fashion channel case write up

fashion channel case write up - Xiaomeng Shi BUSI 406...

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Xiaomeng Shi BUSI 406 4/5/2010 Fashion Channel Case Study The Fashion Channel (TFC), a cable television network, has experienced constant revenue during its first 10 years (1996-2006) with undifferentiated marketing strategy. It targets on all groups of viewers to maximize the viewership numbers. However, in 2006, many other networks begin to add fashion-related programming, which skimmed TFC’s viewers and ad dollars. As a result, TFC is facing a major problem of reduced revenue from both cable companies and advertisers. A marketing segmentation program is suggested. GFE’s research results show that TFC has a clustered consumer preference, thus a segmented or concentrated marketing should be better than the mass marketing. There are three options. The first one is to broadly target three groups (Fashionistas, Planners & Shoppers, Situationalists) that consists 80% of the households. This broad multi-cluster strategy will keep attracting most of its current audiences. By investing in a major marketing and advertising campaign and programming, there will be an increase in awareness and viewing of the channel. Also, since this strategy only gives up the basics cluster, the risk of targeting on wrong customers is very low. Being on screen for one more year will increase the customer loyalty as well. However, since the advertisers are seeking for “high-quality”
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This note was uploaded on 02/27/2012 for the course BUSI 407 taught by Professor Bowen during the Spring '11 term at UNC.

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fashion channel case write up - Xiaomeng Shi BUSI 406...

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