Case Analysis - Fashion Channel

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Case Study:
The Fashion Channel (TFC)

June 30, 2009

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. Building on her experience in the advertising industry and leveraging the market research available to her, Dana developed three segmentation and positioning strategies that she felt, while leveraging the success and momentum TFC has already experienced, positions the company for a more focused attempt to stave off competition, improve growth of the brand, and ultimately increases profit.

This paper analyses The Fashion Channel (TFC) case study and assesses the market segmentation and position strategies proposed by Dana Wheeler. Below a Strength, Weakness, Opportunity, and Threat (SWOT) analysis is presented, followed by a discussion and analysis of the consumer and market data presented in the case, and finally an analysis and recommendation of the three market segmentation and position strategies proposed by Dana. 1. SWOT

Rapid expansion and growing competition in the advertising market for both cable and satellite television has forced TFC to develop a market, branding and positioning strategy focused on its market leader position, requiring that it fend off new competition like CNN and Lifetime otherwise risk losing market share and advertising revenue. In order to achieve this objective TFC has decided to spend more...
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