Graco 2011 Annual Report Download - page 16

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14 NEWELL RUBBERMAID 2011 Annual Report
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AQ
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generate leads and find opportunities in an emerging
healthcare market. That’s very similar to targeting
opportunities to sell Lenox® industrial band saws. The
competencies and tactics we develop can be applied
across the landscape of our professional portfolio.
Up to $100 million in savings will be realized
from Project Renewal within the first 18 months.
How will those resources be directed?
Juan Figuereo: Renewal is not about cost cutting. It’s not
about cost savings. Project Renewal is about resource
redeployment. And we are reallocating resources where
they will achieve a higher return for shareholders. For
most of the businesses that are expected to grow more
quickly, that growth will come from outside North America.
So there will be a disproportionate share of the investment
focused outside North America, but there will be significant
investments in North America as well, including, for
example, strengthening our e-commerce capabilities.
Bill Burke: For our professional business, an important
priority is putting more feet on the street. A key area of
investment will be providing more sales consultants within
our Rubbermaid Medical business to help provide solutions
for healthcare institutions. Another area is our emerging
markets in both Brazil and China with our industrial
products business, Lenox, and our Rubbermaid
Commercial Products business.
One of the most compelling stories within Newell
Professional is Lenox. Ten years ago this brand had no
traction in China. Today, with products manufactured in
the U.S. and shipped to China, Lenox has nearly 100
people on the ground there selling our band saw blades,
and we have established a very strong business that’s
growing 50 percent a year in that region. That’s the sort
of opportunity that warrants continued investment.
Mike, you’re working directly with the
Baby & Parenting business to strengthen
its performance. What’s the outlook?
Michael Polk: Baby & Parenting should be one of the most
exciting businesses in our portfolio, given world population
growth and our global leadership position. Today, we
generate about 85 percent of our revenue in markets where
only 7 percent of the world’s babies are born. We will
address the strategic opportunities in our business by
becoming more of an innovation leader, by more broadly
deploying our unique three-brand portfolio, and by
partnering more collaboratively with our key retail partners
to develop the category. We are making good progress.