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Ultimate GlueJuly 31, 2008

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Presentation Team

• Dan Buoniconti- Account Service• Rob DeVaun- Account Service• Noah Besheer- Creative • Stacia Blasé- Creative • Kelly McKee- Media • Layna Dugan- Public Relations• Yelena Pavlik- Public Relations

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Agenda

• Objective

• Research

• Strategies

• Q & A

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Objective

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Objective

Grow revenue by 15% in the home repair industry by 2010

within the test markets.

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Issues

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Issues:

• Perceived as inferior to Gorilla Glue– Elmer’s names associated with elementary

strength glue

– Low awareness of Ultimate Glue

– 24 hour dry time

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Solutions:

• 40% stronger than Gorilla Glue

• Less expensive than competition

• “Elmer’s” name is widely recognized

• Sharp packaging and bottle design

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Solutions:

• Room for brand growth– Growing Do-It-Yourself community– Non-traditional means of advertising are now widely

accepted– Leverage Elmer’s brand identity for this product– Avoid confusing the Elmer’s Ultimate image with the

elementary strength glue

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Competitive Analysis

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Competition

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Competitive Analysis

• Elmer’s Ultimate is among the top rated multipurpose glues according to Consumer Reports

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Opportunity Matrix

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Situational Analysis

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Market Trends

• The adhesive industry brings in $2.2 billion

• The United States produces approximately 2.6 metric tons annually

• Demand is forecast to surpass $5 billion by 2012

• Growth of the world market averages about 2-3% per year

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Market Trends: When to Strike

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Target Audience

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Target Audience

• Males and females ages 35-54• Married without or with one or two children• Employed full time • Median household annual income of $50,000-

$100,000

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Main Cohorts

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Brett & Tracey - Hyperactive NewlywedsYoung, dual-income, educated couples whose energies are channeled into:

• Active sports• Outdoor activities• Careers • Their home lives

• 58% more likely than the average to do own home repair

Key Audience Insights

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Stan & Carole - Upscale Middle-Aged Couples

• Unburdened by children, these credit-worthy, dual-income couples divide their time between the great outdoors and domestic hobbies

•34% more likely to do own home repair than average

Key Audience Insights

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•Up-and-coming young families who curtail their lifestyle expenses through less-costly outdoors activities and working around the house

•37% more likely than average to do own home repair

Chad & Tammie - Young Families

Key Audience Insights

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Test Markets

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Test Markets

•Population is above the national average in all our target audience demographics

•Owning vs. renting property, 65% to 35%

•There are 13 Home Depots, 20 Lowes and 20 Wal-Marts

Raleigh/Durham, North Carolina

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Test Markets

• High percentage of our target demographic

• Increasing real estate market

• There are 20 Home Depots, 15 Lowes, and 20 Wal-Marts

Denver, Colorado

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Test Markets

• High percentage of our target demographic

• Over 75% of the population owns instead of rents

• There are 20 Home Depots, 8 Lowes, and 20 Wal-Marts

Minneapolis- St Paul, Minnesota

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Primary Research

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Primary Research: Online Survey Results

Always hire a contractor   6%

Do a little bit of my own home repair   41%

Do most of my own home repair   43%

Do all of my own home repair   10%

Do you do your own home repair work, or hire a contractor?

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Primary Research: Online Survey ResultsWhen making a hardware/woodworking adhesive purchase decision, which of the following describes your process?

I choose from the adhesives available at the store   72%

I ask a professional or expert which adhesives they recommend   22%

I use the Internet to research adhesive products before I go to the store   12%

I pick the adhesive based on information I read in magazines   4%

Other, please specify   8%

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Primary Research: Online Survey ResultsWhat characteristics influenced you into purchasing the most recent brand that you did?

Quality/strength of product   45%

Recommendation by friend/family   25%

Recommendation by sales person   22%

Just chose one because it was presented well   8%

Previous satisfaction with the product   34%

The brand name   21%

No reason, just chose one   12%

Other, please specify   4%

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Survey Conclusions

• Buyers come to the store blindly

• Looking for past satisfaction or best perceived quality

• Elmer’s Ultimate is high quality according to the research

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Primary Research: In Store

• Lack of attention brought to Elmer’s products

• Lack of employee knowledge about Elmer’s products

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Primary Research: In Store

• Elmer’s products confusion

• Old packaging

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Strategic Planning

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Senior Management

Sales/Marketing Team

Field Sales Representatives

Distributors

Trade Media Editors (30)

Consumer Editors (135)

Distributor Sales Force

All Elmer’s Employees (740)

Specialty Retailers

Menards (240)

Lowe’s (1,555)

Home Depot (2,141)

Wal-Mart (3,800)

Remodelers (80,500)

Renters

All Home Owners (137,269,000)

Rank Resource AllocationPerformance Investment Model (PIM)

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3

1

10%

5 %

70%

15%2

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Strategies

1. Reposition Elmer’s2. Increase Awareness

A. Generate consumer awareness via aggressive national PR campaign

B. Create a presence at trade shows C. Arm distributor partners with in store tactics to increase preference of brandD. Increase awareness as a community partner E. Leverage trustworthy image with a family centered campaign F. Measure results to ensure efficiencies

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Strategy #1

Reposition Elmer's

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Brand Personality PortraitWhat we are:What we are: Reposition as:

Superior Afterthought Best Option

Specialized UniversalChildhood Mature

Trustworthy

Under Valued

Unreliable Reliable

Reposition as:

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Strategy 1

• Reposition Elmer’s Ultimate Glue as the stronger multipurpose adhesive:

Elmer’s Ultimate Glue is forty percent stronger than the competition; making it the premium multipurpose adhesive

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Media

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•42 networks•36,000 venues•47,000,000 gross weekly impressions

Tactics: Digital Signage

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•Digital signage reaches people every day

Cafeteria

Sports BarRestaurant

ElevatorGas Station

Elevator

Video Store

Health Club

ATM Lobby

Elevator Vet Clinic

Office Lobby

Home Office Office

M O R N I N G N O O N E V E N I N G

Home

Tactics: Digital Signage

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Tactics: Digital Signage

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Tactics: Digital Signage

•Reach target audience cost effectively

•Average $8.98 for every 1,000 impressions in our 3 test markets

• Television vs. digital out-of-home

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Raleigh Durham, NC; Denver, CO; Minneapolis-St Paul, MN

Tactics: Print

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• Place 3 billboards

• High traffic areas

• Four months of the DIY season

Tactics: Billboard

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Creative

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• Street Team– Have a street team for 3 days, once each

month, April through September. – Bull vs. Gorilla Ring-A-Bell

Tactics: Street Team

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Tactics: Street Team

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Tactics: Digital Signage

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Tactics: Digital Signage

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Tactics: Digital Signage

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Strategy #2Generate consumer

awareness

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Tactic A:Generate consumer

awareness via aggressive national PR campaign

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Tactics: Public Relations

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• Hold workshops/ educational seminars online– Comments– Questions– Community

• DIY 30 days of projects

• Produce monthly DIY E-Newsletter– Sign up online– Viral

Tactics: Microsite

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• DIY Month• Media Kit

– Full bottle of Elmer’s Ultimate– Folder glued shut– News release fact sheet– 30 days of DIY– Flash drive– Copy of E-Newsletter

• Social Media Savvy– Search engine optimized– Social news release blueprint

Tactics: Media Kit

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• Headlines We Would Like to See– Elmer’s: Helping DIY-ers Do it Better– Elmer’s Ultimate Glue Creates the Ultimate

Holiday– A Little Dab Will Do Ya!

• Elmer’s Ultimate Helps Homeowners Increase Value of Homes with DIY Month.

Tactics: Media Kit

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Tactics: Media List

•Fairway Living Magazine•Triangle Home Improvement•Ideal Living Magazine•Winterthur Magazine•Home Improvement•Home Fashion Report•Home Accents Today•Toolbelt Tips

•DIY Life•Bedroom Magazine•Casual Living•Daily Courier•For Your Home•Furniture Today•New Homes & Ideas •Side Dish•Triad New Home Guide•Wilson Daily Times

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Tactics: Media List

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Creative

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Tactics: Direct Mail

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Tactics: Interactive

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Tactics: Interactive

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Tactics: Interactive

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Tactic B: Create a presence at trade

shows

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• Before going national–Raleigh/Durham, NC–Denver, CO–Minneapolis/St. Paul, MN

• Fit target audience and cohorts

Test Markets

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• Trade Show Savvy• Preparation

– Pre-show post cards– Creative theme

• Design of booths• Networking advice• Attendance at shows• Research target audience• Measurements

Tactics: Trade Shows

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• Have livingroom• Give samples • Kids corner • DIY on TV

Tactics: Trade Shows

•Consumer Shows

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• Test Market Trade Shows-Raleigh/Durham

• Southern Ideal Home Show - Raleigh Edition

• Raleigh Spring Home Show

• Southern Women's Show – Raleigh

-Denver• Home Decorating & Remodeling Show Denver

• Colorado Garden & Home Show

-Minneapolis• Mid-America Remodeling & Design Expo

• Home & Landscape Expo

• Home Building & Remodeling Expo

Tactics: Trade Shows

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Tactic C:Arm distributor

partners with in store tools to influence

preference of brand

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Tactics: Shelf Placement

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Tactics: Shelf Placement

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Tactics: Glue Guide

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Tactics: Point-of-Purchase

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Tactic D:Increase

awareness as a community partner

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• “Helping the Heartland”• Cause related marketing

– Communities affected submit a video• $50,000 and Elmer’s Home Repair

products• Media kit • Possible co-sponsorship

Tactics: Cause Marketing

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Headlines we’d like to see: • Smith Family Home Rebuilt Thanks to

Elmer’s Ultimate Glue• Elmer’s Ultimate Glue On a Mission;

Helping the Heartland• Community Bonding with Elmer’s Ultimate

Tactics: Media Kit

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Tactic E:Leverage

trustworthy perception with a family centered

campaign

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• Hold a “Family Bonding Contest” – Show us how Elmer’s Ultimate Glue helps

you bond • Video upload• Most votes wins trip

– Media kit introducing contest– Follow up news release on winner

Tactics: Contest

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Headlines We Would Like to See• Elmer’s Family Bonding Contest Awards

Vacation to Deserving Family• Jones Family: Closer Than Ever Thanks to

Elmer’s Ultimate Glue• I’m Goin’ to Disneyland!

• Johnson family bonding thanks to Elmer’s Ultimate Glue

Tactics: Contest

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Media

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Raleigh Durham, NC; Denver, CO; Minneapolis-St Paul, MN

Tactics: Print

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Raleigh Durham, NC; Denver, CO; Minneapolis-St Paul, MN

Tactics: Radio

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Creative

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Tactics: Radio

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Tactic F:

Measure results to ensure efficiencies

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Measurement

• Move toward objective: “Grow revenue by 15% in the home repair industry by 2010 within the test markets”

• Progress against awareness benchmark

• Monthly clip reports

• Quarterly ROI reports & analysis

• Online measurement/monitoring

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Tactics: Return On Investment

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Tactics: Measurement Charts

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77

35

49

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0

10

20

30

40

50

60

70

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Total Clips

Jan Feb Mar Apr May June

Months

ROI Monthly 2008

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2222

9

3

12

18

76

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10

15

3

2122

13

43

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0

5

10

15

20

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Clips

FMC ROI: 2008 Aim Authority AssistAuthority MTZAuthority FristBe a HeroCaptureCadetBeleafBrigadeFMC GenCommandFuradanCarbineHeroMustangRageRanmanSharkSpartan

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Tactics: Web Measurement

• Number of hits on site

• Number of sign ups

• Number of comments/questions

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Media

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Media Spend Flowchart

•No Hidden Costs

Client: Elmer'sCampaign: Ulitimate Glue

Total

31 7 14 21 28 4 11 18 25 3 10 17 24 31 7 14 21 28 5 12 19 26 2 9 16 23 30 7 14 21 28 4 11 18 25 1 8 15 22 29 6 13 20 27 3 10 17 1 22 Weeks (Avg. spend)Media Vehicle

Magazine 36 $200,450

Radio 24 $15,600

Street Teams 24 $72,000

Digital Signage 24 $123,040

Billboards 16 $100,000

In store 28$40,910

Online ads 48 $48,000 TOTAL SPENDING $600,000

Jul2009 MEDIA FLOWCHART

SeptAug OctJan Feb MayMar Apr DecNovJun

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Why NK

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Thank You!

Q&A

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Appendix

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Tactics: Radio