This case study analyzes the fashion cable network TFC and potential strategies for increasing revenue. TFC faces competition from Lifetime and CNN fashion programs. The document evaluates three scenarios: 1) decreased ratings and costs, 2) increased advertising rates but high promotion costs, 3) increased ratings and costs through extensive promotion. Scenario 3 is recommended as it increases both ratings and advertising rates, though it requires high promotion costs. The key objectives are increasing revenue and developing a stronger consumer base.

1. Case Study
Submitted By:-
Arpita Tripathy
Gourav Sharma
Maitri Shah
Pratik Kumar Nag
Tulasi Kumar Nanda

2. Case Analysis
 TFC (The Fashion Channel) founded in 1996 as first founded
as first TV cable network devoted only for fashion (24*7)
 Dana wheeler Vice president of marketing.
 Avid viewers-Women of age 35-54 yrs.
 Lifetime and CNN had launched specific fashion programs
who are main competitors.

3. Revenue Generation
Revenue
Cable NetworkAdvertisement

4. Revenue Model
$230.36 Mn
for year 2016
6 min of Ad
time for every
half and hour
Price was
expressed in
CPM for
which an
advertiser
would pay
Advertisement
model based on
Rating(% of TV
household
watching on
every average
during measured
viewing
period)
Advertising Revenue
Model
$80Mn for year
2006
Positioned as
Basic channel
hence available
in basic cable
packages.
MSO would sign
multi contracts
with the network
Average fee $1
per subscriber
per year
Cable Affiliate Revenue

5. Problems of TFC
 Two competitors-Lifetime and CNN
 As compared to its competitor average rating for awareness is less.
 Decrease of revenue from cable affiliates and advertisers
 TFC needs more than just its “Always on fashion for everyone”

6. Alpha Research Study
TFC LIFETIME CNN
Consumer interest in
viewing
3.8 4.3 4.5
Awareness 4.1 4.6 4.5
Perceived Value 3.7 4.1 4.4
It is measured in scale of 1 to 5 (5 being the highest possible score)

7. Different Scenario
Scenario 1 Scenario 2 Scenario 3
Rating(%) Increase 20%
1.2%
Decrease 20%
0.8%
Increase 20%
1.2%
CPM(cost per minute) Decrease 10%
$1.8
Increase 25%
$3.5
Increase 25%
$2.5
Programming cost N/A $15,000,000 $20,000,000

8. Ad Revenue Calculator
..DownloadsBook1.xlsx

9. TFC estimated financials for 2006 and 2007
..DownloadsBook2.xlsx

10. Scenario 1 ANALYSIS
Advantage Disadvantage
• Focus on more viewers • 20% decrease of rating
• Expense less • Ad sales drop by 10%
• Current consumers are
satisfied
• CPM decrease to $1.8

11. Scenario 2 ANALYSIS
Advantage Disadvantage
• Increase of advertisement
revenue
• Rating decrease to 0.8%
• Increase of CPM $3.5 • Huge promotion cost $15
million
• Development of proper
consumer base
• Only 15% household were
targeted

12. Scenario 3 ANALYSIS
Advantage Disadvantage
• Rating increase by 20% • Huge promotion cost $20
million
• CPM increase to $2.5
• Development of consumer
base

13. Recommendations & Decision
 Main objective increase of revenue.
 Increase of expenses are there .
 Clearly advantages outdo disadvantage.
 Evidently we are choosing Scenario 3