The Fashion Channel

Situation Analysis, criteria for evaluation, options, recommendation, action plan, evaluation of option.

Problem Statement:

The Fashion Channel Company needs to strengthen its competitive position and is willing to spend an estimated $60 Million on advertising, promotion, and public relations in 2007.

Situation Analysis:

Company: TFC's main focus has been solely on fashion which is broadcast all hours of the day 7 days a week. This channel reaches close to 80 million viewers in US households with their main demographic being women between 35 and 54 years of age. The Fashion Channel is a niche channel.

Competitors: TFC had no significant competition in terms of the fashion-specific content it offered, this "something for everyone" approach was a winner. But competitors such as CNN and Lifetime made note of TFC's success. They began to offer fashion-specific programming. Consumers now have a choice, and the ratings show that non-loyal consumers are starting to choose alternatives to TFC. Reasons for this can be found in the recent Alpha research study on customer satisfaction, which shows that when it comes to consumer interest, awareness and perceived value, both CNN and Lifetime outscore TFC.