Fashion Channel Market Segmentation Essay

integrity of TFCs glaring strengths is that it specializes in fashion-oriented programming. The companion is apply to fashion programming 24/7, nitty-gritty it is in a position to act the grocery store. Secondly, TFC appeals approximatelyly to women between 35 and 54. The familys ravishership in the sh be is 45% comp ard to 42% and 40% for Life cartridge holder and CNN respectively. This crime syndicate has the largest add of viewers and at the equal time, one of those segments that is able to tempt support pricing. In addition, the attach to operates under the grassroots personal line of credit package. The package has more than 80 million subscribers in the U.S designateing that a large number of people stir access to the channel.Conversely, TFC faces several weaknesses. Firstly, the association has non fully diversified its operations it only(prenominal) specializes in fashion tie in programming. This could opus doom for the play along, especially if the current propensity is an indication of the future. Moreover, in that location is a persona of the top management that is reluctant to assume change in the governance. The implication is that Danas recommendations may fail to get fuckonical for fear of the unknown. Thirdly, the satis faction level of TFCs customers is on the decline. The company is quickly losing customers to the two major competitors, and thither atomic number 18 fears that the edit is sustainable. The other major weakness is that the organization has non segmented its market place. The company ought to segment its market in order to welfare from the premium fee charged for the passing valued demographics.There are a number of opportunities available for TFC in its external environment. To begin, advertisers are ready to pay a premium for higher order as well as defined demographic programming. Channels with higher rating are able to charge more for publicizing meaning that TFC dissolve gain super numerary revenue if appropriate strategies are veritable to religious service increase its overall market rating. Secondly, there is a more means for the company to increase its market size. air specific programming is continually gaining projection among viewers in the U.S. market. In addition, viewers demand on interlocking content and ad is directly think to the cost of advertisement. The company can thereof increase its ad revenue done merchandise strategies aimed at increasing viewership.One of TFCs predominant affrights is its two oral sex competitors CNN and Lifetime. The two are constantly eating into the TFCs major revenue base, and may even force the company let out of the market. The second threat is that TFC is only entitle to $1 per subscriber. This is quite a atrophied portion that can non fully sustain the companys operations. Besides, there is a threat that TFC may get dropped from the basic cable platform if subscribers satisfaction fails to improve. This may mean total loss for course. TFCs cardinal Strategic IssueThe company appears to inadequacy a clearly defined business strategy. The companys product-market focus is vague. For instance, TFC has not segmented its market into different segments. pick Strategic Promotional Courses of Action ersatz 1There are a number of marketing courses of action at TFCs disposal. The first one, and perhaps more or less important, is market segmentation. The company should divide its market into different segments and concentrate on increase the revenue for the segment of choice. According to the info provided in the case, a combination of Fashionistas (scored 23.1M) and Shoppers/Planners (scored 42.35M) segments appears the most economical alternate for TFC. The two categories of customers are highly twisty in matters related to fashion and are hence a suitable target for the company. There is in any case economic benefit involved if the company opts to back the strategy.First ly, an admixture of the two segments yields a high profit margin (39%) in comparison to any other choice. Besides, the alternative will trigger an increase in overall rating by 20%. There is a potential wax in the companys rating from 1.0 to 1.2 consequently leading to increased revenue. In addition, this segmentation has the highest percentage of viewers 50% (=35% + 15%). The large number of viewers in two segments is thus suitable for the company, especially given that it but specialize in fashion programs. The difficulty with this alternative is that there is an increment in programming expenditure by $20 million.Alternative 2The second alternative is broad-based marketing. This involves treating the entire market as a single group typified by customers with dual-lane needs. The advantage of this strategy is that it is quite paid at least in the short-run. Its acceptation is likely to earn the company a net profit of more than $40 million (=$94.9 54.6). In addition, the ap proach does not attract additive programming expenditure. On the other hand, the broad-based alternative will renounce TFC the opportunity to earn premium CPM (Cost per thousand).Alternatively, TFC can opt for Fashionista segmentation. Using 2007 as a base year, the alternative may move for the company at least a net income of $100 million (=151.4 54.6). In addition, the approach is likely to boost the companys overall rating from 1.1 to 1.2. The company will also be in a position to increase its charges from $2 to $3.5. Conversely, the Fashionista alternative will lead to an incremental expenditure of $15 million.Decision and performance PlanThe virgin promotional jut should be positioned towards a combination of Fashionistas and Shoppers/Planners segment. Although there are a number of risks involved in this strategy, the returns are investing in the strategy. One of the greatest challenges for the company is maintaining the devoted customers while at the same time woo ing new planners/shoppers and fashionistas. The company essential come up with slipway of ensuring that they do not lose some customers. This is realizable through evaluating the programs popular among the loyal customers and ensuring they are not disrupted by the new alternative.The company can also bench mark with its customers to learn how they are able to attract a huge number of fashionistas. The fact that the alternative may lead to incremental $20 million expenditure presupposes that its death penalty is quite expensive. Benchmarking with Lifetime and CNN can help reduce the cost. Finally, the company should devise ways to foster awareness, perceived value, and interest of its products among consumers. This can be achieved through online marketing and ensuring there is appropriate social media policy in place to avoid misuse of the marketing platform.