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Date Submitted: 11/12/2012 07:41 AM
HBS Case Study
“The Fashion Channel”
October 9, 2012
1. - How would you interpret the consumer and market data if you were Dana Wheeler?
From its launch in 1996 until recently, The Fashion Channel (TFC) had a great success because of their broad audience. TFC had no significant competition in terms of the fashion-specific content it offered until CNN and lifetime made noticed TFC´s success so they lunch specific fashion programs for specific fashion taste so now consumers have choice instead of a broad fashion repertory.
The population does not have the same tastes, views and opinions regarding fashion and TFC cannot satisfy all those fashion segments. So now TFC has the opportunity instead of generalizing their programing they can focus at meeting the needs of one segment to gain loyalty.
To do so, TFC has to know their market and who their viewers are. TFC meets the needs of women between 35-54 years old with a 39%-61% split in favour of women; with 33% of viewers aged 18-34 and 45% aged 35-54. A survey of consumers by GFE Associates identifies four groups that make up potential viewers: Fashionistas (the fashion devoted, who comprise 15% of those surveyed); Planners and Shoppers (enjoyers of fashion, 35%); Situationalists (occasionally interested in fashion for specific purposes, 30%) and Basics (generally uninterested in fashion, 20%). The research indicates that male consumers tend to be part of the Basics group, while 61% of Fashionistas are women.
The market that TFC should aim to is women aged 35-54 since their are the biggest part of the market.
2. – The three targeting scenarios: Financial Impact Analysis
The following „Ad Revenue Calculater“ shows the three different scenarios that seem possible for Dana. It calculates the Ad Revenue per year each scenario. It is important to use not only the pros and cons of each scenario but also look at the financial impact of each possibility. Even though the calculation is the first...