The Fashion Channel Essay

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Case Study: The Fashion Channel
Case Study: The Fashion Channel

Table of Contents

Executive Summary 1 Problem Statement 3 Proposed Scenarios & Analysis 4 Scenario #1 4 Scenario #2 5 Scenario #3 6 Proposed Solution 7 Implementation Plan 9 Conclusion 10 Exhibits 11 Exhibit 1: GFE Associates: National Consumer Survey (excerpts) 11 Exhibit 2: GFE Associates: Analysis of Attitudinal Clusters in U.S. Television Households for The Fashion Channel 12 Exhibit 3: Ad Revenue Calculator 13 Exhibit 4: TFC Estimated Financials 14 Exhibit 5: Implementation Schedule 15

Executive Summary

The Fashion Channel (TFC) is a cable television network that broadcasts 24 hours a day, 7 days a week and is
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Consumer surveys show that they have perceived less value in The Fashion Channel’s programming. Both of these are leveraging points for buyers to pay less for ad units.

* Suppliers – Suppliers don’t have much power since The Fashion Channel creates its own content. This force does not have much control over the market. If TFC were to move toward a marketing strategy that would only target certain segments, it may have an affect on the costs required to produce higher quality programming.

Problem Statement

Although The Fashion Channel has realized growth year over year, increased competition and lower perceived value from viewers is starting to threaten the network’s ad revenue. TFC is no longer an exclusive source of fashion content and ad buyers have realized that. The network’s strategy of providing very diverse programming has potentially alienated some of its most valuable viewers. Furthermore, the lack of a more focused marketing strategy towards any specific age group, or gender, has failed to convince viewers of the value the network provides. This team has conducted a quantitative analysis of the market and provided a set of potential alternatives with financial calculations to forecast potential revenue gained or lost from the changes to programming and marketing strategy.

Proposed Scenarios & Analysis

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