WeightWatchers 2009 Annual Report Download - page 24

Public Relations
We carry out many of our key public relations initiatives through the efforts of current and former Weight
Watchers leaders, members and subscribers. These leaders, members and subscribers engage in local promotions,
information presentations and charity events to promote Weight Watchers and demonstrate the program’s
efficacy. In addition, some become media-trained ambassadors and represent us in various local public relations
activities. We currently have over 400 media-trained ambassadors as part of our grass roots network.
In addition, we have continued a science-based public relations initiative we launched during the winter of
2005 to capitalize on Weight Watchers’ position as one of only a few clinically proven commercial weight
management programs. This has included an increased investment in third party scientific research, the inclusion
of a science center on our website and increased efforts to share our consumer and program insights with leaders
in the scientific and medical communities as well as the general public.
Weight Watchers Magazine
In addition to generating revenues from subscription sales and advertising, Weight Watchers Magazine
reinforces the value of our brand and serves as an important marketing tool to both existing and potential
customers. We offer Weight Watchers magazines in most of our major markets.
Seasonality
Our business is seasonal, with revenues generally decreasing at year end and during the summer months.
Our advertising schedule supports the three key enrollment-generating seasons of the year: winter, spring and
fall, with winter having the highest concentration of advertising spending. The timing of certain holidays,
particularly Easter, which precedes the spring marketing campaign and occurs between March 22 and April 25,
may affect our results of operations. The introduction of Monthly Pass in the meetings business has resulted in
less seasonality with regard to our lecture income revenues because its revenues are amortized over the related
subscription period. Our operating income for the first half of the year is generally the strongest. While
WeightWatchers.com experiences similar seasonality in terms of new subscriber signups, its revenue tends to be
less seasonal.
Entrepreneurial Management
We run our company in an entrepreneurial manner that allows us to develop and test new ideas on a local
basis and then implement the most successful ideas across our network. For example, local managers in the
United Kingdom were responsible for developing our POINTS weight management system. In addition, many of
our meeting products were developed locally and then introduced successfully in other countries. Local managers
have strong incentives to adopt and implement the best practices of other regions and to continue to develop
innovative new plans, services and products.
While having strong local leadership has always been a cornerstone of our strategy, we have also been
investing in building our global corporate management team. Our management team plays a critical role in
driving and facilitating the global coordination necessary to optimize our international assets and share best
practices across geographies.
Competition
The weight management market includes self-help weight management regimens and other self-help weight
management products and publications such as books, tapes and magazines; commercial weight management
programs; Internet weight management approaches; dietary supplements and meal replacement products; weight
management services administered by doctors, nutritionists and dieticians; surgical procedures; the
pharmaceutical industry; government agencies and non-profit groups that offer weight management services; and
fitness centers.
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