Consumers who need to shed some pounds are more likely to cut out weight loss programs such as Jenny Craig, Weight Watchers, etc. during tough economic periods.
While there's no shortage of dieters, Marketdata Enterprises estimates that 72 million will take up some form of weight loss regimen this year, many are finding that the price associated with paying dues and special food is too dear when the cost of filling up the fuel tank is at an all-time high.
"It's definitely a discretionary dollar," Michael Binetti, a UBS analyst told AdAge.com. Mr. Binetti estimates that 20 percent of Americans who claim to be dieting are "on their own diet."
John LaRosa, research director of Marketdata Enterprises, said dieters looking to save money "will shift toward less expensive do-it-yourself methods instead of doing a structured program like Jenny Craig that might cost $1,100 to $1,200 over three to four months."
Some, according to Mr. LaRosa, will go out and buy less expensive products such as diet books, supplements and/or diet pills to slim down. Many will use free online programs for information and support.
Discussion Questions: How do weight loss programs maintain market share in economic conditions such as those at present? Do the consumers not using weight loss programs offer opportunities for retailers in various channels? What can retailers do to take advantage of this opportunity?