THE F A S HI O N C H A NN E L

CASE QUESTIONS
BY - GROUP 9

KRITIKA TYAGI
SHRADDHA SHUKLA
BADAL KUMAR PATHAK
RAHUL KUMAR
SHUBHAM MITTAL
ASSIGNMENT QUESTIONS

• HIGHLIGHT THE ISSUES FACED BY THE BUSINESS IN THE CHANGING ENVIRONMENT IN THE
FACE OF COMPETITION AS PER THE CASE

• DISCUSS THE IMPORTANCE OF MARKETING RESEARCH AND THE INTERPRETATION FROM THE
DATA AND DATA ANALYSIS IN THIS CASE

• DO A FACTUAL AND CRITICAL ANALYSIS OF ALL SEGMENTATION OPTIONS AVAILABLE AT HAND

• BRIEFLY DISCUSS THE ORGANIZATIONAL DYNAMICS AND CHANGE MANAGEMENT
• GIVE YOUR RECOMMENDATION WITH JUSTIFICATION.
Issues faced by the TFC in the changing environment in the face of competition
as per the case

• Lifestyle is attracting younger female demographic and CNN is starting to deliver great numbers on men. Both

these segments can be sold for a premium CPM.

• Competitors were providing meaningful choices to both viewers and advertisers.

• If the TFC network under-performed the average, it risked being offered in less appealing packages, which could

mean it would be seen in fewer households.

• The strong fashion programming blocks on Lifetime and CNN represented a double-edged competitive challenge.

And if successful, more networks would likely copy the concept, skimming more viewers and ad dollars from

TFC.
 Importance of marketing research

• Helps in making educated decisions, before investing in new ideas and minimizes the risk.

• Helps in understanding the requirements of target audience

• Learning about the business environment which includes competitors

• It helps in finding new business opportunity.

Interpretation from the data and data analysis

TFC CNN Lifetime

Consumer Interest in 3.8 4.3 4.5
viewing
Awareness Rating 3.4 4.6 4.5
Perceived Value 3.7 4.1 4.4
Average Rating 1.0 3.0 4.0
Average Household 1.1M 3.3M 4.4M
Programming profile Fashion news, features, Fashion news and Fashion news and features
and information information with celebrity focus
available

From the given data it can be seen that TFC is losing it’s competitive edge as it’s
performing worse in all the categories mention above.
 Factual and critical analysis of all segmentation options available at hand

Current 2007 Base Scenario 1 Scenario 2 Scenario 3

TV HH $11,00,00,000 $11,00,00,000 $11,00,00,000 $11,00,00,000 $11,00,00,000

Average Rating 1.00% 1.00% 1.20% 0.80% 1.20%
Average Viewers (thousand) 1,100 1,100 1,320 880 1,320
Average CPM $2.00 $1.80 $1.80 $3.50 $2.50
Average Revenue/Ad Minute $2,200 $1,980 $2,376 $3,080 $3,300
Ad Minutes/Week 2,016 2,016 2,016 2,016 2,016
Weeks/Year 52 52 52 52 52

Ad Revenue/Year $23,06,30,400 $20,75,67,360 $24,90,80,832 $32,28,82,560 $34,59,45,600

Incremental Programming
Expense $1,50,00,000 $2,00,00,000

Scenario 3 is giving the best net income and highest margin.

Organizational dynamics
The following four fundamentals activities that contribute to TFC’s organization dynamics as follows
• Recruitment of Dana Wheeler as VP marketing for the purpose of segmentation.
• Dana Wheeler was responsible for the marketing strategy where as Norm Frazier, senior vice president of
Advertising Sales was responsible for advertising revenue.
• Dana Wheeler used extensive market research technique to come up with segmentation of customer base.
• Dana Wheeler came up with the data for the revenue generation as well as expense for every marketing strategy
she recommended.
Change management
• Change management can be done through the help of data analysis, Wheeler can show the expected outcome
under different scenarios.
• Wheeler need to talk about risks and benefits of adopting different strategies to the leadership team.
Recommendation with justification

 Wheeler should go for scenario 3 that is targeting dual segments: Fashionistas and Planner &

Shoppers.

 As according to given data, this targeting will ensure maximum net income and margin of 39%.

 This strategy acquires half of the females of age group 18-34.

 This targeting will also improve the TFC’s average rating from 1 to 1.2.

 This will increase the popularity of TFC and give it a competitive edge.