Fashion Channel Brief

The Fashion Channel (TFC) was a successful cable TV network which is only dedicated to fashion. Since founded, it always kept a constant revenue and profit growth. But at the beginning of 2006, TFC found that other networks followed its path and launched fashion-related programs too. Facing this challenge, The CEO of TFC, Jared Thomas, attempted to employ marketing strategy to push TFC as the market leader. So he hired Dana Wheeler as TFC’s vice president of marketing to assist him to achieve the goal.

From the Exhibit 1, we found that the average rating of TFC was not high, actually was far behind other two fashion programs’ on Lifetime and CNN. Also, it showed the quantity of TFC’s most avid viewers, women from 35 to 54 years, only had a slight advantage over other two channels’. Additionally, customers’ satisfaction with TFC was not as good as expected from the study on customer satisfaction with cable networks. All sorts of data signified that considerable potential viewers were taken away by other channels, and TFC should adjust content of program to appeal to viewers, improving consumer interest and consciousness to enhance consumer’s watching experience.

Dana prepared 3 scenarios to present in the next week’s meeting. First one, TFC segmentation was targeted at women, especially 18-to-34 year old demographic group. According to data, Dana discovered that the segmentation of 18-to-34 women was a wide-distributed group since they existed in all four clusters. Thus TFC remained attractive to four clusters. In the meanwhile, this marketing approach would also be beneficial to improve viewers’ awareness of channel, contributing to an increase in average rate. But if the strategy failed to make a difference in current audience mix, competition would go on permeating to premium segments.

Second one, TFC mainly concentrated on Fashionistas. Although compared to other 3 clusters, Fashionistas was the smallest, it included highly valued 18-34 female demographic....