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Case, Note

Introduction The protagonist of the case is Dana Wheeler who is the senior vice president of marketing intended for TFH The girl was considering preparing a brand new Segmentation and Positioning Approach If her boss loved what he heard chances are they would move forward with a 62 million dollar IMITATE campaign utilizing national advertising, promotion, and public relations.

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This was an increase of 15 mil dollars by last year. Background TFH was a successful cable television network that was the just one who showed up-to- time news regarding fashion twenty-four hours a day, 7 days a week It absolutely was founded in 1996 It has had steady and constant growth considering that the beginning, earnings was expected to develop to 310 million dollars in 2006 tagging another steady year of growth.

The funnel was probably the most widely available niche networks getting 80 million US homeowners (this quantity represents the quantity of people who experienced TFH in their package not those viewing it) Girls between thirty four and fifty four years had been its many avid audience according to its gross annual demographic study Beyond simple demographics the network acquired no other information on the viewers Nor did it attempt to market to the viewer sectors in particular Early on the network had selected a a thing for everyone” type of strategy in its programming and advertising TFH offers clearly produced quickly inspite of it lack of targeted advertising, however at the beginning of 2006 TFH had realized that other networks were taking note of its success Some of its biggest competitors became Lifetime and CNN who had added fashion programming to their lineup It’s this that prompted Tech’s CEO to actually want to change up TFH advertising be more ideal with their advertising, this is why that they hired Credit who extensive experience with marketing packaged client goods and also broad knowledge in promoting.

Tech’s CEO and other executives felt some urge to resist alter and didn’t want to “fix what wasn’t broken” Wheeler’s Plans Frazier (senior up of ad sales) had warned that TFH would have to drop the buying price of a unit of advertising by 10 % in the event that changes were not made in Tech’s performance This individual mentioned that CNN and Lifetime’s fashion shows were achieving significant ratings (EXHIBIT 1) Frazier was a wonderful salesman and was Justifiably worried about product sales Wheeler knew that to be able to hold or increase the value it would be essential to attract a vital mass of viewers who had been interested in the network’s articles and were attractive to marketers The key will be targeting the ideal viewers and offering marketer an attractive blend viewers in comparison to their opponents BUT if the girl changed the network’s supplying in a way that disappointed too many consumers it could risk losing their distribution support Her strategy was to develop a strategy for segmentation and use it as being a base to hire all advertising tools at her convenience, traditional/internet advertisings, PR and promotions to reach targeted buyers Everyone experienced that advertising and marketing was TFH primary progress opportunity. Tiff’s Advertising Income Model TFH was on target to build 230. Mil dollars 5 years ago from promoting The advertising business model was built about attracting a mix of male and feminine viewers on a regular basis , believe “something intended for everyone” approach Tuft common rating was 1 . zero with one hundred ten million households or 1 . 1 , 000, 000 people people watching at the same time.

The advertisement sales team offered access to audiences through 40 to 62 second locations to a number of advertisers including automobile manufacturers, clothes firms, and beauty companies There was usually 6 minutes of advertising every 30 minutes of programming (20 percent), one day per day, for a total of 2016 a few minutes per week 5 years ago industry info showed that advertisers put in 20 billion dollars on advertising in cable industry, however there was over a hundred or so networks rivalling for these us dollars which produced competition brutal. TFH was your only committed fashion network If CNN and Lifetime are successful more channels may possibly copy all of them creating more competition for TFH The network primarily based ad product prices on several elements The number of visitors (ratings) The audience characteristics (demographics and lifestyle)

Both of the are hurting advertisement sales and hurting Tech’s CPM TFH was facing additional competitive challenges in its attractiveness to cable internet marketers. On a scale of 1 to 5 TFH achieved a a few. 8 whereas fashion development on CNN scored a 4. 3 while Lifetime scored a 4. a few On understanding TFH scored 4. 1, CNN 4. 6, and lifelong 4. a few On perceived value TFH scored three or more. 7, CNN 4. 1, and Lifetime some. Memo’s utilize the aforementioned info to determine Internet marketer Fees and which deal to offer TFH in. In the event TFH continues to underperformed it might be offered in much less appealing deals making it noticed in even fewer households, destroying its prospective customers of income growth or even survival.

The info strongly shows that difference in programming have to happen so that TFH can easily increase client interest, understanding, and identified value This change could cause upsetting some of the existing loyal viewers The Management crew had been with TFH for years and skilled large amount of their very own growth quarrelling safe marketing strategies where Wheeler is requesting them to require a risk. Attitudinal Research Results The Following Data can be found in Show 2 and Exhibit 3 There are several unique sets of viewers Factionists Planners , Shoppers Durability Basics While the segments diverse in size, Wheeler quickly pointed out that the smallest -The Factionists- had a high degree of interest in trend Most of the men interest took place in the Basics cluster- the least likely to be engaged with TFH content material. Factionists, Organizers, and Sustainability all got cluster of women between the age range 18 to 34, the premium market.

By investing in a major marketing/advertising campaign it would be fair to expect that awareness and viewing of the channel would venture up This can deliver a ratings boost of 20% and would take the rating via 1 . zero to 1. 2 If the current audience mix stayed a similar, ad product sales were guessing a 10 % drop to $1. 70 Wheelers Preferred Strategy Targeting Factionist’s, Shoppers/Planners, and Situational All segments mentioned have clusters of the desired age bracket but both equally Planners and Situational are made up of older women their existing audience plus they would become targeted It is likely to imagine ratings would increase by 1 . zero to 1. Not any clear data is given about CPM Not any clear info is given regarding the increase in cost of encoding Alternative Tactics Focusing on Factionists This part was strong in the highly valued 18-34 female market It was smaller sized that additional segments signify

Mainly targeting Men Pursue a desirable demographic as men of all ages are a premium demographic No data in ratings No data upon CPM Not any data upon Programming costs, however it can be likely to assume that costs might pike since all current programming can be geared to a little bit older women (their current primary demographic) They would likely and very quickly lose all their current audience due to shift in development for a market that they are not sure they can also secure. Large short-term risk as all current viewers will be dropped and could bring about ratings damage and getting taken off the essential cable package deal Long-term in the event that this strategy is prosperous, men could be a larger viewers than females as even more age groups are desired by advertisers. This could result in increased affiliate service fees and advertisement sales.

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