Alima Shamuratova
Fashion Channel Case Study
The Fashion Channel ( TFC) is one of the basic channels in cable TV. Dana Wheeler is a
senior Vice-president who has to make decision and present new marketing strategy for
company. TFC has two competitors – CNN and Lifetime. According to Dana, “two key
levers to drive revenue growth would be (1) increased viewership (ratings), and (2)
increased advertising pricing.” Thus, she needs to choose strategy that will increase TV
ratings and advertising revenue.
Firstly, it is important to mention that ratings give us understanding what company has.
This information provided by Exhibit 1. Average ratings of TFC and competitors are
paramount as it is one of the two key factors we have to know. It is said in Ex1 that TFC
has 1.0 rating in 1.1mln households while CNN has 3.0 in 3.3mln households and Lifetime
has 4.0 in 4.4mln households.
Secondly, advertising revenue is the next goal. In order to get it, we need to have
information provided by Alpha research study. Consumer interest, awareness, and
perceived value of TFC could be indirectly affecting their advertising revenue. According
to an Alpha research study/scale, received a rating of 3.8 for consumer interest in viewing,
a 4.1 on awareness, and a 3.7 on perceived value. As competitor’s data are also provided
these data will help to understand situation in general and compare with other competitors.
Thirdly, we have to know who are our customers. Thus, we need to know demographic
specifications that provided again by Ex 1 (age groups of TFC and competitors as well) in
