1.
1
Consumer Segmentation Leading To Breakthrough
New Branding / Product Strategies
Developing A $30MM Business From Zero
& Turning Around A Consumer Business

2.
2
Garment Care Business Situation
Business and profit erosion: $140MM to $80MM topline sales; operating
income from +$15MM to losing cumulatively -$13MM in 1993-5.
Market share drop from 50% to 30% with Hamilton Beach & Rowenta
taking the most of the share.
Premium iron product design/performance lapped by competition and over
20 years old.
Failed on four other occasions to develop a successful premium iron
product.
Iron consumer purchase behavior not well understood; Previous research
results were focused on entire market vs. understand potential segments.

3.
3
Garment Care Actions
Uninvolved/Low End Ironers
Working couples on the go
Time pressed
Hate ironing
Appearance Driven/High End Ironers
Family’s appearance is key
“One Pass” ironing
Likes to iron
ATTITUDINAL CLUSTERS “NEED GAPS” IRON FEATURES
Performance
Made Simple
Professional
Pressing
Results
Lightweight
Sure steam system
Auto-clean valve
Maximum steam performance
Superior glidability
In-use comfort
Instead of focusing on ALL iron users, we learned consumer attitudes/habits
about ironing drove usage/purchase behavior
Key learning: appearance driven users were the heavy users – 20% of users, but 40% of ironing activity
(Uninvolved ironers were 60% of users, but only accounted for 40% of ironing activity)
This study proved consumer attitudes can drive purchase behavior vs. just what consumers say or do.
Source: 1995 B&D A&U Study

4.
4
This was how we communicated our new product line strategies to the trade/consumers
Team obtained $18MM in capital to re-tool and launch this new product line strategy
Garment Care Actions

5.
5
Maximum Steam Performance:
No other premium iron steams more
Professional Pressing Results at Home - just like a dry cleaner!!
Superior Non-Stick Glide:
New “space age” soleplate coating
Comfortably Designed:
Comfort Grips & Unique Control Design
(New feature for the category)
Garment Care Actions
ProFinish had 21 utility and design patents, the first iron to launch “comfort grips” into the market
Voted a Consumer Digest “best buy” in 1998, achieved 100% distribution in all retail channels
Developed and Launched New Premium Iron in the >$30 price point segment

6.
6
ProFinish premium irons became a $30MM franchise from zero. Exceeded
all expectations and paid out original capital investment.
Total Garment Care was “right-sized” in 1998 to $90MM with $7MM of
operating income – a $20MM operating income swing.
B&D total iron share moved up from 30% to ~40%
Eliminated/consolidated over 60 sku’s enhancing product cost and working
capital efficiencies.
Today, Garment Care is a $100MM business for Spectrum Brands. (the
subsequent owner of Garment Care after B&D divestiture/Applica).
The consumer segmentation study is still quoted in trade publications as
how consumer really buy irons.
Garment Care Results