Please answer the following questions in no more than 3 pages single spaced or 6 pages double spaced using a 12pt font. Exhibits such as your excel results do not count against the page limit. Please note that the column “2007 base” in the excel spread sheet assumes you do not segment the market. It is critically important that you communicate your reasoning clearly. You MUST NOT talk about the case in depth with anyone else.
1. How would you interpret the consumer and market data if you were Dana Wheeler? Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each.
(1) With the total 110 million TV householders with televisions in the United States, the channel reached …show more content…
So it’s the time to pitch TFC against the new fashion content on CNN and Lifetime, and improve consumer interest. If TFC maintain a broad and did nothing about segments, it could put revenue at risk and more importantly the grim competition would continue to penetrate the premium segments. I prefer the second scenario than the third one because of the inner environment in TFC. Although the scenario that target two segments could bring more benefits to TFC, it needs more input such as the programming expense. It would be less mild than the second one. Because TFC had grown quickly without articulating any detailed segmentation, some of the leadership still felt an urge to resist change, and whether TFC could adapt to a so big change is unknown, Dana Wheeler need to persuade and implement her recommendations in the way of most possibly. In these situations, the second scenario could be the better choice. It could bring significant benefits to TFC and need not much more expenses compared with the third one, so it might be accepted more easily by management levels.
From the data has been present, I can know Lifetime target its market on the age between 18 and 34 years old and CNN target its market on male. But the real gap between TFC and its competitors is the average households, the average households of TFC is less 2.2 million than Lifetime’s and 3.3 million than CNN’s. These two numbers show the real challenge TFC faces. There are two