Dana Wheeler endeavors to implement new marketing plans in order to stay ahead of new competitors. Ms. Wheeler understands the importance of marketing in reaching target groups. Currently she is working on a plan that markets the concept that fashion is relevant to all individuals, yet she realizes that this strategy may not be the most effective going forward (Stahl, 2007).
In order to determine what plan will work best for her company, Ms. Wheeler works out three separate plans so that she may test which is the most effective course of action. Based on the data provided, I would recommend that Ms. Wheeler continue with Scenario #1. In comparison to the other two scenarios, scenario #1 requires a modest amount of expenses and generates a substantial income (Stahl, 2007). Based on the current advertising plan, the transition to scenario #1 should be smooth.
The scenario still targets a large number of people but uses data to determine what demographics are most effected by the campaign. Those that are most likely to be interested in fashion will be targeted, such as women, fashionistas, planners & shoppers (Stahl, 2007). The primary age group would target women ages 18 to 34 (Stahl, 2007). Scenario #1 allows for groups that are most likely to be loyal viewers the opportunity to view programing those appeals to their interests. Again not only will the company benefit, but the viewers will as well with this scenario. By understanding the target audience and identifying their interests, the Fashion Channel can ensure their own success and avoiding wasting money on programming and advertisement that will not appeal to their target audience.
There are distinct advantages and disadvantages to all three scenarios. For scenario #1, the disadvantages are that there is not a significant change in the programming and the change may not be drastic enough to prevent competitors from infringing on their audience. The benefit, however, is that there should be a reasonable increase in viewers to counterbalance any loses (Stahl, 2007). Scenario #2 has the disadvantage of only targeting one very small group. This is very risky as there are fewer potential viewers. The advantage of Scenario #2 is that it allots funds towards improving and changing current programming to meet viewer demands (Stahl, 2007). Scenario #3 is unlikely to prove successful because the amount of expenses need to make this change are too great for the projected income amount (Stahl, 2007). The advantage, however, is that it should draw a large number of new viewers to the channel.
The projected outcomes of each scenario are quite different. Based on the data provided, one would assume that the outcome of Scenario #1 would be that the channel would eventually grow to include all of the demographics studied. Advertising investors should appreciate a clear direction in programming and audience. Although the changes will be much slower than the other two options, the risk of failure will also be less (Stahl, 2007). This gives the channel time to recognize what changes are effective and which are not without risking losing viewership and investments (Stahl, 2007). Overtime the plan can be tweaked based on the results generated; the other scenarios are not as flexible as situation #1.
Scenario #2 could prove to have a successful outcome if the fashionista audience is strong enough. However, I predict that by limiting the viewers to one particular demographic, the company would be limiting the viewership and losing potential advertisers that may wish to reach a more broad audience (Stahl, 2007). In the long term, they would be better off striving to reach a larger number of people.
Scenario #3 should increase ad sales because of the planner and shopper demographics (Stahl, 2007). This revenue should increase profitability of the company over the long run, but the high investment of implementing the plan would be harmful in the short term (Stahl, 2007).
I feel that Ms. Wheeler is headed in the right direction by using ad revenue analysis and customer surveys to determine which scenarios to pitch. Based on the results the largest audience overall is women this should be emphasized (Stahl, 2007). The breakdown of viewers was as follows: women between 35-54 years old with a 39%-61%. The breakdown of this statics was 33% of viewers between 18-34 and 45% between the ages of 35-54. The remaining groups were: Fashionistas at 15%, Planners and Shoppers at 35%, Situationalists at 30%, and Basics at 20% (Stahl, 2007).
As change agent for the Fashion Channel, Ms. Wheeler should take an active leadership role in implementing the situation the company ultimately decides on. She will be very influential in this role and emphasizes that these changes are for the good of all. She should take a close look at her co-worker credentials and build a team that will assist her in making these changes. All involved should be aware of the plan of action and educated on the statistics made available to Ms. Wheeler. Each member should a task to closely monitor to insure that the plan is successful. She should present her plan in a manner that is open to critique with other leaders to ensure that her decision is indeed sound. She should also check to see what funds are available for making this change and if her proposed budget is adequate for the situation that was chosen.
A through plan of action should be in place with all of the steps carefully outlined over a selected period of time. Since one of the advantages of Situation #1 is that it can be revised over time, Ms. Wheeler should choose times throughout the process to analyze the outcomes of the changes that have taken place to identify what courses of action have been effective in drawing viewership and which have not. She should also address any concerns put forward by advertisers at this time.
Overall, I feel that Ms. Wheeler is doing a good job at looking at consumer research to come up with reasonable situation. Situation #1 provides the most flexible plan of action and will incur the lowest amount of expense.
Works Cited:
Stahl, W. (2007). The fashion channel. Harvard Business School,
