The Fashion Channel Case Solution & Answer

The Fashion Channel Case Solution 


  • Change in strategy might lead to a disappointment in current audience and employees of The Fashion Channel.
  • The competitors might come up with more programs that are more attractive to the viewers.
  • Viewers might dislike the new programs by The Fashion Channel and a drop in main cable operators can occur.
  • Low ratings and less awareness may take The Fashion Channel towards a failure and reflects huge decline in revenue and earnings.
  • The strategy can lead it towards a niche market.

Competitive Analysis

The two main competitors for The Fashion Channel are Lifetime and CNN in the fashion industry. These channels also have high ratings of their particular fashion programs. The Fashion has an overall rating of 1.0, which is very less as compared to the ratings of CNN’s 3.0 and lifetime’s 4.0.

Figure: 1

The Fashion Channel is also facing huge rivalry problems with cable affiliations. The Fashion Channel has achieved a rating of 3.8, whereas CNN and lifetime have 4.3 and 4.5 on consumers’ interest of viewing. Simultaneously,The Fashion Channel has also achieved a low rating in awareness and perceived value. The scale used in the rating is 1 to 5.The Exhibit 1 has details on the ratings.

  The Fashion Channel CNN Lifetime
Interest in viewing 3.8 4.3 4.5
Awareness 4.1 4.6 4.5
Perceived Value 3.7 4.1 4.4

Table: 1

The Fashion Channel is not only facing competition from Television programs but from magazines, fashion catalogues, social networking sites, blogs on internet, Online digital magazines and the fashion sites as well. It can be observed that the print magazines are relatively a big rival than digital magazines.

Market Analysis

The current markets of the US household viewers were divided in four segments. The segments are made by taking in view of different lifestyle and passion of the viewers towards fashion. The analysis will help The Fashion Channel to segment its valued viewers.


The basics are the least fashion interested television viewers. This segment is composed of 55% males and 45% females as well asthis segment includes 20% of the total US Television Households. The viewers are interested in value and spend less time thinking about their outfit as they don’t like shopping or don’t enjoy shopping.


This segment contains 30 % of the total television households, which is about 33 million. The segment has  53% females, from which only 30% are between the ages 18 to 34. They mostly shop whenever there is a need or situation of shopping. Moreover, they enjoy shopping for situational needs of the outfit.

Shoppers & Planners:

The segment of Shoppers &Planners are mostly the buyers who enjoy shopping for related things as well as they participate in fashion on a routine basis. These shoppers and planners have huge interest in fashion and always make sure that their lifestyle is up to date on fashion. This segment includes 35% of the total US Television Households for the Fashion Channel. The segment encounters 53% of women of which 25% are ages from 18 to 34.


The segment of Fashionistas comprises of viewers that are highly engaged in fashion. Their size of cluster is 15% with 61% females in it, whereas half of this segment comprises of women fro mages 18 to 34 and the people in this segment have knowledge in fashion related things. They love to anticipate fashion trends and stay up to date andfashion is said to be their middle name, they love to shop.

Financial Analysis

Scenario 1: Broad Multi Segment

This scenario has a broader view to attract audience. All the three cluster segments; Fashionistas, Planners/Shoppers and the Situationa lists are targeted in this scenario. The age of women in this alternative is 18 to 34 years. Moreover, 80% of the total TV households are covered in this scenario whereas,80% reflects about 88 million household viewers of TV………………….

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