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How to successfully launch a new category on Amazon

ETML
Reading Time: 2 minutes

By Ayush Pateria | Senior Manager – Client Success | ETML

One of the most complex tasks about launching a new category on Amazon, especially in a product category like protein powder, the competition is cutthroat. In this blog, we will learn how we did it successfully for one of our partner ecommerce brands.

The Challenge: 

1. Entering a competitive category: Protein powder forms one of the most popular and saturated categories on Amazon, consisting of many established brands fighting for consumer attention. For this reason, we had to create differentiation and establish a strong presence.

2.Diverse product variations: A product line like  protein powder caters to a wide audience, from fitness enthusiasts to bodybuilders and those maintaining general wellness. Each product requires a different approach to ensure that it is most effective for its target audience.

The Solution:

In the light of these challenges, with key objectives outlined, a multi-faceted approach was implemented  to drive the building of a new category top line that resonates with the target market: 

  • Strategies for the high visibility of the newly launched products on Amazon were executed.
  • Detailed keyword research and audience profiling were conducted to ensure that each product reached its target audience.
  • Brand recognition and product awareness were enhanced through targeted marketing.
  • Heavy spending on Sponsored Brands and Sponsored Brand Video ads was undertaken to penetrate deeply into the market.
  • Low-search-volume competitors were identified and targeted to gain an advantage over others.
  • The products of the identified competitors will be targeted to capture their market share.
  • A strong generic SOV was built to improve visibility to a wider consumer base.

The above strategy was based on the following data points:

  • High-performing keywords were identified to ensure that ads and product listings are optimized.
  • Competitor product strengths, weaknesses, and market opportunities were identified.
  • Different audience segments, such as IN/LM/IM, were profiled to tailor marketing activity.
The Results:

– 945% increase in revenue within just four months.

– 1400% growth in ad sales.

– Organic sales rose by 765%.

-RoAS of 9 was achieved.

Conclusion:

Any new category that is to be  launched on Amazon requires the right strategy, product optimization, targeted advertising, and audience-specific marketing to penetrate into the competitive market. With careful research and data-driven insights, not only a successful launch is possible but also great results along with huge uptick in RoAS.