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
Ms.
Of the hundreds of named brand clothing that form part of the retail and fashion industry I chose to compare, for my analysis, Abercrombie & Fitch, Forever 21, American Eagle, and H&M. These stores are prominent, well-known for selling apparel, shoes, and accessories by the means of offering sales and promotions to their customers. This is a clever strategy for attracting customers, allowing them to believe that they bought goods at affordable, convenient prices – and not to mention the prestigious name prescribed to the clothing brands. Using keyhole.co as my main source, I obtained relevant and valuable information regarding the status of these brands. My intentions were to compare a period of 14 days, however, due to the limited access that I received from my free trial, the program only allowed me to see fewer of the dates than I anticipated. I want to take this opportunity and mention ahead of time that due to the various and distinctive products that are sold from these stores, when looking for the “spending capacity” I decided to focus on shirts/ jeans for men and women and compare the prices among them since each of these retailers carry those items and as a way to make this report easier to contrast and comprehend. Also, when approaching the section of “setting”, I screen-shotted some of the images on Instagram and made them into a collage to separate the type of clothes and trends that each of these brands sell currently. In the following modules
Ever since their invention many centuries ago, clothes have been used as a way of communicating. The message communicated relies on a number of factors including the social background of both the communicator and the receiver, and the context in which the message is communicated. Although at times the exact message or symbolism one is trying to portray may not be clear, it is evident that clothing has long been embraced as one of the best ways to project one’s desired personal image to those around them.
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
Exercise 1: What is expected outcome of each of the targeting scenarios? (complete both the Ad Revenue and Financial calculators to fully understand the financial impact of the scenarios)
When society thinks about the stereotypical American Family what comes to mind first? Is it a dynamic multiracial diverse family with four children a mother that works the hours all week, and the father that stays and home at takes care of the kids? Or is it the “Leave It to Beaver” stay at home mom, stereotypical family that could be argued as today’s “regular” family? Whether it’s the standard or the dynamic media has changed the way that this is viewed and it has almost helped to form what is today’s “modern” family. Television is one of today’s biggest sources of media and has the ability to reach the vast majority of the American Population, with approximately 115 million households having television sets (Nielson.com).
Basics: not intersted in fashion with being 20% of all viewers and 45% being female.
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
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.
The Fashion Channel (TFC) is a 24*7 cable TV network which is exclusively dedicated to fashion. It was found in 1996 and since then it has been witnessing continuous upswing. According to an annual demographic survey, TFC is having approximately 110 million subscribers of cable & satellite television. But, due to increasing competition with other fashion channels, it is in the need for developing a modern and updated brand strategy.
Company: TFC is a 24X7 network dedicated solely to fashion. The channel has long been a leader in the fashion network field but since recently realized that it has started to face some issues with its viewership ratings and advertiser revenues due to emergence of other competitive fashion networks. So, TFC has to
1. Go to a public place and OBSERVE the community of people in that place for at least 30 minutes; perhaps as long as 60 minutes. In your report, describe the setting and note the date and time of your observation. Describe the element of “community” that you observed.
Thinking in an unusual way has always created my most successful ideas and I know that this will add to my advantage when studying Fashion Marketing. Part of being a conscious human being, is having an intention. And if you put an intention into whatever you think to do, it’s definitely going to be more satisfying in the end. This motto has helped me my targets and achieve them so far in my career. I am blown away with the way the Fashion Marketing industry has such a strong influence over society’s choice of styling, and how it can influence current and future trends through different ways and I am curious with the marketing strategies and what motivates the consumer to buy a fashion product.
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
Coco Chanel, born Gabrielle Bonhuer Chanel, on August 19, 1883 in Saumur, France was an amazing woman who redefined fashion as we know it today. She was a clothing designer who revolutionized the fashion industry with her suits, little black dresses, and avant garde flare. Because of this quickly in her young life she became well know, and rose to be the fashion icon that she is today. From the timeless designs that are still popular to this day, and the sophisticated outfits that can be paired with great accessories Chanel has done it all. When it comes down to it though it was Coco Chanel’s philosophy that “luxury must be comfortable, otherwise it’s not luxury” that lead to her success. (“Coco Chanel”)
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.