The weight loss industry is just huge, with the annual revenue of the US weight loss industry some $61 billion. That means lots of businesses are cashing in on obesity, as 108 million people are on diets in the US alone at any point in time.

How lucrative is this business? Just look at how much celebrities are paid to endorse major weight loss programs. The fee is as high as $3 million, ABC News reports.

One of the companies doing exceptionally well in the industry is Weight Watchers, a weight management system that has become a veritable way of life for millions of people across the globe—from the US and China to Europe and New Zealand. It's a case study of how savvy marketing can propel a company to the forefront of its industry.

Weight Watchers is clearly the dominant company among weight-loss centers and programs, banking north of $1.2 billion each year. It is at least three times larger than its primary competitors, Nutrisystem and Jenny Craig. Weight Watchers has some 8 million website visitors per month and 1.72 million paid online subscribers.

So what are the company's marketing secrets? Let's take a look at six savvy principles Weight Watchers has implemented to solidify its position at the top of the weight-loss stack.

1. Give them what they want, not what they need

We are driven by our desires. We buy expensive fast cars because we crave the "success" image associated with them, not because they are a sensible mode of transportation. We want iPhones because they are a status symbol, not because of the crystal clear voice reception. Same with Jimmy Choos, and Louis Vuitton bags. Sales of such products are all driven by wants.

Weight-loss products are no different. We may know that the key to losing weight is to cut out junk food and eat more vegetables. But that's not what we want. We want to be able to eat our donuts and drink our Frappuccinos. And, smartly, Weight Watchers lets us do that.

According to the Weight Watchers PointsPlus system, members have a daily PointsPlus total based on their gender, weight, and activity level, as well as a weekly PointsPlus allowance that allows for fluctuations in daily eating. For example, if you go out to a restaurant for dinner and surpass your daily PointsPlus allowance, you can dip into your weekly reserve without worry, so long as you don't surpass your weekly allowance as well.

That's a brilliant move on Weight Watchers' part. Essentially, the company is telling members, "Go ahead and eat that donut or drink that Frappuccino. As long as you're within your PointsPlus limits, you'll lose weight."

2. Market the feelings, not the product

When people buy a product, they are paying not for what the product can do for them but what feelings it can give them. "Consumers are ultimately paying for feelings," explains entrepreneur Jeff Barnett. Weight Watchers has figured out the ultimate feeling that dieters long for and has enabled it. What do dieters want? They want to feel good. They want to avoid pain. They want to enjoy the food they like. They don't want to feel deprived. And that's what Weight Watchers communicates to its target audience through the voice of celebrity singer and spokesperson Jennifer Hudson, who dropped over 80 pounds:

  • Jennifer Hudson (YouTube link): "At this point I feel I can do anything, I feel good."
  • Jennifer Hudson (YouTube link): "I feel so comfortable in my jeans…it makes me love myself that much more…loving and free to eat what I love…loving and free to live my life"

3. Let them join for free

A "Join for Free" campaign is always friendly to prospective customers. Weight Watchers lets people attend a free meeting near them. If after the meeting they decide to sign up, they are allowed to receive educational materials. As market analyst Tony Rossel explains, this "opt in" strategy can result in up to a 30% conversion rate.

Consumers react well to this type of strategy because they feel no pressure; and once they see the educational materials and products at a meeting, they want them.

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A Weight Watchers Case Study: How Smart Marketing Pays Off

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ABOUT THE AUTHOR

image of Matthew Denos

Matthew Denos, PhD is an entrepreneur, biologist, and blogger who studies and reviews Weight Watchers and other clinically proven weight loss programs.