No Marshmallows, Just Term Papers
As a niche channel, TFC has potential to be more professional than other regular networks in fashion field, attract specific groups and enhance those groups’ loyalty.
With full-time programming, it can develop different programs in different time to satisfy several segments. (Product Specialization)
The large amount of subscribers will become a solid foundation of its revenue. It is easy to do the segmentation as well.
Only attracting a wide range of people without concentration will render TFC less competitive and lose the interest from advertisers.
The lack of audiences’ information will make segmentation process more difficult.
The full penetration of available cable households limits the opportunity to raise fees.
Dana lacks the knowledge and experience in network field.
TFC can pursue competitors’ customers by initiatives for customers’ fickleness.
It can gain the preference from ad buyers easily by improving the ratings.
It is a right time to gain more profits when this industry is booming.
TFC should compete with the regular programming for buying rating and demographics and with the fashion-specific one for contents.
TFC has to develop a unique strategy and differentiate its products to prevent copies.
TFC will lose attractiveness to cable affiliates if just keeps the worst rating. (See Appendix 1)
If the new target group is smaller than the old one, the rating will decrease, which will lead to the losing of ad buyers who use surveys and programs as decision aid.
If initiatives can not satisfy most consumers, TFC will lose the cable operator, affiliate and distribution support easily.