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0 See the AMAZING DIFFERENCES in our See the AMAZING DIFFERENCES in our Introducing FRESH’N CLEAN Puppy Pads Introducing FRESH’N CLEAN Puppy Pads.

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Presentation on theme: "0 See the AMAZING DIFFERENCES in our See the AMAZING DIFFERENCES in our Introducing FRESH’N CLEAN Puppy Pads Introducing FRESH’N CLEAN Puppy Pads."— Presentation transcript:

1 0 See the AMAZING DIFFERENCES in our See the AMAZING DIFFERENCES in our Introducing FRESH’N CLEAN Puppy Pads Introducing FRESH’N CLEAN Puppy Pads

2 1 1 Agenda  Category Picture Housebreaking Pad sales growing rapidly Not all channels/retailers are realizing opportunity  Our Vision is to lead this Growth: New Technology that brings new benefits Executing a winning Marketing Plan The Opportunity is Now!

3 2 2 Mission INNOVATION - Utilizing consumer insights in developing new innovative pet products for the home QUALITY - Building shopper awareness of FRESH ‘N CLEAN GROWTH - Stimulating category growth with effective, focused marketing programs To meet pet consumer household needs while driving category sales and profits for distributors, retailers and FRESH’N CLEAN

4 3 3 Dog Trends  Dogs Are Aging Over 20MM Dogs 9+ Years, with half of these suffering from age related illness  Increase in “Home Alone” dog parents 50% of Dogs owned by “on the go” baby-boomer/empty nester HH Fastest growing segment is delayed childbearing young professionals Increase of Single Parent HH High Expense of Doggy Daycare  Second Home Syndrome; 20-25% of all dogs adopted through shelters Sources: McKinsey Quarterly 2003 2004 Dow Jones Reuters Business Interactive 2003-2004 APPMA National Pet Owners Survey

5 4 4 Dog HH Continue to Grow Now 40.6 MM HH’s with 65 million dogs Dog HH Continue to Grow Now 40.6 MM HH’s with 65 million dogs Source: 2003-2004 APPMA National Pet Owners Survey

6 5 5 Why Puppy and Adult Pads? 65% The category mix is currently skewed towards Puppies. Of the HH with the need for pads Puppies represent 35% of the need and Adult dogs represent 65% of the need Source: Omnibus 5/02Source: IRIFDKTS 13 Weeks 3/20/05

7 6 6 Research identified 12.4 Million HH that have the need for pads 1.9MM HH 10.5MM HH Category has tremendous growth opportunity Opportunity Of the 10.5MM Potential users, 50% are unaware that pads exist High HH needs Low HH awareness Source: Omnibus study conducted 5/02

8 7 7 Why innovate? Adult Dog lifetime use of housebreaking pads Puppy Owners 40-60 days to develop loyal user Constraints with current pads:  Pooling of urine creates tracking  Poor absorbency leads to leaking  Lack of odor control ingredients Needs  Attract Puppy  Rip-proof  Leak Resistant Needs  Attract Dog  Larger Pad  Leak Resistant Current products not meeting consumer needs

9 8 8 New Product Opportunity NEW 36ct. Adult Dog Pads 30ct. 14ct. 50ct. Satisfy Specific Consumer Needs Offer pads for both Adult and Puppy segments Offer various sizes for light, medium and heavy users

10 9 9 FRESH’N CLEAN Triple Layer Floor Protection Pads with Thinsorb ® New Breakthrough Technology

11 10 THINSORB® The Thinner more absorbent pad with triple-layer construction Breakthrough Technology with patented THINSORB ® 2. THINSORB® Ultra Absorbent Core Draws moisture into the pad away from the surface Helps prevent pooling and tracking Locks in odor and wetness ARM & HAMMER® Baking Soda destroys odor on contact Scientifically treated to attract dogs 1. Rip resistant top sheet withstands digging and clawing 3. Leak resistant liner Protect floors and carpeting

12 11 Why is the New Technology better? The new FRESH ‘N CLEAN Pad quickly absorbs liquid Dry Soaked Source: Lab Testing 6/2004 Damp Wet Surface wetness almost undetectable with the new technology Quicker Absorption means NO Pooling NO Leaking NO Tracking NO Odor

13 12 Why is this new Technology better? Superior Absorbency FRESH’N CLEAN pads absorb almost 14x their weight in liquid - more than any other pad Source: Independent blind test 3/05 Dunk Test: Determines how much liquid the pad absorbs

14 13 Why is the New FRESH ‘N CLEAN Pad better? Superior Capacity to Retain More Liquid FRESH’N CLEAN pads absorb and retain more liquid than the competition - reducing tracking and mess Source: Independent blind test 3/05 Stress Test: Determines how much liquid the pad retains TOTAL GRAMS RETAINED

15 14 More Moisture Less Moisture Why is the FRESH’N CLEAN Pad better? The Surface Remains Drier Even after 3 repeated applications of liquid, the FRESH’N CLEAN pad remains drier than the competition - helping to reduce odor Source: Independent blind test 3/05 Rewet Test: Determines Surface Wetness of the pad

16 15 Innovation Thinsorb ® Technology Triple-layer design Compact packaging Scientifically treated to attract puppies and dogs A&H Baking Soda Just like Feminine Hygiene Thin means more absorbent Tear Resistant, Ultra absorbent and Leak Proof Less Bulky easier to handle and store Fewer accidents Absorbs and Destroys odor for an odor free home A Win-Win Situation Consumer BenefitsRetailer Benefits Trend Setter Premium Product More shelf holding power Higher repeat Offer Unique Category Benefit

17 16 How to win  Satisfy different Consumer Needs with multiple SKUs  First to market with new Technology  Merchandise close to Lambert Kay Household Cleaning products, Dog Food or Dog Accessories with strong traffic flow  Promote the category quarterly

18 17 FRESH ‘N CLEAN promotion support  Compelling Consumer Trial offer  $10 Manufacturer’s Rebate on Every Package in Promotional Display  Each display delivers 6 FREE bottles of Oxy Strength  Exciting Distributor Rewards  Sell 10 Floor Protection Pad Displays, earn an MP3 player  Retailer Rewards  With every consumer rebate received, the retailer is entered into a drawing to receive a 2006 Ford Escape Hybrid or the latest Sony Electronics  Distributor Incentive Program  A 6-month program where distributor reps earn points for Sony Electronics and Merchandise through their purchases of Lambert Kay products

19 18 SUMMARY FRESH’N CLEAN Pad Plan Build Category Awareness Consumer and Trade Promotions Adult & Puppy Segmentation New - Better Technology  Compelling consumer rebate offer  Retailer Reward Program with High Value merchandise (Ford)  Distributor Reward Program for display sales  Pads that meet needs of 10.5MM Potential buyers -Adult Heavy user: Stay at home, infirmed or incontinent dogs - Puppy New User: Develop trial and loyalty among first time users  Thinsorb means new consumer and retailer benefits: –Clean and Odor Free Household with superior absorbency and odor control –Compact package for better shelf holding power, increased turns and improved profit per square foot  Capitalize on dog owner trends and low consumer awareness  Reach the 10.5 Million non-users (50% unaware)

20 19 Superior Thinsorb Technology Adult and Puppy Packages Winning Marketing Programs Thinner Pad Shelf and merchandising efficiencies Account success with Fresh & Clean Floor Protection Pads


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