Case of the Fashion Channel

2061 Words Sep 29th, 2010 9 Pages
The Fashion Channel Case Analysis

Problem Statement:
The case of the Fashion Channel exhibited possible failures and multiple problems. After thorough review of the case I felt the core problem is the failure to focus on a specific demographic. TFC had run off the marketing strategy of “something-for-everyone” for plenty of years and found success in this untouched niche of fashion television. Without competition, this marketing mentality had been very profitable, and started drawing up attention from other networks. With rising competition in this network specialty, TFC was losing CPM (cost per thousand) advertising value and market share. Stuck in the past success of their previous marketing strategy, TFC is in dire need of
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In dire need of success these threats would have to be assessed thoroughly to assure the network’s future.
Alternatives:
One alternative is to specify TFC’s segmentation and positioning to only women between the ages 18 to 34. One positive outcome by targeting this demographic is that the target market is specific, and is a premium market for advertising agencies. This could increase the CPM value and boost ratings. Another possible outcome could be that the competition wouldn’t be able to compete in this specified field. Being a specialty network in fashion focusing on the female 18-34 demographic would possibly push the competition in this demographic, and recover some lost market share. A negative outcome of this alternative is the possibility of losing existing customers and market share. By narrowing the marketing focus the current viewers may not like the change in which the network takes course. The goal is to keep the existing customers and bring in new viewers in the newly obtained demographic.
A second alternative is to target two segments, the Fashionistas and the Shoppers/Planners. This could increase the number of female viewers within the target demographic, while keeping their current viewers. In majority the Fashionistas group are women between the ages 18 to 34 who anticipate trends, stay up to date on fashion, and are basically experts in the field. This Fashionista market is profitable

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