The Fashion Channel: How to Stay Competitive

The Fashion Channel case details the importance of segmenting customers. WHile competitors begin to enter the market, such as Lifetime and CNN, TFC needs to identify its desired audience and market towards this defined segment. Currently, TFC is a basic channel, therefore reaching many households and accommodating four viewer segments (fashionistas, planners/shoppers, situationalists, and basics). The CEO believes marketing should appeal to a large group in order to capture high ratings and increase the number of viewers. However, I believe the CEO, who is also the founder of TFC, is allowing his emotional connection with the company to interfere with implementing the best strategy. If TFC does not refine its audience to a specific group, its current viewers are likely to switch. The channel needs to gain a loyal customer base. I agree with Wheeler that targeting the fashionista segment will be beneficial. Although this is the smallest segment, this customer group has the most interest in the channel and is therefore most likely to stay loyal. This will allow the channel to differentiate itself in terms of the programming it offers. Marketing and promotion catered towards the fashionista group can also help increase the volume of customers. As we discussed in class, fashionistas tend to be trend setters, and can have a large influence on others, attracting more toward the channel. Without defining a market, TFC will lose control of its audience and limit growth opportunities.