The Fashion Channel has been performing well, and its executives have been striving to make the marketing strategies to be successful. However, the company still faces some challenges that may affect its performance. The company faces competition from major television channels such as CNN and Lifestyle. These organizations have introduced new fashion content that may pose a competitive threat to The Fashion Channel. The new content has been able to deliver a significant portion of the market share.
1. Why implementing the environment analysis is a critical task to the firm in an attempt to understand and identify customer needs and wants
Understanding the environmental factors that surround the business operations is essentially important for every organization. The managers are able to develop effective strategies that may contribute to the improvement in organization’s performance and success. To ensure satisfaction of the customer needs which are ever changing, the firm ought to understand the external and internal situation which includes the environment of the market, the customers, and the capabilities of the firm. The firm needs to forecast more on the dynamic changing trends in the fashion industry.
Situational Analysis (5Cs analysis)
Company: There are different factors that are affecting the performance of the company. There are factors such as economic issues that affect the business and marketing strategies which are being adopted by The Fashion Channel. One of the economic factors is changes in prices. The prices have been fluctuating affecting the pricing strategy of the company. The company has been striving to adopt the most appropriate strategies that will help in making it the most competitive cable network channel. The company has been bale to recognize that there is strong competition from several other cable networks.
Customers also form a very important part of the factors that influence the strategy which is being adopted by the organization. Customers are dynamic and have varied demands. Therefore, the company has to develop the most appropriate strategies that help in meeting their needs. Different consumer groups have different needs thus the firm ought to target the customer segments to identify the specific needs.
Competition: The other factor that affects The Fashion Channel is competition. There is extreme competition within the cable network industry. There are major companies that pose a competitive threat to TFC such as CNN and Lifestyle. These companies have established some competitive fashion programs that are a threat to TFC.
Collaborators: they will be useful for the business as they allow for an increase in idea creation and increase the likelihood of more business opportunities. They are the suppliers of the firm, the distributors, the agencies and the partners. The firm has been able to identify its collaborators whether they have the capabilities needed to help the business achieve success.
Climate: to understand the environment, many factors, affect the business, and they ought to be well researched to help the firm be able to respond to changes. The firm has analyzed the PEST analysis and how the affect then business.
2. Segmentation and Targeting Analysis
Market structure: SWOT Analysis
The company has some internal strengths and weaknesses. It should take advantage of its strengths to establish some strategies that will increase its competitiveness. It should also reduce the weaknesses for better performance. There are also external opportunities that the company needs to make use of for success. There also external threats that should be reduced.
The STP market structure
The concept of STP will be important in the marketing structure of the firm ought to have a structure which has segmentation, market target and market positioning. These will demonstrate links between how the firm will choose to compete in the fashion market and the overall market.
It involves the subdividing the market into different customer subgroups, in which any subgroup can be chosen as a target market. There are many market segments that can be used by the firm. The first thing for the company is to collect the information about the market, the customers and the competitors. It can provide the information to the customers through the social media and through the online marketing. The firm should split the market into small groups which have the same needs for the product and which have characteristics which are identifiable. This will help in selecting an appropriate target market.
The Fashion Channel should be engaged in target marketing. The company in its marketing strategies has not been effectively targeting specific customer segments. It has been focusing on broader market segments rather than a specific segment of the market. By targeting specific market segments, the company will be able to attract and retain the segments with its new programming. The company needs to design its products and services in a way that they able to meet the expectation of customers with their specific segments and needs. The company needs to create awareness in of the programs that available among these segments and establish distribution networks through affiliates to increase viewership.
Positioning and Differentiation
Positioning and differentiation strategies play an integral role in ensuring companies and organizations compete effectively on the market. The other alternative that can boost the viewership and revenues of The Fashion Channel is differentiation of its fashion programs from that of its competitors. The company needs to put in place marketing initiatives that will improve the interest of the consumers in the programs and have perceived values. Programs that are being offered by the company should be superior and of high quality among the viewers. Differentiating products and services will enable the company to charge relatively higher prices and generate more revenues.