Essay on The Fashion Channel Case Analysis

1276 Words Feb 17th, 2011 6 Pages
Case Analysis Of “The Fashion Channel”
Introduction and Problem Definition

The Fashion Channel case illustrates the development of market segmentation options in implementing marketing strategies in a changing competitive environment, and demonstrates how quantitative analysis may be used to support a strategic marketing decision.

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
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Opportunity:

λ TFC can pursue competitors’ customers by initiatives for customers’ fickleness.

λ It can gain the preference from ad buyers easily by improving the ratings.

λ It is a right time to gain more profits when this industry is booming.

Threat:

λ TFC should compete with the regular programming for buying rating and demographics and with the fashion-specific one for contents.

λ TFC has to develop a unique strategy and differentiate its products to prevent copies.

λ TFC will lose attractiveness to cable affiliates if just keeps the worst rating. (See Appendix 1)

λ If the new target group is smaller than the old one, the rating will decrease, which will lead to the losing of ad buyers who use surveys and programs as decision aid.

λ If initiatives can not satisfy most consumers, TFC will lose the cable operator, affiliate and distribution support easily.

Alternative courses of action

Scenario1: Develop a multi-segment strategy, and focus on Fashionistas, Planners & Shoppers and Situationalists between the women aged 18 to 34.

Advantages: Through implementing various marketing tools on new target segment, the rating will increase from 1.0 to 1.2, leading to the increase in average viewers.

Disadvantages: Since there is no real change in viewers’ type and programming, the CPM will drop by 10% or more and competitors will continue taking its market share. (See Appendix 2)

Scenario2: Focus on the Fashionistas segment

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