The Fashion Channel Harvard Case Solution & Analysis

The Fashion Channel Case Solution

The Problem Statement:

The Fashion Channel is currently facing a huge competition from its competitors such as CNN and Lifetime. The change in social and lifestyle of viewers is affecting its strategy and causing a decrease in revenues from advertisers and Cable Affiliates. The average rating of The Fashion Channel is very low as compared to specific fashion programs on Life time and CNN. The channel has no target strategy defined.Moreover, the Fashion Channel has the very old strategy, which was never changed since its beginning.

the fashion channel case solution

the fashion channel case solution


The Fashion Channel should target women of age between18 and 34. Three clusters that were decided to target were Fashionistas, Planners & Shoppers and Sensationalists. 3) Two clusters were targeted, Fashionistas and Planner & Shopper.

 The recommendation is based on the market research findings. Each of these clusters are made on the basis of three questions which are Rating, CPM and Competitive advantage. The reason for not including the fourth cluster is that the basic cluster comprises of mostly men. It will be unwise if they target more men rather than focusing its target market and positioning, which is women between the ages 18-34.

Supporting Analysis:



1)      The Fashion Channel is the first 24/7 fashion channel.

2)      It is the only channel that broadcasts 24/7 fashion related news and information.

3)      The Fashion Channel is operating in niche market.

4)      It has a high accessibility to all cable customers.

5)      It is very attractive for the advertisers because of low advertising fees and their large number of viewers.

6)      It is the favorite channel of 15% of the cable customers.

7)      The CEO announced a budget of $60 million for the change in strategy.


1)      The unwillingness of the management to change the strategy.

2)      The Fashion Channel has very low rating as compared to other competitors.

3)      The strategy used by The Fashion Channel is generalized for everyone.

4)      It has a low number of household viewers as compared to its competitors.

5)      The revenue is less than the expected revenue.

6)      The delay is seen in the development with the change in market segment.

7)      No particular segmentation and positioning of the channel.

8)      Less knowledge of staff in integrating advertising and programming potentials for better output.

The Fashion Channel Case Solution


1)      New advertising strategy that focuses different clusters rather than entire television viewers.

2)      The Fashion Channel can make better segment in its target market.

3)      The Fashion Channel can identify its loyal and valuable customer through these clusters.

4)      It can increase its ratings and number of household viewers by implementing the new strategy.

5)      A high probability of increase in revenue that reflects increase in net earnings.

6)      Targeting a particular segment will save its costs and divert its focus on a single segment............

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