...Nutrisystem, Inc. (NTRI) Rating: BUY Price Target: $32 - 35 Market Cap: $786.64 M Stock Price: $26.14 Industry: Health & Wellness Date: May 9, 2016 Buy Side Report (CMAM Immersion) Nutrisystem, Inc. (NTRI) Rating: BUY Price Target: $32 - 35 Market Cap: $786.64 M Stock Price: $26.14 Industry: Health & Wellness Date: May 9, 2016 Buy Side Report (CMAM Immersion) Contents Investment Rationale 1 Company Profile and History 2 Company Products 3 Industry Overview 4 Competitive Position 6 Growth Factors 7 Valuation and Comparable Analysis 8 Investment Risks 9 Management Profile 10 Contact Information 11 Investment Rationale TurnAround Opportunity Nutrisystem, Inc. (NTRI) is a company on the turnaround. Since having six consecutive years of declining revenues and earnings, the company has been on the upward trend since 2012. In 2012, CEO Dawn Zier joined and revitalized the company with strategic initiatives, such as more product innovation and greater sale channel diversification. Since 2012, Nutrisystem has introduced eight new weight loss programs, introduced a “D” plan for diabetics, and revamped its core product line. To help improve margins, the average selling price was increased, but at the same time more meal options were introduced at various price points. The income statement and strong balance sheet show signs that the company is still in the early stages of a turnaround and that there...
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...Entrepreneurship Health Care Product and Services Marketing Techniques Wali K Shakoor-Luqman I BSN, RN HCS/567 Marketing for Health Care 11/24/2014 Facilitator: Jackie Lucas FACHE Health Care Entrepreneurship Marketing Techniques Today’s health environment is governed by the concept of efficient deliverance of care, with the main objective of managing the transactions made between the patient and their providers using cost effective methods. The makeup also consists of consumer involvement in making wiser choices from the various marketing strategies used by the health care industry. The Unites States Health Care System is designed to plan and have control as to how resources are distributed. Due to harsh economic and changing times, health care has not been regulated closely enough to make sure United States citizens receive adequate resources for quality health care at an affordable cost (Getzen, 2007). The health care industry has so much opportunity for developing new businesses, but the entrepreneur has to be equipped with the necessary tools to meet the demands of the health care market. Health care organizations are serious about protecting the general public against the unscrupulous individuals using the get rich quick scams to exploit the consumer out of millions of dollars, based on trends or cosmetic related goods. As we know, obesity in the United States is an area of great concern. Health care consumers who suffer...
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...probability changes. Risk was also considered as a major factor in this analysis. It has been determined that Merck & Company should accept the offer from LAB Pharmaceuticals because of the predicted revenue. The relative risk involved with this project is high; however, it has been determined to be part of the nature of the pharmaceutical industry and previous drug development endeavors. Background The nature of the pharmaceutical industry includes a variety of factors. Three of these factors will be described. First, development of a drug can take several decades and therefore pharmaceutical companies incur large research and development expenses with no revenue in return. Because of this, larger pharmaceutical companies that have sufficient capital have typically dominated the drug market. Merck & Co., Inc, a global research-driven pharmaceutical company, has been able to achieve substantial returns to capital by discovering, developing, manufacturing and marketing a board range of products directly through its joint ventures. It had launched 15 new products since 1995 and earned 5.9 billion on 1999 sales. Second, the pharmaceutical industry is under tight control of the government. Before a new drug can go public, there is a series of strict approval processes overseen by the Food and Drug Association (FDA). The later stage the process is at, the more...
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...HEATHER BECKHAM Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug “I have tried countless diets and every new weight-loss pill that has come on the market. Nothing seems to take off those extra pounds. With diets, I am miserable because I am starving all the time, and none of the weight-loss pills seem to work. I might lose a couple pounds, but I never reach my weightloss goals and I usually end up gaining more back. I would give anything to lose this extra 20 pounds, so that I can live a longer, happier life.” — Tamara Jinkens: focus group participant, age 42 Barbara Printup, senior director of marketing for Cambridge Sciences Pharmaceuticals (CSP), listened as overweight focus group participants recounted their lifelong struggles with weight loss. Printup had just been placed in charge of the upcoming U.S. product launch of CSP’s newest prescription drug, Metabical (pronounced Meh-tuh-bye-cal). In clinical trials, Metabical proved to be safe and effective in stimulating weight loss for moderately overweight individuals. CSP was an international health care company with a focus on developing, manufacturing, and marketing products that treat metabolic disorders, gastrointestinal diseases, immune deficiencies, as well as other chronic and acute medical conditions. The company captured over $25 billion in sales in 2007. Printup had over 20 years of experience marketing prescription drugs for CSP. She had led six new drug campaigns and had just concluded...
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...HEATHER BECKHAM Metabical: Positioning and Communications Strategy for a New Weight-Loss Drug “I have tried countless diets and every new weight-loss pill that has come on the market. Nothing seems to take off those extra pounds. With diets, I am miserable because I am starving all the time, and none of the weight-loss pills seem to work. I might lose a couple pounds, but I never reach my weightloss goals and I usually end up gaining more back. I would give anything to lose this extra 20 pounds, so that I can live a longer, happier life.” — Tamara Jinkens: focus group participant, age 42 Barbara Printup, senior director of marketing for Cambridge Sciences Pharmaceuticals (CSP), listened as overweight focus group participants recounted their lifelong struggles with weight loss. Printup had just been placed in charge of the upcoming U.S. product launch of CSP’s newest prescription drug, Metabical (pronounced Meh-tuh-bye-cal). In clinical trials, Metabical proved to be safe and effective in stimulating weight loss for moderately overweight individuals. CSP was an international health care company with a focus on developing, manufacturing, and marketing products that treat metabolic disorders, gastrointestinal diseases, immune deficiencies, as well as other chronic and acute medical conditions. The company captured over $25 billion in sales in 2007. Printup had over 20 years of experience marketing prescription drugs for CSP. She had led six new drug campaigns and had just concluded...
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...WEIGHT LOSS ISSUES Excessive weight has become one of the major issues in today's world. This leads to all sorts of health riskssuch as coronary heart diseases, high blood pressure, diabetes, sleep apnea and many more. Furthermore, a research has shown that death rates from cancer were 52% higher in men and 62 % higher in women with excessive weight than in people with normal weight (Eugenia E. Calle 2003). A large proportion of overweight people have been trying to lose their weight in every possible way. However, not every attempt was successful. Due to that, the pharmaceutical industry has been developing and testing a large variety of medicines that are specifically made to help people with weight issues. One of the newest drugs on the market is Metabical, a prescription drug developed by Cambridge Sciences Pharmaceuticals (CSP). Based on the results from clinical trials, Metabical has been proven effective for weight loss of overweight people. The question is how willMetabicalbe introduced to the market? PULL MARKETING The main idea was to advertise Metabical directly to consumers in order to increase the awareness of the product. This strategy was based on pull marketing where the purpose was to attract the customers and make them approach the supplier or seller first. It is not an assertive way of marketing in comparison to push marketing where a seller calls potential customers on the telephone asking whether they would like to purchase a product they might not actually...
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...Forever Weight Loss Smoothies Marketing Plan By Viquita Ware For Professor Levanti I have prepared a report based on “Marketing Plan weight loss smoothies. In order to prepare this report, I along with my staff have followed marketing research methodology for those who are overweight and or those who just want to lose weight. The target market that we are focusing on range from the early 20’s into the late 50’s. Our company chose to focus on the results and opinions of our target market by relying on the data from questionnaires initiated by “Weight loss” smoothies. This questionnaire was done with the intent of finding out what the market need and wants consisted of. This survey took place inside and outside of Memphis. After analyzing the questionaire, plans about location, building source of finance, price, promotion, and channel of distribution, our plant location will be located in the heart of Memphis. This location was chosen to ensure an easy access of raw materials and for unlimited client potential. Our product will be made available in 600ml and 900ml and the flavors will be Orange, Mango,and Strawberry. The prices for the smoothies will be relatively lower than that of our competition and the channels of distribution will be convenient. Furthermore, advertisements will also be placed on both television and banners. Distribution of our product will be located within the Southland Mall. The entire production process is in strict conformity with...
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...available. Randall meets internal resistance to the mainstream strategy from the product manager for the company's current, but aging, mainstream razor products and he must consider the effects of cannibalization in his plan. Randall must recommend an optimal strategy and provide supporting economic analysis of his decision--not just for Clean Edge, but for its effect on the entire company. Learning objective: Explore issues associated with strategic product positioning. Review new product development process and understand the importance of evaluating product-company and product-market fit in assessing new product opportunities. Understand the importance and marketing implications of determining whether a new product is a big breakthrough or a simple line extension. Subjects covered: Marketing strategy; New product marketing; Product positioning; Profitability analysis;...
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...rP os t 4183 APRIL 14, 2010 JOHN A. QUELCH HEATHER BECKHAM op yo Metabical: Pricing, Packaging, and Demand Forecasting for a New Weight-Loss Drug In April 2008, after 10 years of testing and $400 million in research and development costs, Cambridge Sciences Pharmaceuticals’ (CSP) newest prescription drug, Metabical (pronounced Mehtuh-bye-cal), was about to receive its coveted Food and Drug Administration (FDA) approval. CSP was an international healthcare company with over $25 billion in sales in 2007. The company, based in Cambridge, Massachusetts, focused on developing, manufacturing, and marketing products that treated metabolic disorders, gastrointestinal diseases, and immune deficiencies, as well as other chronic and acute medical conditions. Metabical was part of a strategic initiative that would allow CSP to enter the $3.74 billion market for weight-control products in the United States.1 tC CSP’s chief marketing officer, Bernard Long, said of the new product: No Metabical is revolutionary. It will be the first and only prescription drug to receive FDA approval to meet the needs of the millions of individuals struggling with moderate weight-loss goals. Previous prescription weight-loss drugs had negative side effects that, in the agency’s judgment, outweighed the benefits provided to individuals who were not considered obese. Metabical will be approved for use by those looking to shed between 10 to 30 pounds. Initial reviews...
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...MARKETING MANAGEMENT (MBSA 1313) Semester II/2014/2015 Weekdays Classes: Section 03 CASE STUDY: METABICAL POSITIONING AND COMMUNICATIONS STRATEGY FOR A NEW WEIGHT LOSS DRUG PREPARED FOR: DR. FAUZIAH SH. AHMAD GROUP MEMBERS STUDENT NUMBERS SHENBAGAM RAMAN (MR131131) SYAHIRAH BINTI ISMAIL (MBS141154) MUZAMMIL BIN ZOLKARNAIN (MR131142) HUZAIMAH YAHYA (MBS141112) OKEKE EMMANUEL (MBS141163) 1.0 Company Background Metabical is a weight loss drug that has been proven to be safe and effective for moderately overweight individuals in clinical trials. FDA approval is expected for January 2009, which gives the Marketing team around Barbara Printup a little less than a year to develop an effective positioning strategy for Metabical, as well as a full marketing communications plan to be ready for the launch. It is clear that the product will have to amortize extensive R&D costs and secure excess profits in order to be a success for CSP, all that in a market environment characterized by diverse competition and low consumer trust. 2.0 Issue and Problem Statement The issue in Metabical can be carried out from the case study is the company required to discover the market positioning for that particular product which is the weight-loss drug named Metabical. In addition, the issues arise that the company less clarity by the way of the communication tools or method to deliver the good messages...
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...2 Introduction •Harley Davidson’s (HD) heritage is symbolic of the American dream •HD’s unique potato-potato-potato sound created by its famous V-twin engine is still a trend among riders •HD was formed in 1903 in the Davidson family’s backyard •During both World War I and II, HD’s contribution to U.S efforts increased its sales and popularity in US and became a prominent symbol of so called American Dream •HD operates in two segments that are financial services and motorcycles and related products 3 Vision & Mission Vision: Harley Davidson is an action oriented international company , a leader in its commitment to continuously improve its mutually beneficial relationships with stakeholders (customers, suppliers, employees, shareholders, government and society). HD believes to key the success is to balance stakeholders’ interests through the empowerment of all employees to focus on value-added activities. Mission: HD fulfills dreams through the experiences of motorcycling, by providing to motorcyclists and to the general public and expending line of motorcycles, branded products and services in selected market segments. Philosophy of HD: • • • • • Tell the truth Be fair Keep your promises Respect the individual Encourage intellectual curiosity. 4 Strategical Targets of HD The main strategical targets of HD are as follows: • Focusing on Harley Davidson brand image • Customer-led management strategy (more people, in more places to choose...
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...Marketing Mix MKT/421 Marketing Mix This world moves in a rapid pace when it comes to business, it is important to understand concepts and strategies that have been completed by successful entrepreneurs and follow the steps to get those ideas on the board and to the people hands. The marketing mix has been created as a map to getting a product or service out to market in an organized and effective manner. Within the marketing mix consist of the four P’s; product, place, price, and promotion. These are the four p’s used around the world to help guide entrepreneurs to success in the business market. Product organization’s marketing strategy and tactics. Vemma Corp. is a company selling health and wellness across the world. Giving an opportunity to start a business to an average person and making his and her dreams come to a reality. Vemma created different products for the needs and wants to different people. "Vemma" (2004) Products include a healthy liquid nutrient, a weight loss program with weight loss supplements, a healthy alternative energy drink, and a healthy liquid nutrient drink for kids. Vemmas products are proven to help build a stronger immune system, products have amazing antioxidant absorption, and helps lower C-reactive protein and from that help on all aspects of health. Because the company is based on direct sales, people within the company would promote each product to the specific needs and wants to the people....
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...infomercials are also included in this industry. Non store retailing is patronized to time conscious consumers and consumers who can't easily go to stores or compulsive buyers the 21st century shopper. Most if not all non-store retailers offer consumers the convenience of buying 24/7 and with delivery at location and time of their choice. Over the last several years, non-store sales are out growing sales in retail stores. Network Marketing In layman's terms, in the normal marketing system, the manufacturer supplies the products through the middlemen such as brokers, wholesalers and retailers. These middlemen add their establishment costs and their own margin of profit or commission on the price. This increases the price by approximately 45 per cent. The consumer therefore gets the product at atleast a 45 per cent markup from the manufacturer's price. In network marketing, these middle men are eliminated. A person is invited to join and become a member (also called Consultant) of the network marketing company. This person in turn invites many more people to join under him to form a group. These group members, in turn invite their acquaintance to join under them. This group is made to steadily grow and it can grow into thousands or tens of thousands, in the course of time, depending upon the enthusiasm with which the Consultant pursue the sponsorship of new Consultants. These Consultants make purchases of the products of the marketing company for self use and also for sale...
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...Atkins Diet Marketing Plan Part II MKT / 571 June 11, 2015 Atkins Diet Marketing Plan Part II Atkins is one of the leading branded retailers and wholesalers of weight management products. The company offers a wide variety of nutrition bars, shakes, snacks and frozen meals for those on a low carb diet plan. . The Atkins Advantage RTD Shakes are canned drinks that are low in calories but full of carbohydrates. As mentioned in part I’s marketing plan, protein shakes were previously advertised to body builders and serious athletes. Today the protein shake sector is booming with waves of protein drinks marketed to ordinary people. It is estimated that the protein shake market will grow to 8 billion by 2017 (Westman, 2002). As this market continues to transform, it is important for the company to be cognizant of profile growth within the market and brand. Target Market Profiles Atkins Protein shakes in Arizona are targeted at men and women in their mid. 30-40s. They are successful business owners who are athletic and love outdoor sports. They own their own fitness studios or gyms and are always promoting a healthier lifestyle. In Arizona, there are a lot of outdoor activities, so they hike and explore the state on their free time. This gives them the perfect opportunity to drink our protein shakes as they are always on the run. Their business help promote shakes to their own customers. Atkins Protein Shake buyers look for nutritional value in the items they buy and...
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...their growth and refine its operating decisions. The ultimate goal is to make a recommendation serving the best interest of the company and the owners, based on a cost analysis, future potential earnings, and market conditions. This evaluation addresses the present operating conditions of Old Mule Farms (hereinafter referred to as “OMF”), a family owned cattle farm. The owners are facing critical decisions regarding the future of the farm and have sought assistance to review all factors that may be affecting the profitability of the farm. The evaluation reveals the financial performance of the company using the information provided in the case, including consideration for all the key drivers of performances, including company profit or loss for both short term and long term. The financial analysis will show how each factor influences managerial decisions using the calculation to support the decision. The findings and recommendation proffered to the owners of the farm, focuses on actions that will have the greatest positive impact on the farm’s operation and ultimately its bottom-line. We further recommend how the OMF can improve its profitability to deliver more value to its owners, and provide a brief plan to implement the recommendations. Finally, the assessment will provide quantifiable reasons for any recommendations made regarding the operation and sustainment of the...
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