The Fashion Channel (TFC) has been offering quality consumer-advertisements to many viewers. However, it has become impossible for the company to achieve most of its objectives. This Cable TV Network requires new ideas and strategies in order to remain competitive. The company has identified a number of goals due to the current changes in its viewership. The major issues affecting the industry include “increasing levels of competition, lack of better positioning and targeting strategies, and changing consumer expectations” (Stahl, 2007, p. 3).
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TFC has “not been marketing its services to any specific target population” (Stahl, 2007, p. 2). The “original marketing theme adopted by the company was Fashion for Everyone” (Stahl, 2007, p. 2). The company is planning “to have proper branding, segmentation, and positioning strategies” (Stahl, 2007, p. 2). The company has hired an experienced marketer in order to develop a powerful marketing strategy. According to Thomas, the company must have a powerful brand-building program in order to achieve its goals. The company has therefore hired Dana Wheeler in order to design the best marketing strategy.
Wheeler’s new plan is “to develop quality positioning and segmentation strategies” (Stahl, 2007, p. 2). Wheeler plans “to use the internet and other traditional advertising strategies” (Stahl, 2007, p. 2). Wheeler also wants to use promotions and public relations (PRs) in order to attract more customers. This “approach will produce a Well-Integrated Marketing Program” (Stahl, 2007, p. 5). The proposed advertising strategies will become the best growth opportunity for TFC.
The most appropriate strategy is to target the best customers and viewers. A positive marketing mix will attract more viewers. The first approach is to identify the right viewers. Wheeler has examined the capabilities of different individuals in the country. The “company’s segmentation and positioning strategies will focus on different segments such the Fashionistas, Basics, Situationalists, and Shoppers” (Stahl, 2007, p. 6). TFC has the potential to focus on the changing expectations of different viewers.
Competition “for ad revenues has also been on the rise” (Stahl, 2007, p. 3). Many “advertisers are currently spending a lot of money to buy their spots on different cable networks” (Stahl, 2007, p. 4). CNN and Lifetime have introduced new fashion contents. Such contents would target more young individuals in the society. The “best goal is to identify and target the right customers” (Hassan & Craft, 2005, p. 83). The company should also monitor the attitudes and expectations of its consumers. TFC should also examine how different consumers are using various TV networks.
TFC has two unique customers. These customers include advertisers and cable companies. The company should use several strategies in order to maintain good relationships with such customers. The proposed segmentation and position strategies should identify the best viewers. The company should attract an increasing number of viewers from different backgrounds (Hassan & Craft, 2005). This strategy will satisfy the needs of different advertisers. This approach will ensure every advertiser is ready to use FTC’s services.
The issue of cost should be taken seriously at the company. According to Stahl (2007, p. 4), “the issue of cost means a lot to these customers”. Pricing in the industry depends on “ratings, targeted demographics, lifestyles, and existing competitive patterns” (Stahl, 2007, p. 4). The industry “expresses its prices as Cost Per Thousand (CPM) whereby every targeted advertiser pays for moment of viewing” (Stahl, 2007, p. 4). Market pricing has been fluctuating due to the issue of competition. FTC should therefore address the costs incurred by these advertisers. This strategy will support more customers and eventually increase the company’s revenues. The approach will also produce the best business relationships.
According to the case study, TFC is a basic channel. This situation makes it easier for “many customers to receive the channel after signing up for the service” (Stahl, 2007, p. 4). The important goal is to deliver quality audiences to different advertisers. This approach will “satisfy the needs of many advertisers and support their business potentials” (Hassan & Craft, 2005, p. 22). TFC should also consider the needs of various cable companies.
The company should ensure every positioning strategy supports the changing needs of such cable companies. This approach will “ensure the company produces the best business strategy” (Hassan & Craft, 2005, p. 58). TFC can “collaborate with different partners such as Time Warner, Cablevision, Comcast, and Cox in order to attract more viewers” (Stahl, 2007, p. 6). This approach will support FTC’s goals and eventually increase its revenues.
The proposed segmentation options should focus on specific demographics. The proposed broad multi-cluster strategy will support the four groups of viewers. These four groups include “the Fashionistas, Planners & Shoppers, Situationalists, and Basics” (Stahl, 2007, p. 6). This segmentation strategy has the potential to increase the number of viewers. This approach can produce the best ratings and reduce the targeted CPM. However, the approach has the potential to increase the company’s programming costs.
The second strategy entails the use of a multi-segment approach. This approach will “focus on different groups of potential viewers in the targeted market” (Stahl, 2007, p. 6). This option will reduce the number of viewers. The segmentation strategy will also increase the targeted CMP. This approach “will increase the company’s rating” (Hassan & Craft, 2005, p. 86). New programming costs will be mandatory in order to support the changing needs of every targeted segment.
The third segmentation approach will focus on two groups. These two groups include “the Planners (or Shoppers) and the Fashionistas” (Stahl, 2007, p. 6). This dual-targeting approach “will increase the firm’s overall rating” (Hassan & Craft, 2005, p. 86). The strategy will also increase the targeted CMP. However, the company will incur more costs in an attempt to satisfy the needs of these two segments.
How do the above pros support the new goals of TFC?
The above pros will support the most of the company’s objectives. To begin with, the company will attract more viewers using the above segmentation strategies. The proposed multi-segment will attract more viewers and eventually increase the firm’s gains. The dual-targeting strategy will ensure the company increases its overall rating. This approach will attract more advertisers (Stahl, 2007). Many cable companies will also make TFC a major business partner. The proposed strategy will also reduce the level of competition (Stahl, 2007).
A powerful segmentation strategy will attract more viewers. Many marketers and companies are currently examining the effectiveness of different networks in order to achieve their goals. Every TV network is identifying “better strategies in order to attract highly-valued viewers” (Hassan & Craft, 2005, p. 86). TFC should also monitor the level of customer satisfaction. The company should also use appropriate segmentation strategies in order to achieve its potentials. Wheeler should also identify new segments in order to maximize the company’s gains.
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Hassan, S., & Craft, S. (2005). Linking Global Market Segmentation Decisions with Strategic Positioning Options. Journal of Consumer Marketing, 22(2), 81-89.
Stahl, W. (2007). The Fashion Channel. HBS Brief Cases, 1(1), 1-12.