the fashion channel

The Fashion Channel-Case Analysis
Group-6:
Anurag Satapathy (2014PGP050)
Meenakshi Sundareswaran (2014PGP201)
Nishant Mishra (2011IPM058)
Rananavare Abhijeet (2014PGP293)
Renuka Denkar (2014PGP102)
Sawan Kumar (2011IPM095)
Sonali Panda (2014PGP372)
From the case it is clear that TFC was initially the only channel dedicated solely to fashion.
The need for market segmentation arose due to drop in the TFC ratings to 1.0 due to the increase in competition in the segment. This also saw a fall in the revenue in the company.
The following strategies were suggested by Dana Wheeler:
1. Maintaining a broad appeal to cross segment of Fashionistas, Planners and Shoppers, and Situationalists.
2. Focus more on Fashionistas.
3. Targeting two segments- the Fashionistas and the Shoppers/Planners.
The following tables provide the analysis for the expected financials of TFC for 2007:
Ad Revenue
Calculator
TV HH
Average Rating
Average
Viewers
(thousand)
Average CPM
Average
Revenue/Ad
Minute
Ad
Minutes/Week
Weeks/Year

Current

2007 Base
Scenario 1
Scenario 2
Scenario 3
110000000
110000000
110000000
110000000
110000000
1.00%
1.00%
1.20%
0.80%
1.20%

1100
$2.00

1100
$1.80

1320
$1.80

880
$3.50

1320
$2.50

$2,200.00

$1,980.00

$2,376.00

$3,080.00

$3,300.00

2016
52

2016
52

2016
52

2016
52

2016
52
$3459,45,600.00

$150,00,000.00

Ad
Revenue/Year

$2306,30,400.00

$2075,67,360.00

$2490,80,832.00

$3228,82,560.0
0

Incremental
Programming
Expense

$0.00

$0.00

$0.00

$150,00,000.00

TFC Estimated
Financials

2006
Actuals

2007 Base

Scenario 1

Scenario 2

Scenario 3

Assumptions

Revenue

Ad Sales

Affiliate Fees
Total Revenue

$2306,30,4
00.00

$2075,67,360.
00

$2490,80,832.0
0

$3228,82,56
0.00

$3459,45,6
00.00

$800,00,00
0.00
$3106,30,4
00.00

$816,00,000.0
0
$2891,67,360.
00

$816,00,000.00
$3306,80,832.0