The Burpee® Plant programNational Launch, 2010

FAST FACTS

• Lack of consumer confidence is the #1 leading reason why a gardener will limit purchase *– Also a strong barrier for ‘non gardeners’

• Traditionally, brands are the primary vehicle for instilling consumer confidence in a purchase decision.

• No brand has succeeded in establishing a solid position in the annuals category– Wave comes the closest

*Second in response to ‘not enough time’ – more a barrier to activity, not product selection

Ipsos; Consumer Research study conducted for Ball, Dec, 2007, full sample, n= 402

Fear of failure – the focus groups….

It isn’t always clear to me what to do with a plant. Like – simple things –

sun/shade. It isn’t that easy.

I can never find someone who

knows how to help me. A lot of time – I

just plant what I planted last year.

Our growing season is so short that I don’t want to fail – but buying bigger plants costs more money – which

means higher cost of failing.

I’m not very experienced – I really don’t know what I am doing. I’m afraid to try something that I don’t know because chances

are it will die.

Fear of failure, by the numbers…

40%

31%

28%

24%

24%

20%

19%

15%

13%

11%

5%

21%

6%

19%

14%

5%

12%

3%

4%

3%

2%

3%

4%

0% 20% 40% 60% 80% 100%

Do not have time to garden

Worried about wasted time/money/disappointment

Not interested

Physical limitations

Gardening is too much work

No area to garden in

Do not know how to garden

Where I live is not conducive to gardening

Gardening is too expensive

Critters would eat my flowers

Hired someone to gardening

Moving

Percent of Non-Gardeners (n=300)

Main Reason

All Reasons

Younger gardeners (<35 yrs)

are most likely to say this.

Males are more likely than

females to say this.

What makes a brand successful?

• Establishes a position (what is the promise?)

• Position is relevant (what need is met?)

• Position is superior to competition (how is it better)

• Position is believable (clear and understandable reason to believe)

• Position is consistently communicated

Research results show that Burpee has a commanding lead in brand awareness

Are you aware of the following brand of

plants:

Ipsos; Consumer Research study conducted for Ball, Dec, 2007, full sample, n= 402

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Novalis Monrovia ProvenWinners

SimplyBeautiful

Wave Burpee

Are you familiar with the following brand of plants?

Burpee is about seeds and confidence….a good, established, reliable and trusted brand

Ipsos; Consumer Research study conducted for Ball, Dec, 2007, full sample, n= 402

0 5 10 15 20 25 30 35 40

Didn't answer

Mail order

tomato

Quality

vegetable

Good, established, reliable

Seeds

“What’s the one word that describes this brand of plants….”

A few facts on Burpee….• Market leader in packet seeds• Seed racks are located in every major chain and

thousands of independent retailers across the country – it is the national/destination brand in the seed category

• Annuals account for 60% of the offering and 45% of the sales.

• The leader in vegetable variety and innovation

How we would position Burpee® – the promise….

• The product: Gardening plants• The target: Today’s gardener• The promise: Confident Gardening Satisfaction• The benefits: Best garden-performing products;

products that perform better, look better, live longer – at a fair price

• The reason to believe: Comes from Burpee – (backed by Ball)

Most of the branded product is targeted at the ‘premium’ position

GOODLargest amount of the volume

BETTERModerate volume

opportunity

BESTMore diverse products;

Less volume

“Black” Pots Proven WinnersNovalisMonroviaHaut CoutureSimply BeautifulGarden Club Select

Not consistent

But BURPEE resonates as the ‘better’ brand, the mainstay, the dependable solution for every day.

The better position has a large volume and a mid-tier price; both seed and veg

COMPARATIVEPRICING(annuals)

+.50 $3.99

StandardBlackPot

(Good)

PremiumBrand(Best)

VOLUMEESTIMATES

50% 30% 20%

What is the product?• Annuals and Veggies/Herbs• From seed, premium seed or vegetative inputs• All have the following attributes:

– Superior consumer garden performance – Accessible - but improved– Efficient and consistent for the grower

• Offered in traditional sizes– Small and medium veggies/herbs (< 3”, 4”, 6”)– Medium annuals (4”, 6”, premium 6 pack)

The program

• Healthy product• In a Burpee pot

– Sustainable pots are offered for veggies/herbs• With a Burpee tag• And Burpee POP• Offered to all retailers

Total Vegetable/Herb offeringFRESH GARDEN HERBS

BASIL (5)BORAGE CATNIP

CHIVES (2)CILANTRO

DILLLAVENDER (3)

MINT (2)OREGANO

PARSLEY (2)ROSEMARY

SAGESWEET MARJORAM

THYME

TONS OF TOMATOSBETTER BOY

BURPEE'S BIG BOYBURPEE'S 4TH OF JULY

BURPEE'S BIG MAMABURPEE'S BRANDY BOYBURPEE'S BUSH STEAKBURPEE'S FRESH SALSABURPEE'S NAPA GRAPE

BURPEE'S STEAK SANDWICHBURPEE'S SUPER TASTYBURPEE'S SUPERSTEAK

BUSH EARLY GIRLCELEBRITY

CHAMPION I IEARLY GIRLSUNGOLD

SWEET 100SWEET BABY GIRLSWEET SEEDLESS

TOMANDETOMATOBERRY

CLASSICSBEAN (3)

BROCCOLIBRUSSEL SPROUTS

CABBAGECAULIFLOWER (2)

CUCUMBER (6)EGGPLANT (6)COLLARDS (2)LETTUCE (5)MELON (3)

OKRAONION (3)

PEPPER (13)PUMPKIN (3)

SPINACHSQUASH (6)

STRAWBERRY (3)WATERMELON (2)

Annuals for everyday

Core Items for the Consumer….Impatiens (fanfare, divine, Fanciful)

Begonia (Baby wing)Marigolds (Durango, Little Devil, Taishan)

Petunia (Madness, new special colors)Pansy (Matrix)Vinca (Titan)Viola (Sorbet)

Great added color….Bacopa (Abunda Colossal)

Calibrachoa (cabaret, new colors)Dahlia (Dahlietta)

Dianthus (Corona, dynasty)Gazania (new colors)

Lantana (Lucky)Magilla (Perilla)

Salvia (2)Rudbeckia (Tiger Eye)

Zinnia (Zahara and new jumbo)

Accents, foliage and funMillet (new lime)

Ornamental PeppersColeus (various)

IpomeaTalinum

Silver Falls Dichondra

Ball’s support of the program will be the best in the industry

BUILD AWARENESSGOALS:Refresh equityTransfer to plantsReach new consumers

TACTICS:AdvertisingPR

DIRECT and INFORMGOALS:Ease shopping decisionProvide informationInspire

TACTICS:PotsTagsMerchandising

INCREASE SUCCESSGOALS:EducateInformExpand

TACTICS:WebsiteCommunity

PRE STORE POST STOREIN STORE EXPERIENCE

Where your customer’s inspiration comes from…..

45%

42%

41%

32%

29%

11%

2%

9%

55%

59%

0% 20% 40% 60% 80% 100%

Friends / Family / Neighbors

Magazines

Gardening television shows

In-store displays / arrangements

Catalogs

Books

Internet Sites

Sales Associates

Other Homes / Businesses

Don't look for inspiration

Percent of Gardeners (n=606)

Q25. Where do you look for gardening ideas or inspiration?

Significantly more important for the less experienced

gardener

A successful program for growers

• Easy to order– Everything in one place– Flexibility in components that ‘work’ in grower operations

• Provides a higher return– Increased price on same product– Increased sell-through (higher volume) from more demand– No reduction in bench efficiencies

• With reduced risk– Pay royalty only for tags that sells

• Purchase tags up front - .14 royalty per tag• Rebate back based on sell-through percentage (assume 85%)

Here is how the financials work out…

OLD NEW CHANGERETAILER REVENUE 1.99$ 2.49$ 0.50$ Wholesale cost (40% margin) 1.19$ 1.49$ 0.30$ New retailer profit: 0.20$

GROWER REVENUE 1.19$ 1.49$ 0.30$ Estimated cost structure* 0.49$ 0.66$ 0.17$ Credit back at 85% sell 0.02$ 0.02$ New grower profit: 0.15$

ROYALTY RETURNMerchandisingMarket supportCustomer support

*Includes estimate of increased cost for tag and pot

Typical seed item

In store POPAdvertising, PR, etc.

Web and phone access for consumers

Next steps…• Collect your thoughts, comments and input

• Trial/test to confirm consumer valuation model

• Continue to refine the program and details

• Ultimately deliver the right program for NATIONAL LAUNCH in 2010.