Essay Case Analysis - Fashion Channel

2072 Words Aug 7th, 2009 9 Pages
Case Study:
The Fashion Channel (TFC)

June 30, 2009

Overview The Fashion Channel (TFC), founded in 1996, is a successful cable TV network dedicated to all things fashion. Although quite young compared to other TV networks, TFC has experienced steady growth and in 2006 forecasted its revenue at $310.6 million. TFC operates primarily as a niche network, focused solely on fashion and fashion related programming, but still manages to reach almost 80 million US households that subscribe to cable and satellite television. To date TFC has been able to experience growth in spite of having no clear segmentation, branding, or positioning strategy. Dana Wheeler, a recent hire as TFC’s Senior VP of marketing, was tasked to fix this.
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Dana realizes that in order to capitalize on this opportunity she must devise a strategy that increases viewership and advertising price premiums. As Dana wrote on her legal pad, she must “deliver quality audiences, as demanded by advertisers.”

2. Consumer and Market Data:
In preparation for the renewed strategy, Dana and the TFC executives should pay carefully attention to the Viewer Demographics and Competitor Comparison data provided in Exhibit 1 of the case. Specifically TFC should take note of the make up of the viewers and the wide disparity in the average ratings. In terms of ratings, TFC currently achieves only a rating of only 1.0 compared to Lifetime’s 3.0 and CNN’s 4.0. And as far as the demographics of the viewers are concerned, Dana and TFC should pay close attention to females in the age group of 18-34 in particular. As sated in the case advertisers are willing to pay a premium CPM to reach these groups. Dana will need to devise a strategy that significantly increases its viewership in these key demographics while balancing the overall ratings of the channel.
Dana should be particularly concerned with Exhibit 2 – GFE Associates: National Consumer Survey. TFC, in order to demand top dollar from advertisers and increase its ratings must be known as a market leader and expert in the fashion world. As Exhibit 2 shows, this is not quite the case as of yet; when consumers were asked if “TFC is the best place on television for fashion

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