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Q: Jenny Craig - history and target market ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Jenny Craig - history and target market
Category: Business and Money > Advertising and Marketing
Asked by: kb811-ga
List Price: $15.00
Posted: 26 Mar 2003 05:28 PST
Expires: 25 Apr 2003 06:28 PDT
Question ID: 181115
I am doing a research report that is comparing Weight Watchers and
Jenny Craig.  I need information on how and when Jenny Craig started
and what their target Market is.  Could you also let me know the
source of your information as I will need to add it to the
bibliography.

Thank you
kb811

Clarification of Question by kb811-ga on 26 Mar 2003 05:29 PST
I actually need this information within a week.
Answer  
Subject: Re: Jenny Craig - history and target market
Answered By: digsalot-ga on 26 Mar 2003 07:13 PST
Rated:4 out of 5 stars
 
Hello there

Jenny Craig was founded in 1983 by Sid and Jenny Craig when they
opened their first Jenny Craig Weight Loss Centers in Melbourne,
Australia.  The opened centers in New Zealand soon after.  The company
expanded to the United States in 1985 when they opened 12 centers in
Los Angeles.  Five years after entering the U.S. market, the company
became the sixth fastest-growing private firm in the nation and
revenues grew to exceed $350 million.  Their target market was already
in place.  Obesity is widespread and increasing. U.S. government
estimates in 1997 showed that 35 percent of the adult population is
clinically obese, their numbers increasing by 10 percent since 1980.
Obesity is characterized by many health experts as the most common
chronic disease in the U.S.

"The company was restructured in the mid-1990s, and its approach
updated. Jenny Craig introduced in August, 1997, a user-friendly ABC
Program that emphasizes convenience and simplicity. It replaces
lengthy workbooks and structured menu plans with a short, interactive
pocketbook guide and a flexible menu plan for making daily choices
from an A, B, or C category, without needing to calculate calories or
fat grams. It also places greater emphasis on the hardest time in
losing weight -- the first few weeks -- while continuing to emphasize
a combination of nutrition, physical activity, and behavioral changes.
As far as Jenny is concerned: "Life should be enjoyed, not wasted
counting fat grams and calories." - Quote from
http://www.businessweek.com/smallbiz/news/coladvice/book/bk990528.htm
- Webpage from BusinessWeek Online - article by Gregory K. Ericksen. 
The article is actually an excerpt from the book "Women Entrepreneurs
Only: 12 Women Entrepreneurs Tell the Story of Their Success"

In fact, you will find a fairly complete history of the company in the
article.  If I try to digest it all here, you will wind up with a
series of quotes and paraphrasing that is as long as the original.  So
the easiest and best thing is just to send you to the article linked
above.

As of December 31, 2001, the company owned 542 Centers with an
additional 110 Centers owned by franchisees, bringing the total number
of Centers in operation to 652.

Jenny Craig herself was moved to the sidelines in 1996 after
sustaining a jaw injury that left her unable to speak clearly.

The company promotes itself as one of the world's largest and most
successful weight loss companies and as any other company uses
testimonials and other positive statements in its advertising.  In
fact, it is not only "one" of the world's largest, it is one of the
world's two largest "classroom" style weight loss companies.  Weight
Watchers being the other.  You will find some of the company history
mentioned above and history about Jenny herself on this page from the
official Jenny Craig website.
http://www.jennycraig.com/corporate/company/jcraig.asp
An additional source for the above history is found here:
http://www.businessweek.com/smallbiz/news/coladvice/book/bk990528.htm
- Webpage from BusinessWeek Online

Jenny Craig has been hurt in recent years by trends such as the
growing use of weight-control drugs and do-it-yourself dieting.

However a part of their history not promoted on the "official" site,
Jenny Craig also agreed to a $46 million settlement for misleading
advertising and improper business practices.  Kronick Moskovitz
Tiedemann & Girard was the legal firm who obtained the settlement. 
You will find additional information about the case just about half
way down the page:
http://www.kmtg.com/kershawProfile.htm - website of Kronick Moskovitz
Tiedemann & Girard

In addition to the above, all has not been coming up smelling like
roses when you hear from people who used to work for the company. 
While this is from a "blog," you may find the information quite
interesting.  According to this person, the main goal of the company
is to remove cash from wallets as rapidly as they claim to remove fat
trom their clients.  You must realize that this is not an "official"
statement from any agency or other source but the 'expose' of a former
and seemingly disgruntled employee.
http://www.thymewise.net/blog/archives/000304.html

Another similar story is found here:
http://www.epinions.com/well-review-6231-554DB1-394A4A42-prod1 - From
Epinions.com - - I must make the same disclaimer here I did for the
previous story though I do find the information quite interesting.

Jenny Craig was sold in 2002 to a group of private investors in a deal
which leaves the Craigs holding stock in the new company.  Details of
that sale can be found in this article from the North County Times
which was published while the sale was still pending. -
http://www.nctimes.net/news/2002/20020129/54508.html - Webpage from
NCTimes.net

Search - Google
Terms - jenny craig, jenny craig company history, jenny craig company
profile

Requested resource listings are included as links within the answer.

If yo need any clarification before rating the answer, please ask.

Cheers - and I'm on my way for my morning can of Slim Fast

digsalot
kb811-ga rated this answer:4 out of 5 stars
This research was done so quickly and thoroughly.  I am very
impressed.  Thank you so much.

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