This document presents information about the conclusions that can be drawn from the consumer and market data based on ‘The Fashion Channel’ case study information (Stahl, 2007). In addition we will also look into the various pros and cons of the segmentation options for the Fashion Channel to increase their revenue stream. Analyzing the Data
The Fashion Channel (TFC) was a successful cable TV network – and the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. Founded in 1996, it has experienced consistent revenue and profit growth above the industry average almost since the beginning (Stahl, 2007). But at the beginning of 2006, the network realized that it was facing competition from other networks that could provide meaningful choices to both viewers and advertisers. This prompted them to rethink their approach towards their marketing strategy to retain and secure their position as the market leader. Due to this competition, they need to look at articulating detailed segmentation, branding and positioning strategy to lay a foundation for future growth. The growth of the channel depends on proper customer and market segmentation.
A national consumer field study was conducted by a well-regarded market research firm (GFE Associates) that looked into consumer and market data regarding fashion related programming, advertising and its viewership. Based on the study, it looks like U.S. consumer advertisers spent almost $20 billion buying spots on cable networks such as TFC. Out of this, TFC generated $230.6 million of advertising revenue. The advertising business model was built on attracting a mix of male and female viewers on a regular basis and is measured by ‘ratings.’ Across, the entire schedule, TFC’s average rating was 1.0 when compared...