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Into the Digital Aisle: What Can Brands Learn From The Leaders of the Meal Replacement & Protein Drinks eCommerce 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 our friends at Reviate asked themselves, ‘What are the leading brands doing now, and what is one insight we can learn? Among the patterns that they found, here is an actionable insight that can be emulated by aspiring brands and transferred to other retail categories.

As context, and so we can level-set the perspective, we’ll start from the high-level, ‘Grocery & Gourmet Food’ category, zoom through its subcategory, ‘Beverages’, down and into the ‘Meal Replacement & Protein Drinks’ category, which is currently performing in 5th place compared to its peers.

Assessing the performance of the top-selling products within ‘Meal Replacement & Protein Drinks’, we see the following brands performing particularly well:

Source: Reviate.com unit sales of ‘Meal Replacement & Protein 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. Brands 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 ‘Meal Replacement & Protein Drinks’, top-performing ASINs within the last 30 days.

The top 3 brands currently leading the category (Orgain, Nestlé, Glanbia Foods) are doing a good job at covering the high-volume price points, with an 80% coverage of the top 10 high volume price points. When we compare this coverage to the brands comprising the middle-tier of performance, we see a dramatic difference.

 

Source: Reviate.com unit sales share of ‘Meal Replacement & Protein 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 we compare 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 ‘Meal Replacement & Protein Drinks’, top-performing ASINs within the last 30 days.

These brands have done an abysmal job at covering the high-volume price points, with a 0% 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 ‘Meal Replacement & Protein Drinks’ category, and as a consequence are driving significant results over under-performing brands, such as 1,063x the revenue, 408x the revenue per ASIN, 4x the BSR rank, 11x the average review count, and 1x the average rating. Will your brand be one of those that performs?

More pricing insights are available at www.reviate.com, as well as a more detailed, free report on Meal Replacement & Protein Drinks (and over 47,000+ other product categories).

 

All data is compiled and reported by Reviate.
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