Fashion Channel

In: Business and Management

Submitted By soteria81
Words 343
Pages 2
Javier Angulo
February 16, 2015
MAR6816
Executive Summary

Montreaux Chocolate USA
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Montreaux is an overall distinguished brand of chocolates that’s been successful in putting its name up in the Swiss market. Recently it has been attempting to enter the USA chocolate market. To achieve this objective, its partnership with Apollo Food’s operation section CFG (Consumer Food Groups) to fit the results of this European mark in the US advertise. Having a $17.64 billion in total revenue reported in the US Chocolate segment of the confectionary market, the idea of Montreaux to introduce dark healthy chocolate candy sounds like very beneficial. U.S. chocolate is expected to grow almost 2% annually through 2015, a decision to further product testing, launch in special markets, stage or regional rollout or nationally; depends on the new product development director Andrea Torres. In order to position this product the team needed to identify a few things such as; marketing between healthy chocolate or distinguishing it from other chocolate taste. Another decision was packaging; 3.5-ounce bar or a 10 square 5-ounce stand up pouch, all done through focus groups.

After completing all BASES testing and focus groups we see that Montreaux will have success in achieving the $30 million threshold within its first year with a maximum retail sales of $60 million. Calculating all 27 scenarios only 6 options indicated success after the first year. Attributing to the highest success rate was High support and High ACV in the excellent product category at 39%.

Focus groups were very beneficial in determining that 70% cocoa is preferred over 90% dark. Using focus groups, 200 consumers were asked to evaluate and provide feedback on which fruit concepts were best and what packaging would be ideal. We saw a preference in the…...

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...THE FASHION CHANNEL CASE STUDY: In reference to the case study, Dana Wheeler can invest in one of the following 3 scenarios to generate better output for ‘The Fashion Channel’ (TFC): Scenario1: Broad appeal to a cross segment of Fashionistas, Planner & Shoppers and Situationalists Advantages: Investing in marketing and advertisement campaign for new target segment, will lead to increase in the rating from 1.0 to 1.2 and also increase in average viewers. Disadvantages: Since there is no real change in viewers’ type and programming, the CPM will drop by 10% or more and competitors will continue taking its market share. Scenario2: Focus on Fashionistas segment Advantages: This segment has the highest interest in fashion and is strong in the highly valued 18-34 female demographic, which will lead to increase in CPM. Disadvantages: Fashionistas is the smallest segment in four clusters .Require spending of additional $15million per year on programming to attract and retain interest of this segment. Scenario3: Focus on both Fashionistas plus Shoppers & Planners clusters Advantages: Dual-targeting will ensure the average viewers and rating. It is expected that rating will grow to 1.2 with a potential CPM of $2.50 Disadvantages: Require spending of additional $20million to ensure there were selections aimed at both segments. Recommendations: Observing the advantages and disadvantages of the three options, Scenario 3 looks to be the most......

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...Fashion Channel: new SEGMENTATION & POSITIONING strategy Which scenario should be chosen? Why? Players Dana Wheeler – vice president of marketing department CEO Jared Thomas Norm Frazier – vise president of advertising sales Company | How they make money | Concept “FASHION for EVERYONE”TV network dedicated solely to fashion with up-to-date and entertainment features;Information broadcast 24 hours per day, 7 days per weekFounded in 1996Forecast revenue for 2006 - $ 310.6 mil;Reached 80 mil households Women b/w 35-54“Look great on Saturday night for under $100” – most viewable series in 2005 | Revenue streams from advertising sales Revenue streams from cable-affiliate fees | Place | Product | Price | Promotion | Chicago office Traditional and internet advertising Public relationspromotions | TV network dedicated solely to fashion | Subscriber fee is $1 per year | Cable & satellite TV | Customer Needs | Company Skills | Competition | Collaboration | Context | | Readiness to spend $60 mil in all advertising, promotion and public relations;Growth without segmentation, positioning and branding strategy | Lifetime taking away a lot of ad buys because they are attracting younger female demographics M-F 9-11 pm CNN delivers some great numbers of men M-F 8-9 pm, Sat-Sun 10-11 pmOutdo TFC in ratings on consumer interest | | Dependence on MSO since they withdraw unpopular channels | Strengths | Weaknesses | Extensive niche market; Ability to realize......

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...Harvard case 3 The Fashion Channel Tim Cornish 21337523 Harvard case 3 The Fashion Channel Tim Cornish 21337523 The University of Western Australia MKTG5561 The University of Western Australia MKTG5561 Harvard Case 3 The Fashion Channel It is clear Dana Wheeler must take action otherwise The Fashion Channel (TFC) risks losing a large portion of the market share to competitors. The two main competitors being Lifetime and CNN. Currently TFC is mass marketing, which in the past has been fine, however, the rise in competitors has changed the dynamics of the market for TFC. Dana Wheeler must choose between three scenarios to help TFC move forward and establish itself as a big competitor in the market. Scenario 1 Involves focusing on all women ages 18-35. Would be required to serve ‘Fashionistas’, ‘Planners & Shoppers’ and ‘Situationalists’. Pros – By Targeting women aged 18-35, TFC are serving a highly valued customer audience and it is reaching a larger audience. TFC would receive a ratings boost of 20 percent from 1.0 to 1.2. This is important because without maintaining the current audience ratings it could risk losing its distribution support. Cons – Ad sales drop by 10 per cent of CPM (cost per thousand) to $1.80. This will decrease TFC’s total ad revenue per year. By focusing only on women aged 18-35, Wheeler is taking a very broad marketing segment approach because this demographic fits into all segments. If she was to choose this......

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...Case Activity: The Fashion Channel 1) What does Wheeler imply by “Deliver quality audiences, as demanded by advertisers” (p. 5)? Why is this important to TFC? ‘Deliver quality audiences, as demanded by advertisers’ means increasing viewership (rating). Moreover, increasing the audience quality, attracting more audiences who have the ability and possibility to buy the product advertised in TFC. From the Exhibit 5 we can see, FTC sales revenue comes from two sources, ad sales and affiliate fees. The more audience subscribe their channel the more viewership, the more probability they buy the product advertised on TV. If the TFC can reach the tight audience, they can get more advertisers, therefore, increase the advertising revenue. There are usually 6 minutes in every 30 minutes program, the time of the advertisement can be regarded as fixed, if the TFC raise the advertising price, the more revenue that can get. However the competition for ad revenue are always fierce as there are a numbers of networks, TFC cannot increase the advertising price by no reasons unless the audiences have the ability and possibility to buy the product. If the FTC’s audiences are likely to buy the advertising product in the future, the TFC could negotiate with the advertisers, and raise the fee somehow. TFC’s Ad Sales team usually sell the advertising spots to a variety of well-know cosmetics companies, clothing designers and automobile manufacturing, the quality audience then will be......

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