1 / 64

Weight Loss Programs

Weight Loss Programs. Lauren Glasky, Nicole Nava, Ben Wainberg. Agenda. Industry Overview Major Players Primary Advertising Methods Raw Data Analysis Recommendations. Why Weight Loss Program Industry?. Growing industry because:. Industry Overview. Industry Overview - Definition.

Télécharger la présentation

Weight Loss Programs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.


Presentation Transcript

  1. Weight Loss Programs Lauren Glasky, Nicole Nava, Ben Wainberg

  2. Agenda Industry Overview Major Players Primary Advertising Methods Raw Data Analysis Recommendations

  3. Why Weight Loss Program Industry? Growing industry because:

  4. Industry Overview

  5. Industry Overview - Definition Multi-billion dollar industry Provide nonmedical services to clients to assist them in losing weight or maintaining a desired weight. Services typically include individual or group counseling; menu and exercise planning; and weight and body measurement monitoring. Industry operators may also sell food supplements and other weight reduction products. This industry does not include fitness centers, health resorts and spas or medical or surgical weight reduction services.

  6. Industry Overview - Activities

  7. Who are the main competitors?

  8. Industry Overview & Structure HHI = 1,915.74 Four Firm Concentration = 67% Number of Businesses = 24,901

  9. Industry Overview - Barriers to Entry IBISWorld rates the degree of barriers to entry as: low and steady

  10. Industry Overview – Technology & Systems Level of Technology Change has been Medium • Greater use of telephone and online services to deliver advice, ordering, etc. • More companies operate delivery-based weight loss services through an online platform

  11. Industry Overview - Industry Assistance Level of Industry Assistance and the trend is Medium and increasing Tax deductions available for individuals who have conditions (i.e. heart disease, hypertension) that could benefit from weight loss treatment.

  12. Industry Overview - Industry Performance Life Cycle Stage: Moderate growth

  13. Industry Overview - Competition Competition is high and increasing

  14. Industry Overview - Key Success Factors

  15. Industry Growth Annual growth 07-12 = -2.4% Expected Annual Growth 12-17 = 2.5% 2012 Revenue = $2.7 billion 2012 Profit = $313.3 million

  16. Factors of weight loss program consumption

  17. Google Trends: 2004 - Present Google Trends: Analyzing 2010

  18. Major Market Segmentation • Women are the largest purchasers of industry services • Make up over 85.0% of members • 70 million people are on a diet – 20 million are men • However, higher percentage of American men are overweight or obese • Spending on weight loss services also varies depending on a consumer’s age.

  19. Business Locations • Dependent on population levels, as well as obesity rates and disposable income levels • The Southeast • 26.9% of industry establishments • Highest obesity rates: Kentucky, Louisiana, Mississippi and Oklahoma all have obesity rates over 30.0%. • Mid-Atlantic • 17.6% of industry establishments • Region has slightly higher-than-average per capita income level, making consumers more likely to spend on discretionary services. • West • ~16.5% of industry establishments • California, alone has 13.2% • Great Lakes • 13.4% of industry establishments

  20. Business Locations

  21. Regulations • Regulation in the industry is Medium and Steady • The FTC regulates laws related to advertising, disclosures to consumers, privacy, consumer pricing and billing arrangements. • Individuals under legal age require parental or guardian before beginning a professional weight loss program

  22. Major Players

  23. Major Players Weight Watchers Nestle (Jenny Craig) Nutrisystem

  24. Weight Watchers Market Share = 39.4% Began in NY in 1963 As of 2012, has 1.3 million members Meeting fees make up over 54.0% of the company's revenue Sells products (bars, snacks, cookbooks, food and restaurant guides) – 15.4% of revenue Internet revenue – 22.0% of revenue

  25. Jenny Craig Market Share = 11.6% Founded in 1983 in Melbourne, Australia Now owned by Nestle Has provided services to more than 5 million members Offers 80 entrées and snacks to clients Sells videos, cookbooks and exercise accessories Consultants offer advice and encouragement to members

  26. Nutrisystem Market Share = 15.1% Established in 1971 Typical customer is female and about 50 years old Offers home-delivery meal program with low-calorie and portion-controlled meals Counselors are available to answer questions and make recommendations to clients (online tools and counseling)

  27. Primary Advertising Methods

  28. Informative Advertising • Price • Ease • Disclaimers • Methods of Access • Website • Phone Number • Science and Health

  29. Science in Weight Loss Ads Nutrisystem uses the science of the "glycemic index" to differentiate "good carbs" from "bad carbs"

  30. Celebrity Endorsements

  31. Weight Watchers"Expect Amazing" Campaign Use of celebrity endorsements (Jennifer Hudson, Jessica Simpson) Mention new "Weight Watchers 360" program which is "built for human nature" Relate to people who have failed at diets before Mention typical "non-diet" foods that you can eat on the program Expect Campaign

  32. Average People Testimonials Include Emotional Stories Try to relate to audience they are targeting Explain Product Attributes through narrative

  33. "The I'm only human and I did it Project" A compilation of video blogs from average people (and celebrity endorsers) giving unedited and unfiltered testimonials of their successes with Weight Watchers. As an experience good, these ads strive to enhance perceived quality and credibility of the service

  34. Targeted Audiences Mothers Young Women Men

  35. Targeting Moms: "We Know Moms" Campaign Launched by Jenny Craig with actress Nicole Sullivan

  36. Targeting Men: Weight Watchers for Men Feature celebrity NBA player Charles Barkley Frequent use of humor Mention of typical "man foods" such as beer, wings, pizza Break stereotype that diets are for women

  37. Humor Ads Less common Used more for ads targeting men Charles Moment

  38. Emotional Benefits Important for an Experience Good Confidence Happiness Reclaimed Youth Love Life Typically used in testimonials and are important for an Experience Good

  39. Valerie Bertinelli for Jenny Craig

  40. Product Placement

  41. Food Appeals Visuals Recipes Branded Food

  42. Sex Appeal Before and After Improved Sex Life

  43. Nutrisystem Campaign"A Different Approach" • One testimonial: • "Since nutrisystem, my sex life is excellent." • Another ad questions: • "Has your sex life slowed down or come to a screeching halt?"

  44. Internet Advertising Website with Online Tracking and tools Special Online Ads only and Video Blogs Online Calculators

  45. Weight Watchers’ Ana Gasteyer Online Campaign Exclusive online campaign featuring celebrity comedian Different approach from the usual uplifting, inspirational spokespeople that are normally used

  46. Social Media

  47. Comparative Ads • Weight Watchers Comparisons • 'No Counting!' • Nutrisystem Comparison Website

  48. Advertising Expenditures • Weight Watchers • 2012 Advertising and Marketing Expenditures $27,437,000 (Source: Mergent Online) • 2012 Ad-to-Sales Ratio of 18.31%

  49. Raw Data Analysis

More Related