Harvard Business Review - the Fashion Channel
Introduction
The Fashion Channel was a succesful cable TV network who dedicated solely to fashion and broadcast for 24/7. Founded in 1996 from two entrepreuners, this Channel had constant revenue and profit growth above the industry average. Woman between 35 to 54 years were it’s most avid viewers, according to its annual demographic survey. Beyond its basic demographics, the channel didn’t have much detailed information about it’s viewers nor did it attempt to market to any viewer segments in particular.
TFC had grown quickly without any detailed segmentation, branding or positioning strategy. However, at the beginning of 2006, TFC realized that other networks were taking note of its success and beginning to add fashion-related programming to their line-ups. By June 2006, Jared Thomas rethink his approach to marketing, he told his senior team that it’s time to buile a modern strategy and secure TFC’s position as the market leader. Thomas also wanted to hire an expirienced marketer to develop marketing and brand-building programs to support TFC’s continued growth. Enter Dana Wheeler in July 2006. Thomas expected that Wheeler would draw on these strengths to help TFC became star again.
Wheeler’s Plan
Wheeler had been warned by Ad Sales that TFC had to drop the price for a unit of advertising next year by 10% if the networks did not make some changes in it’s performance, she knew in order to hold or increase price it would be crucial to attract a critical mass of viewers. The key would be targeting the right viewers and offering advertisers an attractive mix of viewers when compared with what compatitors were offering. At the same time, she knew that the network needed to maintain its overall audience ratings with the cable consumers and the cable affiliate distribution network. If the network changed its offerings in a way that disappointed too many cable subscribers, it could risk losing its distribution support. Another Wheeler plans were to build a strategy
The Fashion Channel was a succesful cable TV network who dedicated solely to fashion and broadcast for 24/7. Founded in 1996 from two entrepreuners, this Channel had constant revenue and profit growth above the industry average. Woman between 35 to 54 years were it’s most avid viewers, according to its annual demographic survey. Beyond its basic demographics, the channel didn’t have much detailed information about it’s viewers nor did it attempt to market to any viewer segments in particular.
TFC had grown quickly without any detailed segmentation, branding or positioning strategy. However, at the beginning of 2006, TFC realized that other networks were taking note of its success and beginning to add fashion-related programming to their line-ups. By June 2006, Jared Thomas rethink his approach to marketing, he told his senior team that it’s time to buile a modern strategy and secure TFC’s position as the market leader. Thomas also wanted to hire an expirienced marketer to develop marketing and brand-building programs to support TFC’s continued growth. Enter Dana Wheeler in July 2006. Thomas expected that Wheeler would draw on these strengths to help TFC became star again.
Wheeler’s Plan
Wheeler had been warned by Ad Sales that TFC had to drop the price for a unit of advertising next year by 10% if the networks did not make some changes in it’s performance, she knew in order to hold or increase price it would be crucial to attract a critical mass of viewers. The key would be targeting the right viewers and offering advertisers an attractive mix of viewers when compared with what compatitors were offering. At the same time, she knew that the network needed to maintain its overall audience ratings with the cable consumers and the cable affiliate distribution network. If the network changed its offerings in a way that disappointed too many cable subscribers, it could risk losing its distribution support. Another Wheeler plans were to build a strategy