...Jagdeesh Narayanan Fashion Channel Case Study Submitted On: - November 27th 2013 Memorandum To: Jared Thomas, CEO, The Fashion Channel From: Dana Wheeler, Vice-President Marketing Subject – Proposed recommendations for marketing and advertising plans Date: - November 27th 2013 This memo contains the analysis, recommendations and justifications to help The Fashion Channel to select the appropriate segment for targeting. Recommendation:- The Fashion channel should formulate their new marketing plan to target fashionistas and planners/shoppers. The possible scenarios and segments for marketing concentration Broad Based Marketing | Fashionistas Concentration | Fashionistas and Planners/Shoppers | Pro’s * Net Income 94.9 million Vs. 54.6 million before * No incremental programming expense * Ability to target all 18-34 year old women * Awareness and marketing reach across a broader audience | Pro’s * Net Income 151.4 million Vs. 54.6 million before * TV ratings increase from 1.0% to 1.2% due to premium targeting * Average CPM increases to $3.50 * Facilitates capture of specific market share from Lifetime | Pro’s * Net Income 168.8 million Vs. 54.6 million before * TV Ratings and CPM increase to 1.2% and $2.5 respectively * 50% of TV audience covered * Increase in advertising revenue due to more no of 18-34 year old women audience * Not too specific, covers larger base | Con’s * CPM reduces by $0.20 due to lack of target audience * Does...
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...1. Latar Belakang Perusahaan The Fashion Channel (TFC) adalah satu-satunya jaringan televisi yang hanya menayangkan program fashion selama 24 jam setiap harinya. TFC juga merupakan salah satu dari stasiun TV dengan jangkauan yang luas, hampir 80 juta rumah yang berlangganan TV kabel dan satelit. Pada awalnya strategi pemasaran TFC adalah untuk merebut pasar seluas-luasnya, tanpa segmen khusus, dengan tujuan merebut pemirsa sebanyak-banyaknya. 2. Latar Belakang Masalah Pada awal 2006, TFC menghadapi persaingan dengan pemain baru yang menayangkan program fashion, pesaing terberat yang dihadapi adalah seperti stasiun TV CNN dan Lifetime. Adanya pemain baru ini dapat mengancam posisi TFC sebagai “market leader”, sekaligus merebut kue iklan yang ditawarkan oleh perusahaan pengiklan. Jika kondisi ini tidak diatasi, maka diprediksi bahwa pada tahun berikutnya TFC akan kehilangan 10% atau lebih dari harga per unit iklan. Oleh karena itu, TFC mempertimbangkan kembali strategi bisnisnya untuk meletakkan marketing sebagai dasar pertumbuhan perusahaan ke depan. Namun, TFC sejak awal berdirinya tidak pernah menetapkan strategi yang fokus pada segmentasi, branding dan positioning. Hal ini dapat menimbulkan ketidakjelasan pada strategi marketing yang akan diambil ke depannya. 3. Pembahasan Untuk menghadapi situasi persaingan ini, maka yang harus dilakukan oleh TFC adalah menentukan segmentasi pasar yang akan dibidik, untuk kemudian dilakukan kampanye dan strategi marketing yang...
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...Market Analysis: Fashion-based programming was a growing market as television viewers thirsted for constant updates on constantly changing fashion trends. The Fashion Channel (TFC), created in 1996, was the first channel with the sole purpose of bringing 24/7 fashion information and updates to viewers. There are four main segments of consumers in the fashion-programming market: fashionistas, planners and shoppers, situationalists, and basics. Fashionistas have been very loyal to TFC as they need constant contact and update on fashion. The other segments are much larger than the fashionista segment, therefore there is more opportunity and potential revenue in attracting those viewers. Competitor Analysis: TFC’s main competitors were Lifetime and CNN. Recently, Lifetime and CNN began introducing fashion-based programming that was in direct competition with TFC. Lifetime focused on fashion programs targeting younger women, while CNN was having success with show targeting men. While TFC only had a 1.0 rating, Lifetime and CNN brought in ratings of 4.4 and 3.3, respectively. A study on consumer interest also showed that viewers had greater interests in TFC’s competitor channels. In this study, TFC scored a 3.8, while Lifetime and CNN scored a 4.5 and 4.3, respectively. CNN and Lifetime also beat out TFC in other statistical categories to include awareness and perceived value. These viewer opinions directly resulted in higher ad revenues on fashion-based programming for...
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...Case Study Analysis: The Fashion Channel Introduction: “The Fashion Channel” which is a successful cable TV network and which had been started by two entrepreneurs in 1996, with up to date and entertainment features and information broadcast 24×7 which was related to fashion only. The channel was actually dedicated to fashion only and its main audience were women of 35-54 age group. Earlier TFC’s tagline was “Fashion for Everyone” In 2006 TFC has earned the revenue of $310.6 Mn out of which their target was to earn a profit of $230 Mn only through advertisement. Till 2006 TFC was the market leader in fashion related programs and one of its more popular series in 2005 had been “Look Great on Saturday Night for Under $100. In 2006 TFC has realized that some of the other channels like CNN and Lifetime are following the footsteps of TFC and also they are telecasting the programs related to the fashion world, which were now started to become more popular in comparison to the programs of TFC. These channels were giving competition to the TFC directly by taking the share of its ad revenue; these channels were giving a double edged competition to TFC. Norm Frazier, senior vice president of advertising sale, advised that in order to increase the TFC’s ad revenues either TFC has to decrease its ad pricing by 10% or to increase its viewership by improving the quality n contents of the programs. There were around 110 Mn households in USA with cable network and TFC’s average rating...
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...Fashion Channel Case Study MKT 247 Pengxi Lv 10/26/2014 1.SWOT analysis: Strengths: 1. Fashion channel is the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. 2. Fashion channel also is one of the most widely available niche networks, reaching almost 80 million U.S. households that subscribed to cable and satellite television. 3. Fashion channel has a large loyal audience base with average 1,100,000 people watching at any point of time. 4. Fashion channel’s revenue and profit grows above the industry average since the founding of the channel. Weaknesses: 1. Fashion channel has never launched any detailed segmentation, branding, or positioning strategy before. 2. Fashion channel is less attractive to cable affiliates compared with CNN and Lifetime according to a recent Alpha research study on customer satisfaction with cable networks. 3. Fashion channel has to compete against networks in buying ratings and demographics as well as against other fashion oriented programs. 4. Although the leading team is aware of the necessity of changing, they may not be ready to take actions because they never changed since the founding of TFC. Opportunities: 1. Strengthen competitive position and secure Fashion channel’s position as a market leader. 2. Focus on specific target markets could bring more steady growth. 3. Increase average rating so that Fashion channel could have...
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...2075 JUNE 1, 2007 WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Background TFC was a successful cable TV network– and the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week...
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...2075 JUNE 1, 2007 WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Background TFC was a successful cable TV network– and the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week...
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...WENDY STAHL The Fashion Channel Introduction Dana Wheeler, senior vice president of marketing for The Fashion Channel (TFC), sat in her Chicago office and scrolled through the email messages in her inbox. Thankfully, none required an urgent reply. She toggled over to her calendar: no meetings for the rest of the day. Finally, she could focus her thoughts on reviewing her recommendations for TFC’s new segmentation and positioning strategy. Wheeler believed that she had prepared a solid analysis; she felt confident about the strategy she was proposing. But next week’s senior management meeting would mark her first big presentation to the company’s leaders since she had joined TFC, and, she admitted to herself, she was eager to gain the support of her colleagues. There was a lot riding on the outcome of this meeting, both for Wheeler and for the channel. If founder and CEO Jared Thomas and his team liked what they heard, Wheeler would move forward to implement her recommendations. The company needed to strengthen its competitive position and would be spending more than $60 million in all national and affiliate advertising, promotion, and public relations in 2007, based on these recommendations. This would be an increase of $15 million over 2006 spending. Do No Background TFC was a successful cable TV network– and the only network dedicated solely to fashion, with up-to-date and entertaining features and information broadcast 24 hours per day, 7 days per week. Founded...
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...Case study Analysis: The Fashion Channel Introduction: “The Fashion Channel” which is a successful cable TV network and which had been started by two entrepreneurs in 1996, with up to date and entertainment features and information broadcast 24×7 which was related to fashion only. The channel was actually dedicated to fashion only and its main audience were women of 35-54 age group. Earlier TFC’s tagline was “Fashion for Everyone” In 2006 TFC has earned the revenue of $310.6 Mn out of which their target was to earn a profit of $230 Mn only through advertisement. Till 2006 TFC was the market leader in fashion related programs and one of its more popular series in 2005 had been “Look Great on Saturday Night for Under $100. In 2006 TFC has realized that some of the other channels like CNN and Lifetime are following the footsteps of TFC and also they are telecasting the programs related to the fashion world, which were now started to become more popular in comparison to the programs of TFC. These channels were giving competition to the TFC directly by taking the share of its ad revenue; these channels were giving a double edged competition to TFC. Norm Frazier, senior vice president of advertising sale, advised that in order to increase the TFC’s ad revenues either TFC has to decrease its ad pricing by 10% or to increase its viewership by improving the quality n contents of the programs. There were around 110 Mn households in USA with cable network and TFC’s average rating...
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...explosion of the media is the greatest revolution in fashion. Fashion is an indicator of class status, and monopolized by the aristocracy. A lower status group sought to acquire status by adopting the standards of the higher status. Media can be considered as a first medium to disseminate the fashion in public. In this assignment, we will study about the role of the modern media in shaping current fashion. The various elements of media involved in spreading of fashion information in the audience. What a person chose to carry reflects his personality or interest. A person’s choice more or less gets influenced by trend. Fashion is a popular style or practice, especially in clothing, footwear, accessories, home decoration etc. History: Fashion has been in the society since the human started with the clothes themselves. Back in the late 16th century and the early 17th century fashion denoted to the class. In ancient times Fashion Plates were engraved and colored with watercolors. In 1880 color printing and a method for making multi colors prints become stylish. In the same period of time magazines were published that played an important role in popularity of news about fashion. With the development of half tone printing process, which enables photographs to be printed on the same page as text without affecting the image clarity, fashion photograph has generated the most widely recognizable and enduring imagery of the time. Fashion television emerged in 1970 and 1980 when cable and...
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...data presented, The Fashion Channel (TFC) was the first TV channel to offer fashion TV shows, reaching 80 million viewers in the USA, initially giving the company an advantage as the original leader in the market. However, now the company is facing tough competition: “Fashion Today” on Lifetime and “Fashion Tonight” on CNN. At the moment this new competition arose, TFC did not have any plan for strategic segmentation or market positioning. The demographic data shows that 61% of the total audience for The Fashion Channel is comprised of women between 35-54 years old, similar to CNN’s audience. However, the Lifetime audience is 63% women between 18-34 years old; that means that TFC has older viewers than Lifetime. Another interesting figure is that CNN has the greater number of men with 45%, mostly between 35-40 years old. Given these figures, it’s clear that Dana Wheeler is focusing on attracting a younger segment of women to TFC, competing directly with Lifetime. She is not interested in reaching the male segment. TFC dedicates more broadcast time to fashion programming than any other network. However, TFC’s fashion programs rank lower in the ratings than its competitors’ shows. That negatively affects TFC because lower-rated shows are less attractive to advertisers, resulting in lower income from commercials. According to a study conducted by GFE Associates, people who are interested in fashion can be divided into four segments: Fashionistas (serious fashion followers), who represent...
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...Case Analysis Of “The Fashion Channel” Introduction and Problem Definition The Fashion Channel case illustrates the development of market segmentation options in implementing marketing strategies in a changing competitive environment, and demonstrates how quantitative analysis may be used to support a strategic marketing decision. The Fashion Channel (TFC) was a widely available niche cable network which only offers fashion-oriented programming. It was very successful until other regular networks began to copy its concept and take market share of it, which as a result, had a severe negative effect on TFC’s advertising revenue and affiliate fees. The problem is how to develop the segmentation and positioning, change the current content of programming, and reach the target customers, so as to get back those market shares from competitors, create more revenues and maintain TFC’s early standing. Situation analysis λ External Analysis: There were several hundred competitors in this industry and they took note of TFC’s concepts. TFC faced double-edged competition rendering it have to focus on not only ratings and demographics but also program subjects. Moreover, surveys showed that TFC had the lowest indexes, which actually made its affiliate fee at the low end as well. At the same time, the target consumers of competitors were premium CPM (cost per thousand)’s groups, while TFC only appealed to the less valued group. Ad industry was booming and competition was fierce...
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...Situational and SWOT Analysis The Fashion Channel is a network dedicated to fashion twenty-four hours a day, seven days a week. Since it was founded in 1996, it has successfully achieved profit growth above the industry average rate and steady revenue. TFC reaches more than 80 million households in the United States, and targets a wide variety of demographics, specifically, viewers between the ages of 35 and 54. Impressed by The Fashion Channels’ success, other markets such as CNN and Lifetime started adding fashion related programming to their networks, becoming a threat to TFC. Currently, TFC customers’ satisfaction is low and revenues are projected to decline. The Fashion Channel must implement a new strategy for segmentation and advertising to attract more viewers to increase ratings and revenue. Strengths: • TFC is the only network dedicated to fashion 24/7. • The channel appeals to women between the ages of 35 and 54. • TFC is included in the basic cable package that is in approximately 80 million households. • It is a unique market. • TFC has achieved full penetration of available households. Weaknesses: • By only showing fashion related programming, it is not a diversified market. • TFC grew too quickly and did not develop a detailed segmentation, branding, or position strategy. • Some of the members of the leadership team are resistant to change. • TFC does not target any specific viewer segments. • Customer satisfaction is declining Opportunities: ...
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...Bachelor Programme in Business Studies Bachelor Thesis BRANDING BY DOING - a study in refraining from traditional marketing Authors: Michael Arvidsson Robin Agné Business and administration; Marketing Spring 2011 Tutor: Ellinor Torsein Abstract Title: “Branding by doing” – a study in refraining from traditional marketing Bachelor thesis in Marketing, 15 ECTS, School of Business, Economics and Law, University of Gothenburg Michael Arvidsson & Robin Agné Ellinor Torsein Acne Studios, brands, “Branding by doing”, communication channels, fashion industry, non-traditional marketing communications, The Swedish fashion wonder, traditional marketing communications, word-of-mouth marketing To determine required conditions to adopt “Branding by doing” as a marketing approach in the Swedish fashion industry. Question 1: What conditions are required of a company to refrain from traditional marketing communications? Question 2: How is “Branding by doing” applied in practice? Question 3: For what reasons do companies refrain from traditional marketing communications? Methodology: This thesis has a hermeneutical approach. A qualitative research method is used and empirical results are based on a case study. Theories of brand management and word-of-mouth marketing. The primary data is collected from interviews with Suhrab Lachin, Credit & HR Manager at Acne Studios and Daniel Björk, fashion journalist and author. There are four main conditions required in order to apply “Branding...
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...Zara Case Study - Answer the following questions using both the case in the text and online research. Citations (within the text) and a bibliography are required. Be sure to provide an overview of the case in a short paragraph prior to answering each question. List the question you are answering prior to your answer. Vertical Supply Chain Zara uses a vertical supply chain, which is an uncommon strategy in the fashion industry. A company that operates in a vertically integrated strategy has total control of the various business activities, such as designing, manufacturing, sourcing, and to distribution to retail stores. This gives the company total business management. 1. As completely as possible, explain the supply chain for Zara from raw materials to consumer purchase. (5 points) Zara makes about 40% of their raw material (fabric) and produces more than half of its own clothes. (Kotler and Armstrong). The remaining 60% is outsourced from within Spain, mostly from the La Curuna. Designing of clothes at Zara is done by creative teams of over 300 professionals at the headquarters in La Curuna, Spain. (Supply Chain Brain). After the designers complete a design they are sent to Zara’s production system to cut the fabric. The design is then sent for sewing by one of several hundred local cooperatives. After sewing, the clothes are returned to Zara’s facilities for ironing by an assembly line of workers. After this, the items are wrapped and transported on conveyor...
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