvious risk in targeting only some of the customers, and for that reason, some members of TFC might not support this strategy. As for scenario 1, expected net income is the lowest of the three and even lower than that of year 2006. In addition, while this plan requires no new programming to be added, I believe some drastic changes are needed for TFC’s future growth now that its present strategy is no longer acceptable because of the presence of strong rivals. For those reasons, I would recommend taking scenario 3 as a strategy for TFC to keep its position as the market leader.
