The Fashion Channel
Situational Analysis #1
Company
Two successful entrepreneurs founded The Fashion Channel (TFC) in 1996. It was and continues to be the only network to broadcast fashion news 24/7. The network has been on a steady growth rate since its conception and now reaches almost 80 million households in the United States.
Context
Around the beginning of 2006 other rival networks had seen the success of TFC and began to include fashion related programing into their broadcasts. In June of 2006, the steady rise in competition caused CEO Jared Thomas began to rethink his marketing approach. The reallocation of funds to a new marketing program would hopefully support TFC in maintaining and continuing steady growth in the years to come.
Competition
TFC’s main competition is Lifetime and CNN. These rival networks are showing fashion related content that is attracting both new watchers and current fashion viewers. Lifetime is primarily attracting young female demographics while CNN is slowly grabbing the attention of men. Even though TFC has been around the fashion the longest both CNN and Lifetime were rated higher by the viewers in: consumer interest, awareness, and perceived value.
Consumer
TFC’s content is primarily focused on women ages 18-34. These women can then be segmented into 4 clusters: Fashionistas, Planners and Shoppers, Situationalists and lastly Basics.
Collaborators
TFC is becoming less of a monopolistic company, as competition is slowly catching up TFC needed to branch out and find agents to help them adapt to the new markets. This is where Dana Wheeler comes in; she is going to help them stir the creative pot to better market to their viewers. Hiring an expert in the field of marketing with no ties to the old marketing strategy is a great recipe for success. She will be able to make changes based on logic and reasoning rather then emotion.
S.W.O.T Analysis
Strengths
TFC is the oldest fashion channel on TV. They have been around the longest and therefore have the most potential influence on customers. They also have the highest chance to stick in the minds of the viewer because of the networks longstanding tradition of Fashion.
TFC has the first mover advantage. Since TFC was the first network to establish a hold in the fashion industry. They were able to monopolize the industry and gain a steady revenue stream.
They have a large advertising budget to protect and secure their continual growth.