Graco 2010 Annual Report Download - page 13

NEWELL RUBBERMAID 2010 Annual Report 9
of the world’s best known and most trusted juvenile products
companies, is a leader in the use of extensive social media
to connect with and educate these consumers in a robust,
interactive fashion.
We employ a common language and brand-building framework
throughout the Company that help leverage our scale. Initiatives
that broaden and deepen our training programs and that provide
internal consulting expertise have strengthened our marketing
capabilities and built a platform for brand-building success. Our
research has become more sophisticated to better understand
concepts like power users, shopping behavior and the effective-
ness of our branding and activation efforts. Because we have
the right products and processes, our portfolio responds to the
investments we make in brand building. That is a key differentiator
for Newell Rubbermaid that we expect to continue to fuel growth
in 2011 and beyond.
The changes we’ve made to our manufacturing and supply chain
also support these growth opportunities. Over the past several
years we have reduced our manufacturing footprint by more than
60 percent, signifi cantly increased the use of strategic sourcing
partners and streamlined our distribution and transportation
network. By achieving greater effi ciency and best cost while
maintaining top quality we enhance the value proposition
underlying all of our products.
A PLAYBOOK FOR SUSTAINED GROWTH
Newell Rubbermaid’s culture, processes and people are all aligned
to fulfi ll our objective of achieving best-in-class performance and,
in so doing, build shareholder value. Throughout the organization
we have outstanding leaders who are creating robust growth
strategies, and display the talent and energy to translate plans
into performance.
This is my concluding message to my fellow shareholders after
fi ve-and-a-half years as leader of Newell Rubbermaid. I approach
my retirement later this year with absolute confi dence that the
Company has the right strategy, the right business model and
the right team in place to compete effectively and achieve its
objectives for profi table growth in the years ahead. For this
great Company and for the thousands of talented employees
who are committed to its success, the best is yet to come.
Sincerely,
MARK D. KETCHUM
President and Chief Executive Offi cer
Despite economic conditions that remained less than ideal, in 2010 our teams met the challenge
to create our own momentum and grow core sales and earnings. We delivered improvements across
three important performance metrics: top-line sales, gross margin and normalized earnings.
not just in mature markets, but in developing ones as well.
And while there are differences in language, culture and
purchasing power, there are similar needs among consumers
across the globe.
Consider a young mother in São Paulo, Brazil. Her needs to keep
food fresh and have a home that is orderly and well organized are
much the same as those of a mom in St. Louis or Toronto. That’s
why Rubbermaid Consumer has expanded distribution of Easy
Find Lids™ food storage products to the growing Brazilian market.
Across all categories in all the geographies we reach, our
results demonstrate that consumers are willing to pay for
innovation that addresses everyday needs.
GROWING SHARE, DELIVERING VALUE
Innovation and brand building enable Newell Rubbermaid to grow
market share. During the last two years, the majority of our busi-
nesses increased share despite a challenging market environment.
Notably, those gains were not achieved through offering less
expensive products, but by delivering innovation and value.
Translating good ideas into products that perform and connect
with consumers is essential to our ability to grow share. Every
successful new product begins with a deep understanding of
the consumer, the shopper and the marketplace. Ideas are
vetted and fi ltered by multidisciplinary teams of designers,
engineers and marketers. Only the very best advance from
concept to design to launch. And at each step, decisions are
guided by the voice of the consumer.
Research and consumer insights also guide how we reach, inform
and persuade those considering a purchase. For example, we
know that expectant mothers get most of their information
from the Internet or from other moms. That’s why Graco, one
GROSS MARGIN
(in percent)
37.7%
36.7%
32.8%
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