The goal: Build an Enduring Franchise 2 of 6  
 

The same model also has proven successful for our Ortho® brand.

Over the past two years, we have reformulated several Ortho products for improved results, while also redesigning our packages and more clearly communicating with the consumer. In 2005, we repositioned Ortho Home Defense® Max® and supported it with compelling advertising messages. The result: consumer purchases increased 28 percent.

  

We also improved our advertising message and in-store presence for Ortho Weed B Gon® Max™, resulting in a 17 percent improvement.

Our Lawns business continues to succeed by providing consumers with the industry’s best offering of fertilizer and combination products, which allow them to enjoy green, healthy and weed-free lawns. In 2005, consumer purchases of Turf Builder® products increased 4 percent, even with a late start to the season. Our most popular and heavily advertised product, Turf Builder® with Plus 2®, grew by 8 percent.
     

Increased advertising of Miracle-Gro® Shake ‘N Feed®, our easy-to-use continuous release plant food, resulted in a 40 percent increase in consumer purchases and continued market share gains. Overall, plant food purchases increased by 3 percent during the year, a number we expect to improve upon in 2006 with the introduction of LiquaFeed™, a break-though product being introduced by Miracle-Gro.

  


We know that building an enduring franchise requires innovation that continues to provide unique solutions to help the consumer succeed. That’s what LiquaFeed is all about.

LiquaFeed offers the easiest way possible to deliver critical nutrients to gardens. The innovative feeder connects directly to a garden hose and helps consumers grow healthy plants that are larger and more beautiful than ever. The product will receive significant advertising and marketing support in 2006 and is expected to help further expand our market share in the plant food category.

ScottsMiracle-Gro continues to fund both a growth and innovation pipeline to take our business to new heights. That’s also why we are increasing our spending to develop new natural and organic products and recently entered the growing bird food category with the acquisition of Morning Song®.

By continuing to strengthen our product portfolio and our relationship with the consumer, we are confident we can continue driving our core business in traditional channels of retail, which will be the key in building an enduring franchise.

  

 
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