Preview

Fashion Channel Case Study

Better Essays
Open Document
Open Document
1096 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Fashion Channel Case Study
The Fashion Channel Marketing Analysis XXXXXX XXXXX

Abstract

The Fashion Channel (TFC) has enjoyed a calm journey on the top of the fashion-programming niche for almost 10 years. However, there is a frontal attack from market-challengers of two other cable networks to capture market share and revenues from TFC. The CEO is keenly aware that TFC needs a new marketing strategy if they want to remain the market leader. Therefore, he hired a senior vice president of marketing to gather data, analyze the situation and make recommendations to the company as quickly as possible. The purpose of this study is to review the marketing challenge facing TFC, analyze their consumer and market data, and examine the pros and cons of TFC’s marketing options. This case raises a question for further study: How can a niche brand use technologies to grow their brand and profits while protecting market share and revenue if barriers of entry are low for competitors who share the same technologies and channels of distribution?

The Fashion Channel Marketing Analysis The Fashion Channel (TFC) has enjoyed a calm journey as the top of the fashion-programming niche for almost 10 years. However, they are facing a new frontal attack from market-challengers CNN and Lifetime channels to capture market share and revenues from TFC (Kotler & Keller, 2009, p. 138). It seems that TFC employees know something different must be done to remain the leader in fashion programming, but who will speak truth to power (Welch & Welch, 2005; Stahl, 2007)? We will review the marketing challenge facing TFC, analyze their consumer and market data, and examine the pros and cons of TFC’s marketing options.
Overview of The Fashion Channel’s Marketing Challenge and Data Analysis
In 1996 two entrepreneurs, including current CEO Jared Thomas, launched TFC for broadcasting fashion programming through cable television and satellite mediums (Stahl, 2007, p. 1-2). TFC is the



References: Kotler, P. & Keller, K. (2009). A framework for marketing management, 5th ed. Boston, MA: Prentice Hall. Porter, M. (1998). Competitive advantage: Creating and sustaining superior performance. Glencoe, IL: Free Press. Stahl, W. (2007, June 1). The Fashion Channel. Boston, MA: Harvard Business School Publishing. Welch, J. & Welch, S. (2005). Winning. New York, NY: HarperBusiness.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Two dominant approaches that can be used when seeking to market to a broad range of consumers are segmentation and mass marketing. The traditional segmentation view of marketing suggests that market segments should be carefully researched for important differences, and then strategies developed to suit each specific segment. Mass marketing on the other hand favours marketing a product in the same way to all segments based on the assumption that many consumers’ preferences are often quite similar. Which approach is most suited to the marketing of fashion clothing? What are the drivers of purchasing behaviour associated with fashion clothing? Do these drivers differ across market segments or are they generally similar across segments? Market research can be conducted to provide answers to these questions based on evidence collected from consumers. This research project will seek to identify the determinants of fashion purchasing within Australia, with consideration to possible differences across market segments. Interviews will be conducted to explore the drivers of fashion purchase behaviour (first assignment) and then a survey will be used to quantitatively examine these drivers (second assignment).…

    • 378 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The Fashion Channel Case

    • 276 Words
    • 2 Pages

    Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC) must create a strategy which would help deal with the current marketing challenge. Wheeler’s major challenge is to choose an explicit target market in which her team can market towards in order to increase revenues for The Fashion Channel.…

    • 276 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    The Fashion Channel

    • 306 Words
    • 2 Pages

    1) If TFC were on a BCG matrix they would fall into the category of a star. They have high market share and high business growth rate. They are the leaders in the fashion niche and should generate large amounts of revenue but need to continue to invest in their channel to ensure it stays profitable.…

    • 306 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Fashion Channel

    • 1463 Words
    • 6 Pages

    The Fashion Channel is an unique leading cable TV network specialized in only fashion programming with broadcasting 24 hours a day and 7 days per week.The channel has a steady uprising revenue background and profitable high growth above the its’ industry average from the establishment in 1996 by two men who has an entrepreneurial spirit. TFC(The Fashion Channel) has a huge revenue amount of 310.6 million in 2006 with 80 million household viewer who has subscribed to their network in cable or satellite TV groups.TFC viewers are mostly woman who have age between 35 and 54 and TFC has a motto of “Fashion for Everyone” to reach every cable or satellite TV viewer by mass marketing concept.And TFC has a highly low fee for per cable network customer correlating with other networks as $ 1.00 to penetrate whole market.TFC has an huge advertising income and share approximately $ 230.6 million in 20 billion advertising market.…

    • 1463 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    The case of the Fashion Channel exhibited possible failures and multiple problems. After thorough review of the case I felt the core problem is the failure to focus on a specific demographic. TFC had run off the marketing strategy of “something-for-everyone” for plenty of years and found success in this untouched niche of fashion television. Without competition, this marketing mentality had been very profitable, and started drawing up attention from other networks. With rising competition in this network specialty, TFC was losing CPM (cost per thousand) advertising value and market share. Stuck in the past success of their previous marketing strategy, TFC is in dire need of change. Create a strategy to successfully reach a powerful viewer segment to increase the ratings in highly valued demographic groups to ultimately increase CPM pricing. In the end Dana Wheeler would need to drive revenue growth, increase viewership, and increase advertising pricing.…

    • 2069 Words
    • 9 Pages
    Good Essays
  • Powerful Essays

    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.…

    • 2059 Words
    • 9 Pages
    Powerful Essays
  • Powerful Essays

    TFC meets the needs of women 35-54, who have a passion for fashion. As a result of TLC success, existing networks are launching fashion-specific programming because it is an opportunity to strength its existing ratings/viewership from it core women audience (Lifetime) or gain viewership by expanding its offering to include lifestyle content (CNN).…

    • 597 Words
    • 3 Pages
    Powerful Essays
  • Better Essays

    Victoria Secret

    • 2213 Words
    • 9 Pages

    When most people think of Victoria’s Secret, they think of lingerie. Indeed, the Limited Brands division has done a very good job of developing this association by placing images of supermodels donning its signature bras, panties, and “sleepwear” in everything from standard broadcast and print advertising to the controversial prime-time television fashion shows that the company airs each year. Such promotional tactics have paid off for Victoria’s Secret, a subsidiary of Limited Brands, which continues to achieve healthy sales and profit growth. How does a successful company ensure that its hot sales don’t cool off? One approach is to sell more to existing customers. Another is to find new customers. Victoria’s Secret is doing plenty of both. One key component in its quest to find new customers is the launch and growth of its sub-brand, Pink.…

    • 2213 Words
    • 9 Pages
    Better Essays
  • Powerful Essays

    The Fashion Channel Case

    • 1980 Words
    • 6 Pages

    The state of the economy at the beginning of 2007 was promising (pre-housing bubble and job loss). The Fashion Channel at that time had been around for 11 years. The company was started by two entrepreneurs in 1996, with up to date entertainment features that focused on material relating to fashion only on 24 hour a day, 7 days a week schedule. To that point the main audience was women aged 35-54 and the company tagline was “Fashion for Everyone.” Coming off of revenues of $310.6 million and only $230 million in ad sales, the goal going forward was to find a way to increase that amount. In 2005, one of the more popular series’ on TFC was a show called “Look Great on Saturday Night for Under $100.” Other networks like CNN and Lifetime began following the programming plan put on by TFC which started to become more popular in comparison to the programs being broadcast by TFC. This in effect resulted in direct competition against TFC and directly affected the ad revenue…

    • 1980 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Please read and analyze this case on market segmentation and targeting options for a cable television network dedicated to fashion programming. No research into the industry or firm is necessary. Please use only the information provided by the case.…

    • 1320 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Ucvc

    • 321 Words
    • 2 Pages

    The Fashion Channel(TFC) is only channel dedicated solely dedicated to Fashion, with up to date information broadcast 24 hours per day, all year.…

    • 321 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    A marketing-oriented firm looks outwards to the environment in which it operates, adapting to take advantage of emerging opportunities and to minimize potential threats. Regarding this I will examine the marketing environment over the last 5 years and how companies are responded to the change. Finally we will see the impact of technological changes on fashion in separate way.…

    • 1953 Words
    • 8 Pages
    Good Essays
  • Satisfactory Essays

    Model School

    • 1264 Words
    • 6 Pages

    FashionTV is the biggest fashion medium in the world FashionTV broadcasts the latest news and information to over 350 million households and 7 million public places worldwide. As the only global 24/7 television network focused exclusively on fashion, beauty, trends and style. FashionTV is a New Media leader, with a highly trafficked and expansive digital reach that includes YouTube channels (20,000,000 views in 1 month), FTV.com (1 mil visitors per month), a Facebook page (1,000,000 fans) and more. In the top 300 media online. FashionTV represents Chic style, dynamic attitude, fresh and hip music, FashionTV symbolizes fashion in its true sense. Celebrities, models, designers fashionistas and trendsetters. We get the first the newest trends and share them with our audience. FashionTV viewers are considered the most luxurious, glamorous and fashion-oriented target group among all media consumers, who not only love to watch the fashionable lifestyle on TV, but they also enjoy living it.…

    • 1264 Words
    • 6 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Case Memo Fashion Channel

    • 495 Words
    • 2 Pages

    TFC is indeed in a rather tricky situation at the moment. Although I agree with you that there is an undeniable need for some substantial changes, I am equally concerned about the negative reception of these changes by our viewers and even our employees. According to me, the aim right now should be to steer our channel away from the risks of declining viewership and advertising prices. However, in order to achieve this, I do not at the same time think it would be wise to expose ourselves to higher concentration risks than is necessary. Therefore, my recommendation is to opt for the third scenario as mentioned in your projections, which targets both ‘Fashionistas’ and ‘Shoppers & Planners’. This strategy could help maintain or limit the damage to our existing viewership, and potentially increase our network rating by 20%; and our annual CPM average from $2 to nearly $3. This could result in a consequent increase in ad revenues to upwards of $320 million, which is a much better projected delivery than of the first two options. I have explained some reasons below to support this argument.…

    • 495 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    brand for their unique features. This audience was showing a clear shift from traditional media channels to…

    • 265 Words
    • 2 Pages
    Satisfactory Essays

Related Topics