Essay about HBR: The Fashion Channel Case

919 Words Mar 6th, 2015 4 Pages
Case Report #1: The Fashion Channel (TFC)
Christie Scarbrough
2/16/2015

The Fashion Channel (TFC), founded in 1996, was a successful cable TV network solely dedicated to fashion-oriented programming along with offering the latest information on the fashion industry broadcasting 24 hours a day, 7 days a week. TFC’s initial “Fashion for Everyone” business model was to appeal to broad demographic groups to achieve the highest viewership possible with the primary target audience of women between the ages of 35 – 54. In 2006, TFC forecasted revenues of $310.6 million – with $230 million target profits exclusively from advertising.
Until 2006, TFC was the broadcast market leader in fashion programming. However, TFC was faced
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Not only is TFC facing change in the competitive dynamic, but also are experiencing resistance from the company’s leaders – asserting no one wanted to “break something that isn’t broken.” TFC has not yet experienced significant negative impacts, but it’s only a matter of short time until it would be clear change is crucial to TFC’s future. The company’s leaders need to recognize the evolving broadcast cable market and build a joint consensus. The Solution: Market Segmentation, Target Marketing, and Positioning
Based on GFE Associates’ 2007 altitudinal research findings, in my opinion, TFC needs to focus on the two fashion-engaged market segments – Fashionistas and Planners/ Shoppers. The “Fashionista” segment most likely consists of TFC’s current audience due to the high-level of interest in fashion. Although this cluster only consists of 15% of U.S. households, this segment yields the highest percentage of net income. The “Planners/Shoppers” cluster may not be as involved in fashion as the Fashionista segment, but still participate in fashion-related activities on a daily basis and holds 35% of U.S. households. Both segments combined yields significantly more in net income than the “Situationalists” and “Basics” cluster groups collectively. (Appendix 3)
Advantages
According to Dana Wheeler, TFC’s Senior VP of Marketing, implementing a dual target scenario will drive ratings from 1.0% to 1.2% over time – averaging 1,300,000 tuned-in households – along with

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