Scotts Miracle-Gro Revamping its Style
Distributing product for an industry that takes growth to the next level correlates nicely with Scotts Miracle-Gro's (NYSE: SMG) most recent ad campaign that has sprouted across America. Scotts, one of the world's largest marketers of branded consumer products for lawn and garden care, has recently found itself a new character to associate its image with, and his demanding demeanor is enough to boot customers off the couch and into the store.
As analysts prepare for SMG's anticipated May 8th earnings conference call, the company has been working on itself in order to cultivate a literal “go-green” attitude, while continuing to dominate the fertilizer industry. Following its sensitive and newly-established sustainability platform, the company released commercials spotlighting a feisty Scottish man in order to revamp the label's image and rack up sales.
According to the New York Times, the campaign is based on insight provided by research conducted amongst more than 4,000 people. Consumers noted that they were likely to change their behavior when it came to their lawn care if they were told what to do by an expert.
And in an effort to put itself in check after recent litigation troubles, the company has publicly released its Corporate Responsibility Report in the past month to show what moves will be made for the growth-supplier to become more eco-friendly.
Among its set of predicted achievements, Scotts plans to eliminate phosphorous in lawn food by December of 2012 and reduce 50 percent of the waste it sends to landfills by FY2018. However, SMG may be announcing such impressive goals in an effort to wash out the bad taste it left in customers mouths with the recent news that the company has been shelling out toxic product that has been killing feathered neighbors.
Regardless of the motives behind the green report and freshly cut campaign, SMG is set to perform well in its upcoming quarter, just as other fertilizer producers are as well.
Goldman Sachs recently laid out its top picks in the industry as earnings calls will begin to surface over the next few weeks, but SMG's lack of presence on the list is not to be alarming, as research firms have prematurely upped ratings and price targets for the company. This, on-top of the increased buzz surrounding the advertisements and sunny days have Scotts poised for a successful year.
As the weather continues to toy with the emotions of the ever-dependent fertilizer industry, it is the upcoming earnings calls that will prove whether or not the overdrive of new campaigns and information has been effective for its customer base.
SMG is currently trading at $52.63, up +12.72% YTD.
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