'Case study The fashion channel\r'

'â€Å"TFC was a successful cable TV network- and the only network dedicated solely to demeanor (Stahl,2007)”. It was one of the most widely available ecological niche networks with an 80 million subscriber base (Stahl,2007). It has had a constant growth above the industry sightly until the emergence of untested competitors such as CNN and liveliness in 2006. One of the most important strengths of TFC is the item that the channel is in the basic cable pack days. As opposed to CNN or Lifetime, TFC is not a present channel and thus has a higher chance to reach to a greater extent than witnesss than its competitors.However, TFC is trustworthyly veneering two major problems. These argon an un crown targeting throng and an increased antecedent of competitors. These problems could be also seen as their weakness. Since their target group is unclear, unclear strategies might be formulated that could hinder the growth of the channel. base on the client and foodstuff dat a from the case, the largest current client base of TFC are fe young-begetting(prenominal)s between the age of 35 and 54 (representing 27. 45% of the viewers). While their ideal targeting groups is some younger fe priapics from the age of 18 to 34, they only pull in up for 20.13% of the viewers.Generally, this group likes to follow the way celebrities dress. discipline about discounts in fashion stores and fashion recommendations are valued as well by this age range. However, it should be noted that their income might be turn away compared to other age ranges. On the other hand, male viewers could also represent an interesting customer base for the channel. Males nevertheless, centralise more on new designs, fashion trends and new brands. Different to young females, males laughingstock be less sensitive to price.Unfortunately, TFC has the lowest foodstuff share with only 1. 1M households (representing 1% of the market share). Besides, the strikinggest customer bases for shape Today are females ranging from 18 to 34 years old representing 27. 09% of their viewers. They represent a big threat for TFC as the later might remuneration by targeting this age range in the future. On the other hand, Fashion Tonight from CNN especially targets male customers. Therefore not surprising, males represent 45% of their viewer’s base. Both Fashion Today and Fashion Tonight also have a large customer base than TFC, which are 3. 3M and 4. 4M respectively.In order to budge the current situation, Wheeler came up with three scenarios. The root one is maintain a multisegment of Fashionistas, Planners & Shoppers and Situationists. The profit of this scenario is the increase in net income partially because no incremental costs would be incurred. At the resembling time, TCL could also target the 18-34 age group. However, the CPM will be $0. 2 lower than 2007. Also, in this scenario, no clear targeting group would yet arise. The second scenario is targeting the segment of Fashionistas.The narrower part will pull the company in a disadvantage situation with a 0.8% decrease of its market share (0. 88M). It also requires an incremental cost of $15 million. Finally, the risk exists that a large part of the current viewers wants might not be met by this differentiation as programs might be seen as to â€Å"professional” or â€Å"distinct”. However, buying power in this group is high and CPM will go up to $3. 5 resulting in the increase of both ad revenue ($322,882,560) and net income ($151,496,083). The third scenario entails cogitate on two segments, Fashionistas and Shoppers & Planners. The average evaluate could increase to 1. 2% with a broader viewers kitten (1.32M) and extract highest ad revenue and net income with $345,945,600 and $168,867,232 respectively.Meanwhile, younger sr. females should especially be targeted if this segmentation is put into place. Nevertheless, a $20 million investment is essential fo r this scenario and only targets around 50% of the females. There is a possibility to lose customer loyalty in this case and consequently part of its customer base. Based on the analysis, it is wise to choose scenario 3 which entails the twofold targeting of Fashionistas and Shoppers & Planners as a new slaying strategy since it generates highest ad revenue, net income and profit margin.50% of the blameless female viewer base could be targeted by this dual targeting with passion for fashion and high income. In this case, females from 18-34 will be targeted as they represent their largest viewers base which takes 32. 5% of the entire female segment. In harm of positioning, 4Ps is appropriate to describe the strategic changes needed. It is sure to modify the program profile into one that is more novel and intriguing to the younger generation by improving product quality. For instance, it can invite celebrities more often to the program. Thus, it responds to the needs of the ta rget group (females aged 18-34).With respect to price, it could decrease their ad price by 5% which would result in a CMP of 2. 375. It is predicted that with a lower price, more advertisers are willing to instal their ad on the fashion channel. Besides, TFC should boost promotional material by opening a website with specific focus on fashion news and brands for youth, thereby quick establishing customer sensitivity and awareness to their product. Lastly, in terms of Place, TFC might find it in their interest to elaborate overseas through contracting with foreign TV channels, producing tailored programs based on local preferences on fashion.\r\n'