WeightWatchers 2006 Annual Report Download - page 20

Weight Watchers Magazine
Weight Watchers magazines are published in all of our major markets. In the United States, Weight
Watchers Magazine is an important branded marketing channel that is experiencing strong growth. We
re-acquired the rights to publish the magazine without the subscriber list in February 2000 and re-launched its
publication in May 2000. Since then, we have grown paid circulation from zero to over one million. As of fall
2006, our U.S. magazine had a readership of 6.74 million readers per copy, according to MediaMark, an industry
tracking service. In addition to generating revenues from subscription sales and advertising, Weight Watchers
Magazine also reinforces the value of our brand and serves as a powerful tool for marketing to both existing and
potential customers.
Marketing and Promotion
Word of Mouth
The word-of-mouth generated by our current and former customers is an important source of new
customers. Over our more than 40-year operating history, we have created a powerful referral network of loyal
customers. These referrals, combined with our strong brand and the effectiveness of our plans, enable us to
efficiently attract new and returning customers.
Media Advertising
Our advertising enhances our brand image and awareness and motivates both former and potential new
customers to join Weight Watchers. We have historically taken advantage of a range of traditional offline
advertising vehicles such as television, radio and print. Over the past five years, WeightWatchers.com has
developed a strong capability and presence in Internet advertising. Our advertising schedule supports the three
key diet seasons of the year: winter, spring and fall. We allocate our media advertising on a market-by-market
basis, as well as by media vehicle (television, radio, Internet, magazines and newspapers), taking into account the
target market and the effectiveness of the medium.
Direct Mail and Email
Direct mail is a critical element of our marketing because it targets potential returning members. We
maintain databases of current and former customers in each country in which we operate, which we use to focus
our direct mailings and email. During fiscal 2006, NACO sent over 25 million pieces of direct mail. Most of
these mailings are timed to coincide with the start of the diet seasons and are intended to encourage former
meeting members to re-enroll. WeightWatchers.com has made a substantial investment in developing email
targeting capabilities and its email promotional vehicles and programs will be an increasingly important customer
acquisition vehicle for both our Internet and offline businesses.
WeightWatchers.com Website
The WeightWatchers.com website is an important global promotional channel for our brand and businesses.
The website has become an important vehicle for communicating our services and products in greater detail than
could be achieved in more traditional advertising vehicles. In addition to being a gateway for our Internet
subscription products, the website contributes value to our meeting business by promoting our brand, advertising
Weight Watchers meetings and keeping members involved with Weight Watchers outside of meetings through
useful offerings, such as a meeting locator, low calorie recipes, weight management articles, success stories and
Internet forums. In fiscal 2006, our Meeting Finder feature generated on average over 937,000 meeting searches
per month in the United States alone. The Meeting Finder makes it easier than ever for our existing and potential
members to find a convenient meeting place and time. WeightWatchers.com now attracts, on average, over
5.0 million unique visitors per month in the United States alone.
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