CONSTRUCTION HAMMERS PHASE 1 - “LAND & EXPAND” LAUNCH PRESENTATION JANUARY 2016 CONSTRUCTION HAMMER MARKETPLACE • Construction Growth is Primary Driver • 3.5-4.0% Category Growth Rate $400M C AT E G O R Y G L O B A L LY NORTH AMERICA HAMMER MARKETPLACE Market Share By Channel Column1 Home Centers represent almost half of total US Market 11% Other 5% I/C 30% Home Centers 45% Hardware 20% 32% 57% $120M C AT E G O R Y I N N A CONFIDENTIAL IRWIN INFORMATION - DO NOT REPRODUCE, DUPLICATE OR, DISTRIBUTE END USER OVERVIEW Profile and demographics Target User Framers, Trim Carpenters, General Contractors, Machinist and Fabricators. Applications Drive or pound nails into wood, remove nails from wood, separate joined materials, and beat, form and shape metal surfaces Where users buy Channel Professional Tradesman Percentage % Home Centers 45% Hardware 20% I/C Distribution 30% Other 5% 4 CONSUMER INSIGHTS Qualitative Market Perceptor Preference for handle types and materials It varies from tradesman to tradesman. Some prefer the “traditional materials” of wood and steel and some feel more reassured by the durability and modernity of fiberglass and other materials. However, all have a downside Steel Hammers Wood Hammers Fiberglass Hammers (Estwing hammers were frequently mentioned) are beautifully designed and are all one piece, which reassures that they will not break. On the negative side, steel is seen to be unforgiving on the hands These are seen as a more forgiving material, reducing hand pain and fatigue; however, wood hammers break easier and more frequently. These are viewed as sturdy and fairly easy on the hands, but can be highly dangerous as they shatter when they break. Titanium Hammers Ratio of weight vs. strike power ensures a good strike and prevents hand fatigue, but prices are extremely high 5 CONSUMER INSIGHTS Qualitative Market Perceptor Critical to Quality Balance and Feel | Shock Absorption | Durability | Grip Opportunity to enter the hammer and demolition tools market • IRWIN is regarded as credible and quality player • Open space to play Opportunities for improvement: Commercialization opportunities • Balance • Weight vs Strike Power • Tips, Edges and Faces • Curves and Bends • Grip and Comfort • Create a strong communication and advertising plan around new product offering • Merchandising alignment to drive consumer trial 6 HAMMERS USABILITY Phase I – Framing Scope and Ergonomics Integrate waffle texture face on framing hammers to prevent hammer from slipping off head of nail HYBRID HANDLE DESIGN Handle should be rounded as opposed to oval to aid comfort and fit Integrate a significant curve at bottom of handle to increase confidence that handle will not slip out of hand during use Features a straight shaft and round handle with an integrated curve at the bottom to increase grip HAMMER SALES BY APPLICATION All Hammer $ Sales; All Stores FY 2013 67% General Purpose 24% Framing Specialty 9% 8 PRODUCT OVERVIEW 16 OZ. FIBERGLASS GENERAL PURPOSE 20 OZ. STEEL GENERAL PURPOSE 21 OZ. CALIFORNIA FRAMING PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics 16 oz. Fiberglass General Purpose Hammer Hybrid Handle Design Rounded for optimal comfort and fit Curved bottom to prevent slippage Hardened end cap for added durability ProTouch Grip For maximum control Forged Steel Head Superior strength and durability Smooth Face Prevents surface marks Rip Claw Ideal for nail removal and prying applications PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics 20 oz. Steel General Purpose Hammer Hybrid Handle Design Rounded for optimal comfort and fit Curved bottom to prevent slippage Hardened end cap for added durability ProTouch Grip For maximum control Forged Steel Head Superior strength and durability Smooth Face Prevents surface marks Magnetic Nail Holder Hands free versatility when setting a nail Rip Ideal Claw for nail removal and prying applications PRODUCT OVERVIEW Phase I – Framing Scope and Ergonomics 21 oz. Wood California Framing Hammer Extended Reach and Impact 15.5” handle offers extended reach and optimal swing speed Axe Style Hickory Handle Curved for control and comfort Forged Steel Head Superior strength and durability Milled Face Prevents slippage when striking nail head Magnetic Nail Holder Hands free versatility when setting a nail Rip Claw Ideal for nail removal and prying applications US HAMMER MARKETPLACE Manufacturers by Category Pricing $$ Framing General Specialty Mallets Demolition Sept . 17 Sept . 17 Sept . 17 $$$ $$$ $$$$ $$$ $$ $$$$$ $$$$ $$ $$ $$ 13 COMPETITIVE LINE-UP Fiberglass General Purpose Model Surestrike MRF16S Irwin 1954889 Husky N-G16CHD-HN Plumb 11419 Stanley STHT51511L Kobalt 62742 Weight 16 oz. 16 oz. 16 oz. 16 oz. 16 oz. 16 oz. Length 13” 13” 13” 13” 13” 13” Face Smooth Smooth Smooth Smooth Smooth Smooth Claw Rip Rip Rip Rip Rip Curve Grip Over-Mold Pro-Touch™ Comfort Grip / Thumb Indent Rubberized Ergonomic Comfort Slip Resistant Rubberized Magnetic Nail Holder No No Yes No No No Target Retail $17.50 $9.98 $9.97 $9.47 $8.98 $8.98 COMPETITIVE LINE-UP Steel General Purpose Vaughan R20 DeWalt DWHT51054 Estwing E3-20S Irwin 1954888 Stanley FatMax 51-943 Kobalt 62739 Yes Yes Yes Yes Yes Yes Weight 20 oz. 20 oz. 20 oz. 20 oz. 20 oz. 20 oz. Length 13 3/4” 14” 13 3/4” 14” 14” 14” Face Smooth Smooth Smooth Smooth Smooth Smooth Claw Curve Rip Rip Rip Curve Rip Grip Over-Mold PVC Non-SLip Grip Rubberized Over-Mold Comfort Grip Pro-Touch™ Comfort Grip Ergonomic Grip Comfort Yes (ShockBlock Plug) No Yes No Yes (Tuning fork design) No Magnetic Nail Holder / Side Puller No / No Yes / Yes No / No Yes / No No / No Yes / No Target Retail $29.98 $29.97 $26.00 $22.98 $20.75 $18.98 Model 1 pc Forged Vibration Reduction COMPETITIVE LINE-UP Wood Framing California Hammer Model Vaughan CF1-HC Vaughan CF1 DeWalt DWHT51411L Estwing MRW25LM Irwin 1954890 Kobalt 62994 Weight 23 oz. 23 oz. 17 oz. 25 oz. 21 oz. 23 oz. Length 17” 17” 16” 17.5” 17.5” 17” Face Milled Milled Smooth Milled Milled Milled Claw Rip Rip Rip Rip Rip Rip Curve Straight Curve Curve Curve Curved Overstrike Protection No No No No No Yes Strike Shield™ Magnetic Nail Holder Yes Yes No Yes Yes Yes $30.20 $25.98 $21.00 $20.75 $19.98 $18.23 Handle Retail PACKAGING STRATEGY Establish Communication Hierarchy F&B {Milled vs. Smooth / Handle Type} APPLICATION Framing General Purpose [Narrows Focus} WEIGHT Oz. [Intended use & Preference] IRWIN CONSTRUCTION HAMMERS Irwin 20 oz. Steel General Purpose Hammer Irwin 16 oz. Fiberglass General Purpose Hammer Irwin 21 oz. California Wood Framing Hammer Sku # 1954888 1954889 1954890 List $33.44 $16.17 $28.06 Packaging Plastic Tag Plastic Tag Plastic Tag Case Pack 3 6 3 Master 24 24 24 Lead Time 115 days NEW IRWIN CONSTRUCTION HAMMERS AVAILABLE Q2 2016 *In-store at Lowe’s Feb 9th PHOTOGRAPHY LAUNCH MATERIALS www.tbsdigitalplaybook.com www.Irwin.com/elaunch • Sales Presentation • Master Data Content • Images – In-use & • Sell Sheet • Price List • Static