The Fashion Channel Case Study

931 words - 4 pages

Case Study Analysis – The Fashion Channel

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The Fashion Channel

Situational Analysis
* The Fashion Channel (TFC), a cable TV ...view middle of the document...

Ad buyers are more interested in buying ratings and demographics, which is higher for CNN and Lifetime.
* Fashion – oriented programs of CNN and lifetime are leading to drop in viewership and revenue for TFC. These channels are running fashion-oriented programming during their primetimes, thereby attracting more advertising buyers and viewers.
* Drop of 10% in CPM with the current strategy.
* With their new programs, Lifetime is attracting younger female demographics while CNN is attracting great number of men.
* TFC is a basic channel and has fully penetrated the market. As a result, there is no scope for TFC to increase their subscriber fees.
* Continuous threat of new channels penetrating the segment thereby eroding the overall revenue and pricing ability of TFC in the long run.
Ratings | TFC | CNN | Lifetime |
Consumer Interest | 3.8 | 4.3 | 4.5 |
Awareness | 4.1 | 4.6 | 4.5 |
Perceived Value | 3.7 | 4.1 | 4.4 |

These finding show that TFC has continuous low rating in all parameters – a strong indicator of consistently losing market share to its competitors.
Research Findings and Possible Solutions
Based on the data collected from several surveys (Exhibit 2 and 3) and performed the required analysis (Exhibit 4 and 5), the protagonist, Dana Wheeler has three major scenarios to implement her branding and segmentation strategy.
Scenario 1: Broad Appeal
* Cross-segment of Fashionistas, Planners & Shoppers, and Situationalists
* Women aged between 18 – 34 in all of the clusters
* Investing in a major marketing and advertising campaign as well as programming
* Awareness and viewing increase the rating of 20%
* Ad sale forecast have a 10% drop in CPM to $1.80
* Continued risk of competition
Scenario 2: Fashionistas
* Focuses on single cluster with aggressive approach
* Strong in age between 18 – 34
* 15% of household leading to drop in viewers
* Estimated 0.8 rating, but CPM value increasing to $3.5
* New programming will require $15 million
Scenario 3: Fashionistas & Shoppers/ Planners
* Dual segment target
* Drive ratings to...

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