The Fashion Channel is a TV network which features mainly fashion related content in its programs. It has a large subscriber base who are attracted by its content. Most of its viewers are women aged 35 to 54. The firm has operated without any customer segmentation, brand awareness or overall market strategies for a long time.
The firm seeks to change its market approach because it has realized that other TV networks are airing fashion programs targeting specific demographics. TFC intends to build a brand that will compete effectively in the market based on its reputation to capture more valuable customers.
The vice president of marketing, Dana Wheeler is setting up strategies to help the firm become more competitive in the market. The firm has not been able to increase the revenue it earns from adverts because advertising firms feel programs aired have low ratings.The firm intends to push up sales revenues by focusing more on specific viewers to help it strengthen its position in the market.
TFC wants to target specific customer segments in the market to make sure that its content reaches the right viewers. The firm needs to boost its ratings to attract more advertising revenue. The only way the firm can make advertisers interested in it is by airing content which appeals to young viewers who appreciate fashion.
The firm also needs to maintain its spot on cable TV affiliates by ensuring viewers are more interested in programs it airs. Cable TV subscriptions offer the second largest revenue stream and it needs to improve the ratings of its programs to help it earn higher revenues.
TFC is facing a lot of competition from mainstream TV networks which air a variety of content including fashion. Therefore, TFC needs to come up with content that targets premium viewers who have a strong appreciation for quality fashion. Lifetime and CNN, the two channels which threaten to overtake TFC in cable TV viewer ratings, have higher customer satisfaction scores compared to TFC.
Low ratings have made the price cable TV consumers pay to subscribe to the channel to decrease. The firm needs to effect radical marketing strategies to help it increase the value of its service in the market. TFC needs to profile its customers to understand their behaviour and attitudes towards its services. This approach will help the firm to sustain strong relationships with its clients to make them feel valued.
TFC will have to do a lot more to compete effectively with CNN and Lifestyle. The firm needs to improve its market insight to make its marketing approaches more dynamic. The company has to face the reality that advertisers are interested in younger viewers because of their willingness to try out bold trends in fashion. This has made the company’s marketing team to target a younger demographic of viewers aged 18 to 34.
However, there are some serious issues the firm has to contend with by shifting its market strategy. This shift in market strategy have far reaching impacts on TFC’s long term operations. The 18 to 34 demographic is also targeted by many other networks and as such, the firm may not realise an increase in its advertising sales as it had projected. TFC needs to engage with its customers to understand their needs in order to serve them better.
TFC ‘s strategies of focusing on many demographic segments, fashionistas and shoppers may offer it a wide range of benefits. However, the focus on multiple segments may deny the firm a chance to come up with niche content for its specific customers thereby limiting its market potential. If the firm opts for multiple segment programs, it will retain its loyal customers who do not want to see any radical changes in content aired.
The focus on fashionstas will enable the firm to target more female viewers willing to try out new content that appeals to them. This approach may entice more advertisers to air commercials through TFC. However, TFC will incur a lot of costs when producing programs that target fashionistas.
The focus on both fashionistas and shoppers will help TFC to increase its ratings because more viewers will be interested in its offerings. However, the firm will need to spend a lot of money to effect this change which shows that this alternative is highly risky.
TFC needs to find a way to boost its ratings. It should allocate specific time slots for multiple segment programs to retain its loyal customers. TFC should introduce specific content targeting fashionistas and shoppers and assess the way viewers and advertisers react to it.
The introduction of new content targeting these two segments should be done cautiously to ensure the firm does not spend too much money which it cannot recover. The firm needs to increase premium content targeting fashionistas and shoppers only after getting positive reviews from customers.
This approach will help TFC increase the ratings of its products to make it more competitive in the market. Therefore, advertisers will be willing to pay more to air commercials through the TV network which will increase the firm’s sales revenue.