Fashion Channel Case Examination Essay

Trend Channel Circumstance Analysis

Wenwen Gao (872236636)

2010. '07. 07

Launch and Problem Definition

As the only network dedicated only to trend, The Fashion Channel's (TFC) constant " Trend everyone” technique is facing challenges by other two competitors Lifetime and CNN, which are separately targeting young females and men by way of a fashion-related encoding. The funnel needs to concentrate on the right viewers and offer advertisers an attractive blend viewers, as a result strengthening their competitive location. External Condition Analysis

Current Networks Industry

In 2006, client advertisers spent almost 20 dollars billion on cable networks. On the market, there are more than 700 cable networks, and most networks' revenue stream comes from cable-affiliate fees and advertising revenue. As a basic network which is automatically received by consumers when they sign up for basic cable service, TFC has already accomplished full penetration of available cable connection households and there is limited possibility to raise fees. Advertising product sales becomes a essential weapon of TFC's development opportunity. Sales strategies among sites make the promoting price fall and rise all the time. Today most sites are trying to increase their ratings for the reason that ad buyers are more interested in obtaining ratings and demographics within specific programming subjects. Other than that, traditional systems have fixed supply of advertising because they have long-term devoted business interactions. It's not really that easy to get other sites such as TFC to obtain these advertisement customers from them. Competitors of TFC

Life span and CNN are the two biggest competitors of TFC. They learn to offer fashion-specific programming and attract advertisers by their larger ratings, the audience's characteristics, and competitive trends. Consumer behavior

Competitors such as Life-time and CNN have been focusing on fashion-specific programs. Now consumers have more options. When looking at Alpha research study on customer satisfaction, we discover that when it comes to consumer fascination, awareness and perceived worth, both CNN and Lifetime have got higher ratings than TFC does. The two ratings as well as the research show that non-loyal consumers are needs to choose alternatives to TFC. Advertising ordering process turns into sophisticated. A large number of advertisers are using tools including surveys to investigate and target customers and audiences. And they will determine the best in shape networks. Internal Situation Analysis

Successful cable TV network with constant revenue growth

TFC ‘s main focus is definitely solely on fashion which can be broadcast twenty four hours of the day and 7 days a week. The channel reaches around 70 million audiences in US households, between which most are women between 35 to 54 years of age. From 1996 to 06\, TFC appreciated great accomplishment by getting as broad an audience as is possible. Before additional significant rivals appeared, all their " fashion for everyone” strategy worked pretty much. Experienced management team

Nilai Wheeler, senior vice president of marketing, had a solid marketing history in the advertising and marketing industry. Usual Frazier, mature vice president of Advertising Revenue, is a high-energy salesman with strong ad sales efficiency. With the growing competition in the market, most members of the command team are urging to alter the current circumstance. No appropriate identification of consumer segmentation

While Life-time is depriving them of ad customers by focusing on younger feminine viewers, even though CNN is usually delivering vogue information and news to men, TCF is still utilizing their out-of-date approach. Besides the basic demographic, the route didn't have detailed information regarding its respected viewers. In failing to correct client segmentation, TCF will lose the shoppers, both of viewers and promoters. However , seeing that TFC's client satisfaction score is still above the midpoint, changing the segmentations in the company may upset some current viewers who benefit from the...



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