Essay on The Fashion Channel Case Analysis

5. An analysis of the individual customer accounts suggest that TFC’s current pricing model is ineffective. They are undercharging an alarming number of their customers thereby reducing their overall profitability. Based on this information, managers will hopefully elect to implement the services based pricing model so that customers are charged based on the services they are actually consuming. Ideally, changing the current pricing model will resolve the issue of customers reducing profit by 140% and 60% (Exhibit 8, numbers 3 and 4). If there are still profit draining customers, management should revisit and assess accordingly, either further increasing fees to those customers so their contribution is positive, or perhaps dropping these customers to increase overall profitability.

The company is experiencing an increased level of competitions from its rivals after the Canadian Radio-television and Telecommunications Commission (CRTC) decided to open the markets and deregulated specific areas of 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

Consumer behavior is also a factor to be considered, because factors affecting consumer behavior will make clients not to buy, for one reason or another. To get the target market or rather to increase the target market, one has to create and deliver content that attracts and contains customers. As is in the case of our products in John Deere Company, necessary strategies have to be implemented to retain the new target market. Marketing strategies capable of luring people especially the old

Also the loss that Rogers Cable could incur as a result of customer erosion should be taken into consideration while choosing an alternative.

Also the CPM will increase to $2,5 because of a dual targeting. In addition to this the average Rating will increase from 1% to 1.2%. Cons: To ensure that there were selections aimed at both segments; Wheeler needs to spend $20,000,000 more on programming. Because of the determination only on this two segments it can be that the number of the loyal viewers of TCF will decrease. Exercise 3: If you were Dana Wheeler, what would you recommend and why? If I was Dana Wheeler I would recommend TCF that they should adopt Scenario 3. However, Scenario 3 has a few disadvantages. For example the possibility to lose some loyal viewers and furthermore TCF has to spend $20,000,000 more on programming which means investing a lot of money for them. But in my opinion, in Scenario 3, the benefits exceed the disadvantages. On the one hand through this Scenario the Net Income will increase more than $100,000,000. In addition to that the CPM will increase to $2,5 and the average Rating will increase from 1% to 1.2%. On the other hand 50% of all US Television Households consist of Fashionistas and Planners/Shoppers. In these two markets the 18-34 year old female audience represents 50% and 25% of the cluster respectively. TCF should therefore increase the advertising revenue. The Scenario 3 is better than the Scenario 2 because Scenario 2 only focuses on the Fashionistas

But, unfortunately due to the enormous cost and very little public interest and demand Time-Warner decided to pull the plug on its nationwide change over to digital lines. This shows that the cable companies are surpassing the consumer demand for technology, making this industry a very hard one to market.

Please read and analyze this case on market segmentation and targeting options for a cable television network dedicated to fashion programming. No research into the industry or firm is necessary. Please use only the information provided by the case.

3. As more viewers begin using PVRs, what happens to the revenues of the major networks (CBS, NBC, ABC, and FOX)?

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.

Increasing Competition: Today, The Fashion Channel (TFC) is facing a heavy competition with a broad range of other cable networks of fashion channels. These fashion networks may capture some of its market share. Along with this, the strong fashion programming blocks on other channels such as CNN & Lifetime are also presenting a double-edged competitive challenge

The problem that “THE FASHION CHANNEL” (TFC) faces is the selection of the right market segmentation and positioning strategy in order to maintain its position as a leader in fashion related networks, in addition to boosting its advertising sales and viewership ratings.

Comcast holds about 20% of the market, Direct TV holds about 20%, and DISH holds about 14%, and so does Time-Warner Cable. Customer satisfaction with Pay TV providers is dropping across all competitors (The ACSI) which suggest low customer loyalty held in check by limited choices in many areas, or an inability for the consumer to see much difference between companies. Competitors have huge infrastructure investments that many not be salvageable causing a high barrier to exit. Also, the end product, TV, is largely the same between competitors. Rivalry is very high as no one holds a huge competitive advantage. It is likely very difficult to make a sustained profit in this market over the long term, and expanding to new markets may be the best choice to move

Levi Strauss & Co.’s Women’s wear Division markets several lines of products but their recent introduction of the Women’s 501® jeans have been particularly successful. The marketing strategy for the new product launch was based on studies identifying two consumers Clusters as primary targets. The first consumer group consisted of women whose median age was 25, who had sophisticated tastes and were appreciative of the latest styles, the second group consisted of

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.