Tfc Marketing
FASHION CHANNEL
Group – 8
- Himanshu Sharma
- Bharath Chopra
- SuryakanthNimbure
Customer Data
Based on the customer survey data the key inferences that can be drawn are:
- Majority of the consumers want to be updated about the latest fashion trends and want to shop for new clothes.
- The need for new clothes or fashions arises primarily due to parties, occasions and hobbies like sports.
- 60 % of the population is extremely cost conscious and looks for value for money fashion.
- People find fashion programs entertaining.
- TFC should concentrate on the fashionistas and planners cluster to enhance firm revenue.
The above points explain the customer requirements based on which program content can be designed to attract more viewership or ratings.
Answers from case study :
- How would you interpret the consumer and market data if you were Dana Wheeler?
- The hottest segment to target is the fashionistas followed by Plnners and Shoppers.
- Will not see immediate results if focus is on Situationalists and Basics.
- Focus should be on Women 18-34
- Niche channel content of TFC cannot cater to a broad customer segment.
- What is the expected outcome of each of the targeting scenarios? (Complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios.)
The expected outcome of each of the scenario is as below.
Scenario 1: Target All
Scenario 2: Target Fashionistas
Scenario 3: Target Fashionistas and the Shoppers/Planners segments
- Ad Revenue Calculator
Ad Revenue Calculator |
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| Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 |
TV HH | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 | 110,000,000 |
Average Rating | 1.0% | 1.0% | 1.2% | 0.8% | 1.2% |
Average Viewers (Thousand) | 1100 | 1100 | 1320 | 880 | 1320 |
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 | 2016 | 2016 | 2016 | 2016 | 2016 |
Weeks/Year | 52 | 52 | 52 | 52 | 52 |
Ad Revenue/Year | $230,630,400 | $207,567,360 | $249,080,832 | $322,882,560 | $345,945,600 |
Incremental Programming Expense |
| $ 15,000,000 | $ 20,000,000 |
- Financials
| 2006 Actual | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 |
Revenue |
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Ad Sales | $230,630,400 | $207,567,360 | $249,080,832 | $322,882,560 | $345,945,600 |
Affiliate Fees | $80,000,000 | $81,600,000 | $81,600,000 | $81,600,000 | $81,600,000 |
Total Revenue | $310,630,400 | $289,167,360 | $330,680,832 | $404,482,560 | $427,545,600 |
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Expenses |
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Cost of Operations | $70,000,000 | $72,100,000 | $72,100,000 | $72,100,000 | $72,100,000 |
Cost of Programming | $55,000,000 | $ 55,000,000 | $ 55,000,000 | $ 70,000,000 | $ 75,000,000 |
Ad Sales Commissions | $6,918,912 | $6,227,021 | $7,472,425 | $9,686,477 | $10,378,368 |
Marketing & Advertising | $45,000,000 | $60,000,000 | $60,000,000 | $60,000,000 | $65,000,000 |
SGA | $40,000,000 | $41,200,000 | $41,200,000 | $41,200,000 | $41,200,000 |
Total Expense | $216,918,912 | $234,527,021 | $235,772,425 | $252,986,477 | $263,678,368 |
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Net Income | $93,711,488 | $54,640,339 | $94,908,407 | $151,496,083 | $163,867,232 |
Margin | 30% | 19% | 29% | 37% | 38% |