Acutrim Case Analysis

Problem Statement

Acutrim is CCP's only presence in the diet industry, specifically in just one shrinkink niche of that industry - appetite suppressant pills. To make a long story short - the question for CCP is "is it worth having a big market share in a soon-to-be-dead market?". That is, unless CCP or competitors find a way to convince consumers, that appetite suppresants aren't evil after all. Additionally, the size of the market - $200 mil - is tiny in comparison to the rest of the diet industry.

Recommendation

Due to society's growing health awareness, CCP should by all means remain in the diet industry. The question is - what should be the nature of their presence.

I would recommend transforming Acutrim from a single product to a family of dietary products, which could include: dietary and nutrition supplements, meal replacements, dietary consulting.

Rationale

Dieting is currently not just about losing wieght - it's more about lifestyle, and preventing aging. This trend will only become stronger in the US, and it will be exported to other parts of the world.

Acutrim is still a strong brand, recognized and respected by customers, according to focus group data. This can be used to CCP's benefit, by educating the customer base about new developments in the diet industry, and new possibilities of influencing one's weight and lifestyle. To consume the effects of these efforts - CCP should use new products mentioned in the "Recommendation" section:

• dietary and nutrition supplements, meal replacements - in 1994 this market was $4 bil, in comparison to around $200 mil for appetite suppressants; this would be a new field and product for CCP - risk

• dietary consulting - CCP was actually already doing this when selling Acutrim; starting