can somebody help me with my business strategy , here is the instruction

Using the attached Case on Weight Watchers ......Analyze the Following Complete an Industry Analysis Identify the Key Success Factors for this Industry Submit Financial Benchmark (over 3 Years....compared with 2 other Competitors (Use either, S&P Net Advantage, Mergent Online and Business Insights Essentials for Financials) Weight Watchers Case.pdf Case 25 Weight Watchers International Inc. "Weight Watchers' profits have jumped off the scale." developing new and innovative products and services, the So read the investment news headlines in February 2011 development of more favorably perceived or more effec applading Weight Watchers prediction that 2011 revenue tive weight management methods (such as pharmaceut- would grow by 15 to 20 percent. Weight Watchers, while cals and surgical options such as the Lap-Band), and the the undeniable industry standard, had lost some of its lu- threat of impairment of the Weight Watchers brand and ter in recent years as many potential consumers considered other intellectual property it the prior generations answer to weight loss or simply not The challenge for Weight Watchers was reposition the right weight-loss choice for them. Originally started ing itself and creating a forward-focused diet plan for the in 1963 by Jean Nidetch as a support group for women in 21st century while staying true to the mission initially her home, Weight Watchers International Inc. had grown established by Jean Nidetch. Weight Watchers's founder into a multibillion-dollar weight-loss goliath in a mat The brand needed to remain relevant and at the same ter of four decades' time. Aware of this stigma, Weight time, pursue additional medium- long-term initiatives Watchers had set out to reinvent itsell. In November 2010 such as reaching out to new market segments How could Weight Watchers introduced the new Points Plus system, Weight Watchers retain market leadership while staying This replaced the old calorie-counting system by consid-hip, relevant, and promptive? While Weight Watchers had ering where the calories come from. Even though calo- made the effort to introduce new products for several years ries still counted, Points Plus encouraged people to eat a and had been in the process of shifting its strategic focus wide variety of healthy foods split between three meals from narrow-to broad-based differentiation, the question plus stacks within an individualized calorie level. With a still remained whether the company could stay true to its counting system based on 2010 dictary guidelines, dieters core values, mission, and models and at the same time, were encouraged to maximize their Points Plus allowance embrace effective expansion by choosing more "Power Foods," the healthiest, most fill- Going into 2011, Weight Watchers attempted to rein ing foods, such as whole grains, lean meals, low-fat dairy, vent itself by introducing marketing and product innos and unlimited quantities of fresh fruit and nonstarchy veg. tions both in the United States and abroad. It began to look ctables. Doctors and nutritionists gave the new program beyond its core market of women expanded its business a thumbs up: "1 always loved the peer support aspect of model, launched new programs, and rejuvenated its brand the Weight Watchers program but it concerned me that However, the continued expansion and innovation initia the old points could be used for anything." Keri Gans, an tives raised several concerns. Will this expansion in scope American Dietetic Association spokewwoman said. "The move Weight Watchers too far from its original mission new Points Plus program addressing where calories come and core philosophy? Will the extensions of the Weight from is a huge improvement Watchers brand succeed at attracting new members with The market for weight-loss products was growing and out losing the existing ones? obesity levels were on the rise in more and more parts of History and Expansion the world, which made weight management an attractive industry for firms, especially deeply entrenched firms Jean Nidetch began Weight Watchers in an unlikely, and such as Weight Watchers. However, faced with increased unintended, way. The origins of Weight Watchers started competition from other firms, most notably NutriSystem when Jean invited six women into her home to help both Inc., Weight Watchers had to increase customer value and herself and her neighbors and friends lose weight by com sock new tarpet segments to preempt the competition and munally discussing their weight loss issues. Nideichs stay on top of its promising industry. In the highly com belief, which became the core of the Weight Watchers petitive weight-management industry, Weight Watch philosophy, was that anyone could be given a "diet" but ers International Inc. was in a position where it had to the group and social setting of talk thompy was the true remain cognizant of the major trends that at the time, had component not only to losing weight but also to kepingi the potential to adversely affect industry and firm prof of She believed in fostering success through group sup itability and revenues. Those trends, as they related to port, and she created a simple reward system that included Weight Watchers and the weight loss industry, included pins and tie bars to reward increments of weight loss. The the temporary emergence of fad diets, decreased effective idca was simple, yet very effective ness of marketing and advertising programs, the need for The basic concept of the Weight Watchers plan, as it existed in 2011, consisted of two components. First, there was the Weight Watchers program, and second, there was * This can wadewyd yn Poe Kar Cil-yilivyowed the group support. The program was essentially a food wo M. DCP University Manohen plan and an activity plan. The food plan was intended to dres to be forced provide people with the educational tools they needed 2011 Alle for weight loss as well as to provide control mechanisms CROOCWine Woche international Inc. so that individuals could find their way to healthier food of the Weight Watchers plan designed to increase brand choices. The company radically simplified the food selec- awareness tion process involved in dieting by assigning each food a WeightWatchers.com corresponding point value, which eliminated the need to tally calories. In the past, Weight Watchers had been rec Weight Watchers.com, as it existed in 2011, offered two ognized more for its food plan, but by 2011 it was getting subscription options: Weight Watchers Online and Weight Watchers eTools. At the time, Height Watchers.com was noticed for its activity and cause marketing plans as well. Weight Watchers' Lose For Good campaign, an initiative the leading Internet-based weight-management provider that fought hunger both locally and globally by increasing in the world. It held the position of market leader in awareness of this important issue and helping to provide had relatively low awareness in the mind of the average the Internet category, with a growing business that still access to healthy food for those in need, donated more than $2 million to its charitable partners, Share Our Strength weight-loss consumer. However, the company also initi and Action Against Hunger. Weight Watchers' new spokes ated TV advertising for Weight Watchers Online, as well person, Academy Award winning actress and Grammy as launching Weight Watchers Online for Men Award-winning recording artist Jennifer Hudson, visited a In 2011 Weight Watchers.com was not only the lead- New York City school as part of the campaign to help edu- ing subscription-based weight-loss site on the Internet cate families on how to prepare hcalthy, low-cost meals. but also the official website for Weight Watchers Interna She also helped to spread the message that increasing tional Inc. It offered information on the Weight Watchers access to healthy food is an important step in fighting both plan, provided several paid and free weight-loss tools, and hunger and obesity housed an online messaging board, a series of fitness vid. Nidetch had accomplished what she set out to do and eos, and so on. Weight Watchers Tools, which could be much more. Weight Watchers, targeting primarily women, accessed through the site, offered an integrated, multifca- ages 25 to 55, experienced a rapid expansion of the behe- turc food diary with a database of over 31,000 foods, along moth that Weight Watchers came to be, Nidetch said, "My with their corresponding Point values, a recipe database, little group became an industry. I really didn't mean it to a restaurant guide, and a personal weight tracker. All of it was really just a club for me and my fat friends." She these tools helped Weight Watchers to foster its primary continued by commenting on something a lecturer once mission: helping people lose weight. Weight Watchers said, "It's a place where you walk in fat and hope nobody com allowed the company, for the first time to bring in notices you, and four or five months later you walk out an entirely new group of customers who might not have thin and hope that everyone sees you." Nidetch believed considered the program otherwise.7 that the love, information, companionship, and commis. Industry and Competitive Environment cration of fellow overweight individuals were the key While Weight Watchers International Inc. had experi components needed for the effective formula many people enced stock price volatility in the past, as had the major needed to succeed at weight loss. This idea has been perity of its competitors, because of rival weight management petuated at Weight Watchers and has been translated into options such as the over-the-counter weight-loss drug meeting leadership all employees who now lead meet- All launched by GlaxoSmithKline in June 2006, and the ings are formerly overweight individuals who were suc- development of Allergan's Lap-Band device. However, cessful on the plan. there had never been a widely supported "magic pill" What Weight Watchers evolved into was a global branded or surgical option to weight management to date. In the consumer company providing weight-management ser absence of a safe and effective pharmaceutical or surgi- vices worldwide. By 2011, cach weck, approximately 1.3 cal alternative for weight loss, Weight Watchers and its million members attended almost 50,000 Weight Watchers competitors had faced a weight-management industry meetings around the world. Weight Watchers was selling characterized by not only competition but great opportu- a wide range of branded products and services, including nity as well. Along with expanding waistlines had come an meetings conducted by Weight Watchers International and expanding market for weight-management companies, and its franchisees (and the products sold at the meetings), the time had come for such companies to be creative and Internet subscriptions to Weight Watchers.com (the com- innovative in sustaining and increasing market positions. pany's Internet answer to weight management), licensed At that time, no firm had been able to fare so well for so products sold by retailers, magazine subscriptions, and long in an industry plagued with fad diets and the next other publications. In addition, the company had put its best thing as Weight Watchers had been name and Point values on a variety of food products sold Obesity was on the rise in the developed countries, in supermarkets, such as Progresso soups, and it had especially in North America, and Weight Watchers was created a separate Weight Watchers menu for Applebee's well positioned to help consumers as they began their restaurants, among other things. Gradual expansion weight-loss battles. In 2011 weight loss, including the 11 and the onset of the dot-com era inevitably led to the cre- health and fitness industry, constituted a 560 billion-a-year ation of Weight Watchers.com, an Internet-based version industry in the United States alone. Nearly one-third of 18 Exhibit 1 Competitors for Weight Watchers Competitors Diet Weight Zone Diet Name Watchers Jonny Craig Slim-Fast Diets (Men's Menu) Atkins Diet Ornish Diet Volumetrics What it is Venerable Dieters sign up Brand line of Well The "Zone" One of the more Ultra low-fat Based on program that for individual controlled established was created widely known vegetarian research at uses weekly counseling calorie online to be the ideal low-carb diets regimen bans Penn State, meetings and and meal plans shakes and subscription balance of starts with all meat, fish, diet aims to weigh-ins for at company bars, widely diet site offers food to keep a two week oils, alcohol, maximize the motivation and outlets, available in 24 meal plans blood sugar induction sugar, and amount of behavioral by phone, drugstores and customized for and hormones period that white flour food available support for diet or online. supermarkets. various eating ready to fight bans practically Ornish's per calorie, and exercise Centerpiece Company preferences obesity and all carbs. clinical studies mainly by use changes, or you of the diet is website and desired diseases. To The longer have shown of reduced can sign up for eating Jenny provides weight loss. stay in the "ongoing that strictly fat products, similar support Craig-prepared weekly menus. Membership Zone, every weight loss" following liberal addition online. Dieters foods of single- On standard includes meal must phase is only the diet can of vegetables, either earn or serving entrees meal plan, a access to consist of 30% slightly less prevent and low- spend "points" and snacks, bar or shake support groups, fat calories, restrictive, or reverse fat cooking with food supplemented for breakfast experts, 30% protein, gradually disease. He techniques and exercise by dairy, salads, and lunch with menu plans, and 40% carbs. adding believes it Encourages or consume and other additional food and recipes. Diet allows more fruits, is easier to first course of specified vegetables For dinner, a The standard many fruits but vegetables, make drastic broth-based foods on a you prepare low-calorie eDiets.com practically no and wines changes in the soup or low- "Core" plan. yourself. meal you fix weekly menu grains diet than small calorie salad to A vegetarian Vegetarian yourself we analyzed ones. take the edge menu is menu is also met dietary off appetite. available available. guidelines and delivered the number of calories promised. continued) cported to be on a diet, according to a Reports liked the facts that the plan did not exclude any 19 Restaurants & Institutions New American Diner Study." food group and that its Point system encouraged low-fat, Particularly noteworthy was the rise of U.S. baby boom- high-fiber meals. Slim-Fast came in second and was rec- ers as a significant proportion of the dieting population ommended for dieters who did not like to spend time in as they came to be more health conscious and proactive the kitchen. The Zone was recommended for those who in their weight management than prior generations had wanted a short-term, high-protein diet plan, while the been, and they were looking for new ways to gain control Omnish plan was found to provide fairly large portions for of their weight. The obesity problem was not confined low calories. Atkins' nutritional difficulties dropped its to the United States, however, and this made geographic rating below those of the other diets. Exhibit 1 outlines expansion a possibility for weight-loss firms. Worldwide, the company's main competitors, their specialties, and the World Health Organization predicted 2.3 billion people their competitive advantages as presented by Consumer would be overweight by 2015 and more than 700 million Reports, Jenny Craig, Diets, South Beach Diet, and Volu- would be obese. Overall, the statistics proved there were metrics were also studied, but they were not ranked in the tremendous opportunities in the weight-loss industry, and follow-up article, which cited a "lack of long-term, pub that made it much harder to compete for the market share. lished clinical trials" on which to base the rankings. Weight Watchers was attempting to reinvent itself while still paying close attention to the moves of its Business Model weight-loss rivals. Competition for Weight Watchers Revenues for Weight Watchers International Inc., as shown International Inc. had included both price competition in Exhibit 2 were principally gained from meeting fees and competition from self-help, pharmaceutical, surgical, (members paid to attend weekly meetings), product sales dietary supplement, and meal replacement products, as (bars, cookbooks, and the like, sold as complements to well as other weight-management brands, diets, programs, weight-management plans), online revenues (from Internet and products. 22 The main competitors for Weight Watchers subscription products), and revenues gained from licens included Jenny Craig. Slim-Fast, NutriSystem (Nasdaq: ing (the placement of the Weight Watchers logo on certain NTRI), eDiets (Nasdaq: DIET), The Zone, South Beach foods and other products) and franchising (franchisees Dict, and Medifast, as well as programs from fitness gurus typically paid a royalty fee of 10 percent of their meeting such as The Biggest Loser star Jillian Michaels. fee). The costs of running meetings were low, with part- CEO Kirchhoff believed that most competitors were time class instructors paid on a commission basis, and essentially in a different business than Weight Watchers was many meeting locations were rented hourly in inexpensive He said, "Most of the companies that are out there aggres- local facilities such as churches. This lean organizational sively marketing are in the business of providing and deliv. structure allowed wide profit margins. 27 Meeting foes ering meals. Weight Watchers is in the business of helping were paid up front or at the time of the meeting by attend- people change behavior. So in that sense, we're teaching ees, resulting in net negative working capital for Weight people how to fish, and they are selling people fish. Watchers an indication of cash-flow efficiency? According to an article in Consumer Reports, it was What was perhaps most important about Weight determined that Weight Watchers offered dicters the best Watchers' business model was its flexibility. The num- staying power. Weight Watchers earned the highest overall ber of meetings could be adjusted according to demand rating on account of its nutritionally based diet, weekly and seasonal fluctuations. The business model's reliance meetings, and weigh-ins for behavioral support Consumer on a variable cost structure had enabled the company to Exhibit 2 Weight Watchers" Revenue Sources (in millions) 2007 2005 2009 $817.5 292.1 196.0 2008 $908.0 339.8 185.8 S880.7 337.7 151.6 2010 Meeting fees $819,6 Product sales 305.0 Online revenues 238.8 Licensing, franchise 88.6 royalties, and others Total $1,4520 Source: Weight Watchers 10K Pilings 2006 $ 723.1 293.3 129.4 $681.1 285.5 109.7 93.3 1022 97.1 875 75.0 $1,398.9 $1,535,8 $1,4672 $1,233.3 $1,151.3 maintain high margins even as the number of meetings effective. The company needed to more adequately differ- over the same time period was expanded. When atten.entiate its lifestyle-based approach from the strictly diet. dance growth outpaced meeting growth, the gross margins ing orientation utilized by many of its competitors. In a of Weight Watchers typically improved. Since fiscal year focus group for Weight Watchers, a woman who had con 2005, Weight Watchers International had maintained an sidered joining expressed concern that her weight would annual gross margin in the operating segment of 50 percent be called out in public and that she would have to tell her or more. However, although Weight Watchers' business whole weight-loss struggle as if she were at an Alcohol- model yielded high profit margins and strong cash flow as ics Anonymous meeting. Thus, one of the primary chal- a result of the company's low variable expenses and low lenges for Weight Watchers was to correct these types of capital expenditure requirements, some analysts worried misperceptions as to what Weight Watchers actually was. that the margins were dropping-between 2005 and 2010 Weight Watchers had the challenge of dispelling concerns gross margin had peaked at 55.5 percent operating margin that the meeting experience would be something akin to a peaked at 30.8, and net margin peaked at 17 percent, while Biggest Loser weigh-in and competition the 2010 trailing 12 months numbers came in at 52.1, The second thing that Weight Watchers was trying to 24.5, and 11.7 percent, respectively do was to reenergize the brand with more effective and dif- UBS analyst Andrew McQuilling commented on ferentiated marketing. In order to sustain Weight Watchers Weight Watchers' achievement of a near perfect business brand image and combat some of the misconceptions in the model. McQuilling said, "There are three things we can consumer market, Weight Watchers International Inc. hired always count on: death, taxes, and people tendency to McCann Erickson, the U.S. advertising agency that reig- overeat. Since 1977, sales [for Weight Watchers) have com- nited the MasterCard brand, to bring the same vitality to the pounded at a 13 percent rate. It's a profitable business that Weight Watchers brand. It was hoped that by taking a fresh satisfies a growing market, so to speak. Weight Watchers is perspective on the way that Weight Watchers advertises not just a fad. It's a perfect business. It's as if it sells air. The and markets, McCann Erickson could differentiate Weight company has a 40 percent return on invested capital. People Watchers from the other, mostly unsuccessful, weight-loss pay a fee to join and then pay to attend meetings." and diet aids in order to position the company as more Unlike the privately owned Jenny Craig and Curves, empathetic and contemporary to the consumer. Of mar which maintained their own centers with food inventories, keting, David Kirchhoff said, "I think we do a very good job Weight Watchers kept its capital costs low by allowing its of marketing to people who have been with us before, so meetings to be held anywhere. This model has allowed Weight called rejoins, but I think we could do a much better job of Watchers to gain entry into the workplace at wellness-minded marketing to people who have never been with us before...? companies in its Weight Watchers at Work Program." Weight Watchers believed that its advertising must Performance accomplish three basic tasks. First, it had to be noticed when Despite high leverage, Weight Watchers' financial health it was soon. Second, on noticing it, people had to associate was considered "decent,"according to a statement by Morn- the advertising with the Weight Watchers brand. Third, it ingstar analyst Kristan Rowland. Bank of America analyst communicating something new about Weight Watchers that had to accomplish both the first and the second aims while Scott Mushkin agreed, touting Weight Watchers' classroom. would cause consumers to reconsider Weight Watchers as based approach as the only one with empirical evidence their solution plan at which they could be successful of success. The strong brand and doctor-recommended Weight Watchers realized that it had not been doing a very methods, it was expected, would help increase business for Weight Watchers as the fad diets faded out of fashion good job of communicating any newness or innovation com ing from within the company. Only by creating marketing Exhibits 3 to 5 show financial statements of the firm. activities that did a better job of relaying the meaningful ben Innovation efits of Weight Watchers to consumers could the company Domestically and abroad, Weight Watchers was fortunate convince people to join up Consumers already had a per enough to build on a foundation of four decades of weight ception of what Weight Watchers was. Accordingly, Weight management expertise that had allowed the company to Watchers had to actively emphasize the innovative things that become one of the most recognized and trusted brand it was doing in order to overcome consumers' preconceived names among weight-conscious consumers worldwide. notions. The company needed to show its consumers that The innovation initiatives at Weight Watchers were it was different from the other dicts out there to unleash the focused on three main objectives: (1) rejuvenating the brand power that Weight Watchers believed had become a little through more effective marketing, (2) providing more cus- dormant in its brand. Weight Watchers also had to consider tomer value by introducing new products, and (3) broaden the potential of marketing to relay relevant information that ing the customer mix by targeting new customer segments would appeal to a wider net of demographic groups The Brand The Program With regard to its brand, Weight Watchers had been for To increase customer value, Weight Watchers introduced tunate to have consumers consider its brand credible and three new programs that provided members with more benefits, Kirchhoff said that the most important thing The Customers about Monthly Pass was that it provided a better weight Innovation at Weight Watchers also involved broadening loss proposition and created a completely new way for the customer mix and targeting new customer segments customers to interact with Weight Watchers in a couple of Weight Watchers began to actively consider expanding different areas first in meetings, and second, through beyond its target consumer market of women, ages 25 to 55. the Internet. Kirchhoff believed that Monthly Pass had In the company attempt to appeal to other demographic become the new gold standard in weight loss. groups, such as men and the Hispanic community in the In addition, Monthly Pass was also beneficial to the United States, Weight Watchers needed to retool its offer company in that it gave Weight Watchers a salable propo ings and approach to appear more relevant to weight sition. Before the development of Monthly Pass, when loss consumers who sought different methods of weight potential customers called to make an inquiry, there was management no way to sell them something at that moment get them In terms of the Hispanic community, the company committed. With the development of Monthly Pass, the was working to better serve the growing Hispanic pope- call center could now sell the product over the phone to lation in California-for example, by offering improved consumers, in addition to the pass's availability on the Spanish-language meeting materials as well as by increas- Weight Watchers website. However, Weight Watchers ing the number of Spanish meetings offered. Concur also wanted to continue to offer its conventional pay-as- rently, Weight Watchers undertook a comprehensive market you-go plan, because the company aimed to appeal to segmentation study aimed at yielding valuable insights the widest variety of consumers with the most payment intended to drive its new strategy options available. Men, another attractive market segment, appeared to Another creative program that Weight Watchers be more the self-help type and were not as much in favor implemented was the new and improved Turn Around of a group-support experience. Weight Watchers meet Program, which allowed members to personalize their ings were attended mostly by women, with men making daily target Points by gender, age, weight, height, and up only 5 percent of members. Morgan Stanley analyst daily activity, while leaving no food off-limits. Following Catherine Lewis said, "Weight Watchers has a pipeline of results of a consumer survey on dieting. Weight Watch- unpenetrated and underpenetrated markets and thus, was ers also added new foods to the Core Food List, snack testing home weight-loss services for men." options, information about knowing your hunger signals, Atkins, the low-carbohydrate-focused diet plan, held more recipe and meal ideas, tips for eating out, success great appeal for men in the beginning of the new millen stories, and the like. The lower-carbohydrate-focused nium. By 2011, Atkins was much less popular in the Core Plan, of which the Core Food List was a part, was weight-conscious community, and there existed avoid in Weight Watchers' answer to the case of use that low-carb weight-management services for men that Weight Watch diets providedit eliminated the need to count Points and ers International was hoping to fill did not restrict portion sizes. The Core Plan offered an To do so, Weight Watchers Online, the step-by-step alternative to the Flex Points Plan under the umbrella of online guide to following the Weight Watchers plan, and the Turn Around Program Weight Watchers Tools, the Internet weight-loss com. The newest program, introduced at the end of panion to conventional meetings, were being intentionally 2010, was a revision to the traditional "Points" program, customized for men and their unique set of weight-loss Renamed "Points Plus," the program was designed to edu- challenges. The Weight Watchers.com for Men custom- 57 cate and encourage people to make choices that favored ization was born of the realization that Weight Watch foods the body worked harder to convert into energy, ers should appear to be more culturally relevant to more resulting in fewer net calories absorbed. Users were groups of people who want different things. Launched in cncouraged to focus on foods that create a sense of fullness late March 2007, the customized products were targeted and satisfaction and are more healthful, mudged toward to attract men, who were estimated in 2003 to represent natural foods rather than foods with excess added sugars only 5 percent of Weight Watchers' members. and fats, while still allowing flexibility for indulgences, A research study showed that about 70 percent of men special occasions, and cating out. While calorie-counting are overweight and about 30 percent of men are obese Yet, had been the foundation of many weight loss programs, according to the study, only 28 percent of men were actively including the Weight Watchers original Points System, the engaged in weight loss Weight Watchers sought to provide new Points Plus program went beyond just calories to help the weight-loss answer for men by applying its 40 years of people make healthful and satisfying choices. The new experience to its newly customized Internet offerings for formula took into account the energy contained in each of men. While the fundamental concepts of weight losscat the components that make up calories-protein, carbohy. less and exercise more were the same for both genders, are biologically and emotionally different, and multiple America had seen a substantial growth in the number of variables factor into how each loses weight." However, the new members. As CEO Duvid Kirchhoff, the president sume underlying motivators for weight loss were shared and CEO of Weight Watchers, noted, "The one area of between the genders: "appearance and health. So, while our business that we have continued to struggle with is to the preferred means may have been different, the desired improve our ability to bring newer-members into meet- end was the same ings. This had been a drag on the top line of our business, In regard to Weight Watchers.com for Men, Alexandra despite our success in significantly increasing retention, Aleskovsky, general manager of Weight Watchers.com, revenue per enrollment, and product sales... Prior to the said, "Men have been losing weight with Weight Watch (Points Plus) program launch, newer-member enrollment ers for over 40 years, and hundreds of thousands are on growth had already moved into positive territory. After the (the) plan right now. Weight Watchers can help so many program launch, even before we turned on our advertising more men get in shape by offering our Internet products for the new program, it increased dramatically.es in ways that are more directly relevant to them, which Kirchhoff expressed his delight with the results, and is why we customized our offerings for men." As such, noted, "the advertising we've created is having some of Weight Watchers Online for Men allowed men to follow the highest impact I've seen during my career at Weight the Weight Watchers plan and get food and fitness ideas Watchers. Kirchhoff continued, "We've entered 2011 and other content and resources tailored specifically to with our best January in years. We're seeing terrific enroll- them. The new products afforded Weight Watchers a new ment volumes in our North American, UK, and Australian opportunity to appeal to a large market segment that might businesses and we've seen even further acceleration of the not have otherwise considered giving the program a try. Weight Watchers.com business. In short, the Weight Watch The launch of Weight Watchers Online for Men was ers brand is showing a level of vitality and resonance in considered by the executives to be a "new product for a these markets that we have not seen in years. As we look now market," and the company focused on getting the forward, we're very much focused on building on momen product experience right delivering on consumer expecta- tum in this business by continuing to press forward on tions, and doing a good job. Once the company felt that it our strategy to bring Weight Watchers to a new level of was delivering the product correctly, it planned to be more performance." aggressive in marketing it. However, even before the active The question remains, then: Will Weight Watchers be targeting to men, the percentage of men as a percentage of effective in staying true to the core of Jean Nidetch goals the Weight Watchers total market had been on the rise. For while still expanding to different target groups, different example, if the overall online business was up 22 percent, dieting platforms, and different means of offering them? the growth in men's business was up quite a bit more than Only time will tell, but one thing is certain: The weight that. Weight Watchers was pleased with the carly results loss industry is not going away, and members of Weight of the male-focused products and was working toward Watchers' senior management have many tough and excit identifying the proper levers for building that part of the ing decisions to make, business, Endnotes