Jenny Craig was founded in 1983 in Melbourne, Australia and is one of the largest weight management service companies in the world with more than 725 Company-owned centers in the US, Canada, Australia, New Zealand, Puerto Rico and Guam. Jenny Craig’s Program consists of one-on-one attention and individual support to clients either at one of their JennyCraig Centers or over the phone through their at-home Jenny Craig Program. Its clinically proven and comprehensive program uses a food, body, and mind approach to safe weight-loss, developed by registered dieticians in consultation with the Medical Advisory Board of distinguished experts through more than 80 delicious Jenny Cuisine entrees and snacks, personalized menus and motivational plans. The80 Jenny Craig Cuisines include breakfast, lunch, dinner, and snack items as well as videos, audiocassettes, cookbooks, and exercise accessories. Their exercise and motivation tools include the Abs Ball Kit, the Balance Ball Kit, the Resistance Cords Kit, the Calorie and Heart Rate Monitor, and the Weighted Fitness Balls.
The CorporateStructure of Jenny Craig is made up of the CEO, Patti Larchet followed by Vice Presidents from various departments and registered dieticians. The employees who work under them, approximately 4,000 people, are combined with their California-based home office and nationwide Company-owned Centers. Stock within Jenny Craig is wholly-owned by the subsidiary of Nestlé.
Distribution SystemThe distribution center is where the Jenny Craig merchandise is made and ship to their centers. Each of the centers then delivers food and merchandise for their respective clients. The customer has two options of distribution. The first option, the costumer assists to a weekly appointment at a company-owned center, receive personalize treatment and pick up their menu items for the week. TheSecond option, is a weekly phone call, where the consultant and client discuss the weekly plan (menu and activities), and food will be deliver via Fed ex (a two or four-week deliver, plus the cost of shipping).
Jenny Craig has tried to enter the international market before but without succeeding. In 2006 Nestlé acquired Jenny Craig for $600 million. If Jenny Craig wants to gointernational it has to have capital enough so they are able to cross subsidize international products and if necessary attack competitors profit center. In others word it has to be able to compete with it top competitors. Jenny Craig revenue was $610 million in 2008. Their organic growth, due to the economic difficulties, achieved a double-digit organic growth. Nestlé acquiring of Jenny Craig doesit possible for Jenny Craig to go international.
International Market Knowledge and Ethnocentrism
Jenny Craig counts with the support and background of Nestle in means of capital, management and marketing. With that on mind, we would somehow be asking if Nestle has what it takes to go global, and of course it has, so it is clear that Jenny Craig has the tools to achieve such successinternationally. Nestle is willing to go Europe as the company thinks they are ready to deal with the Jenny Craig services as it proved to be very successful in the US. Nestlé executives admit it is a big challenge but say that, in the end, Jenny Craig’s American heritage will be an advantage. This point of view shows an ethnocentrism philosophy as it is stated that US success will be traduced in aninternational success too.
Risk Taking and First Mover Advantage
Jenny Craig’s biggest competitor is Weight Watchers. Both programs are similar and are looking to expand internationally to achieve the first mover advantage. Weight Watchers already broke into the British, French and Chinese markets; therefore Jenny Craig has lost the opportunity of the first mover advantage. If Jenny Craig...