Brave Commerce Podcast Summary: Newell Brands’ Kris Makowski on Driving Growth, Innovation, and Consumer-Centric Strategies

Podcast Title: BRAVE COMMERCE
Host/Author: Adweek
Episode Title: Newell Brands’ Kris Makowski on Driving Growth, Innovation, and Consumer-Centric Strategies
Release Date: January 14, 2025

Introduction

In the latest episode of Brave Commerce, hosts Rachel Tipograph, Founder & CEO of MikMak, and Sarah Hofstatter, President of Profitero, delve into the dynamic world of eCommerce with a spotlight on leadership, innovation, and consumer-centric strategies. This episode features an insightful conversation with Chris Makowski, CEO of Learning and Development at Newell Brands. Chris shares his journey, operational philosophies, and the transformative strategies he employed to drive growth and innovation within Newell Brands.

Background of Chris Makowski

Chris Makowski brings a wealth of experience from various leadership roles, including a significant tenure at Procter & Gamble (P&G) and entrepreneurial ventures that culminated in successful exits. Her career trajectory is marked by strategic acumen and a relentless drive to overcome challenges.

Quote:
Rachel Tippograf [02:20]: "They just don't hear it."
Chris Makowski [03:00]: "I have four operating philosophies and they work."

Four Operating Philosophies

Chris attributes her success to four core operating philosophies that guide her strategic decisions and leadership approach:

1. Know Your User and Your Chooser Better Than Anyone Else
2. Know the Industry and the Leading Trends Affecting the Industry Better Than Anyone Else
3. Deliver Products and Services with Features and Benefits That Are Better Than Anyone Else
4. Know Where to Show Up and How to Communicate with Your Potential Purchaser So That They're Excited and Delighted and Want to Get Behind the Brands

Quote:
Chris Makowski [10:31]: "I have four operating philosophies and they work... to get behind the brands."

1. Know Your User and Your Chooser Better Than Anyone Else

Understanding the distinct needs and behaviors of both the end-user and the purchaser is critical. For instance, in the baby products segment, first-time expectant mothers have different concerns and purchasing behaviors compared to experienced moms. Recognizing these differences allows for tailored marketing and product development.

Quote:
Chris Makowski [11:51]: "One is trying to learn all the knowledge they can... the experienced mom is like, I got that one."

2. Know the Industry and Leading Trends

Staying abreast of industry trends and shifts in consumer behavior enables brands to anticipate changes and adapt proactively. Chris emphasizes the importance of analyzing business data and identifying unmet consumer needs to stay ahead of the competition.

Quote:
Chris Makowski [06:43]: "How to analyze business data and trends so that you can position your brand to be the best at leading the evolution of consumer purchasing habits."

3. Deliver Superior Products and Services

Innovation is at the heart of delivering exceptional products and services. Chris highlights the necessity of developing offerings that not only meet but exceed consumer expectations, addressing pain points that may not yet be articulated by the consumers themselves.

Quote:
Chris Makowski [07:10]: "Develop new products and innovations to truly eliminate that pain point."

4. Know Where to Show Up and Communicate Effectively

Effective communication and strategic presence in the right channels are essential for brand visibility and consumer engagement. This involves selecting the appropriate platforms and crafting messages that resonate deeply with the target audience.

Quote:
Chris Makowski [10:31]: "Know where to show up and how to communicate with your potential purchaser so that they're excited and delighted."

Application at Newell Brands

Upon joining Newell Brands, Chris Makowski spearheaded a comprehensive transformation aimed at revitalizing the company's Learning and Development segment. Her strategic initiatives focused on restructuring the organization into a brand management model, enhancing consumer insights, and centralizing sales operations.

Quote:
Chris Makowski [18:50]: "We reset the Newell organization into a brand management structure on the 25 global brands that represent over 90% of our sales."

Transformation Initiatives

1. Resetting Strategy and Organizational Structure

   Chris led a major reorganization, shifting Newell Brands to a brand management structure that allowed for more focused and agile operations. This move included centralizing sales teams and consolidating legal entities to streamline interactions with retailers.

   Quote:
   Chris Makowski [18:50]: "We've reset the Newell organization into a brand management structure on the 25 global brands that represent over 90% of our sales."

2. Enhancing Consumer Insights

   Recognizing the importance of understanding consumer needs, Chris overhauled the insights department to better capture and analyze unarticulated consumer demands. This allowed for more informed decision-making and product development.

   Quote:
   Chris Makowski [18:50]: "We overhauled our insights because how can you understand unmet unarticulated needs if you don't have a good insights group?"

3. Innovative Product Launches

   Under Chris’s leadership, Newell Brands launched several innovative products that addressed specific consumer pain points, leading to significant market share growth.

   • SmartSense Bassinet: Priced at $399, this bassinet offers enhanced features compared to its higher-priced competitor, Snoo, making it accessible to a broader consumer base. The product sold out quickly, demonstrating strong market demand.

     Quote:
     Chris Makowski [25:25]: "Within one week we sold out our first 16 weeks of inventory and sales have just taken off since then."

   • Sharpie Creative Marker: Designed to meet the needs of creative enthusiasts, this marker addressed common issues like bleeding and imprecision, resulting in a 28% growth in the marker category and a 32% market share.

     Quote:
     Chris Makowski [25:25]: "The response has been incredible. This has been the largest launch in the last 10 years of any writing innovation in the United States."

4. Pipeline of Leading-Edge Innovations

   Looking ahead, Chris is excited about a robust pipeline of products slated for launch from 2025 onward, aimed at disrupting the marketplace by fulfilling unmet consumer needs.

   Quote:
   Chris Makowski [22:19]: "We have a pipeline of leading-edge innovation based on this understanding of unarticulate, unmet consumer needs that will be launching from 2025 and beyond."

Navigating Industry Headwinds

Despite facing challenges such as tightening consumer wallets, inflation, and shifting purchasing behaviors, Chris views these headwinds as opportunities for growth and innovation. By adapting strategies to align with emerging trends, such as the influence of Gen Z in purchasing decisions, Newell Brands remains resilient and forward-thinking.

Quote:
Chris Makowski [24:17]: "I see those headwinds as opportunities."

Talent Strategy

Building a high-performing team is integral to executing the operating philosophies. Chris emphasizes the need for employees who deeply understand consumer motivations, are adaptable to industry changes, and maintain authenticity in their interactions.

Quote:
Chris Makowski [16:40]: "We really need to do the best job at understanding that shopper and what motivates them."

Chris’s Inspirational Journey

Chris’s path to leadership is a testament to perseverance and self-belief. From overcoming biases at P&G to successfully founding and selling her own company, Chris exemplifies resilience and determination. Her achievements, including being only the fourth woman to reach General Manager at P&G, highlight her capacity to break barriers and drive success in male-dominated industries.

Quote:
Chris Makowski [29:34]: "The bravest thing I've ever done is to be true to myself and to believe in myself and what I could accomplish."

Conclusion

Chris Makowski's insights offer a blueprint for driving growth and innovation through a consumer-centric approach. Her strategic philosophies—deep understanding of users and choosers, industry and trend awareness, superior product delivery, and effective communication—are pivotal in navigating the complexities of the modern eCommerce landscape. By transforming organizational structures, fostering innovation, and embracing challenges as opportunities, Chris has positioned Newell Brands as a formidable player in the market.

Final Quote:
Chris Makowski [31:23]: "Know yourself, be true to yourself, do what you think you can do best, and you'll be very, very successful."

Notable Quotes with Timestamps:

• Chris Makowski [03:00]: "I have four operating philosophies and they work."
• Chris Makowski [11:51]: "One is trying to learn all the knowledge they can... the experienced mom is like, I got that one."
• Chris Makowski [16:40]: "We really need to do the best job at understanding that shopper and what motivates them."
• Chris Makowski [22:19]: "We have a pipeline of leading-edge innovation based on this understanding of unarticulate, unmet consumer needs that will be launching from 2025 and beyond."
• Chris Makowski [25:25]: "Within one week we sold out our first 16 weeks of inventory and sales have just taken off since then."
• Chris Makowski [29:34]: "The bravest thing I've ever done is to be true to myself and to believe in myself and what I could accomplish."
• Chris Makowski [31:23]: "Know yourself, be true to yourself, do what you think you can do best, and you'll be very, very successful."

Key Takeaways

1. Consumer-Centric Strategies are Paramount: Understanding both the end-user and the purchaser enables brands to tailor their offerings effectively.

2. Adaptability Drives Innovation: Staying ahead of industry trends and being responsive to shifts in consumer behavior fosters continuous growth.

3. Organizational Transformation Facilitates Success: Restructuring into a brand management model and centralizing operations can significantly enhance efficiency and market responsiveness.

4. Overcoming Challenges as Opportunities: Viewing industry headwinds as chances to innovate and pivot strategies leads to sustainable success.

5. Authenticity and Transparency Build Trust: Genuine interactions and delivering on consumer promises are crucial for maintaining a positive brand reputation.

Final Thoughts

Chris Makowski's journey and strategic insights offer invaluable lessons for marketers and business leaders aiming to excel in the competitive eCommerce landscape. Her emphasis on deep consumer understanding, industry foresight, superior product offerings, and strategic communication serves as a roadmap for driving growth and fostering innovation. As Newell Brands continues to evolve under her leadership, the principles discussed in this episode stand as a testament to the power of courageous commerce.