The Fashion Channel Harvard Case Essay

849 Words Mar 19th, 2011 4 Pages
The Fashion Channel
The Fashion Channel is the market leader in Fashion related to TV programming. Recently attempts have been made by other channels to snatch its crown. Dana Wheeler is hired to prevent this scenario from happening. 1. Interpretation of Consumer and Market Data The current competition from CNN and Lifetime is only in the evening time from 9-11 pm (primetime) when the highest revenue for ads is generated. The focus for promoting new programs and attracting advertisers must be in that time segment.
As indicated in the competitor comparison the fashion channel lacks the programs with celebrity focus. The lifetime channel attracts 43 % female viewership from the age group of 18-34 (TFC 33% CNN 27%) which
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Campaign : more investment CPM : 10% drop in Rating : 1.2%
Outcome: Not feasible would degrade TFC market position, will also result removal from basic channel offerings from cable operators over longer period
Scenario 2 : Audience Mix: Fashionistas (only 15 % of total) Advt. Campaign : $15 mil more CPM: $3.5 Rating : 0.8% from 1.0%
Outcome : will appeal specific segments only, significant increase in revenue, could result in decreasing popularity among common viewers and rating. Will result in TFC as Fashion exclusive brand.
Scenario 3 : Audience Mix: Fashionistas ,Planners and Shoppers Advt. Campaign : $20 mil more CPM: $2.5 Rating : 1.2% from 1.0%
Outcome : will appeal to broader segment , significant increase in revenue, good strategy to strike out competition(CNN and Lifetime), increase in rating and CPM. Can save money through cross-promotion activities. 3. Factual Analysis of segments
Fashionistas: Programs to attract them must
Pros : Very High CPM, Brand loyal to TFC, advertisers like them, high income group
Cons: only 15% of total segment, if you try to attract them you lose others
Planners and Shoppers : large segment size
Pros: advertisers like them, high CPM, potential brand loyal customers, very large 18-34 age group Cons: interested in value products
Situationalists: Low/medium income group
Pros: somewhat interested in fashion, increase in viewership rating Cons:

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