Businessmodel of Newell Brands

Customer Segments

Newell Brands has a segmented market business model, with customer groups that have slightly different needs. The company targets its offerings at consumers and businesses.

Value Proposition

Newell Brands offers three primary value propositions: accessibility, innovation, and brand/status.

The company creates accessibility by providing a wide variety of options. Its portfolio includes products in a broad range of categories, including the following: Appliances & Cookware, Consumer & Commercial Solutions, Outdoor & Recreation, Writing, Baby, Home Fragrance, Food, Fishing, Process Solutions, Safety & Security, Home & Family, Team Sports, Fine Writing, and eCommerce.

The company embraces innovation as a part of its culture. It maintains the Design Center, a program that acts to integrate innovation throughout the development process and proactively explores cutting-edge solutions. Through the program, different functions at the company collaborate – for example, marketing staff work with engineering staff and research and development staff. A central design team examines each division to project what customers may need from them in five years.

The company has established a strong brand due to its success. It is one of the leading consumer goods companies in the world, with hundreds of millions in customers and over $16 billion in annual sales. Its portfolio features many prominent brands, including Paper Mate, Sharpie, Dymo, EXPO, Parker, Elmer’s, Coleman, Jostens, Marmot, Rawlings, Oster, Sunbeam, FoodSaver, Mr. Coffee Rubbermaid Commercial Products, Graco, Baby Jogger, NUK, Calphalon, Rubbermaid, Contigo, First Alert, Waddington, and Yankee Candle.

Channels

Newell Brands’ main channels are retail chains. It sells its products through a wide variety of retail formats, including warehouse clubs, department stores, grocery/drug stores, mass merchants, sporting goods stores,  office supply stores, office superstores, travel retailers, online retailers, contract stationers, and specialty retailers.

The company promotes its offerings through its website, social media pages, advertising, and participation in trade shows and conferences.

Customer Relationships

Newell Brands’ customer relationship is primarily of a self-service nature. Customers utilize its products while having limited interaction with employees.

Key Activities

Newell Brands’ business model entails designing, developing, manufacturing, and distributing its products for customers.

Key Partners

Newell Brands’ key partners are the suppliers that provide it with the raw materials and equipment it needs to manufacture its products.

Key Resources

Newell Brands’ main resources are its human resources, who include the engineers, scientists, and product experts, that design, develop, and/or manufacture its products. The company also maintains important physical resources in the form of its manufacturing plants. Lastly, it places a high priority on its intellectual property, with numerous patents and trademarks important to its business.

Cost Structure

Newell Brands has a cost-driven structure, aiming to minimize expenses through significant automation and low-price value propositions. Its biggest cost driver is cost of products sold, a variable expense. Other major drivers are in the areas of sales/marketing and administration.

Revenue Streams

Newell Brands has one revenue stream: revenues it generates from sales of its products to customers.