RONGALI SUNAYANA

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The fashion channel summary-

This case study shows us the development of marketing segment and its various options of
implementing marketing strategies in a competitive and changing environment. We also
study the quantitative analysis that helps support strategic marketing decision.
The fashion channel is a news network , which in 1996 gained large profits and new
popularity. It was a huge success as it was airing 24/7 and the broadcast was specifically
related to fashion. Meanwhile, this did not just catch an eye of its customers but also its
competitors. Networks like CNN saw great potential in the fashion sensation and had become
a competition to TFC. Therefore, TFC had to make major changes to its marketing strategy
and it did it through segmentation and positioning. For this they hired Dana Wheeler, who
had a strong background and experience with marketing and advertising, to help get back to
being number 1 and beat its competitors.
The 1st step was to hold or increase the price, but for that it was crucial to gain a huge mass of
viewers and interesting content and relative advertisements. To make this happen the key was
to target the right viewers and advertisers, who compared and picked TFC when compared
with what the competitors were offering.
Advertisements is the primary source of revenue. We can see that the advertisements are
based on rating , so the ratings had to increase from 18-34 year old demographics. This
means targeted age range. The 3 potential segmentations were fashionistas, planners and
shoppers, situationists and basics. Each has 3 basic questions ratings, CPM and competitive
advantage. The fourth cluster was not included as it comprises mostly of men.