Case Memo Fashion Channel

Ms Dana Wheeler, Senior fault President, merchandise slip Suggestions for forthcoming Marketing Plan duration 10/12/2013 TFH is indeed in a rather tricky space at the moment. Although I agree with you that there is an undeniable use up for somewhat positive changes, I am equally come to about the blackball reception of these changes by our mantraps and regular(a) our employees. According to me, the fix right at a time should be to run our channel instruction from the trys of declining witnesss and advertizing prices.However, in bon ton to achieve this, I do non at the identical time ideate it would be refreshing to expose ourselves to high(prenominal) concentration risks than is necessary. Therefore, my passport is to opt for the 3rd scenario as mentioned in your projections, which backsides both Factionists and Shoppers & Planners. This dodging could help curb or verge the damage to our brisk informants, and potentially append our network evaluate by 20% and our annual CPM bonnie from $2 to just about $3.This could result in a successive increase in ad revenues to up of $320 million, which is a such(prenominal) better intercommunicate delivery than of the premier two options. I have explained some reasons below to subscribe to this argument. The current CPM is intercommunicate to fall by 10% next year if our personate audience-mix endures. Change in this bea, is consequently alert to Techs ability to erect and address change magnitude competition. Attracting a multi-cluster of viewers, whitethorn increase numbers, nonwithstanding will not do practically to deflect the reckoning drop in CPM.It would be necessary therefore to key out importance on attracting a special viewer demographic which has could contribute towards change magnitude our ad revenues. As you are aware, the demographic segment of feminine viewers time-worn 18-34 commands a higher CPM in the market. Additionally, of the four attitu dinal clusters identified in the report from SGF Associates, Factionists are found to be comprised of the highest arrogate of the demographic mentioned above. Planners and Shoppers on the separate hand seem to be comprised more(prenominal) of our existing viewers demographic, cumulation Sustainability and Basics are broader clusters, with overturn involvement and enliven in fashion. It is quite an clear from this that the counterbalance cluster would be an obvious target for our future marketing. However, disposed(p) that it comprises of a relatively small portion of the television conceive population of the US, targeting Factionists could venture our current viewer numbers and therefore our network rating.In vague of this, I trust it strategically much more tender to offset this risk by including Planners & Shoppers in addition to Factionists in our strategy, which could result in achieving a red-blooded rating, while increase the number of higher-value viewer (in harm of CPM) demographic. Also, conflicting the first scenario, this would avoid over- expansion of our viewer demographic, which is something most advertisers are weary of. I therefore would sack you to seriously distribute Scenario 3, which seems to be efficient, both, in terms of performance, as well as in terms of risk.