Situational Analysis pt2

Date: Tuesday, December 11, 2007
Time: 5:30 PM
Place: DeVry Lab

2.2.1 Market Demographics
The profile of the Alli customer consists of the following geographic, demographic, psychographic, and behavior factors:



Geographics
Our geographic market is the United States, with a population of 301,139,947. A 9,161,923 sq km geographic area is in need of our products and services. The total targeted area population is estimated at 60.5% of adults.
We believe that a mass market campaign can be very successful- the mass market is overweight.
Demographics
Male and Female
Overweight Adult (BMI=25 TO 25.9) or Obese (BMI≥30)
60.5% of Americans are overweight or obese.

Other dominant demographics are:
Parent
Middle Class
Currently a Dieter



Psychographics/Behaviors:
Our market has a wide range of behavioral and psychographic attributes. Among the most dominant are:
Health Oriented
Safety Conscious
Internet Savvy
Self Motivated
Concern for Self-Image
Women Tend to Try a Variety of Diets
Men Tend to Claim that They Never Diet
Ill-Informed about What to Realistically Expect

2.2.2 Market Trends
The diet industry is driven by ten major segments: diet soft drinks, commercial programs, medical programs/diet drugs, retail non-prescription meal replacements and diet

pills, health clubs, artificial sweeteners, weight-loss surgeries, and low-cal entrees.
There are about 70 million dieters in America; 70% of them want to loose weight on their own. Many are confused about the many programs available.
The market for non prescription drugs declined by about 32% in 2003 when the government banned ephedra.
Group and one-on-one counseling programs have been very successful. Enrollments have been ever increasing. Also, anonymous Internet based services have been doing well. Trends indicate growing interest in using email, chat rooms, and bulletin boards for support.
Attention has increase in the “medical” aspect to weight loss. These aspects are the use of prescription products- especially “black markets” (online & mail orders), low calorie programs, bariatric surgeries, media coverage, the Surgeon General, employers, the IRS, and help from medical professionals such as dieticians.
Americans are still spending more and more money on scam artists and other phoney programs. The FTC has reported a

huge increase in the number of companies that promote false and misleading products.