The document discusses The Fashion Channel (TFC) television network. It provides background on TFC, noting it was founded in 1996 and became one of the largest niche networks. However, it began losing viewers and ratings to competitors. The document evaluates three targeting options for TFC to regain viewers. It recommends targeting both "Fashionistas" and "Planners & Shoppers" segments, as this option is projected to generate the highest revenue, net income, and margins out of the three options.

1. THE FASHION CHANNEL
Presented by: Team B6
Anubala B
Suganya R
Sairam T A
Prasanna
Kiruthika
Vetrivel J

2. OVERVIEW
 Founded in 1996 as the first TV Cable Network
dedicated to fashion all day long.
 Steady increase in Revenue and profit above industry
average, since inception.
 2006 Revenues were forecast at $310.6 million.
 One of the most widely available niche networks.
 Had a wide reach of almost 80 million U.S. households.
 Women aged between 35-54 were its most avid
viewers.
 Had no detailed segmentation, branding or positioning
strategy.

3. QUESTION: 1
What is/are TFC’s problem/s and
objective/s right now?

4. Problems:
 Competition from Lifetime and CNN who came up with
fashion-specific programs.
 TFC’s ratings took a tumble as compared to their
competitors, and it slowly started to lose consumer interest.
 Ad pricing also took a hit due to under-performance.
Objectives:
 Develop a strategy for segmentation.
 Regain the viewer base so as to avoid being put under less
appealing packages by the cable operators.
 Increase their ratings.

5. QUESTION: 2
Interpret the demographic and attitudinal
cluster data/analysis and comment on its
usefulness for the problem/s at hand.

6. INTERPRETATION OF DEMOGRAPHIC AND
COMPETITOR COMPARISON
 When compared to competitors,
- Average rating of 1.0 should be increased.
- Average households of 1.1M should be
increased.
 Fashion channel mainly focus on male of all ages
and female aged 18-34,
- 61% of total female viewers watch fashion
channel
- 39% of total male viewers watch fashion
channel
 Old people are not showing interest towards
fashion.

7. INTERPRETATION OF ATTITUDINAL CLUSTERS
• Fashionistas – small cluster with size of 15%(165000
households) but shows huge interest towards fashion with index of
140, fashion is entertaining.
• Planners & Shoppers – Cluster with size of 35 %(385000
households), Fashion is practical, index – 110
• Situationalists – Cluster with size of 30%(330000 households),
Fashion is both practical and entertaining, index – 105
• Basics – Cluster with size of 20%(220000 households), do not
enjoy shopping, index - 50

8. QUESTION: 3
What criteria will you use to evaluate the
targeting opinions? What are the PRO’s
and CON’s of each option? What are the
financial implications of each?

9. CRITERIA FOR EVALUATING TARGETING
OPTIONS
• Based on CPM
• Based on ratings
• Impact on revenues

10. OPTION 1 :
• Focusing on Fashionistas, Planners & shoppers
and situationalists.
• Research on women aged 18 to 34.
Pros
 Boosting rating of 20% ie from 1.0 to 1.2.
 No incremental programming expense.
Cons
 10% drop in CPM.
 Competition would penetrate.

11. OPTION 2 :
• Focus on Fashionistas.
• Women aged 18-34 demographics.
• Fashionistas - Smaller than the other segments
holding only 15% households.
Pros
• CPM – 3.5
• Creating stronger audience in female oriented
fashionista segment.
Cons
• Reduction in rating 0.8
• Additional programming expense required.

12. OPTION 3 :
Focusing on Fashionistas and the shoppers/ planners.
Pros
• Rating 1.2
• CPM - $2.50
Cons
• Additional programming expense required.

13. FINANCIAL IMPLICATIONS
• Among 3 options,
- Revenue from ad sales of option 3 is high.
- NetIncome of option 3 is high.
- Margin of option 3 is high.
• Marketing and advertising expense of options are
high when compared to actual.

14. QUESTION: 4
Which option will you recommend to TFC and
why?

15. From the Spreadsheet, we can see that Scenario 3,
where Fashionistas and Planner & Shopper
segments were targeted together, resulted in the
highest Net income and also the highest Net
Margin. This is the first time TFC is planning to
build its marketing program around the right
consumer segmentation i.e men of all ages and
women aged 18-34. Average ratings will increase
by 20% to 1.2 with a potential CPM of $2.50.
Therefore, The Fashion Channel should reposition
the channel towards Fashionistas and
Planners/Shoppers to increase viewership and
advertising revenue.

16. Thank You