...Fashion Channel Case Study MKT 247 Pengxi Lv 10/26/2014 1.SWOT analysis: Strengths: 1. Fashion channel is 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. 2. Fashion channel also is one of the most widely available niche networks, reaching almost 80 million U.S. households that subscribed to cable and satellite television. 3. Fashion channel has a large loyal audience base with average 1,100,000 people watching at any point of time. 4. Fashion channel’s revenue and profit grows above the industry average since the founding of the channel. Weaknesses: 1. Fashion channel has never launched any detailed segmentation, branding, or positioning strategy before. 2. Fashion channel is less attractive to cable affiliates compared with CNN and Lifetime according to a recent Alpha research study on customer satisfaction with cable networks. 3. Fashion channel has to compete against networks in buying ratings and demographics as well as against other fashion oriented programs. 4. Although the leading team is aware of the necessity of changing, they may not be ready to take actions because they never changed since the founding of TFC. Opportunities: 1. Strengthen competitive position and secure Fashion channel’s position as a market leader. 2. Focus on specific target markets could bring more steady growth. 3. Increase average rating so that Fashion channel could have...
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...Case Study Analysis – The Fashion Channel | Group Number 10Somya Goyal DM16147Anmol Caul DM16109Ravi Agarwal DM16135Vidhit Bhatia DM16159Shorya Umang Jain DM16143Mitali Malpani DM16125 | Case Study Analysis – The Fashion Channel | Group Number 10Somya Goyal DM16147Anmol Caul DM16109Ravi Agarwal DM16135Vidhit Bhatia DM16159Shorya Umang Jain DM16143Mitali Malpani DM16125 | The Fashion Channel Situational Analysis * The Fashion Channel (TFC), a cable TV network focusing solely on fashion was founded in 1996. Since then, it has experience a constant growth without articulating any segmentation, branding and positioning strategy. * Current year revenue is $310.63 M and it was primarily generated from two sources: Advertising ($230.63 M) and Cable affiliate fees ($80 M) (Exhibit 5) * Despite no segmentation and positioning strategy, there current viewership largely consists of women between 35 to 54 years. The channel is currently subscribed by around 80 M out of a total of 110 M households. * Two major channels, CNN and Lifetime have launched fashion – oriented programming to their line-ups, taking away a major share of TFC’s viewership and associated revenue. * TFC’s current goal is to develop a strong marketing, segmentation and brand-building...
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...data presented, The Fashion Channel (TFC) was the first TV channel to offer fashion TV shows, reaching 80 million viewers in the USA, initially giving the company an advantage as the original leader in the market. However, now the company is facing tough competition: “Fashion Today” on Lifetime and “Fashion Tonight” on CNN. At the moment this new competition arose, TFC did not have any plan for strategic segmentation or market positioning. The demographic data shows that 61% of the total audience for The Fashion Channel is comprised of women between 35-54 years old, similar to CNN’s audience. However, the Lifetime audience is 63% women between 18-34 years old; that means that TFC has older viewers than Lifetime. Another interesting figure is that CNN has the greater number of men with 45%, mostly between 35-40 years old. Given these figures, it’s clear that Dana Wheeler is focusing on attracting a younger segment of women to TFC, competing directly with Lifetime. She is not interested in reaching the male segment. TFC dedicates more broadcast time to fashion programming than any other network. However, TFC’s fashion programs rank lower in the ratings than its competitors’ shows. That negatively affects TFC because lower-rated shows are less attractive to advertisers, resulting in lower income from commercials. According to a study conducted by GFE Associates, people who are interested in fashion can be divided into four segments: Fashionistas (serious fashion followers), who represent...
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...Case Analysis Of “The Fashion Channel” Introduction and Problem Definition The Fashion Channel case illustrates the development of market segmentation options in implementing marketing strategies in a changing competitive environment, and demonstrates how quantitative analysis may be used to support a strategic marketing decision. The Fashion Channel (TFC) was a widely available niche cable network which only offers fashion-oriented programming. It was very successful until other regular networks began to copy its concept and take market share of it, which as a result, had a severe negative effect on TFC’s advertising revenue and affiliate fees. The problem is how to develop the segmentation and positioning, change the current content of programming, and reach the target customers, so as to get back those market shares from competitors, create more revenues and maintain TFC’s early standing. Situation analysis λ External Analysis: There were several hundred competitors in this industry and they took note of TFC’s concepts. TFC faced double-edged competition rendering it have to focus on not only ratings and demographics but also program subjects. Moreover, surveys showed that TFC had the lowest indexes, which actually made its affiliate fee at the low end as well. At the same time, the target consumers of competitors were premium CPM (cost per thousand)’s groups, while TFC only appealed to the less valued group. Ad industry was booming and competition was fierce...
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...Case 6 - The Fashion Channel 1. ISSUES Founded in 1996, TFC has been the only channel that is dedicated to fashion features 24 hours a day 7 days a week to a broad range of audience. This gave the channel a competitive edge marking it as the fashion leader channel in the market. However beginning 2006, the company noticed that other channel namely Lifetime and CNN were including fashion programs in their network and thus attracting audiences and advertisers. Advertisers had more choices to advertise through now and since these competitors were targeting the younger and stronger groups of audiences, this was affecting the commercial sales of TFC. The company is losing more advertisements to its competitors and it is estimated that TFC would need to drop its ad price by 10% if its performance doesn’t change. The current marketing theme of TFC is “Fashion for everyone” which means they are offering to broad range of viewers to get more viewership but the current market situation interprets that advertisers are interested in going to networks that target the strong segment of the market-Youth. Dana also found that TFC ranks lower in viewership ratings as compared to its competitor because of targeting broad audience and older females. Since ad rates are based on the number and demographics of the target market, lower viewership rate of TFC was resulting in lower income from commercials. Currently 61% of the total audience for TFC is women between 35-54 years old, similar...
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...Bachelor Programme in Business Studies Bachelor Thesis BRANDING BY DOING - a study in refraining from traditional marketing Authors: Michael Arvidsson Robin Agné Business and administration; Marketing Spring 2011 Tutor: Ellinor Torsein Abstract Title: “Branding by doing” – a study in refraining from traditional marketing Bachelor thesis in Marketing, 15 ECTS, School of Business, Economics and Law, University of Gothenburg Michael Arvidsson & Robin Agné Ellinor Torsein Acne Studios, brands, “Branding by doing”, communication channels, fashion industry, non-traditional marketing communications, The Swedish fashion wonder, traditional marketing communications, word-of-mouth marketing To determine required conditions to adopt “Branding by doing” as a marketing approach in the Swedish fashion industry. Question 1: What conditions are required of a company to refrain from traditional marketing communications? Question 2: How is “Branding by doing” applied in practice? Question 3: For what reasons do companies refrain from traditional marketing communications? Methodology: This thesis has a hermeneutical approach. A qualitative research method is used and empirical results are based on a case study. Theories of brand management and word-of-mouth marketing. The primary data is collected from interviews with Suhrab Lachin, Credit & HR Manager at Acne Studios and Daniel Björk, fashion journalist and author. There are four main conditions required in order to apply “Branding...
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...Case study Analysis: The Fashion Channel Introduction: “The Fashion Channel” which is a successful cable TV network and which had been started by two entrepreneurs in 1996, with up to date and entertainment features and information broadcast 24×7 which was related to fashion only. The channel was actually dedicated to fashion only and its main audience were women of 35-54 age group. Earlier TFC’s tagline was “Fashion for Everyone” In 2006 TFC has earned the revenue of $310.6 Mn out of which their target was to earn a profit of $230 Mn only through advertisement. Till 2006 TFC was the market leader in fashion related programs and one of its more popular series in 2005 had been “Look Great on Saturday Night for Under $100. In 2006 TFC has realized that some of the other channels like CNN and Lifetime are following the footsteps of TFC and also they are telecasting the programs related to the fashion world, which were now started to become more popular in comparison to the programs of TFC. These channels were giving competition to the TFC directly by taking the share of its ad revenue; these channels were giving a double edged competition to TFC. Norm Frazier, senior vice president of advertising sale, advised that in order to increase the TFC’s ad revenues either TFC has to decrease its ad pricing by 10% or to increase its viewership by improving the quality n contents of the programs. There were around 110 Mn households in USA with cable network and TFC’s average rating...
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...Another analysis of the case The Fashion Channel • TFC – Solely dedicated to fashion, has experienced constant revenue and profit • One of the most available “niche” networks – What does the term niche here stand for? • Most of TFC’s viewers are aged between 35-54 where as its competitor Lifetime: Fashion today targets the 18-34 yrs old. • TFC should concentrate on the latter age group which is also the more fashion conscious and the highest earning age group. • Should follow its principle of “Fashion for everyone”, make programs that appeal to all age groups. • Other channels had fashion programmes slotted at only specific times and hence had a larger audience in terms of demographics. TFC should do a study to understand what would interest these non viewers. • Advertisers paid a premium CPM to reach the age group 18 to 34, which has the highest disposable income and also TFC could benefit in terms of ad revenues. • Like ‘Lifetime’ TFC should also look at targeting the younger female demographics. • TFC was only focused on the women viewers unlike CNN. • Research (exhibit 2) shows that most people do not depend on TV to decided their choice of clothes. TFC should also make programs on such casual/occasional clothing along with designer wear. • (exhibit 3) As per an attitudinal cluster analysis 35% comprised Planners & Shoppers who kept themselves up to date with the latest fashion,30% were situationalists who shopped for specific needs/occasionally and 15%...
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...2075 JUNE 1, 2007 WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Background 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...
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...2075 JUNE 1, 2007 WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Background 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...
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...WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Do No Background 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...
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...explosion of the media is the greatest revolution in fashion. Fashion is an indicator of class status, and monopolized by the aristocracy. A lower status group sought to acquire status by adopting the standards of the higher status. Media can be considered as a first medium to disseminate the fashion in public. In this assignment, we will study about the role of the modern media in shaping current fashion. The various elements of media involved in spreading of fashion information in the audience. What a person chose to carry reflects his personality or interest. A person’s choice more or less gets influenced by trend. Fashion is a popular style or practice, especially in clothing, footwear, accessories, home decoration etc. History: Fashion has been in the society since the human started with the clothes themselves. Back in the late 16th century and the early 17th century fashion denoted to the class. In ancient times Fashion Plates were engraved and colored with watercolors. In 1880 color printing and a method for making multi colors prints become stylish. In the same period of time magazines were published that played an important role in popularity of news about fashion. With the development of half tone printing process, which enables photographs to be printed on the same page as text without affecting the image clarity, fashion photograph has generated the most widely recognizable and enduring imagery of the time. Fashion television emerged in 1970 and 1980 when cable and...
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...Situational and SWOT Analysis The Fashion Channel is a network dedicated to fashion twenty-four hours a day, seven days a week. Since it was founded in 1996, it has successfully achieved profit growth above the industry average rate and steady revenue. TFC reaches more than 80 million households in the United States, and targets a wide variety of demographics, specifically, viewers between the ages of 35 and 54. Impressed by The Fashion Channels’ success, other markets such as CNN and Lifetime started adding fashion related programming to their networks, becoming a threat to TFC. Currently, TFC customers’ satisfaction is low and revenues are projected to decline. The Fashion Channel must implement a new strategy for segmentation and advertising to attract more viewers to increase ratings and revenue. Strengths: • TFC is the only network dedicated to fashion 24/7. • The channel appeals to women between the ages of 35 and 54. • TFC is included in the basic cable package that is in approximately 80 million households. • It is a unique market. • TFC has achieved full penetration of available households. Weaknesses: • By only showing fashion related programming, it is not a diversified market. • TFC grew too quickly and did not develop a detailed segmentation, branding, or position strategy. • Some of the members of the leadership team are resistant to change. • TFC does not target any specific viewer segments. • Customer satisfaction is declining Opportunities: ...
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...Fashion Industry Analysis From the Perspective of Business Model Dynamics Author: Lisa Gockeln University of Twente P.O. Box 217, 7500AE Enschede The Netherlands ABSTRACT The fashion industry is a dynamic and volatile place, continuously exposed to macro-environmental factors that trigger fashion business models to change. The fast fashion model is currently at the forefront of the apparel market casting questions on whether its underlying philosophy is about to change as well. Therefore, the purpose of this study is to identify external drivers that might lead to such dynamic changes in the fast fashion model. Moreover, it will be investigated whether these may allude to a possible convergence to the newly emerged slow fashion model which is currently trying to penetrate the fashion market. The international retailer Zara has served as fast fashion representative for this analysis and has been examined for business model adjustments, which might have been triggered by macroenvironmental factors. It was found that especially social, environmental and technological factors have influenced developments in the fast fashion model and that it has indeed adopted slow fashion principles in some of its building blocks to respond to such emerging trends. The future of the fashion industry appears to be tailored by such externalities, continuously reshaping the fast fashion model to eventually arrive at a version that brings a long-lasting competitive edge. However...
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...Fast Retailing (Uniqlo) • Zara’s global store and online expansion • Questions Zara Case Study 2 Corporate history (1 of 2) • 1963: establishment of clothing production company in A Coruῆa, Spain • 1975: first Zara store opens in A Coruῆa • 1985: Inditex Group is established • 1989: first international Zara store opens in Portugal Zara Case Study 3 Corporate history (2 of 2) • 1990s: acquisition of brands Massimo Dutti and Stradivarius • 2001: Inditex IPO • 2006: first Zara store opens in China • 2010: first Zara store opens in India • 2010: Zara launches first online store Zara Case Study 4 Inditex’s performance indicators, 2012 • Net income totalled 2.3 billion euros, an increase of 22% from 2011 • 6,009 stores, 482 more than a year earlier • Online store network covers 23 markets, with new launches in China and Canada • Creation of 10,802 new jobs in 2012, bringing workforce to 120,314 employees Zara Case Study 5 Inditex Group Brand Portfolio (1 of 8) Zara • Fashionable, yet affordable clothes for a wide range of people, cultures and generations, who, despite their differences, all share a special fondness for fashion • 1751 stores in 86 countries • www.zara.com Zara Case Study 6 Inditex Group Brand Portfolio (2 of 8) Pull & Bear • Casual, laid-back fashion for the global youth • 816 stores in 59 countries • www.pullbear.com Zara Case Study 7 Inditex Group Brand Portfolio (3 of 8) Massimo Dutti • Contemporary style,...
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