1

Developing A Brand New Product CategoryIn Household Cleaning Tools

“The Buster” Family Of Cleaning ToolsDustbuster, Scumbuster, Floorbuster

2

Black & Decker invented the Dustbuster franchise in 1979.

Dustbusters had eroded from $100M to only $35MM by 1996.

Handheld vac competition – (Royal, Hoover, Eureka, China imports) was mainly responsible.

Moreover, there had not been any real innovation in handheld vacs for years. i.e. corded or cordless , amps and accessories.

Strategic Imperatives: Re-vitalize Dustbusters Expand into new “non-served” adjacent product categories exploiting “need gaps”.

Cleaning Tools Business Situation

3

Consumer lifestyle shifts were driving changes in traditional household cleaning behaviors.

Key Consumer Trends:Key Consumer Trends:

Help consumers clean faster & better with less time & effort

Speed Bumps

Speed Bumps

Cleaning Business Actions

Working parents & single parent householdsWorking parents & single parent households Time constraintsTime constraints Casual living attitudes & priorities - “I can live with some dirtCasual living attitudes & priorities - “I can live with some dirt””

4

Consumer Household Cleaning Tasks/Markets

VacuumVacuum Manual Wet MopsManual Wet Mops

Sweep/Dry MopSweep/Dry Mop

DustingDusting

Wet CleanWet Clean

Upholstered furniture Wall-to-wall carpeting Area rugs

Major/small kitchen appliances Heater, radiator Window coverings Woodwork Electronic equipment Light fixtures/ceiling fans

Hardwood floors Tile floors Linoleum Entry way/ mud room

Major/small kitchen appliances Sink, toilet, tub& tile walls Windows Kitchen countertops Glass/wood tops Shower doors Sliding glass doors

Fireplace/hearth Hardwood floors Tile floors Cement floors

OutdoorOutdoor

Deck and patio Outdoor furniture BBQ Siding Gutters Fences Driveways/sidewalks

Source: 1994 B&D Cleaning A&U Study

Cleaning Business Actions

These tasks were already beingaddressed by current products

Opportunities existed to “Invent& Market” In Adjacent Categories

Traditional Served Cleaning Markets Unserved, Adjacent Markets

5

Cleaning Category Consumer Segmentation

Consumer attitudinal segmentation showed both an emotional and rational need for new cleaning solutions beyond handheld vacs.

Convenient hard surface floor and wet cleaning needs were not being addressed.Source: 1994 Cleaning A&U Study

Sweeping/Dry Mop

Sweeping/Dry Mop

Corded/CordlessHandheld Vacs

Corded/CordlessHandheld Vacs

Wet CleaningTools

Wet CleaningTools

Dirt/Messes are important to clean up - emotional

Th

e cl

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ing

task

itse

lf is

an

noy

ing

- ra

tion

al

Low

High

High

Anti-CleanersAnti-CleanersCleaningCleaningFanaticsFanatics

TolerantTolerantCleanersCleaners

DiligentDiligentCleanersCleaners

Cleaning Business Actions

6

Scumbuster invented the “wet cleaning” category – $60MM business – single largest $ SKU in Black & Decker’s 100 year history.

Unique product design/manufacturing processresulted in a waterproof product up to 3 feet in water – competition couldn’t duplicate it. First to market.

Scumbuster was the first Black & Deckerproduct on QVC – result $1MM of sales in one day

Floorbuster was the first cordless stick vac usingthe patented versapack rechargeable battery technologyand new bagless technologies before Dyson vacs.- $5MM business

Achieved highest profitability return in historyof the business - $100MM with >20% ROS.

Cleaning Business Results