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Team Star July 28 th , 2016 MS Marketing Intelligence, Fordham University CONSULTANCY PROJECT

Food Network - Presentation

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Page 1: Food Network - Presentation

Team Star

July 28th, 2016MS Marketing Intelligence, Fordham University

CONSULTANCY PROJECT

Page 2: Food Network - Presentation

Research Director

Research Manager

Data Analyst

Project Director

Project Manager

Rita Shangguan

Maggie Zhang

Jeremy Li / Tom Wang

Carlos Lian

Tom Wang

MEET THE STARS

Business Manager

Client Contact

Presentation Coordinator

Presentation EditorSean Pinto

Managing DirectorsRaj Rajaraam

Sue Meng

Veronica Stuart

Sara Xu

Jessica Widmann

Page 3: Food Network - Presentation

TODAY’S RECIPE

Program Diagnostic Analysis: Cooks vs. Cons (Season 1 & 2) and Chopped Junior (Season1)

THIS MENU HAS TWO ENTREES

Audience Trends Analysis: Updated Analysis of Food Network Audience Ratings vs. Competition

Page 4: Food Network - Presentation

Audience Trends Analysis

Page 5: Food Network - Presentation

PREPARATION

• Compared Food Network’s audience trend and those of other competitive networks over different time periods.

• Provided projections for Food Network and its competitors using Three Quarter Moving Average Method.

Page 6: Food Network - Presentation

COOK & SERVE

Analysis & Conclusion

Page 7: Food Network - Presentation

Trend Since 2006: People still need Food

COOK

Average Audience For Food Network and Three Competitors

Q1

Q2

Q3

Q4

Q1

Q2

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Q1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

200

300

400

500

600

700

800FN HGTV TRAV

Time Period

AA (0

00s)

Page 8: Food Network - Presentation

Trend Since 2006: People still need Food

COOKQ

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

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2Q

3Q

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1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

200

300

400

500

600

700

800FN HGTV TRAV AMC

Time Period

AA (0

00s)

Average Audience For Food Network and Three Competitors

Page 9: Food Network - Presentation

COMPETITORS ANALYSISCurrent Trend Since 2015 Q1: Steady

COOK

Recent trend is flat – except for AMC

Q1 Q2 Q3 Q4 Q12015 2016

0

100

200

300

400

500

600

700

800

438 428 447417 432

556522 499

437

601

189 173 169 177 197

725

337

458

684608

FOODHGTVTRAVAMC

Time Period

AA (0

00s)

3.6%

Page 10: Food Network - Presentation

COMPETITORS ANALYSIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q10

100

200

300

400

500

600

700

800

712

352 370

693725

725

337

458

684

608

f(x) = 36.7 x + 460.3

f(x) = 11.3 x + 528.5

Quarter

AA (0

00s)

COOK

2014 Q1 – 2015 Q1

2015 Q1 - 2016Q1

Performance Comparison with Last Time Period - AMC

Page 11: Food Network - Presentation

COMPETITORS ANALYSIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q10

100

200

300

400

500

600

700

503481

504

430

556556

522499

437

601

f(x) = 5.5 x + 478.3f(x) = 0.5 x + 521.5

Quarter

AA (0

00s)

COOK

2014 Q1 - 2015Q1

2015 Q1 - 2016Q1

Performance Comparison with Last Time Period - HGTV

Page 12: Food Network - Presentation

COMPETITORS ANALYSIS

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q10

50

100

150

200

250

300

246

201 194179

189189

173 169177

197

f(x) = − 13.6 x + 242.6

f(x) = 2 x + 175

Quarter

AA (0

00s)

COOK

2014 Q1 - 2015Q1

2015 Q1 - 2016Q1

Performance Comparison with Last Time Period - TRAV

Page 13: Food Network - Presentation

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q10

100

200

300

400

500

600

489

452467

411438

438 428447

417432

f(x) = − 14.3 x + 494.3

f(x) = − 2.3 x + 439.3

Quarter

AA (0

00s)

COMPETITORS ANALYSISPerformance Comparison with Last Time Period - FN

COOK

2014 Q1 - 2015Q1

2015 Q1 - 2016Q1

Page 14: Food Network - Presentation

Doing Better than Previous Year

SERVE

Audience attraction of Food Network has improved since the

previous year.

2014 2015 2016

Page 15: Food Network - Presentation

Predictive Analysis - AMCCOOK

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Q1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

200

300

400

500

600

700

800

Time Period

AA (0

00s)

3 Quarter Moving AverageAverage Absolute % Error: 16%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12015 2016 2017

0

100

200

300

400

500

600

700

800

725

337

458

684

608

543569 494 575

531 542

604 606578

Actual AA (000s) PredictIve AA (000s)

Time Period

AA (0

00s)

Prediction: Overall, AMC AA will increase in upcoming quarters.

y = 7.3076x + 523.72

Page 16: Food Network - Presentation

Predictive Analysis - HGTVCOOK

Q1

Q2

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Q1

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Q1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

200

300

400

500

600

700

Time Period

AA (0

00s)

3 Quarter Moving AverageAverage Absolute % Error: 8%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12015 2016 2017

0

100

200

300

400

500

600

700

556522

499

437

601

484 474

515 527494 485

542 548 538

Actual AA (000s) PredictIve AA (000s)

Time Period

AA (0

00s)

Prediction: Overall, HGTV AA will increase in upcoming four quarters.

y = 7.4817x + 474.33

Page 17: Food Network - Presentation

Predictive Analysis - TRAVCOOK

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Q1

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

50

100

150

200

250

300

Time Period

AA (0

00s)

3 Quarter Moving AverageAverage Absolute % Error: 7%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12015 2016 2017

0

50

100

150

200

250

300

189173 169

177

197

188 183 183172 172

184192 187 190

Actual AA (000s) PredictIve AA (000s)

Time Period

AA (0

00s)

Prediction: Overall, TRAV AA will increase in upcoming four quarters.

y = 0.843x + 179.28

Page 18: Food Network - Presentation

Q1

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2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

0

100

200

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400

500

600

700

Time Period

AA (0

00s)

3 Quarter Moving AverageAverage Absolute % Error: 6%

COOKPredictive Analysis - FN

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12015 2016 2017

0

100

200

300

400

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700

438428 447

417 432435 424 431 437 429 424 426 424 423

Actual AA (000s) PredictIve AA (000s)

Time Period

AA (0

00s)

Prediction: Overall, Food Network AA is decreasing at a slower pace than before.

y = -1.1846x + 434.05

Page 19: Food Network - Presentation

While Food Network’s average audience is on the

decline, the trend is expected to take an upward turn in upcoming

quarters.

Doing Well in a Tough MarketSERVE

Page 20: Food Network - Presentation

TWITTER SENTIMENT ANALYSIS

Food network HGTV AMC TRAV0

200

400

600

800

1000

1200

1400

1600

1800

293130 180 95

372

130 11275

935

736

308

160

negative positive netural

23%

13%

19%

22%

Twitter Sentiment AnalysisCOOK

Food Network has the highest positive sentiment amongst competitors from 2015 Q1 to 2016 Q1.

Twitter Positive Sentiment is Tasty!

Page 21: Food Network - Presentation

TWITTER SENTIMENT ANALYSISTwitter Sentiment Analysis - FN

COOK

Q3 of 2015 was a successful quarter in terms of ratings and positive sentiment among audience.

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q1400405410415420425430435440445450

438

428

447

417

432f(x) = − 2.3 x + 439.3

AA

(000

s)

2015 Q1 2015 Q2 2015 Q3 2015 Q4 2016 Q10

50

100

150

200

250

300

350

400

450

30 4279 55 48

4966

109

54 46

122154

212

182

110

negative positive netural

Page 22: Food Network - Presentation

FN has much more engaged audience than its Immediate competitors, leading to long-term loyalty.

Entrée is ReadySERVE

Page 23: Food Network - Presentation

Program Diagnostic Analysis

Page 24: Food Network - Presentation

PREPARATION

• Analyzed minute by minute in-show ratings for Chopped Junior and Cooks vs. Cons to identify audience trends.

• Applied relevant secondary research to formulate recommendations to increase ratings.

Page 25: Food Network - Presentation

COOK & SERVE

Analysis & Conclusion

Page 26: Food Network - Presentation

10/2

7/15

11/0

3/15

11/1

0/15

11/1

7/15

11/2

4/15

12/0

1/15

12/0

8/15

12/1

5/15

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2/15

12/2

9/15

01/0

5/16

01/1

2/16

01/1

9/16

1 2 3 4 5 6 7 8 9 10 11 12 13

0

100

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700

800

530

754

665

603

510475

529 538

617

688

571

667

591f(x) = 0.519780219780257 x + 591.538461538461

Chopped Jr. Average Audience by Episode for Season One

Episode

AA (0

00s)

Chopped Jr. Season 1: Ratings grow slowly

COOK

Page 27: Food Network - Presentation

Minute by Minute – Chopped Junior - Season 1

Chopped Jr. Season 1: Similar Pattern for Each Episode

COOK

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960300

400

500

600

700

800

900

1,000

f(x) = 2.17148780644196 x + 528.946544980443

13 Episodes Minute by MinuteEP1 EP2 EP3 EP4 EP5EP6 EP7 EP8 EP9 EP10EP11 EP12 EP13 Average Linear (Average)

Minute

AA (0

00S)

Page 28: Food Network - Presentation

Minute by Minute – Chopped Junior - Season 1

Analyzing Season One’s Outliers

COOK

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960300

400

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600

700

800

900

1,000

f(x) = 0.355598777438177 x + 464.454237288136

Chopped Jr. Season1 Outlier EpisodesEP2 EP6 Linear (EP6) Average

Minute

AA (0

00S)

Difference of Episode 2 in AA = 159 (26.7%), Difference of Episode 6 in AA = - 120 (20.2%)

Page 29: Food Network - Presentation

04/26/16 05/03/16 05/10/16 05/17/16 05/24/16 05/31/16 06/07/16 06/14/161 2 3 4 5 6 7 8

0

100

200

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400

500

600

700

800

511451 474 472

368

464 473 496

f(x) = − 1.57936507936502 x + 470.807142857143

Chopped Jr. Average Audience for Season Two

Episode

AA (0

00s)

Chopped Jr. Season 2: Steady Ratings

COOK

• Season Two ratings are lower than season one, but stable

Page 30: Food Network - Presentation

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960300

350

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600

650

f(x) = 1.76910252848013 x + 409.742372881356

8 Episodes Min by MinEP1 EP2 EP3 EP4 EP5EP6 EP7 EP8 Average Linear (Average)

Minute

AA (0

00S)

Chopped Jr. Season 2: Similar Pattern for Each Episode

COOK

Page 31: Food Network - Presentation

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 45 47 49 51 53 55 57 59300

350

400

450

500

550

600

Chopped Jr. Season 2 Outlier EpisodeEP5 Average

Minute

AA (0

00S)

Analyzing Season Two’s Outliers

COOK

Difference of Episode 5 in AA = - 96 (20.7%)

Page 32: Food Network - Presentation

• Slight negative slopes – but stable.• High & low outliers may be diagnostic:

• For Season1, the ratings grew as the season progressed;

• For Season 2, the drop at episode5 is because this episode was released on May 24th at the same on-air time with season finales of The Voice and Dance with the Stars.

COOK & SERVEChopper Jr. Has a Healthy Performance

SERVE

Page 33: Food Network - Presentation

03/17/16 03/24/16 03/31/16 04/07/16 04/14/16 04/21/161 2 3 4 5 6

0

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200

300

400

500

600

700

543595

459 453 437388

f(x) = − 35.8323809523809 x + 604.746666666666

Average for Season One

Episode

AA (0

00s)

Cooks vs. Cons Season 1: Ratings decline dramatically

COOK

Page 34: Food Network - Presentation

Cooks vs. Cons Season 1: Similar Pattern for Each Episode

COOK

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960300

400

500

600

700

800

f(x) = 1.58602389552654 x + 430.959604519774

6 Episodes Min by MinEP1 EP2 EP3 EP4EP5 EP6 Average Linear (Average)

Minute

AA (0

00S)

Page 35: Food Network - Presentation

Analyzing Season One OutliersCOOK

1 2 3 4 5 6 7 8 9 101112131415161718192021222324252627282930313233343536373839404142434445464748495051525354555657585960300

400

500

600

700

800

f(x) = 0.312975826618505 x + 378.554237288136

Outstanding EpisodesEP2 EP6 Linear (EP6) Average

Minute

AA (0

00S)

Difference of Episode 2 in AA = 116 (24.2%), Difference of Episode 6 in AA = -91 (19.0%)

Page 36: Food Network - Presentation

• Significant negative slope – downward trend.

• Outliers cannot be attributed to any external factors.

COOK & SERVECooks vs. Cons is in DangerSERVE

Page 37: Food Network - Presentation

COOK & SERVEDinner is ServedSERVE

Engage audience participation on social media.

Let the audience

differentiate the cook from

the con!

Page 38: Food Network - Presentation

COOK & SERVEDinner is ServedSERVE

10/2

7/15

11/0

3/15

11/1

0/15

11/1

7/15

11/2

4/15

12/0

1/15

12/0

8/15

12/1

5/15

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2/15

12/2

9/15

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5/16

01/1

2/16

01/1

9/16

1 2 3 4 5 6 7 8 9 10 11 12 13

530

754

665

603

510475

529 538

617

688

571

667

591

Chopped Jr. Average Audience by Episode for Season One

Episode

Choose celebrities with an interest in

cooking!

Selective selection of 3rd judge:

• Do not alienate target audience.

• Seasonality.

Future!

Page 39: Food Network - Presentation

The Stars are shining brighter than ever.