Graco 2013 Annual Report Download - page 4

Download and view the complete annual report

Please find page 4 of the 2013 Graco annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 26

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26

4
Newell Rubbermaid | 2013 Annual Report
Growth throughout our
business is the direct result
of focusing our people
and fi nancial resources
on delivering new ideas
to market in 2013.
Our Home Solutions segment grew core sales 2.9 percent on the success of our Furious Five
promotional campaigns on Rubbermaid® products and signifi cant new distribution for the
Calphalon® business.
We strengthened our portfolio during 2013 with the successful disposal of our Hardware and Teach
Platform businesses. Sharpening the portfolio has enabled us to focus our attention on scaling our fi ve
core business segments.
Growth throughout our business is the direct result of focusing our people and fi nancial resources
on delivering new ideas to market in 2013. This focus resulted in a number of great wins including:
• Sustained strong innovations on Baby, like our Graco® FastActionTM fold joggers and Graco®
ModesTM 3-in-1 strollers
• Expansion of the Irwin® tool line in Brazil and strengthening our company’s National Tradesmen Day
• Commercial Products innovation, featuring a new line of hospitality products for fi ve-star hotels
called Executive Series
• The introduction of Sharpie® Neon markers, ongoing support for Sharpie® metallic markers and
breakthrough advertising for Paper Mate® InkJoy® pens
• The Furious Five, our fi rst-ever set of merchandising events on a corporate scale.
These and other brand-support efforts were funded through Project Renewal, our multi-year cost
savings initiative, which is allowing us to signifi cantly increase investments in consumer insights, design,
marketing and e-commerce support for targeted brands and business segments. Through the end of
2013, Project Renewal resulted in cumulative savings of approximately $200 million. These savings have
enabled us to increase investment in advertising and to establish a new set of winning capabilities.
NEW CAPABILITIES, NEW POTENTIAL
There is a new Newell Rubbermaid that is beginning to come into focus. While we’re very pleased
with our progress, we believe there is more opportunity ahead of us than behind us. The past two years
have been about establishing the Growth Game Plan and putting it into action. In 2014, our operating
model will move into a higher gear — one that increases the impact of our emerging capabilities in
Design, Marketing, Customer Development and Supply Chain.
In early 2014, we will open our new design center in Kalamazoo, Michigan, and our marketing and
insights teams are fi lling the innovation funnel with new ideas and concepts that are achieving positive
test results. These ideas, when supported with stronger advertising and increased investment, will help
distinguish our brands in the marketplace and accelerate the company’s growth trajectory.
2011 2012 2013
$5.51 $5.58
$5.69
NET SALES
(In billions)
2011 2012 2013
2.6%
2.9%
3.2%
CORE SALES GROWTH