1. What are the pros and cons of the three segmentation scenarios?
Read carefully the case and make a list of the pros and cons of each segmentation scenario. Use the following table to summarize your findings.
Scenario 1: Broad-based Segmentation Targeting
Scenario 2: Fashionista focus
Scenario 3: Fashionistas + Planners/Shoppers
Pros
Cons
2. What Segmentation scenario is likely to produce higher revenues?
To estimate the impact of each segmentation strategy on the company’s revenue your team will have to estimate the financials of the company using the following scenarios:
2007 Base: No segmentation; drop in ad unit pricing (average CPM).
Scenario 1: Broadly targeting 3 groups (excluding Basics); increase in ratings, decrease in ad unit pricing (average CPM).
Scenario 2: Fashionista target: drop in ratings, increase in ad unit pricing (average CPM).
Scenario 3: Fashionista and Shopper/Planner targets; increase in ratings and increase in ad unit pricing (average CPM).
Follow the format and information included in Exhibits 4 and 5.
3. What is your team recommendation? What segmentation strategy should The Fashion Channel adopt?
In your answer include the following:
• What special programming would you develop for your strategy?
• How else would you add-value to the Fashion Channel and increase Brand engagement?
The Fashion Channel
1. What are the pros and cons of the three segmentation scenarios?
Read carefully the case and make a list of the pros and cons of each segmentation scenario. Use the following table to summarize your findings.
Scenario 1: Broad-based Segmentation Targeting
Scenario 2: Fashionista focus
Scenario 3: Fashionistas + Planners/Shoppers
Pros
Cons
2. What Segmentation scenario is likely to produce higher revenues?
To estimate the impact of each segmentation