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SC Johnson in Kenya Base of the Pyramid Protocol™ in Action:

Cambridge November 2006

SC JohnsonAFNE

John Langdell

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SC Johnson Core Values

• Commitment to Family• Innovation is fundamental

• Environmental leaders

• Superior Partners• Global Brands that win

• Spirit of Leadership and Adventure

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Five generations of Family Leadership

• Dr. H. Fisk Johnsonis Chairman and CEO

One of the greatest benefits of being a family company is the ability to make decisions for the long term, rather than for quarterly gains. The progress SC Johnson continues to make against our goals shows the power of this long term focus.

Fisk Johnson, Chairman and CEO, SC Johnson

“

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MAJORITY OF SCJ BUSINESS

Strategic Vulnerability

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Strategic Opportunity

• Using Earth-Responsible Raw Materials

• Preventing Insect-Borne Diseases

• Reducing Energy Consumption and Greenhouse Gas Emissions

• Advancing Social Progress and Public Health

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Advancing Social Progress and Public Health

Core Values +

Sustainability Platforms +

Products that Make Lives Cleaner, Easier, Healthier = Strong Foundation for Work at the

BoP

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SEA (28% AR)

• South Africa (Sub & factory)

• East Africa (KUT) (sub)

MENA (20% AR)

• Saudi (JV & factory)

• Egypt (JV & factory)

• Gulf (Sub)

• Levant & Other (Distributor)

NWA (17%)

• Nigeria (JV & factory)

• Ghana (Sub)

• FWA (Distributor)

• Morocco (Sub)

• North Africa (Distributor)

• Israel (JV)

SCJ in AFNE

Approximately 200mm sales

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The MNC: Traditional Customer Base

“Top” of the Income Pyramid

“Base” of the Resource Pyramid

The “ToP”

Customer85% of Global Resources

> $10,000/yr Cost structures, business models, & research methods based on a

“Western infrastructure”

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We Needed to Move On

Business Corporate Strategy/Philosophy Personal

The Growth Challenge Sustainable Business Motivation+ +

= Challenge (2 – 5 years)

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Incremental business opportunity between existing ToP model and BoP model, BoP Service model delivering product benefits direct to home instead of delivering

products through traditional channels

Opening Up: The Business Concept

SCJ Regional

Office

SCJ Distribut

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Local Wholesal

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Regional Whole-salers

Local Retailers

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SCJ Distribut

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SCJ Distrib-utors

ToP/MoP Consumers

SCJ Regional

Office

SCJ Distribut

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Local Wholesal

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Regional Whole-salers

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SCJ Distribut

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BoP Consumers

Comm-unity

Partners

SCJ Regional

Office

SCJ Distribut

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Local Wholesal

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Local Wholesal

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Local Wholesal

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Regional Whole-salers

Local Retailers

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SCJ Distribut

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SCJ Distribut

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SCJ Distrib-utors

Incremental

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• Offer a diverse set of cleaning and pest control services that provide product benefits direct to homes and businesses in Nairobi’s slums

• Provide suites of services that bundle SCJ products like Pledge®, Glade®, Toilet Duck® and Baygon® along with existing youth services (e.g., garbage collection and carpet cleaning)

• Generate income for the youth groups while improving the communities they live in

“Community-Based Cleaning & Waste Management Company”

SCJ Business Model Innovation

SELL:

ENABLE:

MANAGE:

“ToP” Business “BoP” Business Cases of Product Service

Distribution Micro-Enterprise

Retail Trade Community Partners

Opening Up: The Business Concept

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Challenges

• PEOPLE, PEOPLE, PEOPLE

• Small numbers, slow “burn” Do we have patience?

• “Firewalls”. Advantageous in early days

• Fully integrate into annual performance targets

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Finances

• Six students x three months in Kenya

• One full time MBA graduate (BoP I & II)

• One full time local co-ordinator (BoP I & II)

• Numerous air fares

• Percentage of management time

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What will Give it a Chance of Success?

• Relate to mainstream business

• Results: – Sales/profit– distribution– awareness

• Make it part of the plan:– Strategic– Annual

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Achievements

• Kibera pilot project still growing/developing• Incremental distribution effort winning in Kenya,

Nigeria• Anti-malaria effort in RSA positively perceived• Roll anti malarial effort to other geographies in

07/08• Linkage established with other SCJ Developing

Markets efforts. Learning/co-ordination will follow

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Fitting Into the Current Strategy

“Skate to where the puck will be, not where the puck is” -- Wayne Gretzky

DEEP DISTRIBUTION

•Motorcycle Sales and Distribution (SE Asia, Nigeria)

•KasKazi: Third Party Bicycle Sales and Distribution (Kenya)

VECTOR CONTROL

•Malaria education and marketing (South Africa)

•Dengue marketing and “Men in Baygon” (SE Asia)

•Asthma program in the United States

BoP PROTOCOL

•Kibera BoP Business Pilot

•Continued BoP Learning Lab Sponsorship

INCREMENTAL EVOLUTIONARY INNOVATIVE

BoP CONSUMERS

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DEEP DISTRIBUTION VECTOR CONTROL BoP PROTOCOL

MAJORITY OF SCJ BUSINESS

Use Incremental and BoP Efforts to Re-balance the Business – End in Mind

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SC Johnson in Kenya Base of the Pyramid Protocol™ in Action:

Cambridge November 2006

SC JohnsonAFNE

John Langdell