The Fashion Channel Case
The Fashion Channel Case is a popular Harvard Business School case dealing with the decision dilemma about market segmentation, market and consumer data, and typical financial analysis. The core issue is which segment(s) to target from the following alternatives:
- Broad-based segmentation scenario (drop ‘basic’ segment)
- ‘Fashionistas’ focused
- ‘Fashionistas’ + ‘Planners & Shoppers’ focused
Alternative 1:
Cross segment: Fashionistas, Planner & Shoppers, and Situationalists
- All segments include women aged between 18-34
- Awareness & viewing will increase rating 20%
- Ad sales forecasted to decrease 10% in CPM to $1.80
- No additional cost for new programming
Alternative 2:
Single segment approach: Fashionistas
- Target only 15% of the households
- Ratings will drop to 0.8%
- Strengthen value of audience to advertisers increasing CPM to $3.50
- Investment in new programming cost of additional $15 Mn
Alternative 3:
Dual targeting segment: Fashionistas and Planner & Shoppers
- Drive ratings to 1.2
- Increasing CPM Ad price to $2.50
- Investing in new programming cost of additional $ 20 Mn
One can complete the calculations and results suggest to go with Scenario 3, which is targeting two segments: Fashionistas and Planner & Shoppers. The reasons are:
- It provides higher margin than other two options
- Not generalized targeting to move from status quo neither a risky targeting of a single segment
- Also a focused strategy which will increase awareness and improve competitive position among CNN and Lifetime
- Will improve Channel image among cable operators
Now, why i am talking about case solution? Well, may be to compete with Mr. Chintan Bhagat, my favorite entrepreneur!
The real reason is how individuals can use creativity for boring case studies and avoid copy paste from slideshare and similar sites!
The Mozartists (that’s what they call their group) have done The Fashion Channel Case analysis in a highly innovative and creative way using poem/rhyming content.
Here is the video of a unique style of solving business case studies.
“Elementary my dear Watson!”
Members of The Mozartists are:
Ayeshni| Gulfam| Harshini|
| Manish | Nidhi| |Niharika|