The Case for Share of Voice
A Healthy Amazon Snack Food Bar Category
Looking good snack bar foods, looking good! Your diligence managing your product availability and 3P competition has been rewarded with high marks in supply chain effectiveness. That also equates to pretty healthy marketing competition. It’s a battle out there! The High IQ Brands quadrant is packed with five brands and two more are knocking at the door. If this keeps up we’ll have to start shrinking the logos.
The BrandIQ Quadrant benchmarks brand performance by the critical disciplines of supply chain operations and marketing. Who is best able to both drive and fulfill demand on Amazon? The metric that underpins marketing is Share of Voice (how often your brand appears in organic and paid search results), and for operations it’s revenue leakage (how well are you able to avoid losing sales because shoppers are unable to buy your product because it’s unavailable, lost buy box to 3Ps, etc.). Given Amazon’s ever-increasing complexity and speed, mastering both is not simple.
High IQ Brands
High-fives all around to our high IQ brands! You’re all running fit operations and performing admirably on the marketing side. Only Pepsico and Kind have placed a moderate investment of marketing dollars. While Kellogg’s, General Mills and Clif Bar are running largely on organic search with a light touch of ad spend. The only thing holding Clif Bar and Kellogg’s back is a bit of a struggle with 3Ps. In our recent Amazon quadrant on cereals Pepsico was again the ace, while Kellogg’s and General Mills are executing much better here in snack food bars than they did in cereals. Kind executed well in cereal where it placed in the niche performers quadrant, but appears more at home marketing itself here in snack food bars.
It’s tempting to just push Quest and Nature’s Bounty into the High BrandIQ quadrant because of their wonderful supply chain execution. However, they both took it relatively easy on ad spend, though Nature’s Bounty gave it a bit more oomph. We’re concerned about both Hershey’s and Health Warrior (Pepsico). Hershey’s has very real product availability issues, even as it effectively holds off the 3Ps. Healthy Warrior was is basically rough around the edges on both inventory availability and dealing with 3Ps taking the buy box. And as you can see by their position at the bottom of the quadrant, their marketing performance is understated.
Similar to the Amazon baby food quadrant, we have a single resident in the Laggards quadrant. It definitely can get uglier than this – look no further than our recent cereal quadrant for an example of numerous brands clustered in the laggards corner.
Explore Other BrandIQ Quadrants
Our data was drawn from an automated, daily analysis of top keywords in the Amazon snack food bars category over a one-year period. Our method focused on 1P brands and their associated SKUs. Marketing performance was determined by analyzing Share of Voice which essentially divides how many times a brand appears in search results, by the total available slots in the search results. Our system looked at both organic and paid ads for the top keywords discovered for the snack food bars category on Amazon. Our system focused on page 1 search results and the product page for each SKU. Each appearance of the brand in organic search and paid ad slots was given equal weighting. Revenue Leakage was determined by an algorithm that analyzes inventory availability of the SKUs on the product page and translates that into estimated revenue missed for each brand due to things like a SKU being Currently Unavailable, Inventory Encumbrance, Item Under Review, a 3P seller taking the buy box, etc.