The Fashion Channel has dominated the fashion television market in recent years, but is now faced with an increasing amount of formidable competition. Both CNN and Lifetime have added fashion related programming after seeing an opportunity to gain viewers in that market. These two competitors have been relatively successful in securing a following of viewers. The fashion channel now must make the decision on how to move forward with their marketing plan. They must find the best scenario possible in order increase revenue and secure viewers in this increasingly competitive market. To successfully do execute this plan, The Fashion channel must review the customer segments, complete a profit potential analysis, and chose a marketing plan that best suits their needs and the needs of their viewers.
Customer Segments Overview
Segment Name & Size| Fashionistas(15%)| Planners &Shoppers(35%)| Situationalists(30%)| Basics(20%)| Key Differentiating Demographics – what do they look so that we could tell one segment from another?| Female (61%)High income $100,000+ Age 18 and 34 (50%)| Majority are femaleIncome 65,000+Age 21-45| Tend to have kids Age 24-50 (50%)Less disposable income| Majority are menAge 28-50| Key Differentiating Attitudes & Beliefs – how do they think and feel so that we could tell one segment from another? | Treat fashion as a hobbyWant to be the trendsettersThey aren’t price sensitive Shop luxury brandsCare about how they are perceived (looks)| They look for deals, such as couponsHave brand loyalty towards certain brandsSomewhat are price sensitiveLike to plan and have an idea on where they want to go and what they want to buy, practical| Think about fashion only for special occasionsprice sensitive (besides rare occasions)Splurge for only certain occasions| Do not enjoy shoppingPrice sensitiveTend to shop at the same stores ( one stop shop)| Involvement in Fashion & Interest in Fashion on TV| Fashion TV 140 indexLook for insight on what’s hot and coming into styleThey treat fashion like an entertainment, They enjoy watching shows about it| Fashion TV 110 indexPopular show how to look good for under $100| Fashion TV 105 indexLike to watch some fashion TV, but normally when their looking to buy| Fashion TV 50 indexDon’t watch fashion on TVDon’t keep with fashion news| Qualitative Assessment of Targeting Priority | Pioneers/early adoptersTarget them heavily, they will spread the word.| Enjoy watching fashion and it’s the biggest segment.Focus on planning and saving when shoppingI would make this the secondary segment.| They don’t shop a whole lot, but they enjoy hearing about fashion.You could dip into this section if you had the resources.| This segment shows now interest in fashion.We believe they should avoid targeting this market.|
Demographics: Females tend to be more fashion oriented from head to toe than men. This segment has a high income, which they need to be able to keep up with the trends and the expensive luxury brands. Women between the ages 18-35 are the majority of this market. This is the age range when women try to appeal to others by their looks. Key attitudes and beliefs: They want to have the new and latest clothes and accessories. This segment tends to wear expensive brands to show people they can afford nice clothes and care how they look. They don’t care how much it cost, with their high income they will buy whatever is fashion, even if its outrageously priced. Interest in fashion
They enjoy watching fashion on TV (Heavy watchers), they treat it as an entertainment. This is how they keep up with the trends. They also keep up with the fashion through social media and magazines. Assessment: This is the smallest market although they are the ones that fit Fashion TV’s criteria. They are like the pioneers to early adopters in fashion. If they like it they will spread the word to...