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A prominent manufacturer specializing in air care products was gearing up to introduce three new products within an emerging subcategory on Amazon U.K. This strategic move was particularly significant given the company's historically minimal presence in the subcategory, holding a mere 0.01% share. The new product range had already reached an advanced stage of development in terms of format and packaging. However, before proceeding with the full-scale launch, the manufacturer sought to gain a deeper understanding of the potential sales performance and market receptivity for these new offerings. This insight would enable them to make informed decisions about the launch strategy and resource allocation, ensuring a successful entry into the emerging subcategory and maximizing their return on investment.
In brick and mortar it’s relatively easy to get sales and share data for an adjacent category, but that data doesn’t readily exist for eCommerce. In order to evaluate the true size of this niche category, the Profitero+ Insights team set about analyzing the keywords in titles for similar products on Amazon U.K. This allowed them to narrow down and then define the size of the category, as well as identify the main competitors that the brand would be up against. Once this view had been created, the team was able to determine the category’s potential value in annual sales on Amazon U.K.
The Profitero+ team’s analysis, based on category estimates, predicted substantial growth potential for the manufacturer in the air care market. By achieving a market share in this specific category comparable to the brand's broader air care market share, the manufacturer could increase its market share from a negligible 0.01% to a significant 3.1%. This projected growth represented a remarkable 400-fold increase in potential sales, highlighting a substantial opportunity for the manufacturer.
The results of this analysis significantly impacted the manufacturer's decision-making process. The data and insights gleaned from the Priofitero+ team and analytics strongly supported and reinforced the decision to launch the new product range. The manufacturer now had concrete evidence suggesting that the new product range could achieve substantial success, both on Amazon's online platform and in traditional brick-and-mortar retail stores. The analysis provided the manufacturer with the confidence and strategic direction needed to move forward with the launch.
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