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Into the Digital Aisle: What Can Brands Learn From The Leaders of the ‘Instant Breakfast Drinks’ E-commerce Category?

E-commerce is a dynamic market and the coronavirus pandemic has transformed it further by thrusting grocery e-commerce to the forefront of U.S. households. Those brands which are able to ride the surging waves of demand will capture extraordinary upside and entrench their positions. So Reviate asked, “What are the leading brands doing now, and what is one insight we can learn?” Based on the patterns that they found, this article contains actionable insights that can be emulated by aspiring brands and transferred to other retail categories.

As context (to level-set the perspective), here are the e-commerce categories covered in this report: first, the high-level, ‘Grocery & Gourmet Food’ category, then the subcategory, ‘Breakfast Foods’, finishing with the ‘Instant Breakfast Drinks’ category, which is currently performing in 2nd place compared to its peers.

Assessing the performance of the top-selling products within ‘Instant Breakfast Drinks,’ we see the following brands performing particularly well:

‘Instant Breakfast Drinks’ Leaderboard

  1. Orgain
  2. Nestlé
  3. Kraft Heinz Company
  4. Soylent
  5. WhiteWave Foods
  6. PepsiCo
  7. Schwabe Group
  8. Navitas Organics
  9. Super Group Ltd.
  10. WW International
Source: Reviate.com – unit sales of ‘Instant Breakfast Drinks’, top-performing ASINs within the last 30 days.

Insight: Top brands actively position their portfolio of products to cover each high-volume price point

In the chart below, notice the coverage that the top 3 brands have achieved in positioning their portfolio of products into multiple high-volume price points. Companies that seek to emulate this should consider using a multi-brand, multi-product portfolio strategy to cover each high-volume price point. Emulate the best-in-class brands by actively monitoring where the current high-volume price points are, as they change constantly within e-commerce channels.

Source: Reviate.com – unit sales share of ‘Instant Breakfast Drinks,’ top-performing ASINs within the last 30 days.

The top 3 brands currently leading the category (Orgain, Nestlé, Kraft Heinz Company) are doing a great job at covering the high-volume price points, with a 90% coverage of the top 10 high volume price points. When comparing this coverage to the brands comprising the middle-tier of performance, a dramatic difference can be seen.

Source: Reviate.com – unit sales share of ‘Instant Breakfast Drinks,’ top-performing ASINs within the last 30 days.

These brands have done a poor job at covering the high-volume price points, with a 30% coverage of the top 10 high volume price points. When comparing this coverage to the brands comprising the bottom-tier of performance, we see why these brands have yet to achieve significant volume or brand strength.

Source: Reviate.com – unit sales share of ‘Instant Breakfast Drinks’, top-performing ASINs within the last 30 days.

These brands have done a mediocre job at covering the high-volume price points, with a 40% coverage of the top 10 high volume price points.

In conclusion, brands that are successful on Amazon are increasingly those that employ a multi-brand, multi-category portfolio strategy to cover all high-volume price points. Doing this requires a data-driven perspective with frequent refreshes. Several brands are doing this well within the ‘Instant Breakfast Drinks’ category and, as a consequence, are driving significant results over under-performing brands, such as: 10,134x the revenue, 633x the revenue per ASIN, 23x the BSR rank, 64x the average review count, and 1x the average rating. Will your brand be one of those that performs?

 

All data is compiled and reported by Reviate.
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