The Fashion Channel Case
The Fashion Channel Case
Due Date: 9/30/2013
Here at The Fashion Channel (TFC), the management team needs to decide which customer segments that we should target when implementing our new marketing strategy. Based on current environmental trends, state of the economy, current cultural, social, and political conditions, we as team need to find a way to position ourselves to ultimately increase company revenue. In doing this we need to focus on ways to increase our share of the market (targeting ratings), and how we can ultimately target ways to boost our viewership versus the increasingly competitive fashion programming being released by CNN and Lifetime. The “two key levers to drive revenue growth would be increased viewership (ratings), and increased advertising pricing.” Also important is to deliver quality audiences, as demanded by advertisers. Based on these key issues it will be vital to choose the scenario for implementation that will increases TV ratings and advertising revenue. The state of the economy at the beginning of 2007 was promising (pre-housing bubble and job loss). The Fashion Channel at that time had been around for 11 years. The company was started by two entrepreneurs in 1996, with up to date entertainment features that focused on material relating to fashion only on 24 hour a day, 7 days a week schedule. To that point the main audience was women aged 35-54 and the company tagline was “Fashion for Everyone.” Coming off of revenues of $310.6 million and only $230 million in ad sales, the goal going forward was to find a way to increase that amount. In 2005, one of the more popular series’ on TFC was a show called “Look Great on Saturday Night for Under $100.” Other networks like CNN and Lifetime began following the programming plan put on by TFC which started to become more popular in comparison to the programs being broadcast by TFC. This in effect resulted in direct competition against TFC and directly affected the ad revenue
Due Date: 9/30/2013
Here at The Fashion Channel (TFC), the management team needs to decide which customer segments that we should target when implementing our new marketing strategy. Based on current environmental trends, state of the economy, current cultural, social, and political conditions, we as team need to find a way to position ourselves to ultimately increase company revenue. In doing this we need to focus on ways to increase our share of the market (targeting ratings), and how we can ultimately target ways to boost our viewership versus the increasingly competitive fashion programming being released by CNN and Lifetime. The “two key levers to drive revenue growth would be increased viewership (ratings), and increased advertising pricing.” Also important is to deliver quality audiences, as demanded by advertisers. Based on these key issues it will be vital to choose the scenario for implementation that will increases TV ratings and advertising revenue. The state of the economy at the beginning of 2007 was promising (pre-housing bubble and job loss). The Fashion Channel at that time had been around for 11 years. The company was started by two entrepreneurs in 1996, with up to date entertainment features that focused on material relating to fashion only on 24 hour a day, 7 days a week schedule. To that point the main audience was women aged 35-54 and the company tagline was “Fashion for Everyone.” Coming off of revenues of $310.6 million and only $230 million in ad sales, the goal going forward was to find a way to increase that amount. In 2005, one of the more popular series’ on TFC was a show called “Look Great on Saturday Night for Under $100.” Other networks like CNN and Lifetime began following the programming plan put on by TFC which started to become more popular in comparison to the programs being broadcast by TFC. This in effect resulted in direct competition against TFC and directly affected the ad revenue