Newell Brands Inc. (NWL): Business Model Canvas

Introduction

The consumer goods industry is a highly competitive market with a constantly evolving landscape. According to a recent report, the global market for consumer goods is expected to reach $7.4 trillion by 2027, with a projected CAGR of 5.2% during the forecast period (2020-2027). As consumers become more conscious of their purchasing decisions and demand for sustainable and ethical products, companies must adapt their business models to stay ahead of the competition.

Newell Brands Inc. (NWL) is a leading player in the consumer goods industry, with a diverse portfolio of well-established brands. The company's business model is based on a multi-brand strategy, which allows it to leverage synergies in supply chain management, manufacturing, and distribution to achieve economies of scale and cost efficiencies. In this blog post, we will explore the key components of Newell Brands Inc.'s business model canvas and how the company utilizes strategic acquisitions and innovation to maintain its market share and revenue growth.

We will begin by examining the company's value proposition and customer segments, followed by a discussion of its key activities and resources. We will also delve into NWL's revenue streams and cost structure, as well as its partnerships and key stakeholders. Finally, we will analyze the company's competitive advantage and future growth prospects in the dynamic consumer goods industry.

Key Partnerships

Newell Brands Inc. (NWL) relies on strategic partnerships as a key component of its business operations. The following are the main partnerships that the company has established:

• Retailers: NWL works closely with various retailers such as Walmart, Target, and Amazon to distribute its products. These partnerships enable the company to reach a wider customer base and increase its sales volumes.
• Suppliers: The company has established strong partnerships with suppliers to ensure a consistent supply of raw materials and components for its products. The partnerships also help to reduce production costs, increase efficiency, and maintain product quality standards.
• Manufacturing partners: NWL has partnered with various manufacturing companies to produce its products under license. For instance, the company partners with Jarden Home Brands to produce Ball brand canning products. These partnerships enable the company to expand its product offerings without incurring significant capital investment.
• Technology partners: NWL collaborates with various technology partners to enhance its product designs and innovations. For instance, the company partners with Google to incorporate Google Home voice-assistant technology into some of its products such as the Mr. Coffee Smart Coffeemaker. These partnerships help the company to stay competitive and meet evolving customer needs.
• Marketing and distribution partners: NWL partners with marketing and distribution companies to increase its brand recognition and market reach. For instance, the company partners with TruRandolph to distribute its Yankee Candle brand products in the European market. These partnerships help the company to penetrate new markets and increase its overall revenue.

In conclusion, Newell Brands Inc. relies on a range of partnerships to operate successfully in the market. These partnerships help to boost the company's brand recognition, increase its market reach, reduce production costs, and enhance its product designs and innovations.

Key Activities

Newell Brands Inc. operates in the consumer goods industry, catering to a wide range of customers. The company has a diverse product portfolio that includes various products, including writing instruments, home appliances, cookware, and storage containers. The Key Activities of Newell Brands Inc. can be identified as follows:

• Research and development: Newell Brands Inc. invests heavily in research and development (R&D), which helps the company to stay ahead of the competition. The company has several R&D centers where it develops new products and improves existing ones.
• Marketing and advertising: The company spends significant resources on marketing and advertising campaigns to promote its products. The marketing approach is tailored to the different target customer segments, such as young adults, families, and individual professionals.
• Manufacturing: Newell Brands Inc. has an extensive manufacturing network that spans across different regions. The company produces most of its product lines, which includes both in-house and outsourced production. The company ensures that the products are produced in environmentally sustainable ways and comply with the relevant regulations.
• Sales and distribution: The company has a robust sales and distribution network that caters to the global market. The products are distributed through different channels, such as retail stores, e-commerce platforms, and direct sales. The company uses various sales strategies, including promotional offers, discounts, and loyalty programs, to attract and retain customers.
• Customer service: Newell Brands Inc. values its customers and provides excellent customer service to ensure that their needs are met. The company has a customer service department that handles customer inquiries, complaints, and feedback. The company also provides warranty repair or replacement services for its products to enhance customer satisfaction.

In conclusion, the Key Activities of Newell Brands Inc. revolve around the design, production, marketing, and distribution of its diverse product portfolio. The company invests extensively in R&D, marketing, and advertising and has a robust sales and distribution network. The company also values its customers and provides excellent customer service, which contributes to its success in the consumer goods industry.

Key Resources

Newell Brands Inc. benefits from a range of key resources that make up the backbone of the company's competitive advantage. These resources are grouped into the following categories:

• Manufacturing Facilities: Newell Brands has a network of manufacturing facilities across the world that allow the company to produce its diverse product portfolio efficiently. These facilities create products at scale and with high-quality standards while ensuring that they are delivered on time to meet consumer demand.
• Supply Chain: The company's global supply chain is an essential resource that allows Newell Brands to source the necessary raw materials, components and equipment for manufacturing its wide array of products. The company works in partnership with suppliers to ensure the prompt delivery of high-quality inputs that meet the required specifications.
• Technological Capabilities: Newell Brands has invested heavily in technology to develop designs, test innovations and launch new products. These technology capabilities include 3D printing, data analytics, and software for design optimization. This technological edge has contributed to the company's reputation as a leader in product design and innovation.
• Intellectual Property: Newell Brands holds a vast portfolio of patents, trademarks, and copyrights, which protects its innovative products from copycats, promotes consumer confidence and reinforces its brand recognition.
• Human Capital: The workforce at Newell Brands possesses diverse skills and experience that helps the company achieve its business goals. The company invests in hiring, training, and retaining talented individuals, who bring unique insights and expertise to the company.

As a result of these key resources, Newell Brands can continue to produce innovative, high-quality products, meet consumer demand, and drive profitability while maintaining its position as a leader in the consumer goods industry.

Value Propositions

As a consumer goods company, Newell Brands Inc. aims to provide high-quality and innovative products that meet the needs and expectations of its customers. The company's primary value propositions are:

• Exceptional Product Quality: Newell Brands Inc. takes great pride in delivering superior quality products that are built to last. The company invests heavily in R&D to ensure that its products are innovative, reliable, and of the highest quality. This commitment to quality is reflected in the company's strong brand reputation and customer loyalty.
• Innovation: Newell Brands Inc. continuously strives to offer innovative products that improve the lifestyles of its customers. The company leverages its extensive research capabilities to create products that are not only functional but also aesthetically pleasing. With a focus on sustainability, the company uses eco-friendly materials in its product development processes.
• Customer-Centric: Newell Brands Inc. understands that customers have unique needs and preferences. The company listens to its customers, takes their feedback seriously, and uses it to improve its product offerings continuously. The company also provides exceptional customer service, ensuring that customers have an enjoyable shopping experience.
• Diverse Portfolio: Newell Brands Inc. has a diverse portfolio of products that cater to a broad range of consumer needs. From kitchen appliances to office supplies, the company's products are found in households and businesses worldwide. This diversity provides customers with a one-stop-shop for their essential needs, making Newell Brands Inc. a convenient and reliable choice.

Newell Brands Inc. understands that its customers are its most important asset. For this reason, the company's value propositions focus on providing customers with exceptional quality, innovation, customer service, and a diverse product portfolio. These propositions are designed to create a loyal customer base and ultimately drive the company's success.

Customer Relationships

Newell Brands Inc. (NWL) values its customers and aims to build strong and long-lasting relationships with them. As a company that operates in the consumer goods industry, NWL understands the importance of customer satisfaction in maintaining its competitive edge. NWL strives to provide high-quality products and excellent customer service to ensure customer satisfaction. The company communicates with its customers through various channels, including social media platforms, email, and customer service hotlines. NWL also collects feedback from its customers to improve its products and services continuously. NWL's business model aims to create a personalized experience for its customers. NWL targets different customer segments and tailors its products and services to meet their needs. For instance, the company uses data analytics to gain insights into its customers' preferences and needs. NWL also offers customized products and services to specific customer segments. To retain its customers, NWL offers loyalty programs that reward customers for their continued patronage. The company also provides after-sales services such as warranties and maintenance services to ensure customer satisfaction. In conclusion, NWL's customer relationship strategy focuses on providing high-quality products and services, personalized experiences, and excellent customer service. The company aims to build long-lasting relationships with its customers by tailoring its products and services to their needs and providing after-sales services that ensure customer satisfaction.

Channels

Newell Brands Inc. (NWL) will utilize multiple channels to promote and distribute its products efficiently and effectively. The channels will be designed to reach a wide range of consumers and provide them with an exceptional customer experience. Some of the channels that NWL will use are:

• Online store: NWL will have an online store to sell its products. Customers can easily browse through the website, choose their desired products, and purchase them using different payment methods. The online store will offer a convenient and user-friendly shopping experience for customers.
• Retail stores: NWL products will be available in various retail stores across different regions. These stores will range from major retailers to small independent stores. Having products in retail stores will provide an opportunity to reach more customers and increase brand visibility. NWL will also collaborate with retail stores to run promotional activities and increase sales.
• Distributors: NWL will partner with distributors to extend its reach to markets where it doesn't have a presence. Distributors will have the products delivered directly to retailers, which provides an efficient means for NWL to reach new customers while minimizing the logistics costs.
• Social media: NWL will use social media platforms like Facebook, Instagram, and Twitter to connect with existing and potential customers. Social media will be used to promote products, gather feedback, and interact with customers. The objective is to engage customers and build an active online community around the brand.

By leveraging these channels, NWL can maximize its reach, generate more sales, and increase customer loyalty.

Customer Segments

Newell Brands Inc. targets several customer segments to achieve business growth and profitability. The company's products fulfill the needs and wants of various customer groups, including:

• Homeowners: Newell Brands offers a wide range of household products for homeowners. These products include kitchen appliances and tools, home organization solutions, cleaning and storage products, and various home decor items.
• Office workers: Newell Brands serves office workers with its writing instruments, markers, highlighters, and various specialized tools for the office environment. These products help professionals stay organized and productive.
• Parents: Newell Brands provides various childcare products, including strollers, car seats, and baby monitors, to ease the everyday lives of parents. The company also offers arts and crafts supplies for children.
• Outdoor enthusiasts: Newell Brands caters to outdoor enthusiasts with its range of products, including coolers, water bottles, and camping equipment. The company's brands like Coleman and Contigo offer products that meet the needs of those that love the outdoors.
• Commercial businesses: Newell Brands supplies commercial businesses with products like cleaning supplies, shelving units, and tools to help them operate efficiently.

By identifying and catering to these customer segments, Newell Brands effectively targets distinct markets, resulting in customer loyalty and increased revenue.

Cost Structure

Newell Brands Inc. has a cost structure based on the production of high-quality consumer goods. The company's cost structure includes the following:

• Direct Material Costs: The direct material costs include the expense of raw materials, including plastic, metal, wood, and fabrics, used in manufacturing the company's products. The cost of raw materials is directly proportional to the volume of production.
• Direct Labor Costs: Direct labor costs include the wages, salaries, and benefits of employees involved in the manufacturing process. The company's cost structure takes into account the number of workers required to produce goods and services to meet consumer demand.
• Overhead Costs: Overhead costs include general and administrative expenses like rent, utilities, insurance, and other expenses that cannot be directly attributed to the production process. These expenses are generally fixed costs that do not vary with the volume of production.
• Distribution Costs: Distribution costs include expenses related to the transportation, storage, and delivery of finished products to retail outlets and customers. Distribution costs are affected by the volume and distance of transportation.
• Marketing and Advertising Costs: Marketing and advertising costs include expenses related to the promotion and advertising of new products and brand building. These expenses are typically variable costs and can vary with the volume of advertising and promotional activities.

Newell Brands' cost structure aims at maximizing profitability, improving efficiency, and minimizing costs without compromising on quality. The company's cost structure, combined with its innovative business model, enables it to offer high-quality, affordable consumer goods to its customers, facilitating the growth and success of the company.

Revenue Streams

Newell Brands Inc. (NWL) generates revenue through a variety of streams that are essential to the successful operation of the company. The following are key sources of revenue for NWL:

• Sales of Consumer Products: NWL is primarily engaged in the sale of consumer products across various categories like baby, home and outdoor, writing, and office products, among others. The company generates revenue by selling these products to retailers, distributors, and wholesalers.
• Licensing Fees: NWL generates a significant amount of revenue from brand licensing agreements. It has licensing agreements with various companies who pay licensing fees to use the company's brands on their products.
• E-commerce Sales: NWL's e-commerce sales also contribute significantly to the company's revenue streams. The company sells its products through its own e-commerce website as well as other online retailers such as Amazon and Walmart.
• Industrial and Commercial Sales: NWL also generates revenue through the sale of industrial and commercial products. The company manufactures and distributes a variety of adhesive and sealing products for industrial and commercial use, which it sells to businesses and manufacturers.
• Advertising Revenue: The company generates advertising revenue through various channels, including television, print, and digital media. NWL has a significant presence in the advertising industry, and its brands are regularly featured in prominent ad campaigns across various media channels.

Overall, NWL's revenue streams are well-diversified, with a focus on consumer products and brand licensing agreements. The company's e-commerce and industrial and commercial sales also play a significant role in generating revenue. NWL's diverse revenue streams help the company to stay resilient to changes in market conditions and to maintain a consistent revenue stream over time.

Conclusion

After assessing the various elements of Newell Brands Inc.'s business model canvas, we can conclude that the company has a strong foundation that aligns with its vision and mission. The company encompasses a variety of product categories that range from home products to office supplies, strengthening its position in the market. It has established a reputation for quality and value, highlighting the strong customer relationships it has developed over the years.

Newell Brands has been able to stay ahead of the competition by focusing on its innovative product development and efficient cost structure. The company's diversified portfolio has allowed it to weather the storm in times of economic uncertainty while continuing to grow and expand its offerings.

Although Newell Brands has experienced some setbacks in recent years, such as declining revenues and changes in management, the company has shown strong resilience and a willingness to adapt to new market trends. Overall, the business model canvas for Newell Brands is well thought out, and the company has a bright future ahead of it.

• The diversified portfolio and range of product categories make the company resilient to market shifts.
• The focus on innovative product development and efficient cost structure supports growth.
• The established reputation for quality and value reinforces strong customer relationships.
• The company's adaptability to new market trends indicates a bright future.

With a deep understanding of its target market and a commitment to innovation, Newell Brands is well-positioned to continue its success.