Fashion Channel Case Study

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The Fashion Channel Marketing Analysis XXXXXX XXXXX Abstract The Fashion Channel (TFC) has enjoyed a calm journey on the top of the fashion-programming niche for almost 10 years. However, there is a frontal attack from market-challengers of two other cable networks to capture market share and revenues from TFC. The CEO is keenly aware that TFC needs a new marketing strategy if they want to remain the market leader. Therefore, he hired a senior vice president of marketing to gather data, analyze the situation and make recommendations to the company as quickly as possible. The purpose of this study is to review the marketing challenge facing TFC, analyze their consumer and market data, and examine the pros and…show more content…
Therefore, the total cost of reaching more of the same audience type might actually cut into profits once CPM rates drop or if rates stay the same and there is not enough increase in the viewers to offset cost of the new campaign. Option Two: Target the Fashionistas Segment If TFC turns their marketing expenditures to the Fashionistas, which is a strong fashion minded segment in the highly lucrative 18-34 female demographic, CPM could almost double; yet total ratings could dip almost 20%. Pros: Advertisers would recognize highly targeted viewership and pay premium CPMs. Cons: The current audience will change with programming changes. The new programming will cost at least $15 million and there are no guarantees that the programming will attract the number of Fashionistas needed to offset the expenses and lost viewership. If either the CPM or the viewer estimations drop, this would be a devastating decision. Option Three: Target Fashionistas and Planners & Shoppers Targeting both Fashionistas and Planners & Shoppers, will allow TFC to increase CPM rates and ratings revenue. According to Kotler & Keller (2009, p. 138), “Some market leaders have even increased profitability by selectively decreasing market share in weaker areas.” Pros: CPM and viewership will increase thus long-term revenues. Cons: Older segments will drop off, which could be

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