The Fashion Channel Case Study

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CASE STUDY:

The Fashion Channel

Case study: The Fashion Channel
Opening

Lacking of detailed segment, branding and positioning strategy and increasing competitors which have put forward the similar fashion program forced TFC to change its marketing strategy for future growth. Therefore, targeting and positioning the market are of great importance. However, TV ratings and advertising revenue are necessarily to be accomplished by segment TFC.

Key facts

1. Customer Analysis According to the research, customers could be divided into two groups: viewers and advertisers. Overall, women between 18 and 34 with low family income are the most target group. Additionally, a great number of people who are fashion-conscious are considered. However, the rating of TFC for consumer interest in viewing is 3.8, 4.1 on awareness, and a 3.7 on perceived value. In terms of demographic groups with high ratings, TFC could achieve an increase in CPM from 25% to 75%. So, TFC needs to find a way to reach certain CPM groups to increase its advertising revenue.

2. Competitors Analysis TFC, CNN and Lifetime are three giant players in the fashion channel market which comprises 110 million television households in the United States. Exhibit 1 shows the average ratings figures for each company concerning viewers over 18 years old. Scores are 1.0 (1.1 million households), 3.0(3.3 million households) and 4.0 (4.4 million households) respective. As for the advertising revenue from female audience of the age of 18 through 34, there is a big gap between Lifetime and TFC. The percentage for Lifetime is 43% which is 10% higher than TFC. With both the male and female audience aged 54 through 74, CNN accounts for 45% and 26%, while TFC only has 39% and 20%. From the above data, it is easy to draw the conclusion that TFC is in an unfavorable position. However, when we take the time schedule into consideration, it might be argued that TFC has

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