The Fashion Channel

CASE PRESENTATION
Presented by
A. Ganesh Sashank
(15P073)

Prateek Patwal

(15P099)

Mayank Vimal
(15P093)

Sumit Das

(15P112)

MARKETING PLANNING

Suruchi Gupta
(15P113)

About TFC
Successful TV Channel dedicated solely to fashion 24x7
Constant profit and revenue growth since its inception in 1996
80 million U.S. households subscribed to cable and Satellite TV
Most avid viewers Women between 35-54 years of age
Fashion for everyone as the marketing theme in the earlier stages
Look Great on Saturday Night for Under $100 a more popular series in
2005

MARKETING PLANNING

Need for new Marketing

Strategy
Did not articulate any detailed segmentation, branding or positioning
strategy
Other networks began adding fashion-related programs in their line-up
Competition provided meaningful choices to both viewers and advertisers
Secure position as the market leader in the fashion broadcasting segment

MARKETING PLANNING

Dana Wheelers plans

Took into account view points from Norm Frazier Sr. VP, Advertising sales
If no performance change, then decrease advertising per unit price by 10%
Lifetime and CNN achieving notable performance ratings through their fashion
programs

Key Challenges:
1. Attract a critical mass of viewers
2. Target the right viewers
3. Maintain overall audience ratings with cable consumers
4. Maintain overall audience rating with cable affiliate distribution network

MARKETING PLANNING

Dana Wheelers plans

Her plans:
1. Build a strategy for segmentation
2. Use the segmentation as a base to employ all marketing tools
3. To reach target consumers with integrated positioning messages

Advertising was the key to TFCs growth

MARKETING PLANNING

TFCs Revenue streams

Cable Affiliate Sales

Advertising Sales

Target $70 million from C.A.S

Target $230.6mn from Advertising

Attracting consumers measured by ratings

TFC rated at 1.0 (1100,000 viewers at a time)

Fierce competition of Ad revenue

Ad buyers interests:

Consumers paid a monthly fee for basic

channels
Positioned as a basic channel, hence automatic
revenues
Fixed carriage fee - $1 per subscriber per year
Low fees Indicates niche content of the

1.

Buying ratings

2.

Buying Demographies

3.

Participation in fashion programming context

network
Good equilibrium between TFC and Cable
networks
Nothing much to be done

MARKETING PLANNING

Growth Drivers
Increase viewership (ratings)
Increase advertising pricing
Factors influencing ad pricing:
1. No. of viewers
2. Audience characteristics (age, demographics, lifestyle)
3. General competitive trends

High-valued viewers are the key to growth in Ad revenues

MARKETING PLANNING

Threats
Lifetime and CNN with new, targeted programs were gaining traction as
seen from the graph
Viewers may not like new programs, which may lead to drop of TFC out of
main cable operators
Some part of management were reluctant to change so could play spoilsport

MARKETING PLANNING

Attitudinal research findings

MARKETING PLANNING

Recommendations

MARKETING PLANNING