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Type of Counseling: free with food purchase, by "health advisors", dietitians, LPNs, RNs, CNAs, health educators, aerobic & fitness instructors, customers successful on the program

Typical Cost:  $300 per month

Type Program:  Internet, direct mail

Type of Foods Used:  mainly diet company foods combined with some grocery store foods

At-Home or Direct Mail Plan Available? Yes

Headquarters

NutriSystem, Inc.

202 Welsh Rd.

Horsham, PA 19044

215-706-5300 or 1-877-336-0305

Website: www.nutrisystem.com

Summary

NutriSystemâ has undergone many transformations since its beginnings in 1972. The firm was in 1990 the second largest commercial weight loss chain in the United States, behind only Weight Watchers. The company had operations in the U.S., Canada, Australia, and the United Kingdom. It operated through more than 500 company-owned and franchised weight loss centers.

The company struggled financially for a few years before emerging under new management and marketing. Rapid growth since 2003, fueled by heavy advertising, has resulted in $776 million in sales for 2007--second only to Weight Watchers. One can't help but see a NutriSystem advertisement somewhere--in all the major women's magazines, on TV, on the radio, in your Sunday newspaper, on cable TV, on infomercials, on Internet ads.

NutriSystemâ is a much different operation today, operating mainly via the company website on the Internet and by direct mail. It also sells its company brand of diet food via the QVC cable TV channel and is testing sales via General Nutrition stores and larger retailers such as Wal-Mart.. No "bricks and mortar" weight loss centers are open. Consequently, you cannot see a weight loss counselor in person. But, you can talk to one over the phone if you buy the company food.

For those dieters living outside the U.S., using the NutriSystemâ plan may be a problem, but not for long. The company ships its food to the United States and Canada, and is planning to expand via overseas partners.

The company's major breakthrough took place during 1978, when the Nu System Cuisine foods were introduced. The use of retort pouch and microwave technology allowed Nutri-System clients to enjoy full-flavored, fresh entrees that take minutes to prepare. This simplified the diet process significantly and spurred the company on to strong growth.

NutriSystemâ at one time offered the Think Light wellness program modules to its customers. In addition, the company had at one time operated Nutri Rx Centers, which were used to prescribe diet medications under medical supervision. It also was briefly affiliated with diet celebrity and book author Susan Powter. It had added a personal trainer exercise program. None of this is offered today.

The major development in 1999 when the company went public, was to cut the weekly price of its company diet food from about $70/week to $49/week This gave it a substantial price advantage over competing programs such as Jenny Craig.

The Program

New: Frozen Foods To Be Added in 1st Quarter 2009, via Schwans...

NutriSystem in November entered into an agreement with Schwan's Home Service, the home delivery division of the Schwan Food Co., a leading provider of fine frozen foods, for the development and distribution of frozen foods under the NutriSystem brand. Through this alliance, NutriSystem and Schwan's Home Service will create NutriSystem Select, a new line of frozen foods that will enhance Nutrisystem's line of diet foods. The full national launch is expected to take place during the first quarter of 2009.

In July, NutriSystem had acquired food delivery company Nu-Kitchen. This took the company into the freshly prepared meals business. Nu-Kitchen delivers freshly prepared meals to promote weight management and healthy living to customers in the New York City area only. NutriSystem planned initially to extend Nu-Kitchen's local daily delivery service to the northeastern United States and eventually to roll it out nationwide.

Food Line Revamped, Launched December 17, 2007...

NutriSystem "Advanced" replaces the old NutriSystem "Nourish" plan, and is a complete program that includes new proprietary ingredient blends to support heart health. NutriSystem Advanced replaces NutriSystem Nourish(R), the company's core weight-loss program, and will be available beginning December 17, 2007 through the website www.nutrisystem.com and 1-800-321-THIN.

NutriSystem Advanced meals contain one of NutriSystem's new, proprietary blends of heart-healthy ingredients. Primary among these are OmegaSol(TM), a patent-pending combination of heart-healthy soluble fibers and Omega-3 fatty acids that work to help promote a healthy heart while losing weight, and NutriSol(TM), an additional blend of soluble fibers that are naturally present in oats, fruits and whole grains and help reduce hunger and control appetite. NutriSystem Advanced continues to build upon the Glycemic Advantage(TM) by using "good carbs" in all of its foods.

Says management... "Utilizing the great-tasting foods from our low-fat and low-cholesterol program, and adding Omega-3 fatty acids and soluble fiber, we have created both a heart support and weight-loss program that targets cravings and hunger."

The NutriSystem Advanced program includes a personalized Results Kit that features Mindset Makeover, a motivational behavior guide. Fitness experts Leslie Sansone and Vaughn Hebron have added to the heart benefits of the Advanced Program by creating exercise DVDs exclusively for NutriSystem Advanced participants. The Results Kit also offers a customized meal planner, online community access information, a Quick Start Guide and more. As always, the program has no membership fees and includes free online and telephone counseling.

NutriSystem Advanced features seven programs which include: Women's Program, Men's Program, Women's Diabetic Program, Men's Diabetic Program, Women's Silver Program, Men's Silver Program, and a Vegetarian Program.

Dieters can order NutriSystem’s portion controlled food via the Internet or by phone, as well as utilize free individualized weight loss plans and one-on-one counseling and behavior modification services. The cost of NutriSystem food is about $69 per week (plus $4 shipping). The food is shipped once per month, at a cost of $279 with free shipping under the "autoship" plan. If you don't use "autoship", the cost is $310/month. plus $16 for shipping. The plan includes one week of "free" food--so you actually get 5 weeks of food for $280.

This includes 3 meals a day plus snacks (120+ items) virtually replacing most of the regular food you might buy. You do have to supplement the company food with fruit, milk and vegetables that you buy. No meal replacement shakes are used. NutriSystemâ has strategic partnerships with Internet portals, health websites, and wedding sites. It is also sells vitamins and protein supplements.

The dieter does not have to record calories, count points or deal with complex recipes under this plan. It’s all done for you. Counseling comes free with your food order, by a variety of people that have gone through company training. The counselors may be dietitians, nurses, health educators, fitness instructors, or others, usually with a college degree.

This weight loss program combines a portion control approach with a low Glycemic Index menu, with greater focus on complex carbohydrates. The low glycemic index carbohydrates in the NutriSystemâ Advanced foods break down slowly and stay in your system longer. The result is that you feel full for a longer period of time and experience fewer cravings.

The former NutriSystemâ Nourish Program included two breakthrough plans to help one change their thinking. The new BodyNourish Plan incorporates simple movements, exercises, and yoga poses. The MindNourish Plan teaches simple techniques for creating a healthy mindset.

The Planner completely outlines your weight loss program, step-by-step, day-by-day and provides simple instructions for what and how much to eat for each meal. It is a checkbook-sized guide that you can carry in a pocket. On this program, there are no points to tabulate. A Dining Out Guide is also available, to help you make good choices when you're out at restaurants.

The firm's dinner entrees can be prepared in less than 5 minutes. NutriSystemâ foods include: breakfast entrees, dinner entrees, desserts, crackers, gelatin, salad dressings, Craving Control snacks, beverages, and flavor enhancers.

Customer profile

The typical NutriSystemâ client is a 44 year old woman who weighs 210 lbs. and who needs to lose 60 lbs. Customers typically stay on the plan 10 or 11 weeks. After that (reaching their goal weight), analysts claim that only 7% of clients come back--the "retention rate." At a weight loss rate of 2 lbs. per week, if the typical client spent $280/month for company food and shipping for four months, they’d spend $1,120.

The firm estimates that 70 million people are on a diet, and 20 million of them are men. 

 

The company plans to target seniors by offering foods infused with more vitamins as well as gingko biloba and green tea.

The website

At the company’s website, after you enter some basic information, you will instantly receive your personal weight profile, as well as your individual meal plan and diet outline. From there, you’ll set up a time to meet with your personal counselor, choose the products you want and place your order. Your food will be delivered within 5-10 business days.

Membership privileges don’t stop there, says the company. "You will receive expert advice and guidance in our state-of-the-art counseling room. This innovation allows you and your personal counselor the opportunity to discuss your weight loss program in private sessions. You will also be able to monitor your progress on our up-to-the-minute progress diary, and you will be able to participate in our members-only discussions that will cover topics like health and wellness. Finally, you’ll receive a weekly members’ newsletter highlighting the most recent news about weight loss and health."

Unlimited Personal Phone Counseling… Make an appointment by simply checking your schedule and choosing a time convenient for you from your counselor’s appointment book. You will receive an e-mail reminder of your appointment. Nutritional advice comes from registered dietitians.

Online Newsletter… This weekly newsletter will bring you information on diet aids, supplements and disease prevention. The firm reports on news that affects your weight loss program, and interviews with experts will help you sort out facts from rumors and speculation, on topics like childhood obesity and disease prevention. One can read about fashion tips that will help you select clothes to compliment your body and exercise programs to help you stay toned and fit. In the Dear NutriSystem column, you’ll share the success stories and experiences you send us with others. Your newsletter will be e-mailed to you once a week.

Online classes, online bulletin boards and chat rooms, online weight loss diary

Exercise advice from certified trainers

Recent  Developments

Men's Program... The NutriSystem Nourish Men's Program includes more calories than the traditional plan and uses meals with higher amounts of protein to keep men feeling satisfied.

Diabetics plan... With this program, all meals and desserts focus on low glycemic carbohydrates along with optimal amounts of protein and fiber, allowing diabetics to maintain stable blood sugar levels throughout the day, while still losing weight.

Vegetarian plan... The Vegetarian Program allows vegetarian dieters to maintain their lifestyle, using 45 specially prepared foods.

Fees

The company’s plan carries the following cost:

28-day At Home Program… $279.95 + $16 s/h, control your carbs, 3 meals and 3 snacks a day, portion controlled meals.

There is an auto ship savings discount (with free shipping), where you automatically receive your order every 28 days. You may cancel or change the order at any time. In the past, the company has offered a 1-week sample package and a 2-week starter package. However, these are not currently available, probably since you can get one week's free food under the firm's TV commercial offer (NutriSystem Weight Loss – Start a 28-day plan & get an extra week free

What Others Say

According to a review on the iVillage women’s website… "NutriSystemâ emphasizes the role of regular exercise, provides a weekly newsletter and chat rooms, and includes a weekly one-on-one email chat with a personal counselor to help you stay on track. The meal plan is based on low-fat food choices from the Food Guide Pyramid and recommends a balanced diet that includes all types of foods. If you're the type of person who has trouble with meal planning and portion control, and doesn't want to think about food choices or even prepare meals that can't be microwaved, this plan may be for you."… This plan works well if you're single or eat alone; however, if you have a family to cook for you'll either need to buy enough NutriSystemâ meals for everyone or prepare two separate entrees."

Comment

NutriSystemâ personnel claim that they have a broader food line than other commercial weight loss programs such as Jenny Craig. They also claim that dieters prefer to order their diet food over the Web, rather than have it sold to them in-person by a counselor. And, one does not have to travel to a weight loss center.  However, some people may prefer to see a counselor in person.

NutriSystem is a company in high growth mode. They seem to have tapped into what many dieters want--convenience and value. The company's home delivery model offers privacy and anonymity that competitors such as Weight Watchers, Jenny Craig and LA Weight Loss don't. The food has a long shelf life without needing to be frozen. They have a great value proposition and are striving to open up new markets such as male dieters. NutriSystem is also testing products to be sold through retailers and is considering entering the "wellness" market.

We've tasted some of the NutriSystem items and have to say some are good, some average and some not good tasting at all. There IS better food out there if you have to have home delivery, but gourmet food and fresh daily deliveries come with a price--a very steep price in most cases. Deliciously Yours, from eDiets.com, cost about $500 per month. Atkins At Home costs more than $1,000 per month, as do several others. Most dieters just don't want to spend that much, so NutriSystem's program becomes a lot more attractive to them. Heavy advertising also helps keep demand high.

 

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