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Newell Rubbermaid 4 2014 Annual Report
we are now amplifying them with outstanding
advertising that is driving consumer awareness
and trials. We have coupled this step change in
advertising creative quality with increased media
buying eciency by consolidating all of our global
media buying into a single agency, another example
of leveraging our scale across brands to maximize
our return on marketing investment.
Our investments in winning capabilities are also
starting to pay o. We significantly increased the
resources dedicated to consumer research and
insights and revamped our new product development
process. In early 2014, we opened a state-of-the-art
design center. This will further the development of new
ideas that distinguish our brands in the marketplace
and help establish design and innovation as a
competitive advantage for Newell Rubbermaid. The
combined result of these eorts is a much stronger
innovation funnel with fewer, but better quality and
higher value ideas. Our ambition is to build products
and innovation that deliver superior design and
product performance. We took a big step forward
in 2014 and expect the momentum to continue to
build in 2015.
The key enabler for generating these investment
funds is Project Renewal. In late 2014, we announced
the third phase of the program, designed to release
costs in the areas of procurement, manufacturing
and distribution, and through further overhead
reduction. The company expects to deliver approximately
$200 million in incremental savings by significantly
reducing complexity in the business and simplifying
the company’s approach to bringing products and
programs to market. Project Renewal in total is on
track to generate cumulative annualized savings of
$470 million to $525 million when fully implemented
by the end of 2017, the majority of which will be
reinvested back into the business to help drive
accelerated growth and performance.
STRENGTHENING THE PORTFOLIO
We continue to strengthen our portfolio, pivoting
the business towards higher-growth, higher-margin
opportunities while simultaneously exiting businesses
that oer less strategic potential. In 2014, we made
three acquisitions that are accretive to growth,
normalized operating margin and normalized earnings
per share, and bring significant strategic value to the
Newell Rubbermaid portfolio. The acquisitions of
the Contigo® and bubba® brands, leaders in the
on-the-go beverage container market, strengthen
our Home Solutions business and give us access to
this fast-growing, on-trend category. These top
brands, which are dierentiated by consumer
insight-driven design and patent-protected product
functionality, complement our Rubbermaid food
storage and beverage business and establish us as
a leading player in the on-the-go hydration and
thermal beverage categories in North America.
The Growth Game Plan is our transformative strategy for driving accelerated growth and performance
at Newell Rubbermaid.
Clear Corporate Strategy: