Harvard Business School Case - the Fashion Channel Analysis Essay
1. Define the segmentation scenarios considered by Dana Wheeler and discuss the pros and cons of each scenario.
In the HBS Fashion Channel case, Dana Wheeler considered 3 different market segmentation scenarios. Various market research firms had divided viewers into 4 distinct groups: “Fashionistas”, “Planners and Shoppers”, “Situationalists”, and “Basics”. These four groups were comprised of a mix of consumers with a plethora of demographics, all with specific desires, interest in fashion, and values. To survive against new competitors such as CNN and Lifetime, Wheeler needed to choose a segmentation strategy that would increase network ratings, generate loyal fans for TFC, and attract viewers …show more content…
* The Fashionista segment is saturated with valuable 18-34 year old females. * Penetrating a valuable advertising audience will increase CPM drastically. * The segment places lots of interest in fashion making them more loyal to fashion programming. * Potential to take back viewers who have transferred to CNN and Lifetime. * Homogeneous segment with similar values, attitudes, and desired benefits.
Cons: * Only represent 15% of households – this strategy would decrease viewership * Potential sustainability problem because the segment is much smaller than before. * Costly – TFC must invest in new programming which will cost $15 million. * Ruffles the feathers of executives who are skeptical of change.
Scenario 3: Dual Segmentation Strategy
This 3rd and final scenario attempts to concentrate on both the Fashionistas and the Planners and Shoppers. It is essentially middle ground between 2 extremes, yet it still maintains focus and re-vamps TFC.