The Fasion Channel

Question 1: How would you interpret the consumer and market data if you were Dana?

Decision Maker: Dana Wheeler; Senior VP of marketing for TFC

Other Key players: Jared Thomas; CEO and Norm Frazier; VP of advertising sales

Started by two entrepreneurs in 1996, which featured up to date fashion related entertainment programs and information broadcast 24×7

The Fashion Channel (TFC) was the first TV channel to offer fashion TV shows, reaching 80 million viewers in the USA, which gave TFC an advantage as the original leader in the market.

Currently using a “fashion for everyone” approach to market strategy and targeting, which without any competition is successful

In 2006 TFC has earned the revenue of $310.6 (210.6 from advertisement and $80 from cable affiliation fees)

However, now the company is facing tough competition: “Fashion Today” on Lifetime and “Fashion Tonight” on CNN, since these competitors have come in to play, TFC has not had any plan for strategic segmentation, differentiation or market positioning.

Problem Statement: Which segments or, “attitudinal clusters” should they target in their new marketing strategy and how should they position The Fashion Channel to increase their market share (ratings in comparison to their main competitors, CNN and Lifetime) and their revenue

Our two main revenue streams are:

Cable affiliate fees ($80 million) | Advertising sales ($230.6 million) |

Most U.S. households subscribed to cable television through local affiliates of a large cable multi-system operator, multi-system operators (MSO) would sign multi-year contracts with networks that specified the fee the network would receive for each household that received the channel. The local affiliates of that MSO marketed and distributed the service to consumers in all the local markets for which they held a franchise. There were mainly two kinds of channel were existing premium channel or basic channel and TFC was...