Part 1:
There are five primary types of consumer and market data I would consider if I were Mrs.
Wheeler: competitor information, cost per thousand, shoppers/planners, fashionistas, and
situationalists. On consumer interest in viewing, The Fashion Channel scored lower (3.8)
than CNN and Lifetime (4.3 and 4.5 respectively). On perceived value, The Fashion
Channel also scored lower (3.7) than CNN and Lifetime (4.1 and 4.4 respectively). The
interesting part came when comparing males versus females segments. For males, TFC
(39%) is competing with CNN (45%) while for females TFC (51%) is competing with
Lifetime (63%). Overall, CNN and Lifetime had higher customer satisfaction scores than
TFC.
Cost per thousand refers to the price that an advertiser would pay for a moment of
viewing. The Fashion Channel’s cost per thousand is $2.00. By increasing ratings in
certain demographic groups, TFC can almost triple cost per thousand pricing.
Planner and shoppers are a potential group to target. At 35%, they have the highest size of
cluster. They are considered trendy and take pride in shopping. Fashionistas are the main
target group for TFC. They have the most knowledge of fashion. Although they have a low
size of cluster (15%), they can potentially increase cost per thousand. Situationalists are
very specific shoppers with specific needs. They have a modest size of cluster at 30%.
Part 2:
Option 1: Develop a multi segment program. Focus on Fashionistas, Planners/Shoppers,
and Situationalists women between the ages of 18-34.
Pros: Ratings may increase from 1.0 to 1.2. This, in turn, leads to increased viewers.
