The Fashion Channel
Assignment 1: The Fashion Channel
1) If TFC were on a BCG matrix they would fall into the category of a star. They have high market share and high business growth rate. They are the leaders in the fashion niche and should generate large amounts of revenue but need to continue to invest in their channel to ensure it stays profitable.
2) TFC is currently facing 4 critical challenges:
Who to market to? Should TFC segment their target market into the four clusters of Fashionistas, Planners and Shoppers, Situationalists, and Basics to better target their audience into niches, or should they continue their “Fashion for Everyone” as a theme to “appeal to as broad a group as possible in order to achieve the highest possible viewership numbers?”
Segmentation is an important solution to the challenges facing TFC because TFC is at a point where it needs to make a decision of either keeping their theme of “fashion for everyone” or segmenting their audience to better suit the Fashionistas, which will help grow their CPM and their profits.
3) Fashion is a highly turbulent industry because trends and fads are constantly coming and going. The consumers being fickle as well as fashion being fleeting, will lead to companies needing to continually reinvent themselves in order to stay up on what is in style and trendy. It is impossible to control what is stylish and trendy and by the time designers and fashion networks learn of the fad, it is usually moved on to a new trend.
4) The three options for segmentation are a broad and multi-segmented approach, a focus on the Fashionistas, and targeting two segments of the Fashionistas and the Shoppers and Planners. In the broad, multi-segmented approach TFC would target a cross-segment of Fashionistas, Planners and Shoppers, as well as Situationalists. This would increase awareness and viewing of the channel
1) If TFC were on a BCG matrix they would fall into the category of a star. They have high market share and high business growth rate. They are the leaders in the fashion niche and should generate large amounts of revenue but need to continue to invest in their channel to ensure it stays profitable.
2) TFC is currently facing 4 critical challenges:
Who to market to? Should TFC segment their target market into the four clusters of Fashionistas, Planners and Shoppers, Situationalists, and Basics to better target their audience into niches, or should they continue their “Fashion for Everyone” as a theme to “appeal to as broad a group as possible in order to achieve the highest possible viewership numbers?”
Segmentation is an important solution to the challenges facing TFC because TFC is at a point where it needs to make a decision of either keeping their theme of “fashion for everyone” or segmenting their audience to better suit the Fashionistas, which will help grow their CPM and their profits.
3) Fashion is a highly turbulent industry because trends and fads are constantly coming and going. The consumers being fickle as well as fashion being fleeting, will lead to companies needing to continually reinvent themselves in order to stay up on what is in style and trendy. It is impossible to control what is stylish and trendy and by the time designers and fashion networks learn of the fad, it is usually moved on to a new trend.
4) The three options for segmentation are a broad and multi-segmented approach, a focus on the Fashionistas, and targeting two segments of the Fashionistas and the Shoppers and Planners. In the broad, multi-segmented approach TFC would target a cross-segment of Fashionistas, Planners and Shoppers, as well as Situationalists. This would increase awareness and viewing of the channel