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Marketing Fundamentals 63.501
Case#1 – The Fashion Channel Case Study
1. With 110 million Television householders in the United States, TFC (The Fashion
Channel) reached almost 80 million householders that subscribed to cable and satellite
television, and women between 35 and 54 years were its most avid viewers.I considered
five points as key customer and market data.
1) Demographic targeting – TFC’s segmentation and positioning should be targeted at
women, particularly the premium 18-to-34 year-old demographic. 2) Increased ratings
(Viewership) – this is a fundamental element of a network’s success because TFC’s
revenue consists of Advertising sales and Affiliate fees. The average rating for TFC is 1.0,
on the other hand, Lifetime 3.0 and CNN 4.0. It is important to attract valued viewer group
and demographics through the network. 3) Increasing CPM – it is directly linked to the
revenue. Advertisers would pay a premium CPM to increase the advertising revenue. 4)
Attitudinal clusters segmentation – TFC should understand the common attitudes and
needs of consumers to identify the target segmentation. 5) Improvement in customer
satisfaction – Alpha research study showed a research data on consumer satisfaction with
cable networks. TFC was fewer score than both Lifetime and CNN on the interest,
awareness and perceived value. In order to be differentiated from current and future
competition, research data of customer satisfaction would be one of key indicators for
TFC.
2. I will show the pros and cons regarding 3 primary options. For Ad revenue calculation
and financial data, see attached file for Exhibit 4 and Exhibit 5.
