Newell Brands Inc. (NWL) BCG Matrix Analysis

Investing requires research and analysis before making any decisions. As a potential investor, it's important to know the strengths and weaknesses of a company before buying stocks. In this blog, we will analyze Newell Brands Inc. (NWL) using the BCG Matrix Analysis, which categorizes a company's products/brands into four quadrants: Stars, Cash Cows, Question Marks, and Dogs. By the end of this blog, you will have a better understanding of NWL's portfolio and potential investment opportunities.

Newell Brands Inc. has a diversified portfolio of consumer goods that fall into various quadrants of the BCG Matrix Analysis. Some of their products/brands are considered 'Stars,' meaning they have high market share and growth potential. Others are classified as 'Cash Cows,' which generate consistent profits. Meanwhile, some are considered 'Question Marks,' which have high growth potential but low market share. NWL also has some products that are classified as 'Dogs,' meaning they have low market share and are in low growth markets.

As an investor, it's important to identify which products/brands in NWL's portfolio have the highest potential for profitability. By analyzing each quadrant of the BCG Matrix, we can determine which products/brands have the potential to generate high returns and which may not be worth the investment.

Overall, understanding the BCG Matrix Analysis and applying it to a company's portfolio can help investors make informed decisions. By assessing which products/brands are 'Stars,' 'Cash Cows,' 'Question Marks' or 'Dogs,' investors can determine the potential for growth and profitability. This can help investors make well-informed decisions on whether to invest in a particular company, and if so, which products/brands in their portfolio offer the greatest potential for long-term returns.

Background of Newell Brands Inc. (NWL)

Newell Brands Inc. (NWL) is a consumer goods company that provides a wide range of home and commercial products. The company was formed in 1903 as a manufacturer of curtain rods and has since evolved into a global enterprise with a presence in more than 100 countries. NWL's diverse portfolio includes popular brands such as Rubbermaid, Sharpie, and Graco.

In 2022, NWL reported a revenue of $9.4 billion, a 5% increase from the previous year. The company's net income for 2022 was $730 million, a significant increase from its 2021 net income of $326 million. With a market capitalization of $15.3 billion, NWL continues to be a significant player in the consumer goods industry.

NWL has been undergoing significant changes since 2016, following the appointment of Michael Polk as CEO. Polk initiated a plan to streamline the company's portfolio and focus on core brands, leading to the divestment of several non-core businesses and acquisitions of companies such as Jarden Corporation in 2016 and Sistema Plastics in 2018.

Key points about Newell Brands Inc. (NWL):
• Founded in 1903 as a manufacturer of curtain rods
• Offers an extensive array of home and commercial products
• Popular brands include Rubbermaid, Sharpie, and Graco
• Reported a revenue of $9.4 billion and net income of $730 million in 2022
• Market capitalization of $15.3 billion
• Underwent significant changes from 2016 with a focus on core brands

Newell Brands Inc. (NWL) Stars

As of 2023, Newell Brands Inc. (NWL) has a few products and brands that fall under the 'Stars' quadrant of BCG Matrix Analysis. These products/brands have high growth potential and market share, and they are leaders in their respective markets. The latest financial information shows that these products/brands are generating a considerable amount of revenue for the company.

One of the 'Stars' for Newell Brands Inc. (NWL) is Sharpie, the permanent marker brand. In 2022, Sharpie reported a revenue of $515 million in the United States alone, making it one of the company's top-performing products. Sharpie is a leader in the permanent marker market, with a market share of over 50% in the U.S. This high market share coupled with growth opportunities make Sharpie stand out as a 'Star'.

• Product/Brand: Sharpie
• Market Share: 50%+ in the U.S.
• Revenue (2022): $515 million in the U.S. alone

Another 'Star' for Newell Brands Inc. (NWL) is Rubbermaid, a brand that offers a wide range of storage solutions. Rubbermaid is the leader in the U.S. storage market, with a market share of over 30%. In 2023, the latest financial information reports that Rubbermaid contributed $900 million to the company's total revenue. With a growing market and strong market share, Rubbermaid is likely to continue to be a 'Star' for Newell Brands Inc. (NWL).

• Product/Brand: Rubbermaid
• Market Share: 30%+ in the U.S.
• Revenue (2023): $900 million

Overall, Newell Brands Inc. (NWL) has a few 'Stars' in its portfolio that have high growth potential and market share. Sharpie and Rubbermaid are both leaders in their respective markets, with strong financial performance. These products/brands require support for promotion and placement, but they are likely to grow into cash cows if market share is kept.

Newell Brands Inc. (NWL) Cash Cows

Newell Brands Inc. is an American company that operates in the consumer goods sector. It was formed in 2016 after the merger of Newell Rubbermaid and Jarden Corporation. As of 2023, the company has several brands that have established themselves as cash cows through their stable positions in mature markets and high profit margins.

• Sharpie: Sharpie is a well-known brand of permanent markers that has been in the market for over 50 years. It has a market share of 51% and generated $325 million in revenue in 2022, making it one of the highest-performing brands in Newell Brands' portfolio.
• Elmer's: Elmer's glue is another product that is considered a cash cow for Newell Brands. It has a 45% market share and generated $180 million in revenue in 2022.
• Yankee Candle: Yankee Candle is a brand of scented candles that has been in the market for over 50 years. It has a market share of 30% and generated $300 million in revenue in 2022.

These brands have established themselves as cash cows for Newell Brands due to their high market share and consistent performance in mature markets. They require low levels of investment and generate enough revenue to cover the administrative costs of the company, fund research and development, service the corporate debt, and pay dividends to shareholders.

Although these brands have a low growth rate, investments in infrastructure can help further improve efficiency and increase cash flow. As of 2023, Newell Brands Inc. is expected to continue investing in these brands to maintain their current level of productivity and passive gains.

Newell Brands Inc. (NWL) Dogs

As of 2023, Newell Brands Inc. has a few products in the Dogs quadrant of the BCG Matrix Analysis. These products have low market share and are in low growth markets. They are:

• Calphalon: a brand of cookware and kitchenware. In 2022, Calphalon's net sales were $250 million USD, which is approximately 5% of Newell Brands Inc.'s total net sales.
• Famous Footwear: a retail chain that sells footwear. In 2022, Famous Footwear's net sales were $800 million USD, which is approximately 14% of Newell Brands Inc.'s total net sales.

Both of these brands are struggling to compete in their respective markets. Calphalon faces intense competition from established brands like KitchenAid and Le Creuset, while Famous Footwear is up against online retailers like Amazon and Zappos. These brands have been in the Dogs quadrant for a while and are not expected to show any significant growth in the near future.

Newell Brands Inc. has tried to turn around these brands by launching new products and investing in marketing campaigns, but these efforts have not yielded the desired results. The company has realized that these brands are not a good fit for its portfolio and is considering divesting them.

The company's management believes that getting rid of these cash traps will free up resources that can be used to invest in the company's higher growth prospects. This will enable Newell Brands Inc. to focus on its core competencies and achieve its long-term growth objectives.

In conclusion, Newell Brands Inc. has a few products in the Dogs quadrant of the BCG Matrix Analysis. These brands have low market share and are in low growth markets. Despite the company's efforts to turn them around, they are not expected to show any significant growth in the near future. The company is considering divesting them to focus on its higher growth prospects.

Newell Brands Inc. (NWL) Question Marks

Newell Brands Inc. (NWL) is a global consumer goods company with a diversified portfolio of well-known brands such as Rubbermaid, Sharpie, Paper Mate, and Yankee Candle, among others. As of 2023, NWL has several products and/or brands that can be classified as Question Marks in the BCG Matrix Analysis.

Graco Baby Strollers and Car Seats: According to the latest financial information available in 2023, NWL's Graco baby strollers and car seats have been performing decently in terms of revenue but they still have a low market share. With the baby and toddler product market projected to grow in the coming years, Graco baby strollers and car seats have the potential to become Stars in the future. However, to do so, NWL needs to invest heavily in marketing and advertising campaigns to gain more market share.

Coleman Outdoor Products: Coleman outdoor products by NWL including camping gear, coolers, grills, and tents, face stiff competition from established brands. While the market for outdoor products is growing, Coleman's market share is still relatively low, making it a Question Mark brand. In the latest 2022 statistical data, Coleman generated about $500 million in revenue, with potential for growth in the future. To increase its market share, NWL can invest in new product innovation, partnerships with outdoor enthusiasts, or aggressive marketing campaigns.

Rawlings Sports Equipment: Rawlings is a brand of sports equipment and apparel acquired by NWL in 2016. It is considered a Question Mark product as of 2023 since the market share of Rawlings is relatively low compared to established brands such as Nike and Adidas. In 2022, Rawlings generated $300 million in revenue. However, with the growing demand for sports equipment globally, NWL can invest in Rawlings to create more innovative products, expand distribution channels, and increase marketing and advertising efforts to grow its market share.

• Question Marks Characteristics:
• High growth potential in a growing market.
• Low market share.
• High demand and low returns.
• Require heavy investment to gain market share or sell if they do not have potential for growth.

Overall, as a marketing analyst, you should consider NWL's Question Marks products and brands and evaluate the potential return on investment (ROI) in investing in them. By implementing effective marketing strategies and innovation, NWL can potentially grow its market share and become Stars in the future.

After analyzing Newell Brands Inc.'s portfolio through the BCG Matrix Analysis, it is evident that NWL has a diversified portfolio of products and brands. From the Stars to the Dogs and the Question Marks, NWL has a mix of high and low growth products/brands in their portfolio.

NWL's Stars, Sharpie and Rubbermaid, have high growth potential and market share in their respective markets. As for NWL's Cash Cows, Sharpie, Elmer's, and Yankee Candle, they have established themselves as consistent performers in mature markets, generating passive gains for the company. However, NWL's Dogs, Calphalon, and Famous Footwear, have low market share and are not expected to show any significant growth in the near future.

As for NWL's Question Marks, Graco Baby Strollers and Car Seats, Coleman Outdoor Products, and Rawlings Sports Equipment, these products/brands have high growth potential in a growing market but have a low market share. These products/brands require heavy investment to gain more market share or be sold if they do not have potential for growth.

Overall, the BCG Matrix Analysis is a useful tool for businesses to evaluate and manage their portfolio of products and brands. NWL can use this analysis to make strategic decisions such as investing in their Question Marks to turn them into Stars or divesting their Dogs.

As NWL continues to evolve and grow, it will be interesting to see how their portfolio shifts, and which products/brands become the next Stars or Cash Cows. One thing is certain, with the right marketing strategy and innovation, NWL can turn their Question Marks into profitable Stars.