Fashion Channel Case 
PROBLEM
STATEMENT
Dana Wheeler, The Fashion Channel’s (TCF) senior vice president of marketing, must focus on TCF’s segmentation, branding, and positioning strategy.
BACKGROUND
TFC is a cable TV network specially devoted to the latest fashion broadcasted 24 hours per day, 7 days per week.
TFC was successful and experienced constant revenue and profit growth above the industry average. TCF was one of the most common niche network, shared with 80 million U.S. households.
A LT E R N AT I V E C O U R S E O F A C T I O N
N I C H E S T R AT E GY
Thoughts about the trends in the advertising marketplace Attract a critical mass of viewers interested in fashion content
Offer advertisers an salient mixture of viewers
A LT E R N AT I V E C O U R S E O F A C T I O N
C O M P E T E S T R AT E GY
TCF facing competitive challenges in its attractiveness Lifetime attracting younger female demographics
CNN delivering some great numbers on men
A LT E R N AT I V E C O U R S E O F A C T I O N
B E AT S T R AT E GY
Identify customer groups that are worth pursuing
Use market research to study consumer behavior and attitudes (how viewers use the network, what they value, what needs they have)
Q UA L I TAT I V E A LT E R N AT I V E
Most avid viewers were women between 35 and 54 years old
Number of viewers (ratings)
Audience’s characteristics (age, demographics, and lifestyle) Indicate need for marketing initiatives to improve consumer interest, awareness, and perceived value.
Q UA N T ITAT IV E A N A LYS IS
TFC’s Advertising Revenue Model generating
$230.6 million
TFC’s Cable Affiliate Fees brining in $80 million
Drive revenue growth by increasing ratings and increasing advertising prices.
SENSITIVITY
ANALYSIS
Four unique groups of viewers:
• Fashionistas – smallest with a high degree of interest in fashion.
• Planners & Shoppers
• Situationalists
• Basics – mostly male and least likely engaged with
TFC content.
R E C O M M E N D E D S T R AT E GY
Focus
STATEMENT
Dana Wheeler, The Fashion Channel’s (TCF) senior vice president of marketing, must focus on TCF’s segmentation, branding, and positioning strategy.
BACKGROUND
TFC is a cable TV network specially devoted to the latest fashion broadcasted 24 hours per day, 7 days per week.
TFC was successful and experienced constant revenue and profit growth above the industry average. TCF was one of the most common niche network, shared with 80 million U.S. households.
A LT E R N AT I V E C O U R S E O F A C T I O N
N I C H E S T R AT E GY
Thoughts about the trends in the advertising marketplace Attract a critical mass of viewers interested in fashion content
Offer advertisers an salient mixture of viewers
A LT E R N AT I V E C O U R S E O F A C T I O N
C O M P E T E S T R AT E GY
TCF facing competitive challenges in its attractiveness Lifetime attracting younger female demographics
CNN delivering some great numbers on men
A LT E R N AT I V E C O U R S E O F A C T I O N
B E AT S T R AT E GY
Identify customer groups that are worth pursuing
Use market research to study consumer behavior and attitudes (how viewers use the network, what they value, what needs they have)
Q UA L I TAT I V E A LT E R N AT I V E
Most avid viewers were women between 35 and 54 years old
Number of viewers (ratings)
Audience’s characteristics (age, demographics, and lifestyle) Indicate need for marketing initiatives to improve consumer interest, awareness, and perceived value.
Q UA N T ITAT IV E A N A LYS IS
TFC’s Advertising Revenue Model generating
$230.6 million
TFC’s Cable Affiliate Fees brining in $80 million
Drive revenue growth by increasing ratings and increasing advertising prices.
SENSITIVITY
ANALYSIS
Four unique groups of viewers:
• Fashionistas – smallest with a high degree of interest in fashion.
• Planners & Shoppers
• Situationalists
• Basics – mostly male and least likely engaged with
TFC content.
R E C O M M E N D E D S T R AT E GY
Focus