Fashion Channel Case Study

In: Business and Management

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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 programming for CNN and Lifetime over TFC.
Company Analysis:
• Strengths o First and only dedicated, 24/7 fashion channel o Included in basic cable channel packages
• Weaknesses o Lack of customer loyalty o Not diversified o No detailed marketing strategy for segmentation, branding, or position o Does not target specific market segment o Declining customer satisfaction
•…...

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