Nutrisystem Case Study Solution

3895 Words 16 Pages
Register to read the introduction… Historically, Nutrisystem sold products through a direct-to-consumer channel, such as through their website and call centers. However, by introducing its new 5-day starter kits that are distributed through retail channels such as Wal-Mart, Target, Costco, and Sam’s Club. Opening a retail channel introduces a low-barrier entry point for new customers, some of which could turn into subscription plans. As Nutrisystem continues to diversify its sales channels from QVC, website, and call centers, I foresee that it will attract a new and diverse customer base, which will help drive revenues and earnings …show more content…
First is the per capita disposable income. As the per capita disposable income rises, consumers are more likely to purchase discretionary services, such as weight loss programs. This factor is expected to help boost the industry. Second is the healthy eating index. The healthy eating index measures the percentage of the recommended diet that an average American consumes on a daily basis. When the healthy eating index falls, this indicates that fewer Americans are practicing healthy eating habits. As a result, this index is negatively correlated with the percentage of Americans that are overweight or obese. Third is the demand from primary care doctors. It is expected that primary care doctors will recommend more and more weight loss programs to their patients to help better their patient’s health. As a result, the demand from the doctors is anticipated to increase. The fourth external driver is the percentage of services conducted online. As more consumers use online services, there is a larger market potential for consumers to use online weight loss …show more content…
Monahan | May 2013 | Mr. Monahan was appointed CFO in May 2013, rejoining NTRI where he served as VP of Finance from 2006 to 2009. Prior to rejoining NTRI, Mr. Monahan served as CFO of PetroChoice Holdings, Inc., a privately-held distributor of industrial, commercial, and automotive lubricants. Prior to this he served in financial roles at Exelon Corporation, Accenture, and Arthur Anderson LLP. Mr. Monahan earned an MBA from the University of Chicago’s Booth School of Business. | CMO | Keira Krausz | February 2013 | Ms. Krausz was appointed CMO in February 2013. She is a 25-year marketing veteran with extensive experience across a variety of direct marketing channels. From 2005 to 2012, she served as Vice President of Market for QSP, Inc., a subsidiary of Time Inc. and the largest youth fundraising company in America. Following the sale of QSP, she became head of new business development for Animated Story boards, the largest global independent provider of television test spots to the advertising industry. Ms. Krausz has an MBA from the Amos Tuck School of Business at Dartmouth College. | | | |

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