1. 1 Retail Ready Sales Training “Defending Margins by Compressing the Supply Chain” Oberlin, Ohio February 8,9, 2005

2. 2 Confronting Reality with Retail Ready Programs Product Development Group (PDG) Established to “Compress” the Supply Chain Product Development Group (PDG) Established to “Compress” the Supply Chain Group of Five Breeders Group of Five Breeders –Paul Ecke Ranch –Goldsmith Seeds –Sakata Seeds –Dummen –Kieft Seeds

3. 3 PDG Objective Develop “Retail Ready” Programs For The Growers That Service The Large National Retailers Develop “Retail Ready” Programs For The Growers That Service The Large National Retailers –Utilize Industry Leading Genetics From The Five Breeding Companies To Offer Complete Package –Maximize Seasonal Opportunities

4. 4 Grower Marketing Opportunities PDG will develop programs for all Four Seasons PDG will develop programs for all Four Seasons –Spring –Summer –Fall –Winter

5. 5 Opportunities Increase Space Utilization Increase Space Utilization Increase Cash Flow Increase Cash Flow Staying Closer To The Customer Staying Closer To The Customer Working Closer With The Supply Chain Working Closer With The Supply Chain Offer Programs Not Just Products Offer Programs Not Just Products

6. 6 PDG Operational Guidelines Programs Created For Growers To Offer To Retailers Programs Created For Growers To Offer To Retailers –This is A Grower to Retailer Interface ONLY PDG Will Support Growers at their Request PDG Will Support Growers at their Request

7. 7 Retail Ready Program Structure Suggested Varieties Suggested Varieties Container Sizes Container Sizes Labeling Labeling Point of Purchase (POP) Materials Point of Purchase (POP) Materials Suggested Retail & Wholesale Prices Suggested Retail & Wholesale Prices Estimated Gross Margins & Cart Value Estimated Gross Margins & Cart Value Cultural and Technical Support Cultural and Technical Support

8. 8 Retail Ready Program Offering Program NameProgram TypeRegion(s) Garden AccentsOrnamental GrassAll Lasting ColorPerennialsN4-6; S7-10 PatriotRed/White & BlueAll Summer SizzlersSummer AnnualsAll Wal*Mart – Summer ‘05

9. 9 An “Every Day Low Price” Grass Program that can sell in high volume using only the most popular varieties.  5” Label with Program Name  4” Pot, 10 per shuttle tray  Suggested Pricing  Retail $ 1.97  Wholesale $ 1.30  Cart Value$ 702.00 Wal*Mart Garden Accents 4” Pot - 10 per Shuttle Tray Key Selling Points Lowest Price Retail Grass Program Great Availability Unusually Good Grower Margins

10. 10 Wal*Mart-Garden Accents The most value price grass program The most value price grass program High quality grass varieties High quality grass varieties Offers form & texture Offers form & texture Boost summer sales Boost summer sales Great shelf life Great shelf life

11. 11 Product ClassVariety CarexAmazon Mist CarexBronco CarexPrairie Fire CarexRed Rooster CorynephorusSpiky Blue FestucaFestina StipaPony Tails Wal*Mart Garden Accents

12. 12 4.5” Pot - 8 per Shuttle Tray Wal*Mart Lasting Color An “Every Day Low Price” Summer Perennial Program.  4.5” Pots, 8 per shuttle tray  5” Label With Program Name  Suggested Pricing  Retail $ 2.47  Wholesale $ 1.70  Cart Value$ 571.00 Key Selling Points Regionally Specific Heat Tolerant Varieties Sold in Full Color

13. 13 Wal*Mart-Lasting Color Value price 4.5” perennial Value price 4.5” perennial Selection of popular varieties Selection of popular varieties Region specific varieties Region specific varieties Fast growing category Fast growing category Attractive high impact label Attractive high impact label

14. 14 Wal*Mart Lasting Color Product ClassVariety CampanulaAdvance White ChrysanthemumWhite Knight DelphiniumBlue Mirror DianthusArctic Fire HeucheraPalace Purple HyssopusNectar LavandulaPurple Ribbon NepetaPink Cat PapaverMoondance PolemoniumBambino Blue PrimulaNoverna Deep- Blue SalviaPurple Volcano ScabiosaBlue Diamond

15. 15 Wal*Mart Patriot An “Every Day Low Price” High Value Patriotic Theme.  5” label with the program name  Suggested Pricing  Retail: $ 5.97  Wholesale:$ 4.25  Expected Cart Value:$ 535.50 Product ClassVariety CelosiaPrestige Scarlet PetuniaExplorer Blue PetuniaExplorer White 8” Square Pot Key Selling Points Seasonal Theme Easily Grown Varieties EDLP Product Form

16. 16 Wal*Mart-Patriot Patio container featuring Red, White & Blue Patio container featuring Red, White & Blue Capture 4 th of July sales Capture 4 th of July sales EDLP retail price point EDLP retail price point Garden center traffic builder Garden center traffic builder

17. 17 Wal*Mart Summer Sizzlers An “Every Day Low Price” Large Potted Annual  Quart Pot, 10 Per Shuttle Tray  5” Label  No POP  Suggested Pricing  Retail $ 0.99  Wholesale $ 0.72  Cart Value$ 390.00 Quart Pot, 10 Per Shuttle Tray Key Selling Points Great Tolerant Varieties Lowest Price Quart Annual Good Summer Grower Margins

18. 18 Wal*Mart-Summer Sizzlers Large potted annuals at a value price Large potted annuals at a value price Provides competitive price differentiation Provides competitive price differentiation Heat tolerant varieties Heat tolerant varieties Great consumer value Great consumer value Keep consumers interested for improved summer sales Keep consumers interested for improved summer sales

19. 19 Product ClassVariety PetuniaStorm Blue PetuniaStorm Pink PetuniaStorm White PetuniaStorm Red PhloxGrammy Pink & White PhloxGrammy Purple & White PlatycodonMiss Tilly Blue PortulacaSunseeker Pink PortulacaSunseeker Red PortulacaSunseeker White PortulacaSunseeker Yellow Wal*Mart Summer Sizzlers Product ClassVariety BegoniaQueen Pink BegoniaQueen Red BegoniaQueen White CapsicumPeppa Rose & White CapsicumPeppa Purple & Orange CelosiaIce Cream Cherry CelosiaIce Cream Mango CelosiaIce Cream Peach DianthusCharms Pink DianthusCharms Scarlet

20. 20 Wal*Mart Summer Sizzlers Product ClassVariety SalviaSaluti Purple SalviaSaluti Lilac SalviaSaluti Red SalviaSaluti White SalviaSaluti Pure White ToreniaDuchess Blue & White ToreniaDuchess Burgundy ToreniaDuchess Pink VincaVictory Grape VincaVictory Red VincaVictory White VincaVictory Pure White ZinniaProfusion Mix Product ClassVariety DianthusCharms White GazaniaKiss Mix GomphrenaGnome Purple HypoestesConfetti White HypoestesConfetti Red ImpatiensXtreme Lavender ImpatiensXtreme Mix ImpatiensXtreme Red ImpatiensXtreme Rose ImpatiensXtreme White

21. 21 Retail Ready Program Offering Program NameProgram TypeRegion(s) Color GrassOrnamental GrassAll Perennial BeautyPerennialsN4-6; S7-10 FireworksRed/White & BlueAll Summer SensationsSummer AnnualsAll Home Depot – Summer ‘05

22. 22 Home Depot Color Grass™ A High Quality Grass Program That Is More Profitable Than Traditional Programs  One Gallon Printed with Logo  5” label with Program Logo  POP – 11”x12” bench card & 18”x14”poster  Suggested Pricing  Retail $ 4.97  Wholesale $ 3.50  Cart Value$ 661.00 One Gallon Key Selling Points Value Priced 1 Gallon High Summer Gross Margins Good Cart Value

23. 23 Home Depot-Color Grass Totally new to the market Totally new to the market Array of colors & textures Array of colors & textures Best shelf life of all annuals & perennials Best shelf life of all annuals & perennials 18 X 24 Color Grass poster 18 X 24 Color Grass poster Color grass pricing card Color grass pricing card Upscale program label Upscale program label

24. 24 Home Depot Color Grass™

25. 25 Product ClassVariety CarexAmazon Mist CarexBronco CarexBronzita CarexPrairie Fire CarexRed Rooster CorynephorusSpiky Blue FestucaFestina KoeleriaCoolio LuzulaLucius LuzulaStarmaker StipaPony Tails Home Depot Color Grass™

26. 26 Home Depot Perennial Beauty A Perennial with a differentiated price point that does not compete with the 1-Gallon SKU.  5” label with the program name  POP:18” x 24” poster  Suggested Pricing:  Retail:$ 2.97  Wholesale: $ 2.00  Expected Cart Value:$ 576.00 Quart Pot - 8 per Shuttle Tray Key Selling Points Creates Competitive Price Point Improve Revenue per Sq. Ft. Heat Tolerant, Easy to Flower

27. 27 Home Depot- Perennial Beauty Region specific varieties Region specific varieties Combination of heights and textures Combination of heights and textures Good summer margins Good summer margins Separate price point from 1 Gallon Separate price point from 1 Gallon 18 X24 POP poster 18 X24 POP poster Attractive upscale label Attractive upscale label

28. 28 Red, White & Blue Mixed Container Using Heat Tolerant Varieties  5” label with flag  One Gallon Pot, 3 per tray  Suggested Pricing:  Retail: $ 3.97  Wholesale: $ 2.75  Cart Value: $ 519.75 Home Depot Fireworks Saluti Pure WhiteSaluti RedSaluti Lilac One Gallon Pot – 3 per Shuttle Tray Key Selling Points Different Approach to RWB Maximize July Sales Good Summer Margins

29. 29 Home Depot-Fireworks Unique Red, white & Blue program Unique Red, white & Blue program Sell three (3) 1- G pots for a color combination Sell three (3) 1- G pots for a color combination Increase aver ticket Increase aver ticket Sell in full color Sell in full color Competitively priced Competitively priced

30. 30 Home Depot Summer Sensations Varieties that have outstanding consumer performance in extreme heat.  1 Gallon Pot  11” X 12” bench card  5” Label  Suggested Pricing:  Retail: $ 3.97  Wholesale: $ 2.75  Expected Cart Value:$ 371.25 One Gallon Key Selling Points Complete Marketing Package Outstanding Heat tolerant varieties Reduce Crop Time with 2 Plug Sizes

31. 31 Home Depot-Summer Sensations Outstanding heat tolerant varieties Outstanding heat tolerant varieties Combinations of seed & vegetative Combinations of seed & vegetative Makes compelling retail displays Makes compelling retail displays Stimulate summer sales Stimulate summer sales POP pricing card POP pricing card Upsacale program label Upsacale program label

32. 32 Retail Ready Program Offering Program NameProgram TypeRegion(s) Grass DécorOrnamental GrassAll Perennial MagicPerennialsN4-6; S7-10 CelebrationRed/White & BlueAll Beat the HeatSummer AnnualsAll Lowe’s – Summer ‘05

33. 33 Lowe’s Grass Décor A compelling grass offering at a compelling price point.  Quart Pot - 8 per Shuttle Tray  5” label with the program name  POP: 12” x 24” poster & bench wrap  Suggested Pricing:  Proposed Retail Price: $ 2.97  Proposed Wholesale Price: $ 2.00  Expected Cart Value:$ 864.00 Quart Pot - 8 per Shuttle Tray Key Selling Points Extreme Value Cart Differentiated price point from 1G SKU One of Best Grower Margins

34. 34 Lowe’s-Grass Décor Interesting colors & textures Interesting colors & textures Fast growing category Fast growing category Value priced for fast turnover Value priced for fast turnover 18 X 24 POP poster 18 X 24 POP poster Grass Decor’ bench wrap Grass Decor’ bench wrap Upscale label Upscale label

35. 35 Lowe’s Perennial Magic Summer Flowering Perennials With Regional Specific Varieties  One Gallon  5” Label with Program Name  POP – 11” x 12” Bench Card  Suggested Pricing  Retail $ 3.97  Wholesale $ 2.75  Cart Value$ 661.00 One Gallon Key Selling Points Perennials that Flower in Heat Regional Specific Varieties Incremental Summer Sales

36. 36 Lowe’s Perennial Magic Great flowering perennials for summer Great flowering perennials for summer Region specific varieties Region specific varieties Sell in full color Sell in full color Fastest growing category Fastest growing category Competitively priced Competitively priced Upscale label Upscale label POP pricing card POP pricing card

37. 37 Product ClassVariety CampanulaAdvance Blue CampanulaAdvance White ChrysanthemumWhite Knight DelphiniumBlue Mirror DianthusArctic Fire DianthusArctic Fire HeucheraPalace Purple HyssopusNectar Lavandula Purple Ribbon NepetaPink Cat PapaverMoondance PolemoniumBambino Blue PrimulaNoverna Deep Blue SalviaLyrata Purple Volcano SalviaMoondance SalviaSelect Rose Lowe’s Perennial Magic

38. 38 Lowe’s Beat the Heat A heat tolerant program using upscale seed varieties.  8” Pot  5” label with logo  POP: 11”x 12” bench card, 12”x 24” poster  Suggested Pricing  Retail: $ 4.97  Wholesale: $ 3.50  Expected Cart Value:$ 378.00 8” Pot Key Selling Points Keeps with Lowe’s Summer Theme Complete Marketing Package Increases Summer Sales Revenue

39. 39 Lowe’s-”Beat the Heat’ Upscale premium varieties Upscale premium varieties Extremely heat tolerant Extremely heat tolerant Good gross margins Good gross margins Adds tremendous color to the garden center Adds tremendous color to the garden center Large POP program poster Large POP program poster Large colorful program label Large colorful program label

40. 40 Lowe’s Celebration Product ClassVariety GazaniaKiss White PlatycodonMiss Tilly SalviaPicante Red 8” Pot Red, White & Blue Mixed Container Using Heat Tolerant Varieties.  8” Pot  5” label with flag  Suggested Pricing:  Retail: $ 4.97  Wholesale: $ 3.50  Expected Cart Value: $ 441.00 Key Selling Points Varieties that Perform in the Heat Increases Summer Product Portfolio Provides Incremental July Sales

41. 41 Lowe’s-Celebration Build July sales with Red, white & Blue Build July sales with Red, white & Blue Patriotic theme Patriotic theme Good summer gross margins Good summer gross margins Upscale program label Upscale program label Potential to increase average sale Potential to increase average sale

42. 42 Retail Ready Program Offering All Retailers – Summer & Fall ‘05 Program NameProgram TypeRegion(s) Autumn XtrasAnnuals, Per, Grasses NE, Midwest, SE, West & NE, CA Summer BloomersSummer GeraniumsAll "Frostbitters"Over Wintering PansyNE, Midwest Ger & N. G. Imp.Florida ProgramFlorida Summer TraditionsZinniasAll

43. 43 Autumn Xtras A Fall Program without Branded Program Expense –One Gallon & 4.5” Pots –5” Label With Program Name –POP – Bench Wrap & 11” X 12” Bench Card –Suggested Pricing One Gallon: Retail $4.97 Wholesale $3.50 One Gallon: Retail $4.97 Wholesale $3.50 4.5” Pot:Retail $2.97 Wholesale $2.00 4.5” Pot:Retail $2.97 Wholesale $2.00 OR 4.5” Pot – 8 per trayOne Gallon Key Selling Points Value Priced Inputs Regional Specific Programs Unique Fall Positioning

44. 44 Autum Xtras Low cost high value fall program Low cost high value fall program Specific perennials, cool weather annuals & ornamental grasses Specific perennials, cool weather annuals & ornamental grasses POP bench wrap POP bench wrap Upscale label Upscale label Provided great fall color Provided great fall color Makes fall more than mums & pansies Makes fall more than mums & pansies

45. 45 Product ClassVariety AgastachePink Pop ArgyranthemumBright Carmine ArgyranthemumComet White ArgyranthemumSunlight Armeria Joystick Mix BellisGalaxy Mix CalibrachoaCat's Eye Calico CalibrachoaCanary CalibrachoaElectric Red Carex Bronco CarexRed Rooster ChrysanthemumWhite Knight Corynephorus Festina DianthusDiamond Purple DianthusDiamond Scarlet DianthusDiamond White Autumn Xtras

46. 46 Product ClassVariety DiasciaS. Chime Terracotta DiasciaS. Chime Peach DiasciaS. Chime Red DigitalisCarillon ErysimumGoldshot Heuchera Place Purple HibiscusDisco Bells Red LamiumOrchid Frost LavandualaSpanish Eyes NemesiaS. Berries & Cream NemesiaSachet White NepetaPink Cat Product ClassVariety OsteospermumCrescendo Orange OsteospermumCrescendo White OsteospermumCrescendo Yellow PenstemonNavigator Petunia Ramblin' Burgundy Chrome PetuniaRamblin' Red PetuniaRamblin' Salmon Capri SalviaLyrata Purple Volcano SalviaSelect Blue SalviaSelect White VerbenaToronto Silver Pink Autumn Xtras

47. 47 Summer Bloomers A high impulse planter with heat tolerant geranium varieties.  Suggested Pricing  Retail: $9.97  Wholesale: $7.00  Expected Cart Value:$336.00 10” Color Pot Key Selling Points Best Heat Tolerant Varieties Tremendous Summer Color Great for Impulse Sales

48. 48 Summer Bloomers Selected heat tolerant varieties Selected heat tolerant varieties A mass of summer color A mass of summer color Consumers love geraniums Consumers love geraniums Nice patio pot Nice patio pot Increase summer average sale Increase summer average sale

49. 49 Traditions An array of the best hybrid Zinnias An array of the best hybrid Zinnias Proven heat tolerance Proven heat tolerance A consumer favorite A consumer favorite Massive summer color Massive summer color Summer traffic builder Summer traffic builder

50. 50 “Frostbitters” An “Over-wintering” Pansy Program for the Midwest & Northeast Consumer Guarantee Program –4” Pots, 10 Per Tray –5” Label With Logo –POP – 15” X 20” Sign Board, 11” X 12” Pricing Card And Bench Tape –Suggested Pricing Retail $1.49 Retail $1.49 Wholesale $1.00 Wholesale $1.00 4” Pot, 10 per Tray

51. 51 Florida-Geranium & New Guinea Impatiens Most heat tolerant varieties Most heat tolerant varieties The most popular fall products The most popular fall products Great colors Great colors Makes fantastic displays Makes fantastic displays Increase sales revenue Increase sales revenue Consumer favorites Consumer favorites

52. 52 Retail Ready Program Summary As Of Today – 17 Programs Proposed For Summer And Fall Of ’05 As Of Today – 17 Programs Proposed For Summer And Fall Of ’05 Additional Programs Will Be Developed For Winter ’05-’06 and Spring ’06 Additional Programs Will Be Developed For Winter ’05-’06 and Spring ’06 Support Is Available To Customize Any Program To Meet Specific Grower Needs Support Is Available To Customize Any Program To Meet Specific Grower Needs