Indoor

1

06/01/98Ver. 1

Indoor.ppt

Indoor

2

06/01/98Ver. 1

Source: Program year IRI and TRIAD Oct 96 to Sept 97, Kline 95

Why Indoor Insect?

Three companies account for 61% of total Indoor Insecticide sales

SC Johnson25%

All others39%

Monsanto14%

United Industries

22%

Indoor Insecticides strong force in all classes of trade

Mass Merch197MM

33%

Ind/Other160MM

27%

Home Centers

104MM18%

Grocery130MM

22%

Total Indoor Insecticides grew 3% in 1997 driven by Home Center growth

MassMerch

HomeCenters

Ind/Other-5%

0%

5%

10%

15%

20%

MassMerch

HomeCenters

Ind/Other

-2%

+17%

+2%

Outdoor Insect41 %

435 MM Indoor Insect59 %

615 MM

Indoor Insecticides account for 56% of total Insecticide sales

Indoor

3

06/01/98Ver. 1

0 10 20 30

All Outlet Insecticides$ Ring Among All Shopping Occasions

% in MM

Among indoor insecticide buyers, Ortho buyers have the highest basket ring across all shopping occasions.

Why Ortho Indoor Insect?

$26.01 Combat

$25.91 Raid

$26.75 Ortho

Indoor

4

06/01/98Ver. 1

Why Ortho Home Defense?

Best selling RTU insecticide with

38% market share

Leapfrogs the competition with

16 week residual control

Outturns the competition by 32%

Expanded label includes: Odor Free

Pantry Pests

Source: AC Nielsen Consumer Panel Data 9/29/96 - 9/27/97 & Insecticide/Pesticide Total U.S. Purchase Pattern Analysis

Indoor

5

06/01/98Ver. 1

Source: IRI Store Data, 48 weeks ending 12/07/97

Home Defense Ideal for Displays When on display, Home Defense out performs all other

brands:

% INCREASE

IN $ SALES

% OF TOTAL

SALES

HOMEDEFENSE 86 % 36 %

SPECTRACIDE 38 % 19 %

SEGMENT 63 % 17 %

Indoor

6

06/01/98Ver. 1

Home Defense Trade Support Elements

$ 7 pop-up display 48/24 oz. (Q2)

$35 full pallet Moen 128/1 gal. (Q3)

$35 full pallet Pull ‘N Spray 96/5 liter

Ortho Investments To Drive Account’s X $

Home Defense generates 86% volume

lift when on display

Indoor

7

06/01/98Ver. 1

Source: IRI Store Data, 48 weeks ending 12/07/97

Home Defense 24 oz. RTU

Excellent growth and margin enhancement opportunity

20 to 24 oz. sizes represent 13.8% of segment with a growth rate of 45.5% (vs. ‘96)

Ideal for Mass Merch, Co-op, Grocery, and Military

NEW 24 oz OFFERING for 1999 - 48 ct Pop-up display

Expanding 24 oz distribution to equal Private Label 24 oz(18% ACV) provides opportunity for

retailers to increase sales by $6m.

Indoor

8

06/01/98Ver. 1

Home Defense Consumer Benefits

Creates barrier to keep bugs out Fast Action 4 month residual effect (3 mos. for Bug Stop & 2 mos. for Real Kill)

Odor free Non-staining formula Use sites includes pantry Easiest to use sprayer system (nested sprayer) More bugs on label than any other (33) High impact graphics with easier to read label

Indoor

9

06/01/98Ver. 1

Home Defense vs. the Competition

Source of Data: Moorestown, NJ - 96481115

German Cockroach Control

1 Min. 10 Min. 30 Min. 24 Hr.0

10

20

30

40

50

60

70

80

90

100

% C

ontr

ol

1 Min. 10 Min. 30 Min. 24 Hr.

Time Following Treatment

ORTHO HomeDefense I&O Insect Killer 3

Enforcer Home Pest Control XI

Spectracide Home Insect Control 3

Indoor

10

06/01/98Ver. 1

Home Defense Innovations

For 1999 Home Defense will offer as an “in-and-out” item the new 5 liter Pull ‘N Spray no pump pressure sprayer.

Excellent profit potential: 38% higher ring

Solaris exclusive (patented technology)

No more hand fatigue for consumers One pull equals 90 pumps of trigger spray

Indoor

11

06/01/98Ver. 1

Home Defense 1999 Promotions

Objective: maximize off-shelf displays in order to drive significant volume growth. Rationale: 86% sales lift ($) when the product is on display. Home Defense DRUs:

48 ct. pop-up 24 oz. RTU 128 ct. 1 gal. RTU full pallet Moen 96 ct. 5 liter Pull ‘N Spray full pallet

Home Defense display allowances: $ 7 pop-up display 48/24 oz. $35 full pallet Moen 128/1 gal. $35 full pallet Pull ‘N Spray 96/5 liter

Why Bifenthrin in Ortho’s Home Defense ? Newest “pyrethroid” chemistry to enter Lawn & Garden market. Superior Residual Quick kill on a broad spectrum of insects and mites Exempt from EPA concerns around use of “organo-phosphates.” Capable of being formulated into water based and granule formulations.

Indoor

12

06/01/98Ver. 1

Home Defense 1999 Advertising

Support barrier positioning and residual control Regional radio support to increase brand awareness

(Markets TBD)

Regional Billboard campaign in select markets (markets TBD) Advertising Periods:

Mid Drive Period: Frost 5/1 - 6/15, Sunbelt 4/1 - 6/15 Late Drive Period: 6/15 - 9/30

Indoor

13

06/01/98Ver. 1

1999 Ortho Advertising

March April May June July August Sept. October

Television

Radio HomeDefense (May - July)

Print Ortho Family Brand (Mid March - June)

Billboards HomeDefense (Mid April - June)

12MM in Ortho Advertising Spending Delivering over 1 Billion Targeted

Consumer Impressions Early & Late Season Support Focused on Key Ortho segments

Keep All Eyes on the Ortho Brand ! Key Segments: Weed B Gon RosePride Bug B Gon Lock ‘N Spray HomeDefense Fire Ant Killer Grub B Gon Azalea Care