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Scenario1: Develop a multi-segment strategy, and focus on Fashionistas, Planners & Shoppers and Situation lists between the

women aged 18 to 34. Advantages: Through implementing various marketing tools on new target segment, the rating will increase from 1.0 to 1.2, leading to the 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 the Fashionistas segment and spend $15 million on programming. (Single segment concentration) Advantages: This segment shows the highest interest in fashion and is strong in high valued 18-34 female demographics, which will deliver a CPM boost. With $15million on content improvement, it will attract more target consumers. Disadvantages: Fashionistas is the smallest segment in four clusters. It is risky if only target at this group and the average viewers will decrease as well. It also needs additional expense to change the programming which will bring upset to subscribers and employees. Scenario3: Target at both Fashionistas and Shoppers & Planners clusters and spend$20 million on programming. (Product specialization) Advantages: Dual-targeting will ensure the average viewers and rating. It is expected that rating will grow to 1.2 while CPM will come to $2.5. Disadvantages: There is additional $20 million should be draw from the net income.

Recommendations: After carefully looking at the advantages and disadvantages of the three options, It is recommended that Scenario3 is the best solution for Dana. First, the Fashionistas has superior interest in fashion while the Planners & Shoppers has the largest cluster size. The combination of them will exert TFCs potential (professional and full-time) into full play to compete with both fashion-oriented and regular programming. Second, the Planners & Shoppers will improve the rating, in order to attract more ad buyers and at the same time, the Fashionistas will enhance the CPM to gain more ad revenue . Also if we calculate it in revenue term the we find from the ad revenue calculator (Exihibit 4) the

total ad revenue from scenario1 scenario2 and scenario3 are $249080832, $322882560 and $322882560 so from here it is clear that Scenario 3 gives the more revenue and also from Exihibit 5 Net income in case of scenario3 is $283867232 i.e. more than the other two options, so from here also we can derive a conclusion that scenario 3 is the best suitable option for the TFC. Targeting at two valued groups i.e. Fashionistas and Planners & shoppers and then take the product specialization strategy to satisfy both segments is the best solution to this problem. It will create more revenues, make TFC get back market shares quickly, and maintain TFCs leading status.

C. Decision
Strategy Option 1 is not viable as this option not only offers the least net income & revenue, it is disadvantageous as the company would lose audience, awareness and reputation to its main competitors. Strategy Option 2, although, offers a higher CPM and its profit margin is only marginally less than in Strategy Option 3, the concept is entirely too risky. While advertisers might favour this narrow target market, supervisors and the broad audience would be hard to convince as it alters the current concept completely. Strategy Option 3 seems to be the most fitting long-term strategic option Dana can suggest to her supervisors. Although this strategy does not offer the highest CPM, it generates the highest profit margin and net income. Strategy Option 3 is not a drastic change to the current strategy and hence less resistance is expected from supervisors and target audience.

IV. Recommendations In order to put scenario 3 into action it is recommended that Dana follow certain steps to ensure its success: I. Dana has to become a change agent and the leader of the strategic change. Although the third option might not be as drastic as scenario 3, it needs the full commitment and support from both the supervisors and employees. Lack of commitment, resistance of the people involved, as well as a lack of resources will lead to a failure. Dana knows that the supervisors have the tendency to avoid changes and show reluctance to new approaches; she has to be absolutely convincing and in charge of the discussion. Objective analysis, advantages and disadvantages of each possible outcome as well as potential financial outcomes have to be presented in order to initiate a discussion and come to one coherent conclusion. Considering the implementation of an integrated marketing approach, the commitment, involvement and support of the whole team is indispensable to transport the coherent message to the customers. II. In order to achieve commitment and involvement, Dana may set up mixed project teams working on suggestion to bring scenario 3 alive. Hereby all employees can be involved while capturing valuable input from sales people, program writers, technicians etc. The internalization of the integrated marketing message is another advantage of the described involvement and joint development. III. As two different segments are target, Dana is advised to approach both segments and the different age groups separately in order to avoid mixed messages or confusion however considering not stepping out the overall integrated marketing message. As the prime cluster, Fashionistas aged 18-34, will be highly involved in their profession during the week,

the programming should focus on them during the weekend or at night time. Weekends are especially interesting as their main competitor in this segment, Lifetime, only broadcasts fashion blocks on weekdays. The programming should be based on the attitude drivers established in the survey. Planners and Shoppers, where the age group 35-54 is more predominant can be mainly target during the day or late afternoons. IV. In order to ensure the success of this strategy implementation, it is recommended that Dana keeps track of the implementation process, establish SMART sales, profit and customer objectives and continuously watch as well as measures the progress. This action will help to quickly adapt the strategy in case the audience or the advertisers do not respond as predicted. V. Finally, Dana is advised to stay in close contact with the audience and advertisers, keep track of new changes and demand, measure awareness and reputation and conduct continuous market research.