No correct identification of consumer segmentation
While Lifetime is taking away ad buyers by targeting younger female viewers, and while CNN is delivering fashion information and news to men, TCF is still using their out-of-date strategy. Besides its basic demographic, the channel didn’t have detailed information about its valued viewers. In failing to target correct consumer segmentation, TCF will lose the customers, both of viewers and advertisers. However, since TFC’s customer satisfaction score is still above the midpoint, changing the segmentations of the company might upset some current viewers who enjoy the network’s current programs.
Strategic Alternatives
In order to target the potential loyal viewers and advertisers, TCF needs to strengthen the company's brand and positioning strategy. At the same time, the program must maintain consumer satisfaction with the network. Dana Wheeler comes out the following three …show more content…
These are mostly women aged between 18 and 34. Instead of focusing on everyone, targeting at these three segments and neglecting most of the male will lead a temporary rating increase. However, CPM will decrease because the segments and the channel’s brand essence are not differentiated enough to get advertisers. Their broad positioning strategy cannot target the high valued audience.
In scenario two, Dana considered only maintaining the segment of Fashionistas. They are mostly highly valued female viewers between 18 and 34. Although this segment is just a small section among all households, targeting them can strengthen the value of the audience to advertisers. However, this segment is too narrow to increase the ratings. Lower ratings won’t be acceptable for ad buyers.
In scenario three, Dana considered maintaining a cross segment of Fashionistas and Planners & Shoppers. These two segments are totally 50% households. Customers who belong to these two segments show the most interests and passion in fashion and shopping. They are the most valued viewers of the channel. By increasing the number of highly valued viewers, this network could successfully grow in the revenues made from advertising without dropping the unit ad price. The channel’s programming can also be differentiated enough to compete with the competitors. By scenario three, TFC can also get the highest ad revenue and net income for