Online weight loss site eDiets.com will spend several million dollars to market the launch of a revised business strategy, shifting from a one-product platform to offering multiple branded diet solutions.
The effort, slated to launch April 16, is an attempt to differentiate Deerfield Beach, FL-based eDiets from other diet centers such as Weight Watchers.
Jay Berkowitz, director of marketing, said the marketing effort will be primarily online, concentrating on banner advertising to promote the relaunch. Direct mail and print will also likely be used as the program rolls out.
EDiets currently has 12 million subscribers who receive up to four free e-newsletters per week. The site generates 90% of its revenue from subscriptions to diet programs. Introductory subscriptions are $35 for nine weeks; the average subscriber stays with the program for seven months.
Since the beginning of the war in late March, the sales performance of the company’s advertising campaigns has declined by approximately 20% to 25%. Berkowitz noted the clickthroughs on newsletters and the number of site visits have been down, probably because people have been devoting their reading time to news.
The company estimates that for the first quarter ended March 31, 2003 it will report revenues of between $7.2 and $7.4 million, an increase of approximately 3 to 6% compared to revenues of $7.0 million in the first quarter of fiscal 2002.
Deferred subscription revenues are expected to have reached an all-time high of $3.8 million at March 31, 2003, an increase of $700,000 compared to $3.1 million at December 31, 2002 and $1.1 million compared to $2.7 million at March 31, 2002. This is due in part to increased sales of annual membership programs.
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