Harvard Business School Case - the Fashion Channel Analysis Essay

1103 Words Apr 16th, 2013 5 Pages
Case Study: The Fashion Channel

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
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It is a narrow psychographic segmentation approach.
Pros:
* 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.
Pros:
*

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