Fashion Channel

The Fashion Channel

Case Study

Submitted by:

Neerav Bihani(A-56)

1. How would you interpret the consumer and market data if you were Dana Wheeler?

TFC was having virtually monopoly for fashion related programs, competitors such as CNN and Lifetime made note of TFC’s success. So, they began to offer fashion-specific programming. Consumers now have a choice, and the ratings show that non-loyal consumers are starting to choose alternatives to TFC. Reasons for this can be found in the recent Alpha research study on customer satisfaction, which shows that when it comes to consumer interest, awareness and perceived value, both CNN and Lifetime outscore TFC. TFC’s 2 main revenue streams—cable affiliate fees and advertising—are threatened by the attraction of CNN’s and Lifetime’s fashion programming to  an  audience formally exclusive to TFC, and the inability of TFC currently to adequately differentiate itself from its competitors.

  A survey of consumers by GFE Associates identifies four groups that make up potential viewers: Fashionistas (the fashion devoted, who comprise 18% 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%).   Attitudinal research by GFE indicates that male consumers tend to fall into the Basics group, while 61% of Fashionistas are women. Also, 50% of Fashionistas are aged 18 to 34—a demographic highly desirable to advertisers.

2.  What is the expected outcome of each of the targeting scenarios? (Complete both the AD Revenue and Financial calculators to fully understand the financial impact of the scenarios.)

3.  Develop a factual analysis of the segmentation options, and evaluate the pros and cons of each.

There are four types of attitudinal clusters, namely, Fashionistas, Planners & Shoppers, Situationalists, and Basics.

Broad-Based Marketing:

Pros:

Compared to the 2007 base...