The Fashion Channel
Essay Preview: The Fashion Channel
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The Fashion Channel is a successful cable TV Network dedicated to the fashion industry; the company was created in 1996 by CEO and one of the founders Jared Thomas. This was one of its kinds since it had and upward revenue curve since its begging. The network ran 24/7 and reached almost 80 million U.S households with higher concentration of viewers on the 35 and 54 year old women demographic. (1) By 2006 the company had realized that even though the business was booming competition was increasing; two other networks that have lunched fashion-specific programming and their ratings were increasing noticeably. Therefore, by the middle of the same year Dana Wheeler, experience marketer, was hired as the Marketing Vice-President to lead the companys future as the marketing leader and to create brand-building programs to support the companys continued growth.(1)
Once Dana took over the position of Vice-president of Marketing she had to analyze all sorts of data received from market researchers in order to plan her best marketing strategy. Information about ones product or service is paramount o any marketer; and this are the five types of consumer and market data that Dana should have consider for analysis: First, more detailed information about its viewers must by pull, by means of segmenting them into many different categories more than a simple demographic survey. In this industry TV Channels make most of their profits from Advertising; business model built on attracting a mix of male and female on a regular basis measured by ratings (percentage of television households watching on average during a measured viewed period). (1) Since this is the driver of companys income, its performance should be analyze against the industry average and from there create a business strategy to position it above industry average. Gather information on the highest and more profitable demographic is important for any marketing strategy. In this case the 18 to 34 years female demographic shows to be the demographic in which marketers are willing to spend more (1).
Channels programming and how big of effect these have on current viewers and prospective viewers is really important in this business. The goal of a TV Network is to have the highest number of viewers possible by offering programs that result in higher customer satisfaction; higher the satisfaction – higher rating; as a result, an analysis on how the programming is doing is very important to know. Finally, as it has been mentioned in the case CPM (cost per thousands) is an important driver of the companys revenue; therefore, an analysis on how pricing is established on this process should be evaluated in order to come up with a more competitive pricing strategy.
One of the options presented on the case is focused on maintaining a broad appeal to a cross segment of Fashionistas, Planners -Shoppers and Situationalist (1) by investing heavily on advertising