...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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...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, affiliates and distribution support. Besides...
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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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...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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...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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...SITUATION ANALYSIS Market Analysis: Fashion-based programming was a growing market as television viewers thirsted for constant updates on constantly changing fashion trends. The Fashion Channel (TFC), created in 1996, was the first channel with the sole purpose of bringing 24/7 fashion information and updates to viewers. There are four main segments of consumers in the fashion-programming market: fashionistas, planners and shoppers, situationalists, and basics. Fashionistas have been very loyal to TFC as they need constant contact and update on fashion. The other segments are much larger than the fashionista segment, therefore there is more opportunity and potential revenue in attracting those viewers. Competitor Analysis: TFC’s main competitors were Lifetime and CNN. Recently, Lifetime and CNN began introducing fashion-based programming that was in direct competition with TFC. Lifetime focused on fashion programs targeting younger women, while CNN was having success with show targeting men. While TFC only had a 1.0 rating, Lifetime and CNN brought in ratings of 4.4 and 3.3, respectively. A study on consumer interest also showed that viewers had greater interests in TFC’s competitor channels. In this study, TFC scored a 3.8, while Lifetime and CNN scored a 4.5 and 4.3, respectively. CNN and Lifetime also beat out TFC in other statistical categories to include awareness and perceived value. These viewer opinions directly resulted in higher ad revenues on fashion-based...
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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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...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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...EXECUTIVE SUMMARY The main purpose of this report it to provide an analysis and evaluation of the role of the Internet on the fashion industry as well as comparing and contrasting the e-marketing mix strategies of two competing e-businesses Nike Inc and Sass & Bide. Firstly, the report will critically analysis the roles of the Internet on the Fashion Industry. Secondly, the report will highlight ways in which the Internet has significantly changed the way the Fashion industry operates. Thirdly, the report will analysis and compare the product mix strategies of both Nike and Sass & Bide. Fourthly, the report will analysis and compare the price mix strategies of both Nike and Sass & Bide. Fifthly, the report will analysis and compare the promotion mix strategies of both Nike and Sass & Bide. Sixthly, the report will analysis and compare the place mix strategies of both Nike and Sass & Bide. Seventhly, the report will summarise the key findings from the analysis of Nike and Sass & Bide. Lastly, the report will outline whether superior marketing mix strategies are found in either Nike or Sass & Bide. * The report is successful in highlighting the varied roles the Internet has within the Fashion industry and how it has significantly changed the way the industry operates. * The report demonstrates differences between the e-marketing mix strategies of Nike and Sass & Bide that allow each business to have success, profitability...
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...AN EXAMPLE OF A MARKETING PLAN | SPREE WATCH MARKETING PLAN SUMMARY Based on an evaluation of the watch market and our strengths, General will introduce the Spree watch. SITUATION ANALYSIS Half the buyers of branded fashion watches are between 18 and 34 years of age. This group, which purchases more watches per capita than those older, is our primary market segment. Watch purchases are more likely by consumers in the northeast and Midwest. Many purchases are expected to be impulse, requiring strong point-of-purchase support. Seventy percent of the market is concentrated with strong competition from Swatch, Fossil, Guess?, and Anne Kline. We have extensive experience in the manufacture of innovative, high quality, precision plastics and timing devices permitting us to offer the consumer value in a branded fashion watch. Additionally, we have experience distributing products into 75 percent of the outlets for branded fashion watches. OBJECTIVES The combination of a unique, cost-effective design allows us to establish a three percent market share in the first year. The Spree watch project will break-even in 1998. MARKETING STRATEGIES General will introduce a new product, the innovative Spree watch, using penetration pricing, extensive advertising, and expanded distribution in order to increase our revenues and growth rate. ACTION PLAN The Spree watch has strong product benefits compared to current market offerings. To achieve our objectives we will offer our unique...
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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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...“Creating a New business firm ”. Dear Sir, We would like your precious opinion regarding the Report for ‘Introduction to marketing’ course. We have the pleasure to submit our plan on “Friends Fashion house”. Preparing this plan was an arduous task for us but we enjoy it. At the end, we want to say that, in completing this plan will have been a pleasure for us and hope you will also enjoy it. We are very grateful to you for giving us the opportunity to work on this topic and for guiding us all through in the preparation of this assignment, without your support this assignment would not have been possible. Thanking with Yours sincerely Abir Rahman Fahad Hossain Julficur Ali Arafat Bin Mahbub Sharmin Kazi Khadiza Nahar Acknowledgement It gives us immense pleasure to thank a large number of individuals for their cordial cooperation and encouragement who have contributed directly or indirectly in preparing this report. Firstly, we express our gratefulness to Almighty Allah who has made be able to pursue our study. Our heartfelt thanks are due to our faculty Sarker Rafij Ahmed Ratan for giving us support, courage, opportunity & a new out look to work on this innovative criteria. Without his help it was quite Impossible to do the report and analysis. He always tried to make the things easy and to feel what the reality is. He motivated us to be focused and work objectively. That helps us to do the report...
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...Boohoo Dot com Fashion online | Business Strategy Decision Making | Individual Coursework of Decision making | | Module Code: BU3413Module Tutor: Deji SotundeStudent, UCLA id: G20625452LSBF id: A4072776 | | | Boohoo Dot Com Fashion online store International growth occurs in 2006 in e-fashion industry according to Mintel reports that in UK Fashion e-commerce 147% increase on that time (CONSUMERS' SHOPPING EXPERIENCES IN THE UK AND SPAIN, 2013, pp. 10-13) The Boohoo dot com representing the young generation fashion and they jumped profit £24.5m in 2011 (Gallagher, 2012) Boohoo has decided to listed to the stock market as young fashion icon and expend the business and attract to investors, (Gallagher, 2013) International growth occurs in 2006 in e-fashion industry according to Mintel reports that in UK Fashion e-commerce 147% increase on that time (CONSUMERS' SHOPPING EXPERIENCES IN THE UK AND SPAIN, 2013, pp. 10-13) The Boohoo dot com representing the young generation fashion and they jumped profit £24.5m in 2011 (Gallagher, 2012) Boohoo has decided to listed to the stock market as young fashion icon and expend the business and attract to investors, (Gallagher, 2013) The online fashion outlet ‘Boohoo’ strategy development and critical discussion are based on these four objectives that should evaluate and formulate on it. 1. Boohoo Mission, Vision and Value 2. The strategic goals of defining the direction 3. Strategic Analysis of the key...
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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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