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    Rishabh Jain
    The Fashion Channel (TFC) was once the market leader in fashion programming but has lost market share to competitors like CNN and Lifetime that began adding their own fashion content. With decreasing ad revenue, TFC's VP of Marketing must choose between three strategies to appeal to different viewer segments: broad approach, focus on "Fashionistas", or target "Fashionistas and Shoppers/Planners." Short term, TFC needs to defend its market share and increase ratings to attract more advertisers. Long term, TFC must differentiate itself and expand its audience as its previous strategy of appealing broadly is failing against segmented competitors. The problem was caused by TFC not segmenting and targeting specific viewers, though this worked until

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    Problem Statement

    Uploaded by

    Rishabh Jain
    50 views2 pages
    The Fashion Channel (TFC) was once the market leader in fashion programming but has lost market share to competitors like CNN and Lifetime that began adding their own fashion content. With decreasing ad revenue, TFC's VP of Marketing must choose between three strategies to appeal to different viewer segments: broad approach, focus on "Fashionistas", or target "Fashionistas and Shoppers/Planners." Short term, TFC needs to defend its market share and increase ratings to attract more advertisers. Long term, TFC must differentiate itself and expand its audience as its previous strategy of appealing broadly is failing against segmented competitors. The problem was caused by TFC not segmenting and targeting specific viewers, though this worked until

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    The Fashion Channel (TFC) was once the market leader in fashion programming but has lost market share to competitors like CNN and Lifetime that began adding their own fashion content. With decreasing ad revenue, TFC's VP of Marketing must choose between three strategies to appeal to different viewer segments: broad approach, focus on "Fashionistas", or target "Fashionistas and Shoppers/Planners." Short term, TFC needs to defend its market share and increase ratings to attract more advertisers. Long term, TFC must differentiate itself and expand its audience as its previous strategy of appealing broadly is failing against segmented competitors. The problem was caused by TFC not segmenting and targeting specific viewers, though this worked until

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    50 views2 pages

    Problem Statement

    Uploaded by

    Rishabh Jain
    The Fashion Channel (TFC) was once the market leader in fashion programming but has lost market share to competitors like CNN and Lifetime that began adding their own fashion content. With decreasing ad revenue, TFC's VP of Marketing must choose between three strategies to appeal to different viewer segments: broad approach, focus on "Fashionistas", or target "Fashionistas and Shoppers/Planners." Short term, TFC needs to defend its market share and increase ratings to attract more advertisers. Long term, TFC must differentiate itself and expand its audience as its previous strategy of appealing broadly is failing against segmented competitors. The problem was caused by TFC not segmenting and targeting specific viewers, though this worked until

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    Problem Statement:

    Background:

    The Fashion Channel (TFC) was a successful cable TV network which focused solely on
    fashion and was one of the most widely available niche networks. Till 2006, TFC was the
    market leader in the fashion network segment. However, in 2006, following the footsteps of
    TFC by taking note of its success, other networks like CNN and Lifetime began to add
    fashion- specific content to their line-ups. These channels are now growing and taking away a
    lot of ad buys from TFC with their increasing popularity among different viewer segments
    particularly younger females to Lifetime and males to CNN. With a decrease in its ad revenue
    and a threat to its market share, TFC now had to develop a modern brand strategy to support
    TFC’s continued growth. Dana Wheeler, senior vice president of marketing, had been chosen
    to develop marketing and brand-building programs for which she had 3 strategy options to
    present to the senior management.

    1. Broad, multi segment approach: Appealing to a multi-clusters of Fashionistas,


    Planners & Shoppers, and Situationalists
    2. Single Segment Approach: Focused on appealing to Fashionistas
    3. Two segment approach: targeting the Fashionistas and Shoppers/Planners.

    Short term problems:

    1. How will TFC defend its market share with new entrants CNN and Lifetime to the
    fashion program network?
    2. How would TFC increase its viewer rating which is comparatively lower than the
    ratings of its competitors CNN and Lifetime?
    3. How would TFC attract more advertisers to compensate for the loss of revenue of ad
    buys due to CNN and Lifetime?

    Long term problems:

    1. How would TFC differentiate itself from its competitors and gain a competitive
    advantage to help target and expand to larger viewer segments?

    Causes of the problem:

    TFC throughout its lifetime had not segmented and targeted any viewers. Instead, it followed
    its theme of “Fashion for everyone”. TFC believed its marketing messages should appeal to a
    broader audience and not just to a certain segment. This strategy worked out fine for TFC till
    2006 because it was one of the most widely available niche networks with no competitors.
    However, with increasing competition this strategy is bound to fail as the competitors would
    take over a large percentage of TFC’s market share with their consumer segmentation and
    target viewer specific strategies.

    Being a niche network, TFC appealed to a lower number of households and was at the lower
    end of the industry range. It had less number of viewers despite its large network availability.
    TFC had avid viewers in the age group 35 – 54 years as opposed to the 18 – 34 years age
    group which the advertisers tend to target and pay premium CPM for. With increase in the
    number of networks, advertisers now have an option of choosing between the channels based
    on their target audience and the channel ratings.

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