Essay on Fashion Channel

1478 Words May 22nd, 2012 6 Pages

The Fashion Channel is an unique leading cable TV network specialized in only fashion programming with broadcasting 24 hours a day and 7 days per week.The channel has a steady uprising revenue background and profitable high growth above the its’ industry average from the establishment in 1996 by two men who has an entrepreneurial spirit. TFC(The Fashion Channel) has a huge revenue amount of 310.6 million in 2006 with 80 million household viewer who has subscribed to their network in cable or satellite TV groups.TFC viewers are mostly woman who have age between 35 and 54 and TFC has a motto of “Fashion for Everyone” to reach every cable or satellite TV viewer by mass marketing concept.And TFC has a highly low fee
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To make the right segmentation strategy she investigated some succesfull market research like national consumer field study by GFE.And this research seperates viewers to four spesific groups as: Fashionistas, Planners&Shoppers, Situationalists and Basics.These group diversity effect directions of strategy to enhance CPM, viewing ratings while differentiating the most valuable viewers for a competitive advantage and brand loyalty and this strategy can be done with advertising through the internet or classic PR and Promotion activities based on positioning.According to Dana Wheeler, TFC can implement one of the three segmentation scenarios or choices depending on the research analysis with negative or positive outcomes.

The Expected Outcome of each Targeting Scenarios:

2006 Actual and 2007 Base years must be taken into evaluation to define the creditability of modern marketing strategies. Ad Revenue/Year for actual 2006 was $ 230.630.400 and 2007 base Ad Revenue/Year is $ 207.567.360.The net incomes for these years are $ 93.711.488 for actual and $ 54.640.339 for base and average viewer ratings for these years are % 1.0 .

We can see an increase in average rating of % 1.2 with a higher Average Revenue/Ad Minute of $ 2.376 in Scenario 1 more than 2007 Base year and There is no Incremental Programming Expense and CPM cut by 0.20 BUT Ad Revenue/Year was $ 249.080.832.And we can see increase in CPM to $ 3.50 in Scenario 2 but % 0.2 decline in

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