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SMG » Topics » Strategic Initiatives

These excerpts taken from the SMG 10-K filed Dec 3, 2008.
Strategic Initiatives
 
Our strategic plan is focused on leveraging our key competitive advantages in a way that fuels growth, reduces costs, distances us from the competition and drives shareholder value. We are currently involved in several initiatives designed to meet this criteria:
 
  •  Even in a difficult economy, we continue to expand upon our strategy of strengthening our relationship with the consumer. This will allow us to leverage the cornerstone of our business — our brands — and drive higher usage of our products. Our strategy is to raise household penetration of our products, as well as the frequency with which existing consumers use our products. We believe this can be accomplished by pursuing an advertising strategy that increasingly relies on regional radio advertising, as well as a national approach on television.
 
We also continue to execute a strategy focused on better understanding the needs and attitudes of our consumers. We have historically demonstrated the ability to use customer feedback to develop improved products and packaging that drives increased consumer demand.
 
In 2008, these strategies helped us succeed with new products such as Roundup® Pump `N Go® in the United States, as well as a full line of natural and organic lawn and garden products in Europe. In 2009, insights gained from consumers will be critical as we navigate a challenging economic environment. Our research will help us more effectively communicate to consumers that our products cost more because they are worth more.
 
  •  Our strategic plan is heavily focused on driving innovation, which we believe is necessary to achieve higher sales and profits. In recent years, new products have been critical to our success. Our strategy is focused on continuing to leverage what we consider an unmatched commitment to innovation. This takes into account three strategic imperatives: all new products must be “simple,” “sustainable” and “significant.”
 
“Simple” means that products must be easy for the consumer to buy, easy to use and easy to store. In addition, they should reduce the amount of time it takes to accomplish a task and should give the consumer improved results. Being “sustainable” means products must be designed with consumer safety and environmental impacts in mind. “Significant” products should have strong margin potential, generate possible cost savings, present a global opportunity and be proprietary whenever possible.
 
We believe this strategy will result in the successful launch of several new products in 2009, including Turf Builder® Water Smarttm Grass Seed and EZ Seedtm Grass Seed. The former includes a full line of premium grass seed products that provide consumers high-performance seed wrapped in a super-absorbent coating. The patented coating allows every seed to absorb up to 40% more water than ordinary seed. As a result, the seed needs to be watered less frequently, which enables consumers to more easily succeed in growing a healthy lawn. EZ Seedtm is a seed mix which includes premium grass seed, fertilizer and a proprietary growing material. Our proprietary technology absorbs water, expanding to surround the seed in a moist protective layer. The protective layer continues to care for the seed, infusing it with water and nutrients, so it builds strong roots that survive tough conditions.
 
  •  Our strategic plan also continues to focus on further assisting our retail partners in order to improve their sales and the productivity of the lawn and garden department. We believe this strategy makes us a more critical component to their success and helps to ensure our continued growth.
 
In 2009, we will employ more merchandisers and expert product counselors and significantly increase the number of hours we spend in the stores of our major retail partners. We are rebalancing
 
8

Table of Contents

our sales force in a cost neutral way that allows us to spend more time helping our retailers and consumers and less time on administrative activities.
 
We believe this strategy will provide a more flexible cost structure that helps maximize the return on our investment and allows us to better meet the needs and timing of local markets. It also allows us to quickly deploy more labor in those regions where business is particularly strong and reduce spending in regions where sales may be lower than expected due to poor weather, economic concerns or other factors.
 
  •  Our strategy will continue to transform our U.S. supply chain into a more regional model. We believe this effort can result in cost savings of $50 million annually and reduce inventories by more than $100 million.
 
Today, the majority of our lawn fertilizer products in the United States are shipped from our plant in Marysville, Ohio to one of 11 warehouses across the country. From those warehouses, the fertilizer products are then shipped — along with controls, plant food, grass seed and durable products — directly to home center stores. These products are often shipped on less-than-full trucks, making their distribution less efficient than we would like.
 
Meanwhile, growing media products are shipped direct-to-store through a network of 26 manufacturing facilities. Because these shipments go shorter distances on full trucks, they are more efficient.
 
Our strategy for a future model — which is being rolled out in the Southeastern United States in 2009 — allows fertilizer products to be shipped into these growing media facilities, instead of to warehouses. From there, the fertilizer and growing media products are co-distributed directly to the stores. Once deployed across the entire country, nearly all fertilizer products for home center customers will be shipped through these growing media facilities, significantly improving our product distribution efficiency.
 
Within five years, it is anticipated that up to half of our third-party warehouse square footage could be eliminated. With fertilizer and growing media products shipping together to home center retailers, most of the remaining cased goods would be shipped from the warehouses to our retail partners’ distribution centers on fully-loaded trucks.
 
These strategic efforts not only present a significant economic benefit to the Company, but our retail partners will benefit as well, through more frequent store replenishment, improved inventory turns and reduced order lead times. As such, we believe our partners can maximize their retail point-of-sale opportunities without compromising the customer service rates they have come to expect.
 
Strategic
Initiatives


 



Our strategic plan is focused on leveraging our key competitive
advantages in a way that fuels growth, reduces costs, distances
us from the competition and drives shareholder value. We are
currently involved in several initiatives designed to meet this
criteria:


 
















  • 
Even in a difficult economy, we continue to expand upon our
strategy of strengthening our relationship with the consumer.
This will allow us to leverage the cornerstone of our
business — our brands — and drive higher
usage of our products. Our strategy is to raise household
penetration of our products, as well as the frequency with which
existing consumers use our products. We believe this can be
accomplished by pursuing an advertising strategy that
increasingly relies on regional radio advertising, as well as a
national approach on television.


 



We also continue to execute a strategy focused on better
understanding the needs and attitudes of our consumers. We have
historically demonstrated the ability to use customer feedback
to develop improved products and packaging that drives increased
consumer demand.


 



In 2008, these strategies helped us succeed with new products
such as
Roundup®

Pump `N
Go®

in the United States, as well as a full line of natural and
organic lawn and garden products in Europe. In 2009, insights
gained from consumers will be critical as we navigate a
challenging economic environment. Our research will help us more
effectively communicate to consumers that our products cost more
because they are worth more.


 
















  • 
Our strategic plan is heavily focused on driving innovation,
which we believe is necessary to achieve higher sales and
profits. In recent years, new products have been critical to our
success. Our strategy is focused on continuing to leverage what
we consider an unmatched commitment to innovation. This takes
into account three strategic imperatives: all new products must
be “simple,” “sustainable” and
“significant.”


 



“Simple” means that products must be easy for the
consumer to buy, easy to use and easy to store. In addition,
they should reduce the amount of time it takes to accomplish a
task and should give the consumer improved results. Being
“sustainable” means products must be designed with
consumer safety and environmental impacts in mind.
“Significant” products should have strong margin
potential, generate possible cost savings, present a global
opportunity and be proprietary whenever possible.


 



We believe this strategy will result in the successful launch of
several new products in 2009, including Turf
Builder®

Water
Smarttm

Grass Seed and EZ
Seedtm

Grass Seed. The former includes a full line of premium grass
seed products that provide consumers high-performance seed
wrapped in a super-absorbent coating. The patented coating
allows every seed to absorb up to 40% more water than ordinary
seed. As a result, the seed needs to be watered less frequently,
which enables consumers to more easily succeed in growing a
healthy lawn. EZ
Seedtm

is a seed mix which includes premium grass seed, fertilizer and
a proprietary growing material. Our proprietary technology
absorbs water, expanding to surround the seed in a moist
protective layer. The protective layer continues to care for the
seed, infusing it with water and nutrients, so it builds strong
roots that survive tough conditions.


 
















  • 
Our strategic plan also continues to focus on further assisting
our retail partners in order to improve their sales and the
productivity of the lawn and garden department. We believe this
strategy makes us a more critical component to their success and
helps to ensure our continued growth.


 



In 2009, we will employ more merchandisers and expert product
counselors and significantly increase the number of hours we
spend in the stores of our major retail partners. We are
rebalancing

 



8






Table of Contents






our sales force in a cost neutral way that allows us to spend
more time helping our retailers and consumers and less time on
administrative activities.


 



We believe this strategy will provide a more flexible cost
structure that helps maximize the return on our investment and
allows us to better meet the needs and timing of local markets.
It also allows us to quickly deploy more labor in those regions
where business is particularly strong and reduce spending in
regions where sales may be lower than expected due to poor
weather, economic concerns or other factors.


 
















  • 
Our strategy will continue to transform our U.S. supply
chain into a more regional model. We believe this effort can
result in cost savings of $50 million annually and reduce
inventories by more than $100 million.


 



Today, the majority of our lawn fertilizer products in the
United States are shipped from our plant in Marysville, Ohio to
one of 11 warehouses across the country. From those warehouses,
the fertilizer products are then shipped — along with
controls, plant food, grass seed and durable
products — directly to home center stores. These
products are often shipped on less-than-full trucks, making
their distribution less efficient than we would like.


 



Meanwhile, growing media products are shipped direct-to-store
through a network of 26 manufacturing facilities. Because these
shipments go shorter distances on full trucks, they are more
efficient.


 



Our strategy for a future model — which is being
rolled out in the Southeastern United States in 2009 —
allows fertilizer products to be shipped into these growing
media facilities, instead of to warehouses. From there, the
fertilizer and growing media products are co-distributed
directly to the stores. Once deployed across the entire country,
nearly all fertilizer products for home center customers will be
shipped through these growing media facilities, significantly
improving our product distribution efficiency.


 



Within five years, it is anticipated that up to half of our
third-party warehouse square footage could be eliminated. With
fertilizer and growing media products shipping together to home
center retailers, most of the remaining cased goods would be
shipped from the warehouses to our retail partners’
distribution centers on fully-loaded trucks.


 



These strategic efforts not only present a significant economic
benefit to the Company, but our retail partners will benefit as
well, through more frequent store replenishment, improved
inventory turns and reduced order lead times. As such, we
believe our partners can maximize their retail point-of-sale
opportunities without compromising the customer service rates
they have come to expect.


 




These excerpts taken from the SMG 10-K filed Nov 25, 2008.
Strategic Initiatives
 
Our strategic plan is focused on leveraging our key competitive advantages in a way that fuels growth, reduces costs, distances us from the competition and drives shareholder value. We are currently involved in several initiatives designed to meet this criteria:
 
  •  Even in a difficult economy, we continue to expand upon our strategy of strengthening our relationship with the consumer. This will allow us to leverage the cornerstone of our business — our brands — and drive higher usage of our products. Our strategy is to raise household penetration of our products, as well as the frequency with which existing consumers use our products. We believe this can be accomplished by pursuing an advertising strategy that increasingly relies on regional radio advertising, as well as a national approach on television.
 
We also continue to execute a strategy focused on better understanding the needs and attitudes of our consumers. We have historically demonstrated the ability to use customer feedback to develop improved products and packaging that drives increased consumer demand.
 
In 2008, these strategies helped us succeed with new products such as Roundup® Pump `N Go® in the United States, as well as a full line of natural and organic lawn and garden products in Europe. In 2009, insights gained from consumers will be critical as we navigate a challenging economic environment. Our research will help us more effectively communicate to consumers that our products cost more because they are worth more.
 
  •  Our strategic plan is heavily focused on driving innovation, which we believe is necessary to achieve higher sales and profits. In recent years, new products have been critical to our success. Our strategy is focused on continuing to leverage what we consider an unmatched commitment to innovation. This takes into account three strategic imperatives: all new products must be “simple,” “sustainable” and “significant.”
 
“Simple” means that products must be easy for the consumer to buy, easy to use and easy to store. In addition, they should reduce the amount of time it takes to accomplish a task and should give the consumer improved results. Being “sustainable” means products must be designed with consumer safety and environmental impacts in mind. “Significant” products should have strong margin potential, generate possible cost savings, present a global opportunity and be proprietary whenever possible.
 
We believe this strategy will result in the successful launch of several new products in 2009, including Turf Builder® Water Smarttm Grass Seed and EZ Seedtm Grass Seed. The former includes a full line of premium grass seed products that provide consumers high-performance seed wrapped in a super-absorbent coating. The patented coating allows every seed to absorb up to 40% more water than ordinary seed. As a result, the seed needs to be watered less frequently, which enables consumers to more easily succeed in growing a healthy lawn. EZ Seedtm is a seed mix which includes premium grass seed, fertilizer and a proprietary growing material. Our proprietary technology absorbs water, expanding to surround the seed in a moist protective layer. The protective layer continues to care for the seed, infusing it with water and nutrients, so it builds strong roots that survive tough conditions.
 
  •  Our strategic plan also continues to focus on further assisting our retail partners in order to improve their sales and the productivity of the lawn and garden department. We believe this strategy makes us a more critical component to their success and helps to ensure our continued growth.
 
In 2009, we will employ more merchandisers and expert product counselors and significantly increase the number of hours we spend in the stores of our major retail partners. We are rebalancing our sales force in a cost neutral way that allows us to spend more time helping our retailers and consumers and less time on administrative activities.
 
We believe this strategy will provide a more flexible cost structure that helps maximize the return on our investment and allows us to better meet the needs and timing of local markets. It also allows us to quickly deploy more labor in those regions where business is particularly strong and reduce spending in regions where sales may be lower than expected due to poor weather, economic concerns or other factors.
 
8

Table of Contents

  •  Our strategy will continue to transform our U.S. supply chain into a more regional model. We believe this effort can result in cost savings of $50 million annually and reduce inventories by more than $100 million.
 
Today, the majority of our lawn fertilizer products in the United States are shipped from our plant in Marysville, Ohio to one of 11 warehouses across the country. From those warehouses, the fertilizer products are then shipped — along with controls, plant food, grass seed and durable products — directly to home center stores. These products are often shipped on less-than-full trucks, making their distribution less efficient than we would like.
 
Meanwhile, growing media products are shipped direct-to-store through a network of 26 manufacturing facilities. Because these shipments go shorter distances on full trucks, they are more efficient.
 
Our strategy for a future model — which is being rolled out in the Southeastern United States in 2009 — allows fertilizer products to be shipped into these growing media facilities, instead of to warehouses. From there, the fertilizer and growing media products are co-distributed directly to the stores. Once deployed across the entire country, nearly all fertilizer products for home center customers will be shipped through these growing media facilities, significantly improving our product distribution efficiency.
 
Within five years, it is anticipated that up to half of our third-party warehouse square footage could be eliminated. With fertilizer and growing media products shipping together to home center retailers, most of the remaining cased goods would be shipped from the warehouses to our retail partners’ distribution centers on fully-loaded trucks.
 
These strategic efforts not only present a significant economic benefit to the Company, but our retail partners will benefit as well, through more frequent store replenishment, improved inventory turns and reduced order lead times. As such, we believe our partners can maximize their retail point-of-sale opportunities without compromising the customer service rates they have come to expect.
 
Strategic
Initiatives


 



Our strategic plan is focused on leveraging our key competitive
advantages in a way that fuels growth, reduces costs, distances
us from the competition and drives shareholder value. We are
currently involved in several initiatives designed to meet this
criteria:


 
















  • 
Even in a difficult economy, we continue to expand upon our
strategy of strengthening our relationship with the consumer.
This will allow us to leverage the cornerstone of our
business — our brands — and drive higher
usage of our products. Our strategy is to raise household
penetration of our products, as well as the frequency with which
existing consumers use our products. We believe this can be
accomplished by pursuing an advertising strategy that
increasingly relies on regional radio advertising, as well as a
national approach on television.


 



We also continue to execute a strategy focused on better
understanding the needs and attitudes of our consumers. We have
historically demonstrated the ability to use customer feedback
to develop improved products and packaging that drives increased
consumer demand.


 



In 2008, these strategies helped us succeed with new products
such as
Roundup®

Pump `N
Go®

in the United States, as well as a full line of natural and
organic lawn and garden products in Europe. In 2009, insights
gained from consumers will be critical as we navigate a
challenging economic environment. Our research will help us more
effectively communicate to consumers that our products cost more
because they are worth more.


 
















  • 
Our strategic plan is heavily focused on driving innovation,
which we believe is necessary to achieve higher sales and
profits. In recent years, new products have been critical to our
success. Our strategy is focused on continuing to leverage what
we consider an unmatched commitment to innovation. This takes
into account three strategic imperatives: all new products must
be “simple,” “sustainable” and
“significant.”


 



“Simple” means that products must be easy for the
consumer to buy, easy to use and easy to store. In addition,
they should reduce the amount of time it takes to accomplish a
task and should give the consumer improved results. Being
“sustainable” means products must be designed with
consumer safety and environmental impacts in mind.
“Significant” products should have strong margin
potential, generate possible cost savings, present a global
opportunity and be proprietary whenever possible.


 



We believe this strategy will result in the successful launch of
several new products in 2009, including Turf
Builder®

Water
Smarttm

Grass Seed and EZ
Seedtm

Grass Seed. The former includes a full line of premium grass
seed products that provide consumers high-performance seed
wrapped in a super-absorbent coating. The patented coating
allows every seed to absorb up to 40% more water than ordinary
seed. As a result, the seed needs to be watered less frequently,
which enables consumers to more easily succeed in growing a
healthy lawn. EZ
Seedtm

is a seed mix which includes premium grass seed, fertilizer and
a proprietary growing material. Our proprietary technology
absorbs water, expanding to surround the seed in a moist
protective layer. The protective layer continues to care for the
seed, infusing it with water and nutrients, so it builds strong
roots that survive tough conditions.


 
















  • 
Our strategic plan also continues to focus on further assisting
our retail partners in order to improve their sales and the
productivity of the lawn and garden department. We believe this
strategy makes us a more critical component to their success and
helps to ensure our continued growth.


 



In 2009, we will employ more merchandisers and expert product
counselors and significantly increase the number of hours we
spend in the stores of our major retail partners. We are
rebalancing our sales force in a cost neutral way that allows us
to spend more time helping our retailers and consumers and less
time on administrative activities.


 



We believe this strategy will provide a more flexible cost
structure that helps maximize the return on our investment and
allows us to better meet the needs and timing of local markets.
It also allows us to quickly deploy more labor in those regions
where business is particularly strong and reduce spending in
regions where sales may be lower than expected due to poor
weather, economic concerns or other factors.

 



8






Table of Contents



















  • 
Our strategy will continue to transform our U.S. supply
chain into a more regional model. We believe this effort can
result in cost savings of $50 million annually and reduce
inventories by more than $100 million.


 



Today, the majority of our lawn fertilizer products in the
United States are shipped from our plant in Marysville, Ohio to
one of 11 warehouses across the country. From those warehouses,
the fertilizer products are then shipped — along with
controls, plant food, grass seed and durable
products — directly to home center stores. These
products are often shipped on less-than-full trucks, making
their distribution less efficient than we would like.


 



Meanwhile, growing media products are shipped direct-to-store
through a network of 26 manufacturing facilities. Because these
shipments go shorter distances on full trucks, they are more
efficient.


 



Our strategy for a future model — which is being
rolled out in the Southeastern United States in 2009 —
allows fertilizer products to be shipped into these growing
media facilities, instead of to warehouses. From there, the
fertilizer and growing media products are co-distributed
directly to the stores. Once deployed across the entire country,
nearly all fertilizer products for home center customers will be
shipped through these growing media facilities, significantly
improving our product distribution efficiency.


 



Within five years, it is anticipated that up to half of our
third-party warehouse square footage could be eliminated. With
fertilizer and growing media products shipping together to home
center retailers, most of the remaining cased goods would be
shipped from the warehouses to our retail partners’
distribution centers on fully-loaded trucks.


 



These strategic efforts not only present a significant economic
benefit to the Company, but our retail partners will benefit as
well, through more frequent store replenishment, improved
inventory turns and reduced order lead times. As such, we
believe our partners can maximize their retail point-of-sale
opportunities without compromising the customer service rates
they have come to expect.


 




This excerpt taken from the SMG 10-K filed Nov 29, 2007.
Strategic Initiatives
 
The Company has developed a strategic plan that focuses its efforts and capitalizes on its strengths to further own the relationship with its consumers and distance itself from the competition. The execution of this strategy will sustain future growth and further secure the Company’s franchise. The critical elements of this strategy are as follows.
 
This excerpt taken from the SMG 10-K filed Dec 14, 2006.
Strategic Initiatives
 
The Company has developed a strategic plan that focuses its efforts and capitalizes on its strengths to further own the relationship with its consumers and distance itself from the competition. The execution of this strategy will sustain future growth and further secure the Company’s franchise. The critical elements of this strategy are as follows.
 

EXCERPTS ON THIS PAGE:

10-K (2 sections)
Dec 3, 2008
10-K (2 sections)
Nov 25, 2008
10-K
Nov 29, 2007
10-K
Dec 14, 2006

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