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Into the Digital Aisle: What is Driving ‘Baby Food Meals’ as an E-Commerce Category?

Is there a particular subcategory driving growth within Baby Foods? To answer this question, Reviate analyzed the entire sector. What they found is intriguing: ‘Baby Food Meals’ performs as the #2 ranked category within its peers. Why? And more importantly, what can suppliers learn from consumers’ growing willingness to purchase ‘Baby Food Meals’ products online? They’ve uncovered some surprising facts that can help brands understand the ever-changing landscape and grow cross-channel share. Take a look:

Insight #1

Consumers are voting with their wallets at key price ranges, and brands that position their products within the $7.20 to $8.50 range are capturing the most volume.

Source: Reviate.com – unit sales of top-selling Baby Food Meals on amazon.com during the last 30 days.

The difference that choosing the correct price can make is staggering. In this category, the analysis sees competing products achieving a 161x volume difference when they are placed inside the key, high-volume price ranges vs those that are not. Finding the right price range can be like going from a garden hose of flow to a fire hose. What are the key price ranges for Baby Food Meals? They have shifted recently. The top three are:

  1. $7.20 to $8.50 (8.1x the category average sales)
  2. $9.80 to $11.10 (5.2x the category average sales)
  3. $11.10 to $12.40 (2.4x the category average sales)

These top price ranges are known price points for consumers. It is these ranges in which consumers give brands permission to sell Baby Food Meals. Brands that understand this know how important it is to ensure that products are positioned at the right price level to drive target volumes. If your brand is suffering from diminishing unit sales in e-commerce channels, or if you are trying to understand where to target, consider moving your price into the closest higher-volume price range. Contrary to a common—but often mistakenly held—belief, prices don’t only move down in order to increase volume. Sometimes they can shift up to a well-known price range and volumes will increase as a consequence.

Insight #2

High-volume ranges are shifting from competitive dynamics, and now brands that aim to capture luxury-oriented shopping occasions for Baby Food Meals must target the $28.00 to $39.00 range.

Source: Reviate.com – unit sales of top-selling Baby Food Meals within three key Shopping Occasion groups on amazon.com during the last 30 days.

Opening Price Point and Discount shopping occasions are bounded within the $2.00 to $9.80 range. Mass shopping occasions occupy the remaining mid-section of the price spectrum, from $9.80 to $28.00. Good brand strategy often means aligning the price of your brand’s products with the expectations of consumers. For Baby Food Meals that means ensuring that your brand’s portfolio is positioned within the above price ranges (depending on your brand strategy) and covering the high-volume price ranges. This may mean adjusting your prices to the closest high-volume price range. Below you’ll find some general guidance that shows how brands might reposition their price in order to better align with current shopping occasion types and higher-volumes.

Source: Reviate.com – general guidance to consider as Baby Food Meals brands adjust prices to higher-volume price ranges.

Insight #3

A hidden area of opportunity is emerging at the $28.00-$29.30 price range, with two other emerging opportunity ranges as follows:

  1. $28.00-$29.30 ($80,741 average revenue per ASIN, or 7.8x the category average)
  2. $8.50-$9.80 ($29,589 average revenue per ASIN, or 2.9x the category average)
  3. $30.60-$31.90 ($25,512 average revenue per ASIN, or 2.5x the category average)

These price ranges represent soft spots in the market where brands are achieving super-normal revenue per item, and are often the result of strong brands driving effective marketing efforts towards innovative and differentiated products. What this implies for your brand is that the path has been paved for you to offer bundles, higher quality products or innovative products at these price ranges, and thereby draft behind the category leaders who are educating the consumers.

Insight #4

Consumers are responding quite well to products marketed with ‘Freeze Dried’ (as the preparation method) in the title of their product listing. There is a 36.9% correlation between sales and this feature, in fact. Other correlations (both positive and negative) include:

There are three implications for these recent trends: 1. Ensure that product listings titles are optimized by including those keywords that are trending. 2. As listing titles have limited characters, be highly selective as to whether negative correlation keywords should be granted prime real estate within the listing titles. 3. As you consider product development and innovation for your brand, you may want to explore a product priced in the $7.20 to $8.50 range with the following: Freeze Dried (Preparation), Snack (Use), and Yogurt Melts (Type)

In conclusion, brands that are successful on Amazon, like Happy Baby for the Baby Food Meals category, understand the importance of pricing products at high-volume price points, and positioning products to capture trending interest in certain keywords. By doing this well, our analysis shows that the difference between high-performing brands within the Baby Food Meals category is significant: 61x the revenue, 46x the revenue per ASIN, 29x the BSR rank, 17x 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 Baby Food Meals (and over 47,000+ other product categories).

 

All data is compiled and reported by Reviate.
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