Weight Watchers International Competition
Now Viewing Weight Watchers International's competition in: Weight Reduction Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
What major types of marketing does the company use? - Major types of industry marketing include direct mail and ads in magazines and newspapers and on TV and websites.
What are the company's major sales channels? - Major industry sales channels are websites and internal and external salespeople.
How does the company determine what promotions to run and when? - Large companies use advanced data modeling software with consumer and operational data to help determine the content and timing of sales promotions
What percentage of the company's customers are new? What percentage are customers who left and returned? - Most companies experience high customer turnover, which requires ongoing marketing.
What percentage of the company's customers are women? - About 75 to 80 percent of the industry's customers are women.
How prevalent is the company's brand name on products it sells? - Weight reduction services companies often sell private-label or co-branded products.
Does the company license its brand name to partners? If so, to what types of companies? - Larger weight loss companies' licensing partners include restaurants, food manufacturers and distributors, and diet- or exercise-related consumer products and programs.
In its marketing, how does the company address competitive products and programs? - Most companies quote nutritional or medical research findings that are favorable to their respective programs.
How much does a consumer pay to participate in the company's weight loss service? - Typical prices range from $20 to $60 monthly, with the base price of online-only programs usually costing less than an in-person or combination service.
If the company sells meals, how much do meals cost? - Prices of prepackaged, delivered meals start at about $80 to $100 weekly.
Competitive Landscape
Consumers' excess weight, personal income, and leisure time drive demand. The profitability of individual companies depends on effective marketing, customer acquisition and retention, and efficient operations. Large companies have advantages of scale in marketing, infrastructure, and partnerships. Small companies can compete effectively by offering individualized services or upscale facilities. The industry is labor-intensive: average annual revenue per worker is under $50,000.
Business Challenges
CRITICAL ISSUES
Competition from Other Weight Loss Methods - Weight loss services compete with a variety of weight loss methods, programs, and products, with price a differentiating factor for many consumers. During difficult economic times, consumers may be less willing to commit to the monthly fees and cost of meals that many programs require. Competing approaches include do-it-yourself (DIY) diet and exercise, celebrity and mass media diets, diet foods, meal replacement drinks and bars, appetite suppressants and diet pills, medically supervised programs, and surgery. Competitors also include fitness centers, low-cost or free services from nonprofit groups and government agencies, and free online diet information.
Maintaining Credibility - Weight reduction services firms struggle to maintain credibility with the public and enrolled customers. Despite an industry history of deceptive advertising and practices, coupled with government oversight, companies continue to promote atypical success stories to attract new clients. High customer dropout rates indicate that many customers don't meet their goals, raising the issue of effectiveness. Industry credibility is also affected by unsubstantiated claims and aggressive marketing by competing weight loss products, such as diet pills, health supplements, and exercise devices.
Industries Where Weight Watchers International Competes
- Consumer Services
- Weight & Health Management(primary)
- Food
- Media
- Pharmaceuticals
- Retail
