The Fashion Channel (TFC) is a TV channel that only premier’s fashion related information 24 hours a day, 7 days a week. With their early theme of “Fashion for Everyone” this dedicated channel found a niche with customers in the 35-54 age range. Despite their initial success, TFC failed to collect detailed segmentation information and by 2006 TFC was losing CPM (cost per thousand views) as well as ad revenue to CNN and Lifetime’s segmented fashion shows. These competitors begun to offer fashion related segments that quickly eroded TFC’s ad and revenue ratings, and they began to beat TFC in nearly every category from consumer interest to perceived value, awareness, etc. Norm Frazier, the Senior VP, hired Dana Wheeler- marketing expert, to help increase viewership and advertising pricing as well as return TFC to the dedicated TV fashion leader they once were.
After collecting data from GFE Associates, a well know marketing and research firm, Dana Wheeler identified four distinct groups that make up all the viewers that TFC reaches.
Fashionistas - 15% of the TFC’s overall viewers, highly engaged in fashion, 61% female, 30% in the 18-34 age.
Planners Shoppers - 35% of overall viewers, participate on a regular basis mostly female 53% 18-34.
Situationalist- 30% of overall viewers, shop for specific needs, younger, still women.
Basics - 20% of overall viewers, disengaged. Dana quickly decided they were not worth fighting for.

Armed with this information, Dana proposed a strategy in which she outlined three choices to meet the customer’s needs and accomplish the goal of increasing revenue, viewers and advertising pricing.
Scenario 1: Develop a broad strategy that markets to Fashionistas, Planner-Shoppers and Situationalist.
-Strengths: Ratings increase from 1% to 1.2% and no needed additional programming cost are required.
-Weaknesses: CPM, which is how advertising prices are expressed, will drop to $1.80 from $2.00. They will also continue to lose viewers by as they are engaging in the same strategy that got them here.
Scenario 2: Focus on the Fashionistas only. This requires $15 million in additional TV programming.
-Strengths: Fashionistas spend the most, have the highest concentration of females of any group and the CPM in this strategy is $3.50 which is the highest off all the scenarios.
-Weaknesses: By focusing solely on the Fashionistas, whom makes up 15% of overall viewers (almost 80/20 rule), they alienate other groups and consequently receive the lowest viewer ratings of all the scenarios at 880k. Additionally, Fashionistas will likely use multiple resources for fashion and not remain loyal to TFC but rather loyal to a brand, trend or style.
Scenario 3: Implement a mixed marketing plan that combines focusing on Fashionistas and Planners-shoppers together.