In this webinar, Bayer's VP of e-commerce, Gabe Mattingly discusses how Bayer efficiently runs their Amazon / e-commerce business, and the role CommerceIQ plays in that success. Gabe is responsible for all aspects of e-commerce, and has held leadership positions at Amazon, Kimberly-Clark, Target and agencies. Joining Gabe is our CEO here at CommerceIQ, Guru Hariharan. Formerly a leader at Amazon, Guru worked in the inceptive stages of Amazon's supply chain and merchandising organizations.
Interesting, I never realized how many small kitchen appliance makers have black logos. Well, whatever they're doing, it's working for these brands. This is a very healthy amazon category. As is typical of many hardline categories, share of voice is pretty evenly distributed with no brand holding more than 9% share of voice. And the overall shape of the quadrant is healthy. That means the Large Leakers quadrant is empty and there's a good concentration of brands in the High IQ and Niche Performers quadrants.
In Amazon's paper and plastic category the brands with the greatest share of voice are also those leaking the most revenue, primarily due to availability issues. Further, the performance of the top four brands (Kimberly-Clark, P&G, Georgia-Pacific, and SC Johnson) are shockingly similar across the board in marketing performance and supply chain execution. This makes for an interesting "arc" within the quadrant that leaves the High IQ Brands quadrant empty. Typically, there's an arc across the quadrants going the opposite way, leaving the Large Leakers quadrant empty.
The face skin care category on Amazon is showing a breakout by Johnson & Johnson and a close challenge from L'Oreal. Below those two is a block of nine brands with similar marketing results, but a wide range of scores on supply chain effectiveness. In fact, revenue leakage spans from less than 1% all the way up to 34%. A big variance, but looking across all categories it's actually not all that unusual. The delta on share of voice (how often brands appear in Amazon search results) is not quite as dramatic, with the top brand at 16% and the block of nine niche players pegged between 1% and 2%. We can best categorize this as a moderately concentrated amazon category. The only blemish on this quadrant is the fact no brands made it into the High Brand quadrant. This is the first category where we've seen this dynamic.
The coffee, tea and cocoa category on Amazon has more kick than a triple espresso. With 22 brands, this category is highly concentrated. And interestingly, only Amazon itself has achieved a degree of separation from the pack. However, no brand has greater than a 5% share of voice, making it one of the most evenly distributed categories we've studied. For revenue leakage, the category is split about evenly, with half losing 10% or more of revenue to 3Ps or availability issues, and the other half losing less than 10%.
Much like in our recent analysis of the coffee, tea & cocoa category, we found the kitchen utensils & gadgets category to be highly distributed. That is, no brands are dominating on the marketing side. In fact, the top brand (OXO) only controls 5.4% share of voice. And the "long tail" goes on and on with a number of small brands barely registering with 10-25 ASINs each that account for 1% or less share of voice. On the supply chain side, things are more typical with brands spread out with a range of performance levels.
The earbud headphones category on Amazon distributes share of voice very thinly among brands. In fact, the top brands in our quadrant pull less than 3% share of voice each. This scales all the way down to under 1%. And there are only six brands in the quadrant! Contrast this with the cereal category where the top brand has 23% (Kellogg's) or in printers at 29% (HP). As usual, no category is immune from the harsh light of revenue leakage. Earbud headphones is no exception as we see a broad performance ranging from 4% to 40%.
I suppose it makes sense that brands in the building sets category on Amazon know how to construct an effective supply chain. Lego, K'NEX, Learning Resources, Melissa & Doug and VTech all have outstanding supply chain scores due to their ability to fulfill demand and ward off loss of the buy box to 3Ps. Spin Master is the sole supply chain laggard. No brand is dominating in terms of share of voice, though Lego is putting a lot of pressure on the other brands with heavy advertising.
The Amazon bathroom fixtures category is very finely segmented. No brand has more than 7% share of voice. That makes for interesting positioning in our quadrant. It would probably be fair to tilt the quadrant up and to the right to allow the niche performers to elevate into the High IQ Brand quadrant. Having said that, it's clear Masco and NCH are demonstrating operational excellence. While Lixil, Kohler, Masco and Bemis are exhibiting marketing prowess that puts them a head above competing brands.
GOJO and Vi-Jon are the two most interesting brands in Amazon's first aid category. Vi-Jon because it's the top performer and GOJO because it's knocking on the door of the High IQ quadrant. From there we see a fairly steep drop-off in marketing performance (share of voice) and supply chain effectiveness (revenue leakage). However, Clorox, Edgewell and Acme United are holding their own. This category has quite a "long-tail" with over 10 brands holding 1% to 5% share of voice.