...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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...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 if you were Dana Wheeler? 1. According to the 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...
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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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...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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...Case Description The Fashion Channel (TFC) was a widely available cable niche network, reaching 80 million U.S. households. It offers only fashion-oriented programming 24 hours per day, 7 days per week. TFC didn’t have any detailed segmentation and positioning strategy. It attempted to appeal to as broad a group as possible in order to have the highest ratings. It was very successful until other regular network, such as CNN and Lifetime began to emulate its concept and take market share of it. This affected negatively TFC’s advertising revenue and affiliate fees, so the network started to rethink its approach to marketing. In this case, the problem is how to develop the segmentation and positioning and change the current content of programming, so as to get back those market shares from competitors, create more revenues and maintain its leader status. How would you interpret the consumer and market data if you where Dana Wheeler? TFC channel, initially, was a market leader, since it had no significant competition in terms of the fashion- specific content it offered. As a matter of fact, the channel was one of the most widely available niche networks, reaching a penetration in the market (market size) of almost 80 million US households. Its profit growth was above the industry average and its distribution system was through cable and satellite television, where the TFC was positioned as a basic channel, so most consumers received it automatically when they signed up for basic...
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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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...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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...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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...Jagdeesh Narayanan Fashion Channel Case Study Submitted On: - November 27th 2013 Memorandum To: Jared Thomas, CEO, The Fashion Channel From: Dana Wheeler, Vice-President Marketing Subject – Proposed recommendations for marketing and advertising plans Date: - November 27th 2013 This memo contains the analysis, recommendations and justifications to help The Fashion Channel to select the appropriate segment for targeting. Recommendation:- The Fashion channel should formulate their new marketing plan to target fashionistas and planners/shoppers. The possible scenarios and segments for marketing concentration Broad Based Marketing | Fashionistas Concentration | Fashionistas and Planners/Shoppers | Pro’s * Net Income 94.9 million Vs. 54.6 million before * No incremental programming expense * Ability to target all 18-34 year old women * Awareness and marketing reach across a broader audience | Pro’s * Net Income 151.4 million Vs. 54.6 million before * TV ratings increase from 1.0% to 1.2% due to premium targeting * Average CPM increases to $3.50 * Facilitates capture of specific market share from Lifetime | Pro’s * Net Income 168.8 million Vs. 54.6 million before * TV Ratings and CPM increase to 1.2% and $2.5 respectively * 50% of TV audience covered * Increase in advertising revenue due to more no of 18-34 year old women audience * Not too specific, covers larger base | Con’s * CPM reduces by $0.20 due to lack of target audience * Does...
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...The Fashion Channel Case Write Up Summary Beginning in the year 2006, the fashion channel has suffered from fierce competition from other channels, which are non-dedicated fashion networks. Both the viewership and the revenue increase were dropped down sharply. Actions need to be taken immediately to drive the company back on track. There were at least two impediments lying ahead, like the TFC did not know well in viewer’s interest, awareness, perceived value, it may cause the loss of the viewers, and there was no program that would distinguish the TFC from other competitors – show time & show content. By increasing the TFC’s advertising and rating, we will maintain the current avid viewers and focusing on Fashionistas and Planners & Shoppers, ages ranged from 18-34, female. Getting close to the Focus group by knowing viewers well, to increase their satisfaction, together with developing a Trump Show, Tailor-made programs, and inviting Opinion leaders to increase the rating and attracting more advertisers to make revenue. Goal The Fashion channel was founded in the year 1996, who was a successful cable TV network and the only network dedicated solely to fashion by up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. It had experienced constant revenue and profit growth above the industry average almost since the beginning. The channel was also one of the most widely available niche networks, which gave the channel...
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...Developments of Islamic Banking in Pakistan & Malaysia: An Analytical Review Abstract This study compares Islamic banking operations currently practiced in Pakistan and Malaysia. Both countries started Islamic banking in early 1980’s but employed entirely different approaches. Pakistan attempted to convert the entire financial system in accordance with Islamic law at once at national level. Malaysia adopted the gradual application approach. It allowed Islamic and conventional banking systems to operate and to compete for deposits on parallel basis. This study examines the Pakistani and Malaysian approaches towards the implementation of Islamic banking in their respective countries. It recognizes lack of commitment and long term planning problems in case of Pakistan. Introduction Islamic banking system has emerged as a competitive and a viable substitute for the conventional banking system during the last three decades. It is especially true for Muslim world where presently Islamic banking strides at two separate fronts. At one side, efforts are also underway to covert the entire financial systems in accordance to Islamic laws (Shariah). At the other side, separate Islamic banks are allowed to operate in parallel to conventional interest based banks. Pakistan and Malaysia are the two good examples of above mentioned approaches. Both countries adopted different tracks for the same ultimate destination of developing full fledge viable Islamic financial...
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... Suggested readings: Elliott, Barry; Elliott, Jamie: "Financial Accounting and Reporting", Prentice Hall 2012, 15th edition. Horngren, Bhimani, Datar and Foster: "Management and Cost Accounting." Prentice Hall, 2007, 4th edition. Info What to expect from this course: An introduction to the discipline to prepare you for the proceedings of your Master To learn the “language” of the Business An overview of the topics in FA, MA and FSA “Course Limitations” Key questions What is the role of accounting? Accounting provides information. It measures business transactions and operations, “translating” them into numbers, in order to provide information. Why do we need to study accounting? Who are the user of this information? Why do we study accounting? To understand the world of business (and its language) To make better investment choices (resource allocation) To become advanced users To become advanced preparers … The “users” of accounting information Primarily “external” oriented Financial Accounting Managerial Accounting Primarily “internal” oriented Tax Accounting Primarily “external” oriented Financial Accounting and Reporting Generally Accepted Accounting Principles (GAAP), International Accounting Standards (IAS), International Financial Reporting Standards (IFRS) Financial Statement / Annual Report Balance Sheet / Statement of Financial Position Income Statement / Statement of...
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