Analysts and Investors Meeting Part I - Part 5.

(From Fair Disclosure Wire)

JIM KING: Okay, all right. JIM HAGEDORN: And then right into Tim's business and then we won't throw anybody out of here. JIM KING: Okay, so let me switch plans here and introduce Barry Sanders to you. Barry Sanders, senior vice president of our Smith & Hawken business. He has been with us for about 8 years. Half of that time he was our consultant and then we brought him on. Most recently Barry had been running out sales force and then has taken this new assignment at Smith & Hawken as about over a year ago. So I will turn the presentation over to him. BARRY SANDERS, SVP/GENERAL MANAGER, SMITH & HAWKEN, SCOTTS MIRACLE-GRO COMPANY: Thanks Jim. I guess the best way to start. Jim described it this morning as Smith & Hawken is really in an embryonic state. I went out to California, started managing the business this past March. I think we are -- we are safe to say is we have our bearings straight. We are really at the beginning of the journey, certainly either (ph). But today we are going to share little bit about where those bearings are going to take us. We are going to talk about the brand and what we are doing and why we are doing it, talk about our merchandising and our product strategies, talk about our new retail prototype stores, our direct business in catalog and Internet. Our trade business which most of you probably don't know about, we are going to spend a little of time on that. Our new exclusive arrangement with targeted mass which is an exciting opportunity for us and then wrap it up with wholesale piece. I think the right place to start when we bought the business, we did a little research before we started and we said, lets find out what Smith -- actual Smith & Hawken customers actually think about the business before we buy it and I thought I shared that with you as a starting point this morning. The way to read this chart this, the attributes of what they said is on the left, the percentages are their propensity to buy the product based on that attribute. So, if you look at these Carrier products I don't mind paying for, a brand I love, store I like to buy gifts at, fits my lifestyle, store I visit regularly to see what's new, provides exceptional customer services, helps me enjoy outdoor living, has locations where I normally shop. So, you look at what the customers are actually saying about this business, you'd says, wow this is a great business there is not a lot of problems there. So, a great foundation, the customers like the business, we have repeat shoppers, the brand is good and so forth. So, it's a great foundation to build on. Then you say where we are actually going to take this business now? So, we over the last six months we have developed a brand statement, we are going to talk a little bit about that, better read it. Smith & Hawken is an outdoor living brand for aspirational homeowners that offer consistently outstanding service and craftsmanship. The first thing I did when I went out and start working with the team out in California is I asked him the question, actually what business are we in? You know, describe to me what that business is? And over the last six months, we have developed this brand statement and what you don't see up there is we are retailer, we are direct-to-consumer business, we are furniture business. The way that we are describing this business is, it is not a retailer, Smith & Hawken is a brand, it's a multi-channel brand where we distribute products over multiple channels. So, we have our own retail business, we have our own direct business, we sell to wholesalers, we actually sell to universities, restaurants and so forth. We a have very nice trade business and now we have this fantastic relationship with Target. So as we define the business, what Jim talked about the enduring franchise, Smith & Hawken is the brand, the premium brand that we are going to build around that enduring franchise about there living. Our target customers, aspirational homeowners and describe what those folks think about us. As we define this business Jim said, it is about living on the patio. If those…