If you don't want to type in naughty or nice to a list of names, you can use now Google Sheets new dropdown interface in order to select this.
In the menu, go to “Insert.” Then click on “Dropdown.”
A right sidebar will appear, where we have some options.
The moment that you apply this dropdown, it only applies it to B1 but we can actually change this: Our applied range should be B:B instead of B1.
Doing this will apply to the entire column.
Changing the dropdown options
The options are going to be “Naughty” (Option 1) and “Nice” (Option 2).
The cool thing is that instead of doing drop down plus conditional formatting, we can do that right here in the dropdown menu.
We can color code these right away and we can hit done.
Now we have this pretty cool interface that has rounded Corners. Pretty cool interface. A different way to do drop downs now in Google Sheets.