Running Head: PRODUCT ANALYSIS OF SCOTTS MIRACLE GRO

Product Analysis of Scotts Miracle-Gro

Royal Roads University

Author Note

This assignment was written for the course MGMT564; International Marketing, taught by

Tabea Berg.

Table of Contents
PRODUCT ANALYSIS OF SCOTTS MIRACLE GRO
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Introduction......................................................................................................................................3

Marketing Mix.................................................................................................................................3

SWOT Analysis of the Indian Market.............................................................................................6

CAGE Analysis of the US and India (Appendix figure 2)..............................................................7

Mode of Entry..................................................................................................................................9

Standardization Versus Adaptation.................................................................................................9

Corporate Social Responsibility....................................................................................................10

Conclusion.....................................................................................................................................11

References......................................................................................................................................12

Appendix........................................................................................................................................14
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Introduction

Scotts Miracle-Gro is the US-based company founded in the year 1868 by Orlando Scott.

Headquartered in Marysville, Ohio, Scott Miracle-Gro is the largest marketer of branded

consumer products for lawn care, gardening, hydroponics, and pest, and weed control. The

original can-filter is it's globally recognized product and sold in over 43 countries worldwide.

The company produces over two million filters annually. Focus on performance and efficiency

has enabled Scotts Miracle-Gro to become a leader in the filtration and ventilation industry. It is

a market that is seeing a rapidly growing demand globally. It is fed by factors like increasing air

pollution and rising health concerns. According to Wagner (2019), The air filtration industry is

expected to grow to up to 455 million U.S. dollars by 2025.

In this paper, the focus will be on the analysis of Scott Miracle-Gro’s The original can-

filters product range in the home country US and the host country India. The approach for

deciding the marketing mix for a host country will be an adaptive one to accommodate the

different social, environmental, and pricing concerns of the country. This paper will use the

various marketing concepts learned throughout the course to compare and analyze the marketing

strategies used by Scotts Miracle-Gro in the US and strategies that can be applied in India. The

above product analysis has been based on primary observation, secondary data, and my

experience and knowledge with the US and Indian markets.

Marketing Mix

The launch of any new product involves making decisions about four key variables. The

product describes what the company is producing, the price that deals with the product’s pricing

strategy, the place that talks about the channels through which the product will be sold, and the

promotion of the product. These variables rarely act in isolation and are interrelated. They affect
PRODUCT ANALYSIS OF SCOTTS MIRACLE GRO
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each other. The marketing mix plays a vital role in determining product segmentation, targeting,

and product positioning. Marketing mix understanding helps companies to achieve financial

goals that are the ultimate aim of any profiteering company.

Scotts Miracle-Gro Marketing Mix for US and India

Product

The original can-filters launched in the US revolve around the concept of providing fresh

air for breathing. In the USA, this product is used everywhere - right from mines to military,

gardeners to garbage dumps, and locker rooms to laboratories. According to Eveleth (2019), air

quality is getting worse and dangerous to breathe, which encourages companies to introduce new

products to protect people's health. The American Lung Association reports that every year,

133.9 million U.S. people are exposed to unsafe air conditions (Eveleth, 2019).

The original can-filters in India will be designed primarily to help people fight and

protect themselves from the highest level of air pollution. It is targeted towards metropolitan

cities with a high air pollution level where people breathing fresh air is vital for one's health.

According to the World Air Quality Index, air quality in Delhi has reached hazardous levels in

June 2018. As per the experts, high air pollutant exposure increases the risk of respiratory

infections, heart disease, lung cancer, and many other health problems. This alarming level of

pollution in India posed a significant market opportunity for global brands in India ( Mannan,

2018). Keeping in view the high level of air pollution in India, activated carbon filters will be

used to help people to experience fresh air in the comfort of their homes, offices, and other vital

locations.
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Price

In the US, air filter users have unique behavior pertaining to their health needs.

Consumers in the United States are becoming aware of the importance of health and the aesthetic

advantages of air treatment systems, and they are willing to invest more in these products to

enhance their home environment (Consumer Water & Air Treatment Systems n.d). This exhibits

a willingness to spend more on quality, and thus, the pricing is moderate for this product in the

US.

In India, the air purifier/filter market is expected to grow at a CAGR of more than 29%

from the present level of 14.14% by 2023 (Shenoy, 2019). According to me, due to rising air

pollution, the air filters will soon become an essential utility product and will be found in every

household. No doubt, the purchasing power of Indian consumers has increased. However,

according to me, Scott Miracle air filter should be priced between moderate to low prices so that

everyone can afford to buy the product in order to safeguard their health.

Promotion

Scott Miracle-Gro in the U.S. promotes its products using a monthly email newsletter that

carries specific information about the product. They also use search engine optimization for their

self serve customers who look for information on the internet. Customers can download the app

to know about different products and find solutions to their problems (Baer, 2013).

The most effective line of communication for an Indian consumer is the advertisement on

television, which offers extensive coverage on the national channel at a low cost per reach. The

revenue from advertisements on TV across India is projected to cross 251 billion Indian rupees
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and a further 13% increase by 2024 ( Diwanji, 2019). Besides, advertisements on social

networking sites can also be very successful.

Place

The company sells directly and through distributors and brokers to reach its customers in

the US. The products from the company are sold at warehouse clubs, mass merchandisers, home

centers, big hardware chains, food, and drug stores, and also at hydroponic stores. The Home

Depot, Lowe’s, and Walmart are the biggest sellers for Scotts Miracle-Gro in the US (Jones,

2016).

For India in the initial stages, Scotts Miracle-Gro’s products will be made available

through big discounted supermarkets like D-mart, Reliance Fresh, etc. Since India is increasingly

growing, tech-savvy, and has advanced digital platforms through popular online shopping

websites like Amazon can also be preferred.

SWOT Analysis of the Indian Market

Strengths

India is a growing economy; GDP is growing at a rate of 6.9% annually. The availability

of labor and land at low cost attracts FDI from foreign investors. The 1.339 billion population

creates enormous demand for industrial and consumer goods with increasing purchasing power,

which helps companies achieve economies of scale. This strength will be beneficial for Scott

Miracle-Gro to operate in the Indian market at a low cost.

Weaknesses
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The poor infrastructure costs time and delays in business transactions in India. The

presence of too many political and trade unions in India affects business investments. In India,

there is a vast difference between poor and rich populations in India. It is due to the inequality in

the distribution of Income. Since a good infrastructure is of paramount importance for profitable

business, this weakness can be a matter of concern for Scott Miracle-Gro.

Opportunities

India is a big market to explore with growing competition from the Indian industry,

which enables companies to focus on quality and efficiency. It shows that Scott Miracle-Gro has

an enormous opportunity to enter and capture the Indian market successfully.

Threats

The biggest threat in the Indian market is the increasing competition from the Chinese

manufacturing sector. The poor working conditions, corruption, and low safety rules affect

sustainability in the Indian market. Low price products from China will be a challenge for Scott

Miracle-Gro to produce superior quality air filters and sell at competitive prices in India.

CAGE Analysis of the US and India (Appendix figure 2)

The CAGE framework is a valuable tool that helps companies to evaluate countries and

determine the difference between them in terms of cultural, administrative, geographical, and

economical.

Cultural Distance

Both countries speak common language English; hence, there is no communication

barrier. However, there is a vast cultural difference between both countries in terms of the family
PRODUCT ANALYSIS OF SCOTTS MIRACLE GRO
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system. Both countries have stable governments, which will make Scott Miracle-Gro operate

effectively in the Indian market as Indians welcome western culture (See appendix figure 2).

Administrative Distance:

The colonial ties between India and the US are known as Indian-American relations,

which goes back to colonial days of British Raj in India. US policies also influence the laws and

legal system in India since those days. The US currency is stronger as compared to Indian

rupees. Both countries are facing political instability due to current political scenarios like

Trump’s administration has affected US’s stability. The corruption in India is more as compared

to the US. Political instability, legal laws, and corruption would make Scott Miracle-Gro

operation difficult in India.

Geographic Distance

India is 13568 km away from the US, and both the countries do not share common

borders. India has a hot tropical climate except the colder northern parts. The US is 10.5 hours

behind India. The difference in time can become an obstacle for effective communication among

employees from both countries, which leads to delay in decision making and problem-solving.

Economic Distance

The United States is the world’s largest economy with a GDP of $20.4 trillion and GDP

per capita $55100 as of 2019 (United States GDP n.d.). India’s GDP $2.936 trillion, and GDP

per capita $2041.091 is considerably less, but it is increasing every year (India GDP per Capita

[1958 - 2019] [Data & Charts]). Rising GDP is an indicator of economic growth, signaling that

the domestic market is manufacturing valuable products.

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Mode of Entry

Scott Miracle-Gro can enter the Indian market through a joint venture with an Indian

based company that has complete knowledge about the local market. The joint venture is the best

option in the initial stage as it shares investment, expenses, technical expertise, and risk. Many

foreign companies have signed a joint venture to enter Indian market in the initial stage, and it

has proved to be successful. In the year 1995 Samsung came to India in a joint venture with

Reasonable Computer Solutions Pvt. Ltd. Later Samsung purchased a total stake of Reasonable

Computer Solutions and became a wholly-owned subsidiary of its parent company. Now

Samsung has a presence all over India (Samsung's Marketing Strategy in India n.d). Getting into

a joint venture with local companies will be the best option for Scotts Miracle-Gro to penetrate

the Indian market.

Standardization Versus Adaptation

Standardization and Adaptation are the two ways of selling products in foreign markets.

A standardization company does not make any changes to the product nor the marketing

approach in the host country. The standardization approach can be followed when the

environmental factors are homogenous, company has a global presence, cost reduction is

preferred, and customers are homogenous. Under adaptation, the company modifies or changes

the features of the product to meet the needs of new customers in the new market.

Scott Miracle should use an adaptation strategy in India as the culture, environment, and

preference of Indian consumers is different from those in the US. Most importantly, the climate

is different in India, and the level of pollution is very high in India as compared to the US and

other countries in which the company's products are sold. Scott Miracle-Gro has to make air

filters that can protect users from air pollution and give them a sense of fresh air.
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Corporate Social Responsibility

Corporate Social responsibility is a self-regulating responsibility of a business that helps

a company to be socially accountable to its stakeholders, employees, customers, and the

community. It is the responsibility of a company to handle the social, environmental and

economic impact of its operations responsibly. Corporate Social responsibility helps a company

to build the right image, save money through operational efficiency, mitigate effects on the

environment and gain positive response. The Corporate Social Responsibility report of Scott

Miracle-Gro’s highlights the company's commitment it made in 2011 to improve water quality

by removing phosphorus from its lawn maintenance products. This initiative was a direct result

of Scott Miracle-Gro’s cooperation with stakeholders in water quality in various parts of the US.

This initiative helped Scott Miracle-Gro in reducing overall environmental footprints from its

operational activities.

In the year 2011, Scott Miracle-Gro included its corporate social responsibility list goals

to reduce greenhouse emissions by 20% and reducing its waste sent to landfills by 50% by FY

2018. The company has taken several initiatives to protect the environment and make people

aware of the rising concerns regarding the environment.

Environmental degradation has reached alarming levels in India; air pollution is causing

considerable trouble mostly in metropolitan cities due to which people are getting health-related

problems, and a number of deaths due to air pollution is rising in the country. If Scott Miracle-

Gro introduces its air filter in India, it will help people to breathe fresh air and reduce health-

related issues. Just like Scott Miracle-Gro in U.S., it can undertake corporate social

responsibility to create awareness among the people how to reduce air pollution and take
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initiatives in collaboration with the government and other private companies to reduce pollution

in the country.

Conclusion

In conclusion, I can say that although the basic concept of the product remains the same,

i.e. being an air filter, macro-economic factors such as cultural, administrative, geographic, and

economic hugely affect the different four Ps of the marketing mix and the entry mode in a new

consumer market. The change in the product, pricing strategy, promotion tie-ups, and the

channels of selling the air filters differs in both the countries - India and the US although some

factors such as environmental concerns and health issues are cutting across countries and playing

a significant role in targeting a potential customer subsequently. All these factors impact the four

P's which change the segmentation, targeting, and positioning of the product in a particular

country. The companies must be aware of these variables before launching their product in a host

country market.
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References
About Scotts. (n.d.). Retrieved November 3, 2019, from

https://www.bloomingtonbrands.com/about-scotts.

About Us: Can-Filters. (n.d.). Retrieved from https://canfilters.com/about-us/.

Brands - ScottsMiracle-Gro. (n.d.). Retrieved November 3, 2019, from

https://scottsmiraclegro.com/who-we-are/brands/.
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Baer, J. (2013, August 23). Scotts Miracle-Gro Co. Content Marketing: Help, Not Hype.

Retrieved November 3, 2019, from https://www.targetmarketingmag.com/article/scotts-

miracle-gro-co-content-marketing-help-not-hype/all/.

Consumer Water & Air Treatment Systems. (n.d.). Retrieved November 3, 2019, from

https://www.freedoniagroup.com/industry-study/consumer-water-air-treatment-systems-

3281.htm.

Corporate Social Responsibility Report (2019).[PDF file}. Retrieved from

https://scottsmiraclegro.com/wp-content/uploads/2019/03/CSR-ScottsMiracle-Gro-

2019.pdf

Diwanji, S. (2019, October 21). India - TV ad revenue in India 2007-2024. Retrieved November

3, 2019, from https://www.statista.com/statistics/233489/tv-advertising-revenue-in-india-

from-2011/.

Eveleth, R. (2019, March 19). Will air-filtering face masks be the new sunglasses? Retrieved

from https://www.vox.com/the-goods/2019/3/19/18262556/face-mask-air-filter-

pollution-vogmask-airpop.

Jones, A. (2016, December 29). How Scotts Miracle-Gro's Products Reach Customers. Retrieved

November 3, 2019, from https://marketrealist.com/2016/12/scotts-miracle-gros-products-

reach-customers/.

Mannan, L. (2018, July 25). These Delhi-based startups offer innovative solutions to combat

rising air pollution. Retrieved from https://yourstory.com/2018/07/delhi-based-startups-

offer-innovative-solutions-combat-rising-air-pollution.
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Samsung's Marketing Strategy in India. (n.d.). Retrieved November 3, 2019, from

https://www.icmrindia.org/casestudies/catalogue/Marketing/Samsung Marketing

Strategy-Marketing.htm.

Scotts Miracle-Gro Company. (2019, October 16). Retrieved November 3, 2019, from

https://www.encyclopedia.com/marketing/encyclopedias-almanacs-transcripts-and-

maps/scotts-miracle-gro-company.

Shenoy, J. (2019, February 24). Air purifier industry to touch $38.99 million by 2023:

ASSOCHAM - Times of India. Retrieved from

https://timesofindia.indiatimes.com/business/india-business/air-purifier-industry-to-

touch-38-99-million-by-2023-assocham/articleshow/68135564.cms.

Wagner, I. (2019, July 10). Projected global industrial air filtration market size by product 2025.

Retrieved from https://www.statista.com/statistics/1025938/projected-global-industrial-

air-filtration-market-size-by-product/.

Appendix

Figure 1: SWOT Analysis of the Indian market

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Figure 2: CAGE Framework for the US and India

USA India
C Cultural Location: Location:

Distance Located in North India is located

America in the south of

Languages: Asia

English is the Language: The

most commonly official language

spoken language is Hindi though

Family: the USA most of the

has mostly people can speak

nuclear family English

living Family: Both

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Politics: Stable joint and nuclear

government family system.

Law system: The Politics: Stable

federal and state government

courts enforce Law: Central

the law and state court

A Administrative Colonial Ties: Colonial Ties:

Distance India-United yes

States relations Currency: Indian

known as Rupees

Indian-American Political

relations instability: low

Currency: US’s Legal system:

currency is US The Indian legal

Dollars system is

Political influenced by

Instability: the American

Trump's legal system.

Presidency has Level of

affected USA’s corruption:

instability Moderate

Legal system: Non-market or

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based on federal closed economy:

law Open economy

Level of (internal

corruption: Low attributes

corruption creating

Non-market or distance)

closed economy:

Open economy

(internal

attributes

creating

distance)

G Geographic Distance: the US Distance: India

Distance is 13568 km is 13568 km

away from India away from the

Common US

borders: No Common

common borders: No,

borders, USA India touches the

touches three Arabian sea

oceans Arctic Time: India is

ocean, Atlantic 10.5 hrs ahead of

ocean, and the U.S.

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pacific ocean Climate: India is

Time Zone: the hot tropical

US is 10.5 hrs except for few

behind India states in the

Climate: the US northern parts

has hot summers which are cooler

and cold winters

E Economic Population: the Population:

Distance US has a India has a

population of population of

327.2 million as 1.353 billion as

of 2018 of 2018

GDP: US has the GDP: India is

largest GDP in the world’s

the world at $ largest economy

20.4 trillion. by nominal GDP

GDP per capita: growth with

In US is 55100 2.936 trillion as

USD as of 2019 of 2018

GDP per capita:

In India, it is

USD 2,041.091

as of March
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2019

Adapted from: Pankaj Ghemawat, Differences, and the CAGE distance framework

Grading Rubric for - Applying the Concepts: Product Analysis 

Expectations   Approaches   Meets   Exceeds   %  

    0 -  69%   70-79%   80-100%   0-100  

Ability to conduct Insufficient research; there Rudimentary research; there Comprehensive research; hi    
relevant, context is a significant lack is some information ghly relevant information
specific research of information from relevant provided from relevant from a variety of credible
to support credible sources. credible sources. However, sources has been provided
analysis.  Descriptions and/or some sources may lack and used insightfully.   
arguments are based largely direct relevance and/or lack
  on assumptions.   credibility. There may be
some notable gaps in
providing
specific information and/or
in information search.  

Ability to identify Analysis of how the product Good level of analysis in Superior level of analysis in    
creative, is being marketed in each of terms of how the product is terms of how the product is
competitive, the countries lacks being marketed in each being marketed in each
coherent and depth.  The link between the country. The link between country. The link between
practical marketing solutions being the marketing solutions the marketing solutions
marketing provided, the satisfaction of being provided, the being provided, the
solutions that customer needs, and the satisfaction of customer satisfaction of customer
satisfy consumer attainment of a sustainable needs, and the attainment of needs, and the attainment of
needs and gain competitive advantage has a sustainable competitive a sustainable competitive
sustainable not been explored or linked advantage has been made advantage has been made
competitive to course concepts.  evident and has been evident and has been
advantage in an explored using appropriate explored in a creative and
international course concepts.  comprehensive
market place. manner using appropriate
concepts.  

Demonstrates unde Some uncertainty in Applies concepts, tools, and Clearly and    

rstanding of and application of concepts, frameworks comprehensivel comprehensively
ability to apply a tools, and y and correctly and as applies concepts, tools, and
variety of relevant frameworks; some aspects expected for the most frameworks. The selection o
and appropriate of concept, tools part. The selection f concepts, tools, and
concepts, tools, or frameworks have been of concepts, tools, and frameworks applied are
and missed or misapplied.   frameworks applied are relevant and facilitate a
frameworks from relevant and facilitate a comprehensive
the course to The selection of concepts, comprehensive analysis.   analysis. Application is
support analysis  tools, or frameworks professional and polished. 
applied may be insufficient Concepts may have been
 PRODUCT ANALYSIS OF SCOTTS MIRACLE GRO
20
  to facilitate a comprehensive
analysis and/or may lack
relevance.  Concepts, tools
or frameworks may have
been explained but not
applied. 
Ability to Analysis and comparison of
recognize and how the company markets
describe the the product in the two
complexities of different countries may
marketing in a be lacking evidence of an
global market understanding of the impact
place and know of cultural and contextual
when and how to differences.  manner. Insight provided is
adapt.  impressive.
Ability to present Somewhat incoherent and/or
solid ideas/argume inconsistent logic;
nts and to make conclusions and/or
logical and arguments may be
justified conclusio lacking justification and/or
ns based connection to analysis of
on insights from concepts, tools or
analysis.   frameworks.  important insight may be
Ability to Writing is a negative
communicate distraction from the
professionally; e.g. content. The flow of the
, coherent paper is often unclear
introduction, and/or incoherent; there are
good transitions many spelling, grammar,
and flow; correct capitalization and/or
use punctuation errors;
of grammar, punct formatting is not consistent
uation, with APA requirements;
spelling, and sources have not been cited
English writing and/or there are multiple
skills; appropriate formatting issues with
APA citations; important
formatting and appendices are missing
source citation; and/or existing appendices
effective use of are not introduced in the
appendices.   paper, and/or appendices
are not directly relevant to
the paper.  
Analysis and comparison of
how the company markets
the product in the two
countries of focus clearly
addresses the impact of
cultural and contextual
differences.   a seamless and superior
For the most part, logic is
coherent and consistent;
conclusions and/or
arguments are usually
supported by sufficient
evidence and drawn from
analysis. However,
missing at times.  
Reasonably clear
and coherent flow; there
are some spelling, grammar,
capitalization and/or
punctuation errors, but they
do not detract significantly
from the content; for the
most part APA formatting
and source citations have
been handled correctly; for
the most part, appendices
are clear and used
appropriately.  
tailored or adjusted in ways
that enhance the quality of
decision making. 
The impact that cultural and  
contextual differences have
on how the company
markets the product in the
two countries of focus
is woven into the analysis in
Logic is coherent and    
consistent. Conclusions
and/or arguments are well-
supported with evidence,
examples, and insight.
All conclusions are
clearly and
insightfully justified.  
Composition is professional.   
Paper is clear and coherent
throughout; spelling,
grammar, capitalization
and/or punctuation
errors are minimal;
APA formatting and source
citations have been handled
correctly, with very few, if
any errors; appendices are
clear and used correctly.