The Fashion Channel is facing intense competition from the likes of CNN and Lifetime who were ahead of TFC in terms of popularity and ratings. They had to come up with better segmentation and positioning strategy to increase their viewership, revenue potential, and differentiate themselves from the competition.
Harvard Business Review (2075-PDF-ENG)
June 01, 2007
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The Fashion Channel Case Answers
Problem Statement – The Fashion Channel Case Study:
The Fashion Channel is facing intense competition from likes of CNN and Lifetime who were ahead of TFC in terms of popularity and ratings. They hence had to decide on their segmentation and positioning strategy to increase their viewership, revenue potential and differentiate themselves from the competition.
Causes of the problem:
- Ratings: Based on an alpha research study on customer satisfaction with cable networks, TFC had lower scores as compared to its competitors in awareness, perceived value, and consumer interest
- Cable Operators were classifying channels based on general customer satisfaction. It received a low subscription fee of only $1 per subscriber per year which was at the low end of the industry range.
- They were targeting a very wide range of the customers and which included 31% of males who were in the “Basics” customer segment they showed very little interest in fashion.
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