The Fashion Channel is facing new competition from other networks and has no specific customer segment to target. Dana Wheeler and Her staff want to find a specific customer segment that provides them with the greatest possible profits through increased advertising pricing. SOLUTION The Fashion Channel should target the Factionists. This is the 18-34 year old female demographic. RATIONALE TFH had many surveys done in their marketing department, which showed different statistical data.
Wheeler thinks that the focus at her firm should be, “targeted at women, particularly the premium 18-to-34 year old demographic. ” The 18-34 female demographic Factionists segment was supported by the data that was gathered, as it was very appealing to advertisers that are trying to get their products to this age group. As the case states, Advertisers would pay a premium CPM to reach a group of women aged 18-34. Using this young segment, there is a great opportunity to grow the revenue of TFH through advertisement sales.
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The advertisers, as shown y the statistics, are not interested in the older viewers, which is what the channels current niche is. “Women between 35 and 54 years were its most avid viewers”. This is something that TFH would like to keep if possible, but the marketing department must begin to target the younger, more desired, segment. Wheeler looked at the statistical information for several different segmentations and concluded that the factionists segment was much more appealing for advertisement sales. “Ad sales had given her a projection of a $3. 0 CPM for an audience stronger in the younger, female oriented Factionists segment”. TFH could also see large increases in in Ad Sales, 25% to 75%, if they were to target the Factionists segment. These key viewers will boost the revenues of the company greatly as they are much more desired customers for advertisers. The best choice for Wheeler and TFH would be the factionists segment because of the profits that would come from targeting them. Since 50% of this demographic are females between the ages of 18 and 34, companies who advertise would be willing to ay a premium for ad space on their channel.
With this new target segment, Wheeler expects the ratings to boost from 1. 0 to 1. 1 . This is the equivalent of 100,000 more users, which would all be valuable factionists. Tech’s customers are brought in by the ratings of their channel, so this makes these extra 100,000 views very valuable. TFH has the potential to bring in large amounts of profits if Wheeler and her staff decided to target the factionists The Fashion Channel Marketing Case Paper By Kevin-Cob