THE FASHION CHANNEL

Prepared By: Akul Aggarwal Divyansh Chowdhry Mahak Aggarwal Kunal Arora Rahul Gupta Subhamoy Ganguly

THE TFC BACKGROUND Only successful cable TV network dedicated solely to fashion ± 24 X 7 ´ Constant revenue and profit growth above industry average since beginning in 1996. ´ Most widely available niche networks reaching out to 80 million households. ´ .6 million. ´ Revenues for 2006 forecast at $310.

which prompted management to hire an experienced marketer. ´ Realized competition from other networks adding fashion programs in their line-ups. ´ Theme for marketing programs . ´ . Mostly viewed by women between 35 and 54 years of age according to annual demographic survey..³Fashion for Everyone´ ± concept of mass marketing.TFC BACKGROUND CONTINUED.

0.TFC ADVERTISING REVENUE MODEL Average present rating of 1.6 million out of $20 billion that all US consumer advertisers spend cumulatively on TV advertising. which meant average 1% household out of 110 million US households watch Fashion Channel at any point of time. ´ Revenue from advertising $230. ´ .

´ . ´ Negotiated subscriber fee was averaged at $1. which was at the lower end of the industry range.00 per cable network subscriber on the basis of carriage.TFC CABLE AFFILIATE FEES Cable affiliate fees was $80 million targeted for 2006.

Personal telephonic survey of 800 households yielded the following ratings (in a scale of 5): Consumer interest in viewing « TFC ± 3. both capable of being sold at premium CPM (Cost per thousand).6 Perceived value ± « TFC ± 3.1 TFC was lagging behind the two key networks.5 « CNN ± 4.3 Awareness ± « TFC ± 4. .COMPETITION ´ ´ ´ Lifetime and CNN started hosting fashion programs targeting young women and men respectively.4 « CNN ± 4.1 « Lifetime ± 4.5 « CNN ± 4.8 « Lifetime ± 4.7 « Lifetime ± 4.

´ Target the premium section of 18-34 years aged women. gender and income and identify the Target market.THE MARKETING PLAN To carry out market Segmentation based on age. ´ Increase in advertising. promotion and public relations budget by $60 million. ´ Create stronger brand loyalty among core viewers ´ .

ATTITUDINAL RESEARCH FINDINGS GFE Associates conducted research with 100 questions on a panel of consumers about their attitudes towards fashion and TFC. ´ Most of the males in the Basics group. Situationalists. ´ Reports suggested 4 unique groups ± Fashionistas. ´ Women were distributed in all groups. ´ . and Basics. Planners and Shoppers. ´ Used sophisticated statistical correlation program to analyze answers.

0 to 1.2) ´ Ad sales drop to $1.SCENARIO 1 Broad appeal marketing to a cross segment of Fashionistas. ´ Expected ratings boost of 20% (1.80 CPM (10% drop) ´ . Situationalists. Planners and Shoppers.

50% percent of women in age group 18 ± 34.50 CPM. Estimated additional $15 million expense per year for programming content. High index of interest in fashion ± 140. Ad sales could give a premium of $3. Expected viewership rating of 0. . 30% of people with income > $100000.8.15% of households. 61% of women.SCENARIO 2 ´ ´ ´ ´ ´ ´ ´ ´ Focus on Fashionistas .

SCENARIO 3 Target two segments .Planners and Shoppers and Fashionistas ´ Ad sales CPM $2.2 ´ Estimated additional expense of $20 million on programming. ´ .50 ´ Average ratings over time 1.

xls .SCENARIO ANALYSIS ´ Segmentation Tool.

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