The Fashion Channel

Dana Wheeler is the newly appointed SVP of marketing for The Fashion Channel (TFC) Network. She has been tasked with implementing a marketing strategy for the network. TFC is a reputable network, available in 80 million households and has seen many years of positive growth. As well, TFC has shows available 24/7 to meet the needs of various consumers including themes such as “Fashion for Everyone” and “Look Great on Saturday Night for Under $100”1. As a basic cable channel, when a customer signs up for cable TV, they automatically receive TFC as a channel; thus TFC receives revenue through cable subscriber fees. The negotiated subscriber fee averaged $1.00 per subscriber per year. With TFC being a basic cable channel, they can reach a broader target audience. For ten years, TFC has been operating with practically no competition as they were in a niche market. Now, however, other large networks such as CNN, a male skewing network, and Lifetime Network, a primarily female network, have entered the space with fashion specific shows that are threatening TFC’s position. These competing networks have been identified as “trusted brands” and have credibility among fashion oriented consumer viewers. TFC realizes that in order to secure their position as the market leader they need to "build its marketing programs around the right consumer segmentation,”1 and establish TFC as the top network to deliver fashion content.

Dana knew that “the two key levers to drive revenue growth would be (1) increased viewership (ratings), and (2) increased advertising pricing."[1] In analyzing TFC’s core capabilities and obstacles they face internally and externally (Exhibit 1), it is clear that TFC needs to find new ways to compete with rising networks by implementing a marketing strategy that can secure their position as the top network to deliver fashion content. At the heart of the marketing plans success is the correct identification of the appropriate viewer segments to...