Fashion Channel Case Analysis
Fashion Channel Questions
Please answer the following questions in no more than 3 pages single spaced or 6 pages double spaced using a 12pt font. Exhibits such as your excel results do not count against the page limit. Please note that the column “2007 base” in the excel spread sheet assumes you do not segment the market. It is critically important that you communicate your reasoning clearly. You MUST NOT talk about the case in depth with anyone else.
1. How would you interpret the consumer and market data if you were Dana Wheeler? Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each.
(1) With the total 110 million TV householders with televisions in the United States, the channel reached nearly 80 million householders that subscribed to cable and satellite television, and women between 35 and 54 years were its most avid viewers. However, these are only general data. For The Fashion Channel, the average viewers are 1.1 million which is much less than 3.3 million of Lifetime and 4.4 million of CNN, two main and strong competitors. Because raise cable affiliate fee will bring wicked effects on consumer satisfaction, the only two key levers to increase revenue would be increase viewership and increase advertising pricing. In addition, the common junction of these two is “deliver quality audiences”, who is willing to become loyal to TFC and also in highly valued to advertisers. According to the GFE Association report which constructed profiles for cluster of consumers who had common attitudes and needs, there are four unique groups of viewers: Fashionistas, Planners & Shoppers, Situationalists, and Basics. Among them the Fashionistas, the segment which was strong in the highly valued 18-34 female demographic, are highly engaged in fashion. It would be wise to pursue consumers who have interests in TFC’s program contents and willing to be very loyal, so this group people would be highly valued consumers to TFC.
Please answer the following questions in no more than 3 pages single spaced or 6 pages double spaced using a 12pt font. Exhibits such as your excel results do not count against the page limit. Please note that the column “2007 base” in the excel spread sheet assumes you do not segment the market. It is critically important that you communicate your reasoning clearly. You MUST NOT talk about the case in depth with anyone else.
1. How would you interpret the consumer and market data if you were Dana Wheeler? Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each.
(1) With the total 110 million TV householders with televisions in the United States, the channel reached nearly 80 million householders that subscribed to cable and satellite television, and women between 35 and 54 years were its most avid viewers. However, these are only general data. For The Fashion Channel, the average viewers are 1.1 million which is much less than 3.3 million of Lifetime and 4.4 million of CNN, two main and strong competitors. Because raise cable affiliate fee will bring wicked effects on consumer satisfaction, the only two key levers to increase revenue would be increase viewership and increase advertising pricing. In addition, the common junction of these two is “deliver quality audiences”, who is willing to become loyal to TFC and also in highly valued to advertisers. According to the GFE Association report which constructed profiles for cluster of consumers who had common attitudes and needs, there are four unique groups of viewers: Fashionistas, Planners & Shoppers, Situationalists, and Basics. Among them the Fashionistas, the segment which was strong in the highly valued 18-34 female demographic, are highly engaged in fashion. It would be wise to pursue consumers who have interests in TFC’s program contents and willing to be very loyal, so this group people would be highly valued consumers to TFC.