Fashion Channel Case Study

380 Words2 Pages
The Fashion Channel | Case Study Analysis Executive Summary “The Fashion Channel” with tagline “Fashion for everyone” was started in 1996 which provides 24x7 entertainment and information broadcast regarding fashion only. Its main audience were women of 35-54 age group. The channel had made profits ($310 million) beyond its target in the year 2006 and was the market leader for fashion related programs. There were two main source of income for TFC and that was ad revenue and cable affiliation fees. TFC soon observed that other channels like CNN and Lifetime started telecasting programs related to fashion category which was becoming more popular than programs at TFC. Therefore TFC was facing competition in terms of ad revenue as their market was getting shared. Goal and goal defense In order to maintain its market leader position, TFC needs to maintain as well increase its viewership. The company needs to work on its current content such that the viewership of the channel increases by atleast 20% over the next year, indirectly contributing to a higher CPM and thus giving higher profits and a tunnel for growth. The channel must target on specific demographics for the fee that it can charge for advertising. Impediment and Impediment Defense The biggest hindrance TFC is facing is the fact that generalized channels are eating its market share. In order to prevent this TFC should target a wider audience, the channel needs to pay attention to the needs of fashionistas that have superior interest in fashion as well to the needs of shoppers and planners that form the largest cluster group. Delivering to the combination of their needs when statistical data of current viewership is missing is a challenge for the channel and requires programming that involves huge additional revenues ($15million-$20million).
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