Tfc presentation
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21-Oct-2014 -
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TFCTHE FASHION CHANNEL
DANA’S CLUE
AN OVERVIEW OF THE CHANNELCONSUMER & MARKET ANALYSISFINANCIAL ANALYSISDANA’S SELECTED SEGMENTATION PLANREVISION OF SCENARIO 3OUR FORECASTQUESTIONS AND ANSWERS
THE FASHION CHANNEL’S CASE STUDY
BROADCASTI
NG
TO ALL
PUBLICS
7 DAYS 24
HOURS
FASHION
DEDICATED
NETWORK
THE CHANNEL
FOUNDED IN 1996
US BASED
UP TO DATEENTERTAINING FASHION FEATURESINFORMATION
SOLO PLAYER COMPETITORS MARKET LEADER
TIMELINE OF TFC
CONSUMER AND MARKET ANALYSIS
MAIN SOURCES OF REVENUE
ADVERTISEMENT 230.6M$CABLE AFFILIATE FEES 80M$
THE 30%of viewers are between18-34 years old
FASHIONISTAS
PLANNERS & SHOPPERS
SITUACIONALISTBASICS
EXPENSES
20B$ SPENT IN BUYING SPOTS
IDENTIFY TARGET MARKET THAT IS FASHION-ORIENTED
GENERIC AUDIENCE
HIGH INVOLVEMENT
LOW INVOLVEMENT
FASHION ORIENTED AUDIENCE
UNDERSTANDING OUR COMPETITORS
LESS APPEAL LESS VIEWERS
TIME TABLE PERCEIVED VALUE & CUSTOMER
SATISFACTION
WEAKNESSES
TFC
24x7
PV: 3,7CS: 3,8
NO SEGMENTATION AT ALL
LIFETIME
M-F 9-11 PM
PV: 4,4CS: 4,5
LACK OF FEATURES
CNN M-F 8-9 PM Sat-Sun 10-
11PM
PV: 4,1CS: 4,2
VERY HETEROGENEOUS AUDIENCE
Total Revenue Ad Sales Net Income$0.00
$50,000,000.00
$100,000,000.00
$150,000,000.00
$200,000,000.00
$250,000,000.00
$300,000,000.00
$350,000,000.00
2006
2007 Base
FEASABILITY FORECAST (2007)DOWNWARD TREND IN ALL VARIABLES
SHARP DECREASE BY NEARLY 50% IN
THE NET INCOME
DECLINE OF AD SALES
FINANCIAL ANALYSIS
YEAR 2006 2007 BASE
AVERAGE RATINGS 1% 1%
AVERAGE CPM $2.0 $0.8%
PROFIT MARGIN 30% 19%
SOME OTHER SIGNIFICANT VARIABLES
DECRESASE OF PROFIT MARGIN DROPS 11%
DECREASE IN REVENUE CPM DROPS 10%
INCREASE OF TOTAL EXPENSES RAISE 15M$ IN MARKETING AND ADVERTISEMENT
FAILURE TO RAISE RATINGS
PROS CONS
SCENARIO 1 FashionistasPlanners & ShoppersSituationalist
Rating boost in 20% Low incremental
programming expense Follows the initial TFC
mission Lowest fiscal risk
CPM will remain same as before
Non-segmented group
SCENARIO 2
Fashionistas
Increases revenues (and ad revenues)
Highest CPM
Low rating Drastic segmentation
SCENARIO 3
FashionistasPlanners & Shoppers
20% more ratings boost Stronger connection with
cable affiliates Less risk of being dropped Balance of two segments Targets the right audiences Margin of 39% Highest net income Higher competitive CPM
price
Highest cost of programming expenses
High investment expenditures
POSSIBLE SEGMENTATION STRATEGIES
• HIGHEST MARGIN• HIGHEST NET
INCOME• INCREMENT OF
RATINGS• INCREMENT OF
VIEWERS• GOOD CPM
FINANCIAL RESULTS
• HIGHLY FOCUSED IN FASHION
• GOOD AMOUNT OF THE MOST PROFITABLE VIEWERS
QUALITY VIEWERS
SCENARIO 3
DANA’S SELECTED SEGMENTATION PLAN
NEW SEGMENT: TEENAGERS (15-18 YEARS OLD)
ADD SPECIFIC PROGRAMS FOR OUR TARGET VIEWERS
INTRODUCE SOCIAL MEDIA
CUSTOMER SURVEY & FEEDBACK FROM THE NET
REVISION OF THE SCENARIO 3
PRIME TIME
NEWS & TRENDS
PROGRAM FOR TEENAGERS
PROGRAMING SCHEDULE
OUR FORECAST
INCREASE IN RATINGS
CREATION OF TEEN CUSTOMER
LOYALTY
INCREASE IN CPM
INCREASE THE NUMBER OF VIEWERS INTERESTED IN FASHION
THANK YOU
Dalma RicciLuca FlaminiGiulia VenturiIlaria CascioneCristina Muñoz
Roberto AlbanesePhuong Ly Ly
Nguyen
Q&A