GNC 2008 Annual Report Download - page 11

Table of Contents
Sports Nutrition Products
Sports nutrition products are designed to be taken in conjunction with an exercise and fitness regimen. Our target consumer for sports
nutrition products is the 18-49 year old male. We typically offer a broad selection of sports nutrition products, such as protein and weight gain
powders, sports drinks, sports bars, and high potency vitamin formulations, including GNC brands such as Pro Performance and popular third-
party products.
Diet Products
Diet products consist of various formulas designed to supplement the diet and exercise plans of weight conscious consumers. Our target
consumer for diet products is the 18-49 year old female. We typically offer a variety of diet products, including pills, meal replacements, shakes,
diet bars, and teas. Our retail stores offer our proprietary and third-party products suitable for different diet and weight management
approaches, including low-carbohydrate and products designed to increase thermogenesis (a change in the body's metabolic rate measured in
terms of calories) and metabolism. We also offer several diet products, including our Body AnswersTM product lines.
Other Wellness Products
Other wellness products is a comprehensive category that consists of sales of our Gold Card preferred membership and sales of other
nonsupplement products, including cosmetics, food items, health management products, books, and video tapes.
Product Development
We believe a key driver of customer traffic and purchases is the introduction of new products. According to the GNC 2005 Awareness
Tracking Study Final Report commissioned by GNC from Parker Marketing Research, consumers surveyed rated the availability of "new,
innovative products" as an emerging strength of our business. We identify changing customer trends through interactions with our customers
and leading industry vendors to assist in the development, manufacturing, and marketing of our new products. We develop proprietary products
independently and through the collaborative effort of our dedicated development team. During 2007, we targeted our product development
efforts on specialty vitamins and sports nutrition products, condition specific products, and specialty vitamins.
Research and Development
We have an internal research and development group that performs scientific research on potential new products and enhancements to
existing products, in part to assist our product development team in creating new products, and in part to support claims that may be made as
to the purpose and function of the product. 7