Niche Marketing Channel- The Fashion Channel

The Fashion Channel The Fashion Channel (TFC) is a niche marketing channel. Their target market consists of women between the ages 35-54. Since the competition increased and more and more channels focused on fashion related programs, the fashion channel had to rethink its segmentation and positioning. Their brand vision is to be the market leader and for this they required a new marketing strategy in order to retain their market position. For the channel industry, networks were increasingly evaluated on their ability to deliver specific target groups. The advertisers demanded 'delivering quality audiences'.

The Fashion Channel did not have any segmentation strategy initially. It had been a network for several years and had been buoyed by the growth that was achieved with the 'something-for-everyone' strategy. As the new competition was attracting key viewers segments they had to come up with their distinctive capability. There was a need for marketing initiatives to improve the following:  Consumer Interest  Awareness  Perceived value Advertising is the main source of revenue for the television channel industry. Stakeholders include, viewers, advertisers, distributors (cable operators). Their major competitors are Lifetime as they were attracting younger females and CNN which was delivering great number on men. TFC was facing additional competitive challenges to attract cable affiliates.

TFC evaluated three scenarios in order to choose the right segment.

Broad Based Segmentation: This was similar to their current approach of something-for-everyone strategy. The revenues were not growing in this segment. And competitors may also decide to advertise to the same segment, which could impact the ability to grow ratings. Also it was difficult to create a meaningful proposition for all these consumers and needs.

Focus on Fashionistas: This would be the most niche option which can help in positioning but the risk associated with fashion changes is high. The term Fashionista is used for the segment where people are very fashion conscious and try to do whatever comes in fashion. This segment is comparatively small and likely to be an obvious target for competitors.

Fashionistas and Planners: Planners are those who plan before copying what's in fashion. They do not just instantly follow 'what's in', but plan and then do it. For them price does play a key role and they plan first. This segment gives the most flexibility to target two very attractive segments.

Focusing on just Fashionistas is very niche and TFC thinks it's sensible to target Fashionistas and Planners. But a decision can only be made by integrating all the available information and looking at the financials for all these segments.

Thus the key to winning for TFC was being market oriented and delivering what the consumer wants.

Reference: http://www.researchomatic.com/The-Fashion-Channel-112770.html