The Fashion Channel Case

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(1)Dana Wheeler, responsible for the marketing strategy at The Fashion Channel, found herself in a tricky situation; where she should try and interpret market and consumer data.

The market clearly shows signs of TFC’s leader position eroding; before, it was the only fashion-related channel on cable television, and thus, it would draw all viewers interested in this topic. Now, however, CNN and Lifetime have introduced their respective counterparts (“Fashion Tonight” and “Fashion Today”), which are serious threats to TFC’s unique position. •However, TFC is still a 24/7 fashion-dedicated channel, whereas the two competitors only introduced a single programming slot; yet, it is the start of possibly declining market share and thus, profits. Furthermore, these competitors are luring away profitable consumers in terms of advertising revenue: Lifetime heavily appeals to the most desirable target group of women between age 18 and 54; whereas CNN appeals to the male segment more than TFC does. •Here, the market data can be interpreted to show TFC’s relatively weak position: compared to Lifetime and CNN, it becomes obvious that The Fashion Channel is not a market leader in any of the segments: Male viewers are lured away by CNN, whereas more female viewers prefer Lifetime (63% over 61%). •Age wise, TFC is not a leader in the ‘younger’ segment of 18-34, where Lifetme scores a much higher percentage (43% over 33%), and also the viewers over age 54 do not have TFC as their preferred fashion channel: choosing CNN’s Fashion Tonight instead. The only age segment where TFC has the highest viewer percentage is the group between 35-54; where TFC scores 45% against respectively 42% and 40% of Lifetime and CNN. •In terms of overall rating, TFC’s market penetration is lower than that of its competitors – a rating of 1.0, indicating 1.1 million households; as compared to 3.3 million reached by Lifetime, and 4.4 million by CNN.
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