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Scotts MiracleGro Marketing Plan

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Scotts MiracleGro Marketing Plan

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This is a little meta, but the goal of this marketing plan was not to build a roadmap for Bonnie's to become a $300MM business or to gain market share. My goal was to show Scotts and my interviewers that I had studied the industry, synthesized the information, and was excited about the role and company. The biggest difference between building this sample marketing plan versus doing it in industry or as a full-time employee is that I worked on this in a vacuum whereas on the job, it's a co-collaborative effort with cross-functional peers (finance, market research, sales, etc.), your manager, your team, and many other stakeholders who would give feedback before any of the ideas/recommendations come to life in execution.

The goal of a real-world marketing plan is to help a business achieve its goals. Whether that involves increasing revenue, expanding market share, or simply improving brand awareness, marketing plays an essential role in achieving success. To create a marketing plan that effectively drives business growth, you have to identify specific marketing goals and develop strategies to achieve those goals. This may involve conducting market research to better understand customer needs, developing marketing materials such as advertising campaigns and social media posts, or experimenting with new marketing techniques such as influencer marketing or integrated marketing communications. Ultimately, the goal of any marketing plan is to elevate a company's bottom line by attracting more customers and increasing sales.

www.tomkytran.com

This is a little meta, but the goal of this marketing plan was not to build a roadmap for Bonnie's to become a $300MM business or to gain market share. My goal was to show Scotts and my interviewers that I had studied the industry, synthesized the information, and was excited about the role and company. The biggest difference between building this sample marketing plan versus doing it in industry or as a full-time employee is that I worked on this in a vacuum whereas on the job, it's a co-collaborative effort with cross-functional peers (finance, market research, sales, etc.), your manager, your team, and many other stakeholders who would give feedback before any of the ideas/recommendations come to life in execution.

The goal of a real-world marketing plan is to help a business achieve its goals. Whether that involves increasing revenue, expanding market share, or simply improving brand awareness, marketing plays an essential role in achieving success. To create a marketing plan that effectively drives business growth, you have to identify specific marketing goals and develop strategies to achieve those goals. This may involve conducting market research to better understand customer needs, developing marketing materials such as advertising campaigns and social media posts, or experimenting with new marketing techniques such as influencer marketing or integrated marketing communications. Ultimately, the goal of any marketing plan is to elevate a company's bottom line by attracting more customers and increasing sales.

www.tomkytran.com

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Scotts MiracleGro Marketing Plan

  1. 1. TOM TRAN LIVE PLANTS: MARKETING PLAN TO GROW WITH BONNIE PLANTS FOR 2021 TOM TRAN MAY 8, 2020 // LOS ANGELES, CA
  2. 2. TOM TRAN CONTENTS 01 02 03 State of the Business Objective and Vision Strategic Initiatives and Tactics
  3. 3. TOM TRAN Overall Annual Category Growth 2-4% with Live Plants Segment Representing a Huge Opportunity with Annual Sales of $13.6B 0% 1% 2% 3% 4% 5% $0 $10 $20 $30 $40 $50 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8 E 2 0 1 9 F 2 0 2 0 F 2 0 2 1 F 2 0 2 2 F 2 0 2 3 F Change (%) Sales ($B) $ Billion % Change Source: Mintel. LAWN AND GARDEN PRODUCTS, US - JUNE 2018.* Packaged Facts Lawn & Garden Consumables in the U.S 2018, Freedonia Landscape Products 2017** Segment Sales ($B) Scotts Live Plants $13.6 ✔- Outdoor Decor $5.6 Packaged Fertilizer $5.1 ✔ Bulk Consumables $4.6 Pesticides $4.3 ✔ Bird & Wild Animal $1.9 Growing Media $1.7 ✔ Grass & Other Seed $1.5 ✔ Other Consumables $.5 Mulch $.8 ✔ $40B The Lawn and Garden Category is Estimated to be Valued at $40B by 2023* Bonnie Plant’s Annual Sales of $260M is Only 2% of the Live Plants Segment Meaning Room to Grow** Forecast
  4. 4. TOM TRAN No Major Competitor Has High Market Share with Live Plants; It is a Fragmented Segment With Many Medium and Small Regional Players Company Grass Seed Fertilizer Controls Hydroponics Live Plants Décor Pet Products Scotts Miracle-Gro High High High High Low None None Central Garden High Medium Medium None Medium Low High Spectrum Brands None None High None None None Medium Kellogg Garden None Low None None None None None Home Depot, Lowes, Walmart, Ace, and Costco are major accounts making up 85% of consumer sales for Scotts There is synergy between live plants and many of Scott’s other businesses (e.g. hydroponics) The Live Plants category has high potential for growth by winning market share and the collaboration with Bonnie Plants will be key Source: Central Garden & Pet Investor Report 2019.
  5. 5. TOM TRAN To Increase Market Share by 15% (26 bps) and Become a $300M Brand, Bonnie Plants Will Focus on Three Key Strategic Initiatives VISION STRATEGY EXECUTION Gain market share to become a $300M brand (1) Improve in-store merchandising at top retailers (2) Target wellness focused segment of consumers (3) Drive brand awareness through digital and print Tactics will include… Source: Dun & Bradstreet Revenue Estimate of $260 Million in 2019 for Bonnie Plants.
  6. 6. TOM TRAN Improve In-store Merchandising at Top Three Retail Accounts (Home Depot, Lowes, and Walmart) by Investing Across Three Areas 1% 1% 2% 2% 3% 5% 11% 14% 62% Dollar stores (Dollar General) Other Online only retailer (Amazon) Local, independent hardware stores Warehouse clubs (Costco) Local, nationally branded hardware (Ace) Local garden centers/nurseries Mass merchandisers (Walmart) Home centers(Home Depot, Lowes, etc.) 2% 9% 12% 17% 19% 19% 20% 22% 30% 32% 35% 36% 43% 61% Other Printed or digital books Apps on smartdevices Pritned or digital periodicals Non-commercial websites/blogs Company printed materials Company/brand websites Social media Salespeople/employees Productpackaging Online videos In-store display/kiosks Online product reviews Family/friend's advice From which retailer do you expect to purchase most of your L&G supplies this spring? Which of the following do you use to inform/guide your purchases of lawn and garden products and brands? Create inspiring in-store collateral Consumers are influenced by the messages and images they see in-store Bring plants closer to checkout Consumers more likely to shop the perimeter of the store; work with retailers to get better placement Enhance experience with tech A tablet preloaded with apps that can help customers chose the right plant for them based on a few questions Source: “Lawn & Garden Over 1,000 Homeowners Talk L&G Shopping” Field Agent Report 2019.
  7. 7. TOM TRAN Target Growing Segment of Wellness Minded Consumers Who Want to Feel a Sense of Pride and Accomplishment from Caring for Live Plants Source: Mintel. LAWN AND GARDEN PRODUCTS, US - JUNE 2018.* 85 59 91 86 85 84 75 All 18-24 25-34 35-44 45-54 55-64 65+ % % Agree with “Growing fruits/vegetables is healthier than buying from stores” 29 39 34 28 23 24 30 23 63 All 18-24 25-34 35-44 45-54 55-64 65+ Own house Rent apt % % Agree with “I don’t have enough space for a garden” Tailor products for new gardeners Create failsafe starter kits (edible live plants, pots, soil, plant food, step-by-step guide) for first time plant parents who are 25-34 y/o, renters living in urban areas. Great gift for friends. Tailor message to promote secondary benefits of live plants Talk about how plants can help reduce stress, gives people a sense of purpose, makes people happier at home, or fosters a sense of plant parenting accomplishment Become part of the wellness conversation Participate in the Global Wellness Summit or other similar conferences that focus on this wellness consumer trend 1 2 3
  8. 8. TOM TRAN Build Awareness and Become Top of Mind for Consumers Who Are Thinking About and Planning to Decorate or Upgrade their Living Space 19 24 32 25 12 11 8 14 23 30 16 6 5 4 All 18-24 25-34 35-44 45-54 55-64 65+ % YouTube Pinterest ”How do you get information about lawn and garden products?” Pinterest Ads Consumers are using this platform to collect ideas and inspiration for home décor projects YouTube In-stream & Discovery Ads Opportunity to promote “how to” videos or work with an agency for custom influencer content Source: Mintel. LAWN AND GARDEN PRODUCTS, US - JUNE 2018.* Advertising in Décor Magazines Produce sponsored content or ads that show how plants can bring a room to life
  9. 9. TOM TRAN Thank You
  10. 10. TOM TRAN APPENDIX
  11. 11. TOM TRAN Scotts Miracle-Gro Net Sales Up +18.5% in 2019 (+9% Volume, +8.5% Acquisitions, +1.3% Pricing, -.5% Forex); Hawthorne +$327M vs LY 830 847 943 732 706 781 330 309 311 123 114 112 146 133 134 287 344 671 82 82 78 62 66 69 51 62 57 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 2017 2018 2019 Net Sales ($M) Other: Other Other: Lawn Care Other: Growing Media Hawthorne Other Roundup Controls Lawn Care Growing Media Source: Scotts Miracle-Gro Annual report 2019.
  12. 12. TOM TRAN More Focus on Growing/Maintaining Lawn & Garden Less Focus on Pest Control; Northeast and Midwest Care Least About Killing Insects Source: Lawn & Garden: Over 1000 Homeowners Talk L&G Shopping 2019 Field Agent Report. N = 1,182 32% 39% 46% 49% 51% 56% 61% 65% 70% 71% 76% 82% Lawn/garden structures Planting/laying grass Killing insects Irrigating/watering Mulching Fertilizing Trimming/sculpting bushes Pruning plants/flowers Clearing (e.g. raking leaves) Planting flowers/plants Weed-trimming/pulling Mowing Northeast South Midwest West Mowing 111% 99% 105% 89% Weed-trimming/pulling 101% 100% 96% 107% Planting flowers/plants 113% 92% 106% 99% Clearing (e.g. raking leaves) 119% 93% 107% 96% Pruning plants/flowers 100% 98% 97% 105% Trimming/sculpting bushes 108% 102% 90% 100% Fertilizing 105% 93% 104% 102% Mulching 125% 104% 110% 65% Irrigating/watering 98% 90% 94% 122% Killing insects 96% 104% 87% 104% Planting/laying grass 136% 85% 118% 85% Lawn/garden structures 109% 91% 116% 97% Responses to “What will you do to your lawn or garden in 2019? Focus on Growing/Maintaining Activities by Region with the Highest/Lowest in Each Region Highlighted; Index of 100% is National Avg
  13. 13. TOM TRAN Opportunity to Promote Secondary Benefits of Gardening to Consumers; Parents Differ in their Attitudes Toward Gardening 33% 48% 54% 66% 71% 75% 75% 85% 90% 94% 95% I find it difficult to maintain my lawn/garden I am interested in lawn care and gardening classes Maintaining my lawn/garden is a choe I worry about the chenicals used in lawn products (e.g. weed killer) My lawn/garden needs improvement Lawn care and gardening helps me relax I am interested in improving my lawn care and gardening skills Growing fruits/vegetables is healthier than buying from stores I view my outdoor space as an extension of my home Plants offer health benefits (e.g. calming, improves air) An attractive lawn/garden adds value to the home Responses to “Do you agree or disagree with the following statements?” Percentage that agree with the following statements based on the number of children in the household Source: Mintel. LAWN AND GARDEN PRODUCTS, US - JUNE 2018. 76% 93% 88% 56% 80% 92% 89% 55% 82% 94% 92% 52% 73% 88% 82% 54% Lawn care and gardening helps me relax I view my outdoor space as an extension of my home Growing fruits/vegetables is healthier than buying from stores Maintaining my lawn/garden is a chore 1 2 3 or more None
  14. 14. TOM TRAN Responses to “What Do You Dislike About Lawn and Garden Shopping?” Fall Into 1 of 3 Categories & Offer Insights for New Marketing Programs Product Attributes Knowledge Gaps Shopping Experience TOO EXPENSIVE “Sometimes the things I need are expensive. I realize not everything is free, but some stuff is so pricey I have to forego purchasing it.” DIFFERENTIATING PRODUCTS “I dislike that there are so many redundant products on the market and are packaged in a way that make it difficult to differentiate between them.” TOO MANY OPTIONS “I dislike having to sort through a bunch of products trying to find the one I need or best fits the project I'm working on.” DIFFICULT TO CARRY “It’s hard for me to carry a 40 lb bag of soil.” NOT KNOWING WHAT TO BUY “It’s hard to know what I really need and what really works especially on weeds or invasive grasses.” DISORGANIZED STORES/SECTIONS “When products are scattered all over. I like to shop one area and not walk by a better deal four aisles away.” ENVIRONMENTAL CONCERNS “Companies that pretend to be 'green' when [their products] are actually chock full of unnecessary pesticides...” DECIPHERING PACKAGING “The packaging is confusing and not clear.” TIME-CONSUMING “With 80% of lawn and garden items, I must have time to go into a store and browse.” TOXIC/HARSH CHEMICALS “I don’t like products that use harsh chemicals that may not be safe for my dog or my significant other with asthma.” FINDING KNOWLEDGABLE HELP “Very few associates willing to help and are knowledgeable in my project.” THE SMELL “The worst part about shopping for lawn and garden products is the smell (chemical and manure-esque).” Source: Lawn & Garden: Over 1000 Homeowners Talk L&G Shopping 2019 Field Agent Report. N = 1,182
  15. 15. TOM TRAN The Live Plants Segment is Large But Very Fragmented; There Will Possibly be Consolidation in the Future with More Acquisitions Nursery stock crops 39% Annual bedding and garden plants 24% Potted Flowering plants 10% Potted herbaceous perennials 9% Foliage plants 7% Propogative floriculture materials 6% Short rotation woody trees 4% Cut flowers and cut cultivated greens 1% Source: IBIS World Plant and Flower Growing in the US 2019 Other Players $96.5M Annual Rev $58.3M Annual Rev

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