The Fashion Channel
Case Study: The Fashion Channel
Case Study: The Fashion Channel
Table of Contents
Executive Summary 1 Problem Statement 3 Proposed Scenarios & Analysis 4 Scenario #1 4 Scenario #2 5 Scenario #3 6 Proposed Solution 7 Implementation Plan 9 Conclusion 10 Exhibits 11 Exhibit 1: GFE Associates: National Consumer Survey (excerpts) 11 Exhibit 2: GFE Associates: Analysis of Attitudinal Clusters in U.S. Television Households for The Fashion Channel 12 Exhibit 3: Ad Revenue Calculator 13 Exhibit 4: TFC Estimated Financials 14 Exhibit 5: Implementation Schedule 15
Executive Summary
The Fashion Channel (TFC) is a cable television network that broadcasts 24 hours a day, 7 days a week and is solely dedicated to fashion information. It was founded in 1996 and has experienced constant revenue and profit growth since its inception. In 2006 the network forecasts that revenues would be at $310.6 million which was a marked increase from the previous year. Although the company has experienced constant growth and was the only exclusive fashion television show serving all markets for several years, other cable networks have entered the market and began offering fashion-related programming within their television line-ups. TFC has a very diverse programming schedule that appeals to a wide set of demographics. In the past it was the network’s strategy to not target a specific group of viewers, but to offer programming that would appeal to all viewers.
As competition has increased and since viewers and advertisers have a lower perceived value of the product they are providing, TFC is receiving pressure to lower their price per unit of advertising by 10%. Dana Wheeler is a marketing executive who was hired to help the network identify ways to recapture and maintain market share that is being lost to competitors. The network’s management has been reluctant to change marketing methods and programming because historically
Case Study: The Fashion Channel
Table of Contents
Executive Summary 1 Problem Statement 3 Proposed Scenarios & Analysis 4 Scenario #1 4 Scenario #2 5 Scenario #3 6 Proposed Solution 7 Implementation Plan 9 Conclusion 10 Exhibits 11 Exhibit 1: GFE Associates: National Consumer Survey (excerpts) 11 Exhibit 2: GFE Associates: Analysis of Attitudinal Clusters in U.S. Television Households for The Fashion Channel 12 Exhibit 3: Ad Revenue Calculator 13 Exhibit 4: TFC Estimated Financials 14 Exhibit 5: Implementation Schedule 15
Executive Summary
The Fashion Channel (TFC) is a cable television network that broadcasts 24 hours a day, 7 days a week and is solely dedicated to fashion information. It was founded in 1996 and has experienced constant revenue and profit growth since its inception. In 2006 the network forecasts that revenues would be at $310.6 million which was a marked increase from the previous year. Although the company has experienced constant growth and was the only exclusive fashion television show serving all markets for several years, other cable networks have entered the market and began offering fashion-related programming within their television line-ups. TFC has a very diverse programming schedule that appeals to a wide set of demographics. In the past it was the network’s strategy to not target a specific group of viewers, but to offer programming that would appeal to all viewers.
As competition has increased and since viewers and advertisers have a lower perceived value of the product they are providing, TFC is receiving pressure to lower their price per unit of advertising by 10%. Dana Wheeler is a marketing executive who was hired to help the network identify ways to recapture and maintain market share that is being lost to competitors. The network’s management has been reluctant to change marketing methods and programming because historically