The Fashion Channel

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The Fashion Channel - Preparation for Class Discussion

As preparation for discussing this case in class, students should be ready to respond to the
following:

1. How would you interpret the consumer and market data if you were Dana Wheeler?

2. What is the expected outcome of each of the targeting scenarios? (Complete both the Ad
Revenue and Financial calculators to fully understand the financial impact of the scenarios.)

3. Develop a factual analysis of the segmentation options, and evaluate the pros and cons of
each.

4. If you were Dana Wheeler, what would you recommend and why?

5. Dana is filling the role of change agent in this organization. How should she manage the
discussion and meeting to be most effective in leading the group to make the right decision?

Atlantic Computer: A Bundle of Pricing Options – Preparation for Class Discussion

As preparation for discussing this case in class, students should be ready to respond to the
following:

Student Study Question 1
What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn
servers+PESA software tool)?

Student Study Question 2
Think broadly about the top-line revenue implications from each of the four alternative pricing
strategies. Approximately how much money over the next three years will be “left on the table” if
the firm were to give away the software tool away for free (i.e., status quo pricing) versus utilizing
one of the other pricing approaches?
Assume the 10,590 Tronn servers +PESA sold over 3

Student Study Question 3
How is Matzer likely to react to your recommendation

Student Study Question 4
4a) How is Cadena’s sales force likely to react to your recommendation

4b) What can Jowers recommend to get Cadena’s hardware-oriented sales force to understand and
sell the value of the PESA software…...

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Revenue and financial calculators to fully understand the financial impact of the scenarios). The Ad Revenue Calculator shows that the third scenario has the highest revenue per year. The difference in price is 20 million between second and third scenarios and with the first scenario about 100 million. However, we can see that the third scenario, as well as the highest revenue, has the highest total expense. The difference in net income between the third and first scenarios is nearly 25 million. 3. Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each. There are three potential scenarios: broad multi-segment approach, focused approach and two-segment approach. Scenario 1 manages a broad segment between the Fashionistas, Planners & Shoppers, and Situationalists. This scenario has reduced risk and lowest total expense. However, it also...

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...The Fashion Channel - Preparation for Class Discussion As preparation for discussing this case in class, students should be ready to respond to the following: 1. How would you interpret the consumer and market data if you were Dana Wheeler? 2. What is the expected outcome of each of the targeting scenarios? (Complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios.) 3. Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each. 4. If you were Dana Wheeler, what would you recommend and why? 5. Dana is filling the role of change agent in this organization. How should she manage the discussion and meeting to be most effective in leading the group to make the right decision? Atlantic Computer: A Bundle of Pricing Options – Preparation for Class Discussion As preparation for discussing this case in class, students should be ready to respond to the following: Student Study Question 1 What price should Jowers charge DayTraderJournal.com for the Atlantic Bundle (i.e., Tronn servers+PESA software tool)? Student Study Question 2 Think broadly about the top-line revenue implications from each of the four alternative pricing strategies. Approximately how much money over the next three years will be “left on the table” if the firm were to give away the software tool away for free (i.e., status quo pricing) versus utilizing one of...

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...Question #2 What would you recommend to The Fashion Channel?  The Fashion Channel has enjoyed great success with programming targeting everyone from the Fashionista who lives for high fashion, to the busy mom in search of the best deals with which to dress her family, to the bachelor who just needs something to wear. However, competition from other networks including CNN and Lifetime dictates that The Fashion Channel consider segmenting their viewers and determine which markets would be both the most profitable and allow them to gain a competitive advantage. According to our text, market segmentation not only assists companies in effectively serving their customers in a way that is beneficial to both parties, but also assists in indentifying market segments that should not be pursued. As indicated in the data, the broad market segment that The Fashion Channel has employed since the network started is no longer feasible because advertisers are being lured to other channels whose viewership provides the most benefit for their advertising dollars. If TFC does not make a move, their profit margin could potentially drop to 19% in 2007. For the Fashion Channel, male viewers, the “Situationalists,” and the “Basics” do not provide enough benefits to the network (or advertisers for that matter) to include them in their market segmentation strategy moving forward. Therefore, our recommendation is for The Fashion Channel to implement scenario three, which targets the...

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