Eskimo Pie Weight Watchers Discussion Questions

Eskimo Pie Weight Watchers Discussion Questions

1. What is Giff Breed's 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

2. 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)

3. 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 don't 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 don't receive a bonus or commission for promoting WW products.

4. 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%)