The Fashion Channel What are the pros and cons of the three segmentation scenarios? Read carefully the case and make a list of the pros and cons of each segmentation scenario. Use the following table to summarize your findings. 2.Estimate the impact of each segmentation strategy on the company’s revenue. You will have to estimate the financials of the company using the excel file. Consider the following scenarios: 2007 Base: No segmentation; drop in ad unit pricing (average CPM). Scenario 1: Multi segments, targeting 3 groups (excluding Basics); increase in ratings, decrease in ad unit pricing (average CPM). Scenario 2: One segment, Fashionista: drop in ratings, increase in ad unit pricing (average CPM). Scenario 3: Two segments, Fashionista and Shopper/Planner; increase in ratings and increase in ad unit pricing (average CPM) 3. What would you recommend to The Fashion Channel? In your answer include the following: Provide 3 arguments in 3 paragraphs that would support your decision. Describe how you would implement your recommendation. 4.What would be the implications if the average CPM of scenario 3 would remain as the current CPM (2007 Base)? Would it change your decision?
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