Tfc Fashion Channel Case Study

The Fashion Channel

Situational Analysis

The Fashion Channel was the very first and only network dedicated exclusively to fashion. It is up-to-date and the only fashion related channel to broadcast 24 hours a day, 7 days a week. It was founded relatively recently, in 1996, but has experienced continual growth, in terms of both revenue and profit. Although fashion is a niche network, TFC reaches about 80 million U.S. households and is available with a basic cable package. TFC most strongly appeals to woman ages 35 to 54, however they do not attempt to market to any segment of viewers in particular. In order to reach the highest viewership numbers possible, the channel thought to appeal to as broad a group as possible. Soon other channels like CNN and Lifetime were adding fashion programs to their channel, taking market share and advertising dollars away from TFC. TFC’s problem came about soon after it was founded. From the start TFC grew quickly but without identifying its segmentation, branding or positioning strategy. The purpose of TFC case study is to analyze the marketing challenge that TFC faces, evaluate their consumer segments and market data, and consider the options that TFC has in terms of scenarios and markets.

SWOT Analysis

TFC was the first cable network that gave its viewers 24/7 fashion programming. It was the first network to provide any information about fashion and the fashion industry. It is still the only network dedicated solely to fashion. These strengths allowed TFC to gain substantial market share and gave those interested in fashion an ultimatum, either watch TFC for your fashion needs, or do not watch any fashion networks at all. The idea of providing 24/7 fashion programming allowed for a wide audience view. Those who are interested in fashion but work at any point of the day or night are still able to watch TFC when they please. TFC, after starting in 1996 experienced both revenue and profit growth above the industry average. All of these advantages gave TFC monopoly-like-status for about ten years. Being a first mover TFC was able to enter an untapped market of fashion goers of all segments. The experience of revenue and profit growth gave TFC the ability to invest back into the company to make it incrementally more successful. TFC is a widely available niche network, reaching about 80 million U.S. households out of the 110 million households with a television. With an average rating of 1.0, this meant that around 1,100,000 people were watching at any given time. That is a huge impression opportunity, and an opportunity to make advertising dollars. TFC is also included on a basic cable package, so consumers do not need to spend extra money to view the channel. This increases their reach ability, further allowing consumers the ease of viewing. TFC also