The Fashion Channel Essay Example

for this segment is 21-45. The young side of the segment is young and with lower incomes. The older side of the segment likes to be thrifty and get the best deal for their dollar, even though they make good money. They have an income of 65,000+.

They have enough income to spend on nice clothes but need to find the best deals to stay within their budget. Key attitudes and beliefs: This segment still likes to look good but is on a budget, so they look for the best deals. If an item is on sale they are more prone to purchase it. They tend to be loyal to certain brands. They stick with certain brands, to receive loyalty coupons and other discounts. Interest in fashion: This segment has a pretty similar interest in fashion as the fashionistas. They would watch shows that deal more with value, like how to look good with under $100. Assessment: This segment has the largest size, which makes it an attractive market to target; the numbers agree this is a good segment.

They watch fashion TV and enjoy planning shopping trips. You could market shows that deal with planning shopping trips and how to shop on a budget. Situationalists: Demographics: Found this segment to be made up of male and female. With about 50% of the populations having kids living at their home still, they have less of a disposable income. Parents with kids living at home tend to range between 24-50 years of age. Key attitudes and beliefs: Fashion only occurs to them in special occasions. They typically don’t spend a lot on clothes, but

for certain occasions they splurge a little bit. They are somewhat price sensitive, because of their low disposable income.

Interest in fashion: While the other segments watch TV for tips and trend, this segments tends to watch TV recreational. They don’t watch it daily. Assessment: We believe the previous two segments are more attractive than this one, although they could dip into this segment. Situantiolists show some interest in fashion. Having a wedding dress show is something that would intrigue this audience. Shows that deal with special occasions, weddings are the big one. This group wants information about fashion for the key moments of their lives. Basics: Demographics: The majority of this segment tends to be male. The age range of the segment is 28-50. Men younger than 28 years old care more about their appearance, while going through School and impressing girls.

Once they get married and content with their life they tend to care less about what they wear and spend little time shopping. Key attitudes and beliefs: This segment is price sensitive, they don’t care as much about what brand they wear so they will look to for the cheapest one. They also don’t like to go out shopping, so they will go to one stop shop (clothing stores) where they can buy all they need in one store. Interest in fashion: This group does not watch much fashion TV nor do they try to interact with the fashion world. Assessment: This group does not watch hardly any fashion TV and show little interest in fashion. In the end it would be smart not to target this segment.

These

ratings were based on the percentage of households that fall into each category. Competitive Strength: Competitive strength was rated on the ability of TFC to reach the segment compared to the abilities of their competitors Lifetime and CNN. The primary advantage of TFC is that the programming is focused on fashion, while the competitors offer less fashion related shows. This gives TFC a large competitive advantage with Fashionistas but puts them at a disadvantage with the Basics. The Planners & Shoppers group would also appreciate the fashion advice, while Situationalists would likely only watch programming that focused on specific fashion topics.

Price Sensitivity: The Fashionista group is the least price sensitive segment due to a larger household income and an interest in fashion trends. The other three groups all expressed interest in value. The Planners and Shoppers group received a higher rating due to the fact that they enjoy shopping and stay up to date on trends. Situationalists were the third ranking group. They also enjoy shopping, but only for specific needs.

The first scenario describes a plan in which The Fashion Channel would, “maintain a broad appeal to a cross segment of Fashionistas, Planners & Shoppers, and Situationists. ” (Stahl) The broad marketing plan outlined in scenario one delivers a net income of $139,908,407, and a 3% increase the margin percentage. This would be an increase of almost $19,000,000 in ad revenue per year. This plan would slightly increase the average rating that The Fashion Channel would receive and boost the average viewer number slightly, and still would not come with an incremental programming expense. This plan would however, come with a

drop in the average CPM, and “along with the 10% drop in forecasted Ad sales, a broad multi-cluster strategy may not deliver an audience different enough to avoid that drop. (Stahl) Dana Wheeler had mentioned that leaving the programming unchanged along with the more general advertising focus could leave them vulnerable to continued penetration by “competitors in the premium segments, thus further eroding The Fashion Channel’s pricing ability. ” The second scenario was to focus on the Fashionistias. This scenario would increase ad revenue per year from $230,630,400 to $322,822,560 and would increase the margin by 10%. This scenario was described as valuable because of the strong demographic. This scenario would target the smallest segment but because of the value placed on these viewers, mainly women aged between 18 and 34, would lead to a CPM of $3. 50, which is the highest of the three scenarios.

The targeted segment being smaller would mean that The Fashion Channel would incur an additional programming cost per year of fifteen million dollars, along with a decrease of 0. 2% in television ratings. This scenario doesn’t increase awareness, and carries the risk of not targeting enough viewers leading to further decreases in overall ratings. The final scenario outlined a plan to target two segments, the Fashionistas and the Shoppers/Planners. This scenario is the one that we would recommend The Fashion Channel to take. This scenario carries an additional cost of $20,000,000 for programming to “ensure that there were viewing selections aimed at both segments. ” (Stahl) This plan shows the most promising numbers of the three scenarios.