Sunbeam 2015 Annual Report Download - page 7

Newell Rubbermaid 7 2015 Annual Report
MAKING
OUR BRANDS
REALLY MATTER
BRANDS /
Q What do you find most compelling about
Newell’s opportunity in the consumer
products sector?
We compete in large, growing and unconsolidated
categories, in which the top three brands represent less
than 50 percent of the total market. That creates room for
growth compared with fast-moving consumer goods
(FMCG) categories where the top players command
closer to a 75 percent share of the market. We also enjoy
a low cost of growth. Newell has achieved a 60 percent
share of voice in the U.S. with only 3 percent of revenue
spent on advertising. The leading players in the FMCG
sector have to spend about 10 percent of sales on
advertising to get only a 28 percent share of voice.
Q As Chief Development Ocer, what are your
key focus areas?
The first of five pillars in the “How to Win” section of the
Growth Game Plan is “Make Our Brands Really Matter.”
This is the pillar owned by the Development team. We are
focused on developing in-depth, locally relevant consumer
insights, building an innovation engine, creating outstanding
brand communications and winning with design and
product performance.
Q How has the Development organization
evolved over the past three years?
We’ve been on a journey to accelerate the innovation rate.
We are targeting 30 percent, and in 2016 we expect to
reach that level.
By investing significantly more dollars in consumer
research — triple what we spent historically — we now have
the deepest understanding we’ve ever had of our categories
and how consumers see our brands and our competitors.
Through this process, we have identified $3 billion worth
of unmet needs and built a stronger innovation funnel
designed to meet those needs.
Q How do you come up with ideas for the
innovation funnel?
Filling the innovation funnel is a team eort. Marketing,
consumer insights, research and development and
design all work together as partners in this area. The
money we spend on market research is a great source of
insight, which leads to new product ideas. We’ve invested
$60 million over the last few years to strengthen our
insights capability, increasing the ratio of marketing
insight people to marketers from one insight person to
20 marketers to one insight person for every eight
marketers. Also, we’ve developed our own in-house
Richard Davies assumed the position of Chief Development Ocer at the beginning of
2016 after serving as Newell Rubbermaid’s Chief Marketing and Insights Ocer since 2013.
In this capacity, he led the revitalization of the company’s innovation funnel, rebuilt brand
management functions, enhanced the quality of our advertising and furthered the strategic
deployment of our brands internationally.
Q&A With Richard Davies,
Chief Development Ocer