Situational Analysis pt3

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

2.2.3 Market Growth
The diet industry remains strong as the ratio of overweight and obese Americans continues to rise. A study called "The US Weight Loss and Diet Control Market" published by Market Data Enterprises Inc estimates a 6% annual growth for the entire US weight loss market. It should reach $61 billion dollars by the year 2008. A recession is expected in 2009, but by 2010 the industry will continue to grow to $68.7 billion. The recession will cause consumers to purchase less costly products and do-it-yourself initiatives.

There are many other important factors that show growth other than the fact that many Americans continue to over consume. Many are dieting purely for cosmetic reasons. We are aware that a large percentage of Americans are within their ideal bodyweight or are even


underweight, yet they are active in weight loss programs.
Childhood obesity is rising just as adulthood obesity is rising. We believe that Alli will have a high customer equity.

2.3 GlaxoSmithKline
The mission statement of GSK is “our global quest is to improve the quality of human life by enabling people to do more, feel better, and live longer.”
GlaxoSmithKline operates mainly in two segments- pharmaceuticals and consumer healthcare. Within the consumer health care industry, GSK is the second most profitable. GSK’s consumer healthcare department is broken down into three markets: over the counter medicines (e.g. Abreva, Tums, Nicorette), oral care (e.g. Aquafresh, Polident), and nutritional healthcare (e.g. Lucozade, Horlicks).




2.3.1 Alli
The name Alli (pronounced Al-eye) was chosen because it gives off a partnership between the company and consumers in their weight loss efforts.
Alli is the first FDA approved, over the counter weight loss supplement!
The alli starter pack comes in different sizes and the recommended dosage is one capsule, three times a day, to be taken with meals that contain fat. The starter packs includes a “Read Me First Guide”, “Welcome and Companion Guides”, “Guide to Healthy Eating”, “Daily Journal”, “Calorie and Fat Counter”, “Quick Facts Cards” , free access to a customized game plan at www.myalli.com , and a small carrying case called the Shuttle for the pills.
2.3.1.1 How to Use
alli, is used for weight loss in overweight adults 18 years and older. It has to be used along with a reduced-calorie, low-fat diet. The recommended dose of alli is one 60 mg capsule three times a day with meals containing fat.

When taken with a meal, alli blocks about 25 percent of the fat in the food that a person eats. Because of the way alli works, meals should contain about 15 grams of fat each. The guides and information supplied in the alli package help the consumer to control the amount of fat in their meals, and to follow an appealing, reduced-calorie, low-fat diet. Consuming a meal with too much fat, while taking alli, can result in bowel changes such as having an urgent need to use the bathroom. These changes, called treatment effects, generally occur in the first weeks of treatment, are not harmful, and can be managed by following the recommended diet with about 15 grams of fat per meal. Users should take a multivitamin once a day, at bedtime, because alli can reduce the absorption of some vitamins.

Education and changing behaviors are critical aspects of the Alli program. Consumers receive the 24 hour a day myalliplan when they purchase a starter pack. It includes customized online action plan recipes, meal plans and shopping lists, online tools to record food and lifestyle information, connection to a network of other alli users,

personalized e-mails of lessons on: meal planning, managing hunger, dealing with setbacks, and making the food and lifestyle changes to help people succeed.