Eskimo Pie Weight Watchers Discussion Questions
Eskimo Pie Weight Watchers Discussion Questions
What is Giff Breeds situation with regard to Weight Watchers?
-Reverse trend: 25% drop in unit sales and 30% drop in dollar sales from January-December 1995.
-Must introduce new product by January 1997
What is happening in the market? Industry?
Industry:
-Consolidation of brands into top two multinationals: Nestle and Unilever (36% of frozen novelty market.
-Freezer shelf space increasingly difficult to obtain (large # of product introductions each year). Fixed amount of shelf space = increase in competitiveness
-Strategy of domination: Nestle and Unilever.
-High advertising costs-estimated $85m in 1995.
-Seasonality: 50-60% of volume sold in 4 months (June-Sep).
Market:
-Other industry players (Nestle/Unilever) followed WW into lower fat frozen novelty product
-Trend moving to fat free/reduced fat and sugar free products
-Competition with Jenny Craig and Nutri-systems
-Total frozen novelty market is increasing (1993: $1.5B/666M units to1995: $1.7B/706M units)
How does WW work? What is our channel?
-59 Franchises and 5 North American Company Owned
-60% of members attended meetings at franchises/40% attended meetings at NACO—approximately 600k attend WW meetings each week
-Franchises dont have to sell WW products (unless revenue sharing agreement is signed-all but 3 have). If signed, must participate in 4 company events-direct mailing pieces + food product guides.
-Franchises dont receive a bonus or commission for promoting WW products.
Giff has a number of unanswered questions on page 12. How would you answer them?
(1.)What types of products would best meet the target consumers needs?
-Fat-free, Light/reduced fat, and/or sugar-free (all project to have increase demand)
– Flavor/variety (83%); Portion control (62%); Coupon/special price (38%)