| Summary: | 碩士 === 臺灣大學 === 高階公共管理組 === 96 === THESIS ABSTRACT
In the past 30-40 years after World War II, the overweight and obesity problems have been soaring so fast to so-called “panepidemic” & “ Globesity” by the WHO. The organization claims the overweight and obese population has been over 1 billion in 2005 and will continue to grow to 1.5 billion in 2015. 67% of the US population is overweight or obesity. In 2006, 180,000 obesity surgeries have been processed with the expense over 4.4billion. The impact of the obese population has not only caused serious burden to the healthcare system to all developed as well as the developing countries, but also has great influence over the industries and consumers. Therefore, the consumers’ demands for the weight loss products and services become more and more prevailing. The market is full of small competitors which enter and exit very frequently. This is typically what Porter called “fragmented industry”.
In the thesis, we define the scope of “the weight management industry” composed of “the weight loss industry” and “the weight control industry”, which is much broader than the definition by the traditional standard industry classification and corresponds to the reality of the current industry. The US market in 2006 is approximately $ 58.7 billion USD with 47.4% growth compared to 2002.
Fourteen segmentations of the industry can be classified, which are diet drinks, fitness centers, commercial chains, networking sales, medical program, prescription pills, OTC retailing, artificial sweeteners, infomercials, bariatric surgeries, low calorie foods, supplements, replacement meals and food delivery.
We analyze the current weight management industry with the strategic groups, customer behaviors and their characteristics for the pursuing the realted products. Besides, we also try to conclude the new trends of this industry.
In the case studies part, the thesis analyze five weight management companies publicly traded in the NYSE, which include Weight Watchers, NutriSystem, Herbalife, eDiets and iVOW. These companies cover the group meeting, prepared packed food selling, networking selling, online program and obesity surgery counseling. First we introduce the company profile, then we analyze these companies under the framework of STP (market segmentation, targeting, positioning), 4P( pricing, promotion, placing, products) , Porter 5 powers (competitors, buyers, suppliers, new entrants, and substitutes), strategies, finance and key success factors.
The consumers themselves playing a critical role in the product value is a very special feature of the weight management industry. In addition to the poor outcome of the long-term weight loss, consumers pursue signal value much more than the product value. Consumers look for the new ways to lose weight and only will pay the low price to reduce their risks. Therefore, the best way to success for most participating companies is to follow the cost leadership focus strategy. The successful companies always insist on their own brand and core business. They focus on the new customers by advertisement or direct marketing instead of investing the old customers. Besides, they do not over-react to the new fade or new technology. To be a cost leader, they work hard to reach economic scale through rapid franchises, alliances or globalization with simple business model.
The conclusion and suggestions which we find in the case studies are summarized and elaborated in chapter 5. We believe this exploring study for the weight management industry will make some contribution for those who are currently worked for the related industries and those who are interested to devote themselves to this career.
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