Essay on The Fashion Channel

Submitted By alwaysrunn
Words: 713
Pages: 3
Open Document
The Fashion Channel (TFC) is a TV channel that only premier’s fashion related information 24 hours a day, 7 days a week. With their early theme of “Fashion for Everyone” this dedicated channel found a niche with customers in the 35-54 age range. Despite their initial success, TFC failed to collect detailed segmentation information and by 2006 TFC was losing CPM (cost per thousand views) as well as ad revenue to CNN and Lifetime’s segmented fashion shows. These competitors begun to offer fashion related segments that quickly eroded TFC’s ad and revenue ratings, and they began to beat TFC in nearly every category from consumer interest to perceived value, awareness, etc. Norm Frazier, the Senior VP, hired Dana Wheeler- marketing expert, to help increase viewership and advertising pricing as well as return TFC to the dedicated TV fashion leader they once were.
After collecting data from GFE Associates, a well know marketing and research firm, Dana Wheeler identified four distinct groups that make up all the viewers that TFC reaches.
Fashionistas - 15% of the TFC’s overall viewers, highly engaged in fashion, 61% female, 30% in the 18-34 age.
Planners Shoppers - 35% of overall viewers, participate on a regular basis mostly female 53% 18-34.
Situationalist- 30% of overall viewers, shop for specific needs, younger, still women.
Basics - 20% of overall viewers, disengaged. Dana quickly decided they were not worth fighting for.

Armed with this information, Dana proposed a strategy in which she outlined three choices to meet the customer’s needs and accomplish the goal of increasing revenue, viewers and advertising pricing.
Scenario 1: Develop a broad strategy that markets to Fashionistas, Planner-Shoppers and Situationalist.
-Strengths: Ratings increase from 1% to 1.2% and no needed additional programming cost are required.
-Weaknesses: CPM, which is how advertising prices are expressed, will drop to $1.80 from $2.00. They will also continue to lose viewers by as they are engaging in the same strategy that got them here.
Scenario 2: Focus on the Fashionistas only. This requires $15 million in additional TV programming.
-Strengths: Fashionistas spend the most, have the highest concentration of females of any group and the CPM in this strategy is $3.50 which is the highest off all the scenarios.
-Weaknesses: By focusing solely on the Fashionistas, whom makes up 15% of overall viewers (almost 80/20 rule), they alienate other groups and consequently receive the lowest viewer ratings of all the scenarios at 880k. Additionally, Fashionistas will likely use multiple resources for fashion and not remain loyal to TFC but rather loyal to a brand, trend or style.
Scenario 3: Implement a mixed marketing plan that combines focusing on Fashionistas and Planners-shoppers together.
Show More

Related Documents: Essay on The Fashion Channel

The Fashion Channel Essay

The Fashion Channel (TFC) is a cable-TV network dedicated solely to fashion broadcast 24 hours a day, 7 days a week. It was founded in 1996 and experienced constant revenue and profit growth above industry average. The Fashion Channel viewers were mainly women between age 35 and 54 years old. The Fashion Channel was successfully until other channels such as Lifetime and CNN started adding fashion related shows to their line-up. The Fashion Channel viewers began to decline because it does not…

Words 699 - Pages 3

Essay on Fashion Channel Case Analysis

Fashion Channel Questions Please answer the following questions in no more than 3 pages single spaced or 6 pages double spaced using a 12pt font. Exhibits such as your excel results do not count against the page limit. Please note that the column “2007 base” in the excel spread sheet assumes you do not segment the market. It is critically important that you communicate your reasoning clearly. You MUST NOT talk about the case in depth with anyone else. 1. How would you interpret the consumer…

Words 1578 - Pages 7

Fashion Channel Case Hbr Essay

Case Report-1: The Fashion Channel 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) Ad Revenue Calculator | | | | | | | Current | 2007 Base | Scenario 1 | Scenario 2 | Scenario 3 | TV HH | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | 110.000.000 | Average Rating | 1,0% | 1,0% | 1,2% | 0,8% | 1,2% | Average Viewers (Thousand) | 1100…

Words 1038 - Pages 5

Essay on Revenue and Net Income

Fashion Channel Harvard Case Study Summary of the Case The Fashion Channel (TFC), a successful cable TV network channel 24 hours a day and 7 days a week, exclusively dedicated to fashion. Founded in the year 1996. It reached almost 80 million American households who were subscribers to cable and satellite (110 million TV households in the United States. Of these, approximately 70 million were paid to a cable TV service). According to the demographic core survey, their public was composed of women…

Words 936 - Pages 4

TFC Memo Essay

interoffice memorandum to: THE FASHION CHANNEL- JARED THOMAS from: fahmeda sultana subject: the fashion channel startegy date: 7/4/2015 cc: leona tam The memorandum recommends TFC to target two segments- the Fashionistas and the Shoppers/Planners. This is the most profitable decision since it would increase the rating to 20%, CPM to 25% and margin to 37%. In order to generate a revenue of $230.6 million, TFC has to increase viewership ratings and advertisement pricing. The two segment approach increases…

Words 758 - Pages 4

Paper 1

The Fashion Channel: Strategic Marketing Alternative Analysis Huddleston, Joseph Jachino, Jared Larson, Eric Nguyen, Aerie Rotherham. John Situation Analysis The senior management team at The Fashion Channel has to decide what customer segments/clusters to direct their new marketing strategy in order to increase company revenue. The company operates in a very niche market of TV content and is beginning to face stiff competition from new fashion programming on CNN and Lifetime. The Fashion…

Words 1048 - Pages 5

Essay on Fashine Channel

The Fashion Channel Problem Definition TFC had been losing its program viewers since the beginning of 2006 because more and more of its competitors realized the success of fashion-related programs, so they were adding such programs in their own networks. To maintain its profitability and position in the industry, the company needed to make a change to its previous “broad viewer” strategy and focused on specific segmentation. External Situation Analysis (See Appendix 1 for full listing.)  Competition…

Words 1065 - Pages 5

Ronald Reagan and True Love Fairytale Essay

through the channels to the news when I see the election between Democratic Jimmy Carter and Republication Ronald Regan has came to the results of our new president. “Reagan, aided by the Iran hostage crisis and a worsening economy at home, won the election in a landslide, receiving the highest number of electoral votes to have ever won by a no incumbent presidential candidate, this making him the 40th President of the United States. “After updating myself on the daily news I turn to my fashion forward…

Words 853 - Pages 4

Imc Strategy Bonds Essay

Name: Wenzhi Huang Student Number: n7360029 Content 1.0 Message Review 1 1.1 Current Message Strategy 1 1.2 Message Effectiveness 1 1.3 Proposed Message Strategy Adjustment 2 2.0 Channel Review 3 2.1 Channel Integration Grid 3 2.2 Channel Effectiveness Critique 4 2.3 Proposed Improvements 4 3.0 Target Market 5 3.1 Geographic Segmentation 5 3.2 Demographic Segmentation 5 3.3 Psychographic Segmentation 5 3.4 Behavioral Segmentation 5 3.5 Benefit Segmentation…

Words 2790 - Pages 12

Course Notes, Studyguide Essay example

came out on March 23, 1940 as a fortnightly periodical. On December 15, 1942 the fortnightly was turned into a weekly and finally into a daily on July 19, 1944. Nawa-i-waqt Group also entered electronic media with a 24 hour news and entertainment channel Waqt News. 3. DAILY EXPRESS: The Daily Express, founded on 3 September, 1998, is one of Pakistan’s most widely circulated Urdu language newspapers published by Century Publications, a Lakson Group subsidiary. It is published simultaneously from…

Words 2726 - Pages 11