...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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...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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...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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...Question #2 What would you recommend to The Fashion Channel? The Fashion Channel has enjoyed great success with programming targeting everyone from the Fashionista who lives for high fashion, to the busy mom in search of the best deals with which to dress her family, to the bachelor who just needs something to wear. However, competition from other networks including CNN and Lifetime dictates that The Fashion Channel consider segmenting their viewers and determine which markets would be both the most profitable and allow them to gain a competitive advantage. According to our text, market segmentation not only assists companies in effectively serving their customers in a way that is beneficial to both parties, but also assists in indentifying market segments that should not be pursued. As indicated in the data, the broad market segment that The Fashion Channel has employed since the network started is no longer feasible because advertisers are being lured to other channels whose viewership provides the most benefit for their advertising dollars. If TFC does not make a move, their profit margin could potentially drop to 19% in 2007. For the Fashion Channel, male viewers, the “Situationalists,” and the “Basics” do not provide enough benefits to the network (or advertisers for that matter) to include them in their market segmentation strategy moving forward. Therefore, our recommendation is for The Fashion Channel to implement scenario three, which targets the Fashionista’s...
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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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...entreprenuers in1996 was facing a problems in market segmentation and positioning. As the most available niche network, The Fashion Channel Television need also a competitive position being strengthen. Its been realized by this television company as they grown quickly without stating any detailed segmentation, branding or positioning strategy. Therefore, its competitor took a succes note and began to insert the fashion theme in their television program. The Fashion Channel is willing to spend an estimated USD 60,000,000.00 on advertising, promotion and publication in 2007. And it has been solely on fashion which broadcast 24 hour per day, and 7 days a week. This Channel also reeaches close to 80,000,000 viewers in US households with their main demographic woman between 35 until 54 years old. Lifetime and CNN have been targeting fashion specifics programs with much success in recent years increasing the competition. These fashion program would push The Fashion Channel to cut the unit price of advertising. It might be one way out to get a good competitive positioning strategy among the television companies. As a senior Vice President of Marketing for The Fashion Channel television, Dana Wheeler entered the company as a new executive crew in 2006. The founder and CEO, Jared Thomas, expected her strong background in marketing and her best experience in advertising industry can overcome the problems. Helping up the The Fashion Channel build on the momentum it had created to date and...
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...Case: * Fashion Channel Read the Fashion Channel case and answer the questions below. Please note the following additional guidance: The discussion of alternatives indicates that for the first scenario, an investment in programming would be required but the case does not indicate how much that might cost.  You can either assume that this spending was flat or you can assume an increase. In either case, specify your assumption and base your findings on that assumption. Questions: 1. What is your interpretation of the consumer and market data presented in the case? What key conclusions do you draw from these data? Explain. TFC meets the needs of women 35-54, who have a passion for fashion. As a result of TLC success, existing networks are launching fashion-specific programming because it is an opportunity to strength its existing ratings/viewership from it core women audience (Lifetime) or gain viewership by expanding its offering to include lifestyle content (CNN). The total population does not have the same attitudes, views and opinions regarding fashion. TFC cannot meet the needs of all the different \’fashion’ segments/clusters. In a fragmented market, thfor programming content with a specific viewer in mind. There is an opportunity for TFC to be a market leader to a particular segment/clusters. Bottom-line, it is not about generalization but specializing \’ focus at being meeting the needs of one segment to gain loyalty. 2. What...
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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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...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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...Market Segmentation & Strategy: Broad-based marketing: The segment includes Fashionatas, Planners & Shoppers, and Situationalists, which primarily include women, 18 – 34 years old, who are moderately to highly engaged in fashion. Compared to 2007, the broad-based marketing segmentation generates $40 million more net income from $ 54.6 million to a staggering $94.9 million. Unlike the other 2 segments it doesn't require incremental investment in programming expense which will cost the other two segments at least 15 million dollars to implement. Since the most profitable segment (18-34 aged women) will be present in all the above mentioned segments, TFC's marketing initiatives would cater to 100% of the population of the said category. But the primary problem in Broad-based segmentation is the CPM is still lower than the current CPM. Ad-sales was forecasting a 10% drop in CPM to $1.80$ if the current audience mix stays the same. Also, because The fashion Channel would not target a specific audience under this scenario, TFC would run the risk that their competitors would penetrate the premium segments and further erode TFC's pricing ability. "Fashionista" Segmentation: The segment shows the highest interest in fashion and has got a majority of the 18-34 female demography, which will undoubtedly deliver a CPM boost. Compared to the 2007 base numbers the "fashionista" segment produces $100 mn more in terms of net income. It will lead to improved tv ratings of 0.8....
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...The Fashion Channel After reviewing firm and market data pertinent to the Fashion Channel, Dana Wheeler compiled four distinct market segments that the channel appealed to. These were fashionistas 15%, planners + shoppers 35%, situationalists 30%, and basics 20%. These are also listed in decreasing order of involvement in fashion. Currently the marketing strategy of TFC involved almost no segmentation and used the original plan that brought TFC much success by appealing to the largest and most broad viewer base possible. Due to increasing competition from non-dedicated fashion networks i.e. (CNN, Lifetime) it was decided a new marketing strategy must be implemented in order to remain the leader in fashion programming both by ratings and advertising revenue. Wheeler designed three scenarios using three different market segmentations approaches. First Wheeler discounted trying to gain any further penetration into the male market. Males were mostly in the basics category and had little interest in fashion at all. The first strategy would be a multi-segment approach that targeted fashionistas, planners + shoppers, and situationalists. This was projected to increase ratings to 1.2% and overall viewers to 1,320k. However this approach would also decrease CPM from ads to $1.80. This approach would also no require any additional programming costs because of its multi-segment strategy. This strategy is projected to decrease the profit margin from 30% to 29%. The second...
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...Case Analysis Of “The Fashion Channel” Introduction and Problem Definition 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 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. Ad buyers began to use surveys and optimizer programs to make decisions, which made rating and target group become more important to network companies. In general, consumers were fickle. Their disappointment and switch would lead to the losing of operator...
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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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...Gap’s current channels strategy’ analysis: ....................................................................... 4 3.1. Gap’s market segmentation: ........................................................................................ 5 3.2. Gap’s Current Channel Chains:................................................................................... 6 3.3. Gap’s Directional Policy Matrix: ................................................................................ 7 4.0. Gap’s future channel chain: ............................................................................................ 9 5.0. Recommendations: .......................................................................................................... 9 6.0. Limitations: ................................................................................................................... 11 7.0. References: .................................................................................................................... 12 8.0. Appendix:...................................................................................................................... 14 Page 1 Table of Figures: Figure 1: Childrenswear Sales and Growth vs Apparel and Footwear 2009-2014 .................. 3 Figure 2: Gap’s Market Segmentation ...................................................................................... 5 Figure 3: Gap's Current Channel Chains Diagram...
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