In this paper I will discuss the pros and cons of segmentation of each of the segmentation options presented by Dana Wheeler for improving The Fashion Channel’s marketing plan. The Harvard Business School’s Case study included a wide variety of consumer and market data that must be analyzed to assist with drawing the best conclusion as to what is the best course of action to take. After reviewing the data and looking at the options presented, I will recommend the best course of action.
The Fashion Channel was founded in 1996 as the first TV cable network devoted solely to fashion. From 1996 until 2006 The Fashion Channel experienced constant growth well above the industry average. The cable channel was seen by almost 80,000,000 US households, with women between 35 and 54 years old being their most popular group of viewers. Its theme has always been “fashion for everyone”, following an undifferentiated market strategy. While this strategy has worked well for The Fashion Channel in the past that has been mostly due to the fact that it had no competition. It's much easier to operate with an undifferentiated marketing strategy when you're the only one offering your product. Since that time some of the major networks have taken notice. Both CNN and the Lifetime Channel have launched fashion related programming blocks that offer stiff competition for The Fashion Channel. Because CNN and the Lifetime Channel already have a large following and have built a name for them, it's much easier for them to attract viewers for fashion programming that it would be for smaller networks to draw them away. Jerry Thomas the founder and CEO of The Fashion Channel , along with many of the senior management team recognized this threat. As a result, Dana Wheeler was brought in by The Fashion Channel in July 2006 as to senior vice president of marketing. Our first task was to develop a marketing strategy to stave off these...