Today: After being launched in 1998, Scotts LawnService already accounts for 7 percent of our overall sales and continues to post double-digit sales and profit increases. With revenue of nearly $160 million, we are the No. 2 player in this nearly $4 billion high-margin category.

Tomorrow: Demographic trends suggest the ‘do-it-for-me’ lawn service channel will continue to expand. By leveraging our brands and providing the highest levels of customer service, we are working to drive consumers to Scotts LawnService, enabling us to emerge as leaders in the Top 100 lawn care markets while improving our profitability and return on invested capital.

 

 
 
 
The goal: Build an Enduring Franchise 4 of 6  
 
The strategy:   Extend our reach with consumers in the do-it-for-me category
 

Building an enduring franchise requires building relationships with consumers regardless of how they interact with our brands. That’s why Scotts LawnService® is so critical in reaching this goal.

Homeowners who use do-it-for-me services are looking for a green, healthy and weed-free lawn and beautiful garden throughout the year. They want someone they can count on – a partner, not simply a service provider. Our commitment to creating partnerships with homeowners is why Scotts LawnService continues to succeed.

By delivering high levels of customer service, Scotts LawnService improved its customer retention rate to 71 percent in 2005, significantly higher than industry standards. Overall, Scotts LawnService improved sales by more than 18 percent during the year, more than 90 percent of which came from organic growth.

These factors resulted in a 39 percent improvement in operating income for the year. What’s more, we believe operating margins can substantially improve over the next several years as we better leverage our fixed costs in the business.

The near-term growth of Scotts LawnService will come from continued market share expansion in the markets we currently serve, opening operations in new locations and exploring high- quality acquisitions. Longer term, we will explore opportunities to leverage our growing infrastructure to provide homeowners with other valuable services to help them create healthy lawns and beautiful landscapes.

  

The continued success of the business is directly linked to our relationship with the homeowner. By respecting the trust they place in us, we are confident Scotts LawnService will be critical in building an enduring franchise.

 
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