The Fashion Channel - Marketing

962 Words Dec 9th, 2012 4 Pages
Case Study # 2: The Fashion Channel

Overview This document presents information about the conclusions that can be drawn from the consumer and market data based on ‘The Fashion Channel’ case study information (Stahl, 2007). In addition we will also look into the various pros and cons of the segmentation options for the Fashion Channel to increase their revenue stream.
Analyzing the Data The Fashion Channel (TFC) was a successful cable TV network – and the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. Founded in 1996, it has experienced consistent revenue and
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Also, networks were increasingly evaluated on their ability to deliver specific target groups (Stahl, 2007). There is some risk associated with this segmentation of targeting only some of their customers. Some viewers who don’t fall into this category (i.e., male viewers and other age groups) could quit watching TFC. This might lead to fall in their viewership ratings. This could be a risk in the short-term, but I believe in the long-term, they would be able to retain their preferred consumer base. Taking into consideration the fickleness behavior of the consumer, it could be possible that there could be shift of viewership towards fashion programming. This is an obvious risk (disadvantage) for segmentation and targeting only a segment of the population. To counter this, the channel could select alternate time slots of programming that suits other viewer group. Another major con for market segmentation is the additional costs associated with the research to perform market segment analysis and the increase in the overall operating costs. Segmentation would help (pro) the channel to effectively implement their positioning strategy that would most impress their intended audience. This would help them to retain and add more viewers within their segmented group. This would help them to focus their energy and deliver to the needs of their loyal viewers. An important disadvantage with segmentation and positioning is

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