WeightWatchers 2012 Annual Report Download - page 20

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and public relations. Franchisees are required to keep accurate records that we audit on a periodic basis. Most
franchise agreements are perpetual and can be terminated only upon a material breach or bankruptcy of the
franchisee.
Our Product Sales
We sell a range of products, including bars, snacks, cookbooks, food and restaurant guides with PointsPlus
values, Weight Watchers magazines, PointsPlus calculators and, most recently, ActiveLink, an activity monitor
and web experience that tracks activity throughout the day. These products complement our weight management
plans and help our customers in their weight management efforts. We have focused on selling products that drive
recurring purchases. Our products are designed to be high quality, offer benefits related to the Weight Watchers
plans, be competitively priced and be easy to merchandise.
We sell our products primarily through our meeting operations and to our franchisees. In fiscal 2012, sales
of our proprietary products in our meeting operations represented approximately 14% of our revenues. We seek
to grow our product sales per attendee in our meeting operations by continuing to optimize our product offerings
by updating existing products, selectively introducing new products and sharing best practices across
geographies.
Revenues from our WWI reporting segment, including revenues from meetings and product sales,
contributed 72.2% of our total revenues in fiscal 2012, 77.8% of our total revenues in fiscal 2011 and 83.4% of
our total revenues in fiscal 2010.
Our WeightWatchers.com Offerings
Through WeightWatchers.com, we are well positioned to benefit from the large self-help weight
management market as well as several trends taking place in the global Internet marketplace, including an
increased willingness of consumers to access and pay for web content, the proliferation of broadband and mobile
access and the growth of e-Commerce and Internet advertising. According to the U.S. Census Bureau, U.S. retail
eCommerce sales as a percent of total U.S. retail sales doubled between the third quarter of 2005 and the third
quarter of 2012. We offer two Internet subscription products—Weight Watchers Online and Weight Watchers
eTools. We have offered these products in the United States since 2001 and subsequently have launched them in
ten other countries, including the United Kingdom, France, Germany and Australia. While these products have
similar functionality across markets, each is tailored specifically to the local market.
Revenues from our WeightWatchers.com reporting segment contributed 27.8% of our total revenues in
fiscal 2012, 22.2% of our total revenues in fiscal 2011 and 16.6% of our total revenues in fiscal 2010.
Subscription Products
Weight Watchers Online is a product based on the Weight Watchers approach to weight management and is
designed to attract self-help-inclined consumers. Weight Watchers Online helps consumers adopt a healthier
lifestyle, with a view toward long-term behavior modification—a key aspect of the Weight Watchers approach
toward sustainable weight loss. Weight Watchers Online allows consumers to learn how to make healthier food
choices and lead a more active lifestyle by providing them with online and mobile content, functionality,
resources and interactive web-based weight management plans. As of the end of fiscal 2012,
WeightWatchers.com had over 1.8 million active Weight Watchers Online subscribers.
Weight Watchers eTools is an Internet weight management product available to consumers who are Weight
Watchers meetings members. Weight Watchers eTools allows users to interactively manage the day-to-day
aspects of their weight management plans online or via their mobile devices, discover different food options, stay
informed and motivated, and keep track of their weight management efforts.
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