Question: Here is the case. Please read the case and answer Jenny Craig, Inc. (Adapted from Encyclopedia of Major Marketing Campaigns, Vol.2, p.815-818) Since opening their

Here is the case. Please read the case and answer

Jenny Craig, Inc. (Adapted from Encyclopedia of Major Marketing Campaigns, Vol.2, p.815-818)

Since opening their first weight-loss center in Melbourne, Australia in 1982, Jenny Craig and her husband, Sid Craig have created an international weight-loss company with 650 company-owned and franchised weight loss centres in Australia, New Zealand, Canada, Guam, Puerto Rico, and the United States. Jenny Craig, as of 2004, adopted marketing strategies, which are similar to other weight-loss programs, relying heavily on customer testimonials, e.g., commercials featuring ordinary consumers sharing their personal weight-loss success stories.

With 64 percent of American adults considered overweight or obese in 2004, weight loss was big business in the United States. An estimated 44 percent of females and 29 percent of males were trying to lose weight in 2004, and they were spending about $44 billion on diet programs. That amount was expected to increase steadily to nearly $48 billion by 2006. As the number of overweight people looking for a magic bullet for weight loss grew, so did fad programs promising to make the task of dieting easier. Diet crazes such as the Atkins low-carbohydrate diet plan and South Beach, which promised weight loss by only eating foods low in carbs, began winning away dieters from traditional programs like Jenny Craig that took a conservative approach to dieting. The explosion of those new diet fads was partly fueled by free and fee-based Internet services like eDiets.com, where dieters can easily access a wide-range of information, products, or even customized advice, which had been available only in rather expensive consultation sessions in traditional weight-management centers. By 2004 the number of people signing on with Jenny Craig weight-management centers was stagnating.

To win back customers already in or considering to join in the fad diet plans, in 2004 Jenny Craig made two changes: it added to its roster a new diet program that offered clients more flexibility than its original plans, and it launched a campaign featuring Kirstie Alley as its celebrity spokesperson. Specifically, Jenny Craig introduced Jenny YourStyle, a more flexible plan that allowed participants to continue many of their dietary habits while still losing weight. To support this new program, Jenny Craig hired Kirstie Alley as its spokesperson, who was not only featured in a series of Jenny Craigs TV commercials but was also the centre of a publicity campaign, covering Alleys quest to lose more than 50 pounds by adhering to the Jenny YourStyle weight-loss program. Jenny YourStyle program, Alley and her self-deprecating sense of humour were thus prominently featured in a Showtime reality-TV show by Alley, Fat Actress and other TV programs like The Oprah Winfrey Show and Late Show with David Letterman (appearances in those talk shows were free publicity).

The use of celebrities was not uncommon in the U.S. weight-loss market before the Kirstie Alley campaign. A leading competitor to Jenny Craig, Weight Watchers International in 1997 already used celebrity endorsement, signed on as spokesperson British royal and ex-wife of Prince Andrew, Sarah Ferguson, the Duchess of York. The stunning, red-haired Fergie was the ideal spokesperson for Weight Watchers: she was a celebrity, an emotional eater struggling with weight loss, divorced, and a busy, working single mom. The Tampa Tribune described her as both glamorous and ordinary. She also connected with American females, who followed her lead and embraced the Weight Watchers diet program, flocking to its weekly weigh-ins and meetings held in communities nationwide.

However, by 2004, despite having some 1.5 million members, Weight Watchers was slipping like Jenny Craig. Many dieters, frustrated with the hassles of the traditional program's system for counting calories, were abandoning Weight Watchers. Others were wooed away by the newest fad diets, such as Atkins and South Beach, which espoused losing weight while eating what you wanted as long as it was low in carbohydrates. In response to the threat of low-carb diet craze, Weight Watchers launched new TV campaigns featuring females who told not only of their weight-loss successes with the program but also of the side benefits, such as developing more self-esteem and achieving more quality time with their families. They also introduced a selection of low-carbohydrate, ready-to-eat meals and a new program, the TurnAround plan, that focused less on counting calories and more on food choices.

Question: Put yourself in the role of a marketing executive at Jenny Craig. Prepare an elevator pitch[1] of Jenny Craigs marketing strategy as if it was initially being proposed.

Use this template to help you develop your elevator pitch.

FOR (target customers), WHO HAS (customer need/want), (product name) IS A (product category) THAT (the key value).

UNLIKE (competition), THE PRODUCT (positioning).

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