Ruoyu Wen
Marketing Fundamentals
Prof. Joan Crooker
Summer 2015
The Fashion Channel Case Analysis
The Fashion Channel was founded in 1996 by two entrepreneurs. It was a successful cable TV network. It was the leader of fashion channels. However, at present, it faced other channels’ challenge like CNN and Lifetime. The founder and CEO Jared Thomas wanted to make some change to keep the channel’s lead position. The senior vice president of marketing Dana Wheeler had some recommendations for channel’s new segmentation and positioning strategy. And if Jared Thomas and his team likes these planes, the company would spend more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007 based on Dana Wheeler’s recommendations.
However, she also faced many problems when she wanted to move on her plans. If I were Dana Wheeler, the first thing that I would concern was the cost of advertising. The purpose of new segmentation and positioning strategy was making more money. If I spent too much money in advertises, but the revenue went down. I thought the CEO wouldn’t happy about that and my planes would fail. The second thing is where the main revenue stream came from. As I know the revenue stream from advertising sales. So I needed to consider more about my channel’s advertises. The third thing was that I wanted to know how many customers our channel had in different ages. Because people in different ages would have different opinions of fashion. If I couldn’t show the right advertises to right people, all the money that I spent in advertises were wasted. The fourth thing was my competitors’ advertises. If my competitors spent much more money than I did, I would find out why and I would reconsider my advertise plan. And I also wanted to know what my competitors’ advertises look like. I must make sure my advertises were more attractive for our customers. The fifth thing was the trends of