The Fashion Channel Case Study

1362 Words May 21st, 2013 6 Pages
CASE STUDY:

The Fashion Channel

Case study: The Fashion Channel
Opening

Lacking of detailed segment, branding and positioning strategy and increasing competitors which have put forward the similar fashion program forced TFC to change its marketing strategy for future growth. Therefore, targeting and positioning the market are of great importance. However, TV ratings and advertising revenue are necessarily to be accomplished by segment TFC.

Key facts

1. Customer Analysis According to the research, customers could be divided into two groups: viewers and advertisers. Overall, women between 18 and 34 with low family income are the most target group. Additionally, a great number of
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Also the fashionista segment may be considered too specific to attract new viewers and therefore lose the competitiveness in the competition while its competitors are boarding their customer clusters.

3. Fashionistas& Shopper/Planner Segmentation
Pros: In the third segmentation scenario, the ratings could be improved from 1.0% to 1.2%, while the average CPM from 2.00 to $2.50. In addition, it could generate additional $115 million net income. On the other hand, applying this segmentation scenario will evidently help TFC increase the advertising revenues. Lastly, the new programme repositions itself and makes TFC differ from its competitors.
Cons: This scenario requires a $20 million additional expense for customizing programme. It is clear that TFC has to face more liabilities as well as higher financial risk. For those current subscribers who are excluded, they may feel that they are less concerned, which will lead to the loss of loyalty and decrease of ratings.

Strategic Recommendations
The best scenario is to combine Fashionistas and Planners/Shoppers segment. According to the Exhibits3, this scenario captures 50% of US audience. Somehow it may lose some of the existing audience(35-53 female).But in the meantime, it attract new audience group(18-34 female),which means it could bring considerable advertising revenue and achieve ad price premium( increases CPM from 25% to 75%).
Implementation
Owing to the increased competitions, we would like to use

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