Case Assignment*

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Overview

At the completion of this assignment you will achieve the following module objective:

1. Measure the profit impact of marketing segmentation strategies.

Instructions

You will be responsible for analyzing the corresponding case and posting your individual work in your group discussion forum by the specified due date (see course calendar for details). Post your answers to the case questions # 2 to 3 directly in the forum, it will save you and your teammates some time, and attach both files , including the corresponding excel spreadsheet with the financial analysis.

A word of advice : Read the case questions before reading the case. Focus only on the information you need to answer the questions. Do your assignment in Word and always save it and then copy it over, you never know when you will be the victim of technology failure. It would also be helpful if you read the grading rubric before submitting your work. You will know exactly what is expected from you.

The Fashion Cannel

1. 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.

	Scenario 1: Broad-based Segmentation Targeting	Scenario 2: Fashionista focus	Scenario 3: Fashionistas + Planners/Shoppers
Pros
Cons

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).

Individual Case 2 Questions