Table of Contnets
Chapter 1: Executive Summary
The Overall Market: Equipment, Supplies, and Services
- Study Methodology
- Regulation
- L&G Sales at $22 Billion in 2002
- Table 1-1: Estimated Overall Retail Sales of the U.S. Lawn and Garden Market: By Category, 1998-2002 (millions of dollars)
- Growth Patterns by Category
- L&G Retail Shares
- Four Macro Factors Will Determine Future Growth
- L&G Market Projection: $25 Billion by 2007
- Table 1-2: Projection Retails Sales of the U.S. Lawn and Garden Market by Category: 2003-2007 (millions of dollars)
- Size of Marketers
- Generalists vs. Specialists
- Retail Distribution Channels: Equipment/Supplies
- Big Boxes on Top
Lawn and Garden Equipment
- Equipment Category: Three Segments
- Regulation: EPA Phases I and II
- CARB Tier 2 Regulations
- Equipment Sales at $12.7 Billion in 2002
- OPE Dominates Equipment Dollar Share
- OPE Unit Shares: Gas-Powered Products
- Projections: Equipment Over $14 Billion by 2007
- Table 1-3: Projected Retail Sales of Lawn and Garden Equipment by Product Segment: 2003-2007 (millions of dollars)
- Top OPE Marketers
- Top Tools Marketers
- Top Watering/Spraying Marketers
- The Competitive Situation: Intense Consolidation/Shakeout
- Locus of New Product Innovation: Engine Technology
- Retail Share: Home Centers Rise, Discounters Down
- Home Centers Benefit From Marketer Alliances, Kmart Troubles
- Consumer Factors Favoring Ownership: Walk-Behind Mowers
Lawn and Garden Supplies
- Two Segments: Fertilizers/Growth Media and Pesticides
- Regulatory Bans and Restrictions
- Supplies Sales at $5.2 Billion
- Segment Share: F/GM Leads
- Projections: Subdued but Positive Growth
- The Marketers: Scotts Dominates
- United Industries/Spectrum Brands Suddenly in Second Place
- How Scotts Maintains Its Dominance
- Major New Product Trend: Organic/Natural Products
- Organophosphate Alternatives
- A Wide Range of Retail Outlets
- Mass vs. Specialty Retail Share
- Garden Centers/Nurseries Struggle
- Demographic Factors Favoring Purchase: All L&G Supplies
Professional Lawncare Services
- Definition: Treatment, Not Maintenance
- Prime Selling Points
- Customized Options
- Services at $3.9 Billion in 2002
- Reasons for Slight Growth Slowdown
- Projections: Strong but Slower Growth
- Most Firms are Small Independents
- TruGreen-Chemlawn Dominates
- Service Users Display Strong Upscale Profile
Chapter 2: The Overall Market
The Products
- Three Categories: Equipment, Supplies, and Services
- Government Regulation
- The EPA
- EPA and OPE
- EPA and Pest Control
- The Food Quality Protection Act
- At the State Level
- At the Local Level
Market Size, Growth, and Competition
- Overview: Few Figures to Go On
- L&G Market Near $22 Billion in 2002
- Table 2-1: Estimated Overall Retail Sales of the U.S. Lawn and Garden Market: By Category, 1998-2002 (millions of dollars)
- Growth Patterns: 1998-2002
- Growth Patterns by Category
- Sales Share by Product Category
- L&G Retail Share
- Figure 2-1: Lawn and Garden Growth by Category, 1998-2002
- Figure 2-2: Sales Share of Lawn and Garden Market, by Category
- Table 2-2: Estimated Retail Share of U.S. Lawn and Garden Sales by Outlet Type, 2002
- Seasonality: Most Sales in Spring and Early Summer
- Regionality: Even Distribution by Population Patterns
Factors in Future Growth
- Overview: Four Macro Factors
- Positive: The Aging Baby Boomers
- Table 2-3: U.S. Population, by Age Group, 2000-2010
- L&G and Middle Age
- Positive: The Booming Housing Market
- Sales: New/Existing Homes
- Table 2-4: Sales of New and Existing Single-Family Homes: 1996-2002 (in thousands)
- Housing Starts
- Table 2-5: U.S. Housing Starts: 1996-2002 (in thousands)
- Why the Sustained Housing Boom?
- Housing and L&G Market
- Negative: The Economy
- 2002-2003: Dazed and Confused
- The Economy and the L&G Market: Outlook
- Negative: The Weather
- Extreme Springs
- The Global Warming Factor
- 2001 A Harbinger?
- Potential Opportunities in Climate Change
- Cultural Trends: Gardening Popularity Up
- A Reaction Against Lawns
- Outdoor Living Trend on the Wane
- Stay-at-Home Trend Waxing
- The Hispanic Factor
- The Regulation Factor
- The Consolidation Trend Positive
- Is the Retail Channel Contracting?
- Evolving L&G Products
- Biotechnology and L&G
Projected Market Growth
- L&G Market to Exceed $25 Billion in 2007
- Figure 2-3: Projected Growth of Lawn and Garden Market Sales, in Billions, 2003-2007
- Projected Growth by Category
- Table 2-6: Projected Retail Sales of the U.S. Lawn and Garden Market by Category: 2003-2007 (millions of dollars)
The Marketers
- Size of Marketers
- Generalists vs. Specialists
- U.S. vs. Foreign Ownership
- Major L&G Marketers: Overview
- Major Marketers: OPE
- Majors: Tools
- Majors: Watering/Spraying Equipment
- Majors: Supplies
- Majors: Services
Retail and Distribution
- Retail Distribution Channels: Equipment/Supplies
- Anonmalous Retail Distribution: Lawncare Services
- Distribution Patterns: Direct vs. Intermediary
- OPE Dealership Distribution
- Distributors Still Play Vital Role
- At The Retail Level: Big Boxes on Top
- The Home Center Concept
- Home Depot the Leading L&G Retailer
- Reaching a Limit?
- Testing New Concepts
- Home Depot Landscape Supply
- Downsized HD Stores for Cities
- From Products to Services
- Lowe's Companies, Inc.
- Wal-Mart and Kmart
- K-Martha
- Target
- Sears
- Garden Centers/Nurseries
- Hardware Stores
- Supermarkets and Drugstores
- Direct Sales: Mail-Order and Internet
Chapter 3: Lawn and Garden Equipment
- Government Regulations: Federal Labeling Standards
- Federal Performance Safety Standards
- EPA: Phases I and II
- CARB: Tiers I and II
- "Durability Requirements"
- Wrangling Over II and 2
- OPE Industry Successfully Adapting
- Noise Pollution and Leaf Blowers
- Municipal Restrictions and Bans
- Restrictions Spread from California
- The Politics of Noise Pollution
- OPEI Begins to Tacke The Issues
- OPEI's PSA
- Third-Party Certification
- Local Yard Waste Restrictions
Market Size, Growth, and Composition .
- Equipment Sales at $12.7 Billion
- Sales Stalling
- Table 3-1: Estimated U.S. Retail Sales of Lawn and Gardening Equipment by Product Segment: 1996-2002 (in millions of $)
- OPE Takes Biggest Hit
- Watering/Spraying: Modest Growth
- Tools/Implements Sluggish
- OPE Dominates Equipment Shares
- OPE Unit Shares: Gas-Powered Products
- Table 3-2: Share of Gas-Powered Outdoor Power Equipment Shipments: By Product Type, 2002
- Figure 3-1: Share of Gas-Powered Outdoor Power Equipment Shipments: By Product Type, 2002
- Decadal Shifts in OPE Shares
- Large OPE: Unit Shares
- Portable OPE: Unit Shares
- Unit Trends: Walk-Behind Lawn Mowers
- Unit Trends: Front-Engine Lawn Tractors
- Unit Trends: Garden Tractors
- Unit Trends: Rear-Enging (RE) Riding Mowers
- Unit Trends: Rotary Tillers
- Unit Trends: Trimmer/Brushcutters
- Unit Trends: Handheld Leaf Blowers
- Unit Trends: Chainsaws
- Unit Trends: Hegde Trimmers
- Unit Trends: Backpack Leaf Blowers
- "Guesstimated" Electric Shares
- Tools/ImplementsL Ownership Shares
- Watering/Spraying Equipment: Empirical, Anecdotal Evidence
Factors in Future Growth
- Facing External, Internal Challenges
- Reviewing 2001: Not a Good Year for Equipment
- After the Crash, a Rebound
- How Will a Sustained Slowdown Affect Sales?
- The Optimists
- Reinforcing the Stay-at-Home Trend
- The Strong Housing Market
- More DIY Positive
- The Pessimists
- Three Areas of Danger
- The Weather Hasn't Been Good
- Proactivity and Climate Change
- Forces Weakening the OPE Manufacturing/Distribution System
- The Alleged Trouble with Investment Firms
- Demographics Are Strongly Positive
- The Appeal of Evolving Technology
- Factors in Tools/Implement Growth
- Factors in Watering Equipment Growth
Projected Category Sales
- Over $14 Billion by 2007
- Projections by Segment
- Table 3-3: Projected Retail Sales of Lawn and Garden Equipment by Product Segment: 2003-2007 (millions of dollars)
The Marketers
- Size and Type of Marketers
- Most Marketers Are Manufacturers
- Many Marketers Have Deep Historical Roots
- Domestic vs. Foreign Marketers
- Most OPE Makers with Diversified Interests
- More Crossover Marketing
- Leading Marketers: OPE
- The Top Three: Toro, Electrolux, and MTD
- Toro Co.
- Electrolux AB
- MTD Products
- Leading Large OPE Specialists: Deere, Murray, Snapper, Honda
- Simplicity and the Second Tier
- Two Significant Minors: Country Home Products, GrassMasters
- Anomalous Situations: Sears and Black & Decker
- Sears Is a Retailer
- Black & Decker Electric Power
- Leading Portable OPE Specialists
- Chainsaw Specialists
- Tiller Marketers
- Chipper/Shreder Marketers
- Some Eclectic Significant Minors
- OPE Engine Manufacturers
- Leading Marketers: Tools/Implements
- The Top Two in Tools: Ames True Temper and Fiskars
- In the Second Tier: Union Tools, Corona Clipper
- Significant Minors in Tools
- Reel Mower Marketers
- Wheeled Implement Marketers
- Composter Marketers
- Leading Marketers: Watering/Spraying Equipment
- Marketers: Garden Hoses
- Marketers: Sprinklers/Accessories
- Marketers: Irrigation Systems
- Marketers: Spraying Equipment
- Table 3-4: Selected List of Lawn and Garden Equipment Marketers and Their Brands, 2003
The Competitive Situation
- The Age of Consolidation/Shakeout
- Not a Pretty Post-Millenial Picture
- First Stirrings of Consolidation/Shakeout
- 2001: The Crunch Sets In
- Widespread Struggling
- Post-2002: A Sense of Vulnerability
- In Watering/Spraying, a Contrasting Stability
- Outlook: More Suffering in Store?
- Coping with Consolidation: Restructuring
- MTD Revels in Consolidation
- Professional Marketers: Small but Solid
- Pro Mower Maker Crossover to Consumer Sector
- Consumer OPE Marketers Try the Reverse
- Tool Maketers Target Landscapers, Serious Gardeners
- Stihl Breaks a Taboo
- Subsegmenting and Niche Strategies
- Country Home Products: A Unique Niche Specialist
- The "New, Improved" Strategy
- Forging Exclusive Retailer Alliances
- Yet This Approach Has Its Perils
Competitive Profiles - OPE
- The Toro Company
- Sales Staff, But Profits Up
- Three Divisions
- The Professional Division
- A Strategic Reorientation in the 1990s
- But Professional Division Struggling
- Toro's Residential Division: An Unexpected Bright Spot
- Toro, Lawn-Boy, and Wheel Horse
- Branded Mower Extensions
- Toro's Portable OPE Line
- Restructuring in 2001
- Recent Product Recalls
- Toro Stays Atop the Trends
- MTD Products
- A Full Line of Large and Portable Products
- Five Large OPE Brand Lines
- Acquires Ryobi, Then Troy-Bilt
- Recent Focus on Cub Cadet and Yard-Man
- Cub Cadet Now Sold at Lowe's
- An Educational Initiative
- Recent Recalls
- Focus: Ryobi
- Electrolux AB
- Sales and Markets
- Electrolux Home Products
- Three OPE Subsidiaries
- Strategic Acquisitions: 1978-1990
- Poulan/Weed Eater
- Husqvarna
- Husky's Into Lowe's, Sears
- Recent Innovations
- American Yard Products
- Deere & Co.
- Stagnant Sales, Declining Profits
- Deere's Divisions
- Restructuring, Production Cutbacks
- Deere Sells Off Homelite
- Homelite's Innovative Products
- Bleeding Money
- Homelite Sold to TechTronics
- Deere Openly Moves Into Mass Channels
- New Products
- Black & Decker
- Sales Stalling
- Business Segments and Brands
- An Innovator in Electric OPE
- Focus on the "Hog" Line
- Recent Recall
- Murray, Inc.
- 1988-1998: Flourished Under Tomkins
- Acquired by Summersong - Restructuring
- Murray Picks up a Few Items from Garden Way
- Recent Recall
- Snapper, Inc.
- Snapper Strikes a Deal with Wal-Mart
- Metromedia Sells
- Simplicity Buys
- Simplicity/Snapper Solidifies Industry
- Garden Way
- Radically Shifts Course - Troy-Bilt Suddenly into Stores
- Building Sales and Resentment
- The Final Miscalculation
- An Ugly Ending
- Garden Way's Garage Sale
- Brief Competitive Profiles: OPE Marketers
- Simplicity Mfg. Co.
- Echo, Inc.
- Blount International
- Mackissic
- U.S. Home and Garden
Competitive Profiles - Tools
Chapter 4: Lawn and Garden Supplies
- Fertilizers/Growth Media: Four Product Types
- Fertilizers: Supplements, Not Foods
- Fertilizer Forms/Terminology
- Growth Media
- Pest Control Supplies: Three Product Types
- Weed-and-Feed Products
Government Regulation
- Pesticides: Federal Regulation
- Pesticide Regulation
- The Food Quality Protection Act
- EPA Takes Aime at Organophosphates
- Banning Dursban; Phasing Out Diazinon
- Two States Move to Ban Clopyralid
- Are Triazines Next on Hit List
- Fertilizer Restrictions on the Local Level
- RISE Is Formed to Defend the Industry
- Pesticide and Fertilizer Labeling
Market Size, Growth, and Composition
- Sales at $5.2 Billion
- Table 4-1: Estimated U.S. Retail Sales of Lawn and Garden Supplies by Product Segment: 1998-2002
- Why the Growth Rate Is Slowing
- Segment Share: F/GM Leads
- Figure 4-1: Share of Lawn/Garden Supplies Sales, 2002
- Pesticides Appear to Grow More Slowly
- Popularity of Supplies: By Product Type
- Various Statistics on Supplies by Product Type
- Retail Share
- Figure 4-2: Share of Lawn Supplies Sales, By Retail Type, 2002
- Regionality
Factors in Future Growth
- Some Strong Positives
- The Economy Could Be a Problem
- The Weather is a Wild Card
- Supplies and Perceptions
- Branding Creates Positive Perceptions
- Consolidation Could Help
- New Products Will Definitely Help
- Environmental Awareness Poses a Challenge
- Some Discontent with the Synthetic Status Quo
- The Logic of Synthetics
- An Industry Reorientation Could Fit Well with Cultural Trends
- Industry Resistance and Natural Resistance
Projected Category Growth
- Subdued but Positive Growth
- Projections by Product Segment
- Table 4-2: Projected Retail Sales of Lawn and Garden Supplies by Product Segment: 2003-2007
The Marketers
- Size and Type Of Marketers
- Concentration at the Top
- Scotts Dominates
- United Industries/Spectrum Brands Suddenly in Second Place
- The Dissolution of Bayer-Pursell
- Note on Second-Tier and Significant-Minor Marketers
- Marketers: Lawn Fertilizers
- Marketers: Plant Foods
- Marketers: Potting Soil
- Marketers: Peat Moss
- Marketers: Lawn Lime
- Marketers: Landscape Fabric
- Marketers: Insecticides
- Marketers: Herbicides
- Marketers: Weed Preventers
- Agrochemical Giants in Pesticides
- Major Agrochems and Their Brands
- Table 4-3: Selected List of U.S. Lawn and Garden Supplies Marketers, 2003
The Competitive Situation
- It's Simple: Scotts Rules
- But There's Always a Challenger
- Bayer-Pursell Dissolves
- A New Rival Arises: United/Spectrum
- Scotts vs. United: The Gap Is Narrowing
- How Scotts Maintains Its Dominance
- Pursuing Successful Niche Strategies
- Competing by Acquiring
- Competition: Fertilizer/Growth Media
- Pesticides Competition and the Agrochemical Giants
- Bayer Acquires Aventis
- Competitive Profile: Scotts Co.
- A Major L&G Crossover Marketer
- Acquisition Patterns
- Sales Stagnant Since 1999
- Six Marketing Groups
- Sales Trends by Group
- Scotts' Brands
- Branding in U.K. and North/Central Europe
- Ortho and Roundup
- Miracle-Gro: Strategic Magic
- True Synergy
- Method to Madness
- Taking the Bull by the Horns
- Under the Miracle-Gro Umbrella
- Recent MG Spin-Offs
- Extending the Scotts and Ortho Lines
- Into Biotech
- A Sort-Of Image Update
- Scotts Is Optimistic
- Virgin Supermarkets
- Medium-Term Plans
- Competitive Profile: United Industries Corp.
- UI Acquires Pursell's Brands
- Next Acquisition: Schultz Co.
- Gaining Valuable Retail Connections
- UI/SB's Current Sales and Stakes
- Laudable Ambitions
- Greenhorn in Natural Niches
- UI and Bayer
- Pursell: A Leader in Fertilizer R&D and Manufacturing
- Pursell's Brands
- Pursell Technologies
- Brief Competitive Profiles
- A.H. Hoffman
- Green Light Co.
- Bonide Products
- Woodstream Corp.
- Premier Horticulture
- Central Garden & Pet
- U.S. Home & Garden
New Product Trends
- Time-Release Fertilizer
- Moisture-Control Agents
- Specifically Targeted Products
- Spikes and Stakes
- Organic/Natural Products
- Neem Oil Products
- New Natural Brand Lines
- Bio-Organic and Hydroponic Products
- Winterizing Products
- Liquids into Concentrates
- Organophosphate Alternatives
- Value-Added Peat Moss
- New-Wave Soil Amendments
- Trends in Mulch
- Better Pesticide Applicators
- Resealable Packaging
- Foreign-Language Labeling
- Table 4-4: Selected New Product Introductions: Lawn and Garden Supplies, 2001-2002
Distribution and Retail
- Direct Distribution Up
- A Wide Range of Retail Outlets
- Mass v.s Specialty Retail Store
- Home Centers vs. Discounters
- Kmart's Troubles
- Discounters and Private Label
- Garden Centers/Nurseries Struggle
- Frank's Nursery and Crafts
- Other GN/C Chains
- Garden Center/Home Décor Combo Stores Not Successful
- Profile: Molbak's
- Profile: Phanton-Gardener - Focus on Natural/Organic Niche
- GC/Ns Joining Co-o Buying Groups
- Numerous Co-Op Benefits
- Examples of Buying Groups
The Consumer
- Lawn Fertilizer Most Popular Product
- Purchasing Patterns by Sex
- Factors Favoring Purchase: All Supplies
- Purchaser Profiles: Lawn Fertilizer, Garden Fertilizer
- Purchaser Profile: Plant Food
- Purchaser Profile: Compost
- Purchaser Profile: Synthetic (Lawn/Garden) Insecticide
- Purchaser Profile: Synthetic (Lawn) Herbicide
- Purchaser Profile: Organic Insecticide
- Tables 4-5a and b: Demographic Characteristics Favoring Ownership of Lawn and Garden Supplies: By Product Type, 2002
Chapter 5: Professional Lawncare Services
- The Services: Definition/Parameters
- Lawncare Operators: Selling Points
- The Standard Treatment Program
- Customized Programs
- Integrated Pest Management (IPM)
- Organic Treatment Programs
- Enhanced Services
- Fungicide Treatments
- Prices for Programs
Chapter 6: Trends and Opportunities
- Overview: Positives with Negatives
- Transforming Negatives into Positives
- Demographics: Automatically Positive Opportunities
- Another Automatic Opportunity: Stay-at-Homeowners
- The Silver Lining in Economic Clouds
- Opportunities in Acknowledging Climate Change
- Regulation: Consumer Education a Must
- Great Opportunities in Natural/Organic
- Placing High-Tech in a Larger Context
- Consolidation Offers Marketing Opportunities
Appendix I: Glossary
Appendix II: Addresses of Selected Marketers |
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