Case Memo Fashion Channel

Ms Dana Wheeler, Senior Vice President, Marketing subject Suggestions for extrovert Marketing Plan date 10/12/2013 TFH is indeed in a rather tricky situation at the moment. Although I equip with you that there is an undeniable need for some substantial changes, I am equally concerned about the negative reception of these changes by our dishs and even our employees. According to me, the aim right now should be to bespeak our channel way from the risks of declining viewers and advertising prices.However, in order to get to this, I do non at the same time return it would be wise to expose ourselves to high concentration risks than is necessary. Therefore, my recommendation is to favour for the third scenario as mentioned in your projections, which targets both Factionists and Shoppers & Planners. This strategy could help give or limit the damage to our existing viewers, and potentially increase our mesh topology rating by 20% and our annual CPM average from $2 to well-nigh $3 .This could result in a consequent increase in ad revenues to upwards of $320 million, which is a much better projected delivery than of the foremost two options. I have explained some reasons below to support this argument. The legitimate CPM is projected to fall by 10% next year if our indicate audience-mix endures. Change in this area, is then vital to Techs ability to grow and channelize increasing competition. Attracting a multi-cluster of viewers, may increase numbers, but will not do much to forfend the probable drop in CPM.It would be necessary therefore to place importance on attracting a particular proposition 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 four attitudinal clusters identified in the report from SGF Associates, Factionists are appoint to be comprised of the highest portion of the demograp hic mentioned above. Planners and Shoppers on the other hand bet to be comprised more of our existing viewers demographic, hill Sustainability and Basics are broader clusters, with lower elaboration and interest in fashion. It is quite clear from this that the first cluster would be an obvious target for our future marketing. However, given that it comprises of a relatively wee 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 sensible to offset this risk by including Planners & Shoppers in addition to Factionists in our strategy, which could result in achieving a healthy rating, tour 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 adv ise you to seriously consider Scenario 3, which seems to be efficient, both, in terms of performance, as well as in terms of risk.