THE FASHION CHANNEL
Summary:
The Fashion channel (TFC) was the only network dedicated solely to fashion 24 hours a
day since 1996. The revenues were projected to be at 310.6 million in 2006. It reached
almost 80 million households with women between 35 and 54 years being its most avid
viewers. Earlier, TFC’s marketing strategy to increase revenue involved achieving highest
possible viewership numbers in a diverse group. The channel followed the “Fashion for
Everyone” theme for its marketing program. Recently, due to competition from fashion
specific programs offered by CNN and Lifetime, TFC was losing the non-loyal consumer
base. This was affecting its revenue stream via cable affiliate fees and advertising fees.
This called for strategy to target the right viewers and offering advertisers an attractive mix
of viewers to increase revenue. It also called for “strategy for segmentation” and its usage
as a base for all the marketing tools.
Consumer and Market research:
TFC’s market growth strategy could be based on the following five important Consumer
and Market data points:
•Viewership (Ratings):
Increasing the average rating compared to CNN and Lifetime was one of the most
important goals for TFC. It would also help in determining the advertising and affiliate fee.
•Ability to attract specific target groups:
A larger share of 18-38 year old female demographic will lead to increased advertising
revenue. Advertisers pay the largest CPM for marketing to this section of audience.
Advertising revenue had larger share than the revenue from cable affiliates.
•Customer Satisfaction Ratings:
Maintaining or improving customer satisfaction was important to get good price points
