Hamilton Beach 2015 Annual Report Download - page 12

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developing innovation to address consumers’
unmet needs, solving a challenge in the supply
chain or partnering with a retail customer, HBB’s
Good Thinking™ culture provides a meaningful
competitive advantage. The only way to maintain
that culture is by hiring and retaining talented
and dedicated employees globally. In addition,
HBB believes it is best in class at sourcing and
logistics as well as support systems to meet the
needs of retail and commercial customers. HBB
pursues market and product development
expertise to help ensure that its products delight
consumers across the most desirable market
opportunities. Finally, HBB maintains and invests
in a strong brand portfolio to increase customer
and consumer confidence that HBB’s family of
products is right for them.
Strategic Initiatives and Long-term View
HBB’s vision includes delivering sales of
approximately $750 million over the next three
to five years by focusing on its five key strategic
initiatives. As the company moves toward this
target sales level, HBB expects to take advantage
of increasing economies of scale to improve
return on sales.
First, HBB is focused on enhancing placements
in the North American consumer business through
consumer-driven innovative products and strong
sales and marketing support. The company’s
product and placement track record is strong due
to innovation processes centered on understanding
and meeting end-user needs and focusing on
quality and best-in-class customer service. In the
North American consumer market, HBB believes
it has a stronger and deeper portfolio of new
products than its competitors. HBB will continue
to introduce new products across a wide range of
brands, price points and categories in both the
retail and commercial marketplace, leveraging its
strong brand portfolio which includes Proctor
Silex®, Hamilton Beach®, Weston®, Wolf Gourmet®
and Jamba®.
A second area of growth opportunity is
through the enhancement of online sales and
communications. In the past few years, online
sales of small kitchen appliances have grown
significantly. During 2015, over 20 percent of
small kitchen appliance category dollars were
purchased online. Retailers are looking for
partners that can provide not only products, but
also the capabilities and support for promotion,
marketing and distribution programs appropriate
for the online channel. As consumers’ shopping
habits evolve to rely more on the Internet, HBB
is focused on providing best-in-class retailer
support, increasing engagement with end users,
including maintaining a website that is appropriate
for mobile devices, and enhancing its programs
designed to make HBB the preferred partner for
small appliances.
Third, HBB has increased focus and invest-
ment around our strategy to become a leader
in the “only-the-best” high-end small appliance
Hamilton Beach Brands’ Wolf Gourmet®
Countertop Oven is the flagship product in a line
of luxury countertop appliances created through
a licensing agreement with Sub-Zero Group, Inc.