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While TV advertising results in more than eight billion consumer impressions a year and remains critical to the continued growth and success of our core brands, we recognize that other outlets also provide opportunity.
Since 2004, ScottsMiracle-Gro has been a sponsor with Rousch Racing in the NASCAR Nextel Cup Series, the NASCAR Busch Series and the NASCAR Craftsman Truck series. We estimate that we have generated more than 70 million consumer impressions related to this sponsorship and have plans in place for even stronger NASCAR-related marketing in 2007 that include a primary sponsorship with popular driver Carl Edwards in the NASCAR Busch Series.
While the vast majority of our advertising is directed at our core North American brands, we believe it has a halo effect for our fast-growing Scotts LawnService business. Because consumer awareness of the Scotts® brand exceeds 95 percent, Scotts LawnService has a clear competitive advantage in using the Scotts® brand in marketing efforts – which includes distribution of more than 20 million pieces of direct mail each year.
Of course, for all of our businesses, the Internet continues to play a larger role in our communications with consumers. Our award-winning Web site, www.scotts.com, allows us to communicate even more broadly and effectively.
Last year, nearly five million visitors came to the site, which is geared to answer nearly any lawn and garden question while providing homeowners with reminders about the appropriate use of our products and the Company’s commitment to environmental stewardship and corporate governance. |
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We continue to use our Web site to conduct ‘permission marketing,’ which allows users to request information from ScottsMiracle-Gro on a regular basis throughout the growing season. As a result, we sent nine million e-mail reminders to consumers in 2006, telling them when it was time to feed their lawn, treat pests in their area and take the other steps necessary to maintain a healthy lawn and beautiful garden.
Our Smith & Hawken business also has seen great results from the Internet. When the business redesigned its Web site in 2006, sales improved dramatically in the first month. Online sales of Smith & Hawken® products comprise about 15 percent of total sales, a number that has been growing quickly over the past two years.
No matter what medium we use, our communications with the consumer have created a competitive advantage for ScottsMiracle-Gro – one that we intend to continue to improve upon and leverage for further growth.
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