The Fashion Channel (TFC)
June 30, 2009
Overview The Fashion Channel (TFC), founded in 1996, is a successful cable TV network dedicated to all things fashion. Although quite young compared to other TV networks, TFC has experienced steady growth and in 2006 forecasted its revenue at $310.6 million. TFC operates primarily as a niche network, focused solely on fashion and fashion related programming, but still manages to reach almost 80 million US households that subscribe to cable and satellite television. To date TFC has been able to experience growth in spite of having no clear segmentation, branding, or positioning strategy. Dana Wheeler, a recent hire as TFC’s Senior VP of marketing, was tasked to fix this. …show more content…
Unfortunately, the competition has caught up and networks such as CNN and Lifetime have begun to offer competitive programs and thus competitive advertising outlets for the target audience. As a result, advertising sales is projecting a 10% decrease in the price for a unit of advertising (CPM) if the current strategy does not change. An internal weakness of TFC is that it does not know its customers intimately; as stated in the case “the channel didn’t have much in the way of detailed information about its viewers” (Stahl, 2007). Without this information TFC is unable to compete effectively against other networks who do know the target audience and their attributes and trends. If TFC is unable to maintain or increase its overall satisfaction ratings, they might face the possibility of being dropped by a network and lose a second source of revenue, affiliate fees.
The SWOT analysis also reveals another weakness, “fickleness.” Fickleness of cable and satellite customers is based on the low brand loyalty and high churn rates. In order to reduce customer defection to competitors TFC must develop brand loyalty and not only attract new customers but retain those that it already possesses. The opportunity facing TFC is the fact that it is in a position to address its market
We live in the generation of fashion and technology. Our wants fashionably override our needs in life. The Australian fashion industry has come to expect a huge splash from Sportsgirl at the Melbourne L’Oreal Fashion Festival, and 2005 set a new benchmark. Ideally, the business will come to the customer by promoting their brand through the launches
Exercise 1: What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios)
After showing the segmentation and target market that Vogue is focused on, we will study the positioning strategy that Vogue use. Positioning is defined as"the relative perceptul position of one brand usually compared with competing brands altough arrange of positioning approaches are possible to achieve" (Pickton and Broderick, 2005). Vogue has its own identity; its brand sets it apart from other magazines. It is the most valuable high fashion magazine, continuing to position itself as both unique and authentic. They have developed relationship marketing, defined as "Marketing with the conscious aim to develop and manage long-term and/or trusting relationsips with customers, distributors, suppliers, or other parties in the marketing environment". It focuses on the best designers, fashion photographers and models in order to retain its core customer- stylist women. Vogue tries to provide added value,so the brand has prices that are not cheap, investing in creativity and focusing on quality. They try to create a consitent marketing mix rto have a long-term relationship with the target market, and they try to crea
Corporate values are ‘the operating philosophies or principles that guide an internal conduct of the organization and its association with its clients, partners and shareholders’. It is also a fundamental and long-lasting belief that specific mode of conduction highly valued by the organization’s membership’ according to IBM corporate responsibility report (2002, What is the value of company).
The Fashion Channel (TFC) was a widely available niche cable network which only offers fashion-oriented programming. It was very successful until other regular networks began to copy its concept and take market share of it, which as a result, had a severe negative effect on TFC’s advertising revenue and affiliate fees. The problem is how to develop the segmentation and positioning, change the current
Although, they attract their customer with different advertisements after had along outlet over 8 years. (Foxtel delivers subscriber, profit and TV viewing ploughs be growth (Press release). Foxtel. 20 February 2008. Retrieved 2008-02-22.) The major strengths of Foxtel are STRENGHTS the Foxtel has over 100 specialist channels for its subscribers. It has about 1.4million subscribers and thereby dominating the pay- goggle box. Moreover, Foxtel sells its services to customers like motels and gyms finally reaching a number of clients of theirs. As a result, the advertisers are interested in using Foxtel since it has queen-sized market and its services apprise be accessed in different places. Advertisers can target specific markets using
Television advertising has been a staple for companies since its start in the 1940’s. According to a 2016 study done by Nielsen, the average American adult watches five hours and four minutes of TV per day. Five hours is a large chunk of time to spend watching “the tube”. Companies are aware of this and try to capitalize on this opportunity as much as possible. Additionally, large scale broadcasting events such as the Superbowl and the Oscars are ways for companies to reach more widespread audiences than on a daily basis. These events are key in contributing to some businesses’ yearly revenue.
Due to entry of other networks in the competition, the situation has started to become more challenging for TFC as many advertisers are moving to its competition. Hence, when selecting the appropriate strategy, consideration of the channel’s collaborators is also necessary for TFC in order to build or maintain a good reputation and relationship.
This report aims to underling the key areas the Australian Fashion Industry need address, in order to show that it has a future in an ever competitive global economy.
With which of the international competitors listed in the case is it most interesting to compare Inditex’s financial results? What do comparisons indicate about Inditex’s relative operating economics? Its relative capital efficiency?
Today we live in a world driven by relationships, first impressions and visual communication. As human beings we have a tendency to instinctively allow ourselves to react by what we see and feel at a specific moment, making such reaction unpredictable and capriciously volatile. Studying relationships is of extreme importance because when we understand why public and individuals react to stimuli in a certain way, we can try to manipulate the outcome. This is why Public Relations plays a crucial role in the fashion industry as it is a field of work that is driven by consumers needs and desires. By understanding the targeted audience, we can actually control commercial, marketing, and creative outcomes of a specific fashion organization. This piece of writing will explain and analyse the role and importance of public relations and Communication in the Fashion Industry.
When a brand is created, many will ask the questions that haunt all of us trying to start a company. Will it work? Should we stay online or launch a brick-and-mortar store? Will I make profit or fail? These questions arise even more when the company is to start only online. Because of this, e-commerce fashion brands must constantly evolve and expand their styles to maintain the interest of their target customers. Fashion Nova is one fashion brand that manages to stay relevant among its consumers because of their edgy style and quality priced clothing. Fashion Nova was first established in 2010. It gained its popularity from celebrities promoting it on their social media platforms and the fact
The Fashion Channel (TFC) is a 24*7 cable TV network which is exclusively dedicated to fashion. It was found in 1996 and since then it has been witnessing continuous upswing. According to an annual demographic survey, TFC is having approximately 110 million subscribers of cable & satellite television. But, due to increasing competition with other fashion channels, it is in the need for developing a modern and updated brand strategy.
Although The Fashion Channel has realized growth year over year, increased competition and lower perceived value from viewers is starting to threaten the network’s ad revenue. TFC is no longer an exclusive source of fashion content and ad buyers have realized that. The network’s strategy of providing very diverse programming has potentially alienated some of its most valuable viewers. Furthermore, the lack of a more focused marketing strategy towards any specific age group, or gender, has failed to convince viewers of the value the network provides. This team has conducted a quantitative analysis of the market and provided a set of potential alternatives with financial calculations to forecast potential revenue gained or lost from the changes to programming and marketing strategy.