The household batteries category on Amazon has no residents in the High IQ quadrant. Although, were it not for Energizer warping the scale of the category with its 27% share of voice, Amazon itself would have elevated up into the top-right quadrant. 3Ps are definitely a big factor impacting the 1P brands as well.
This 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 in this category? The metric that underpins marketing is Share of Voice (how often your brand appears in organic or 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.
Amazon and Rayovac (Spectrum) are really powering the niche performers quadrant. And really are the top brands in the category as a whole. Eneloop, ACDelco and Powermax are very much in the second tier, though their supply chain execution is superb.
Amazon comes in at 12.4% share of voice followed by a big step down to Rayovac at 6%. From there it’s another big step down to the remaining three brands which have between 1.3% and 2% share of voice. Only Amazon and Rayovac are putting significant investment into AMS spend. This has resulted in their capturing 22% and 9% paid share of voice, respectively. Amazon’s paid share of voice in this category is higher than its share in any other category we’ve analyzed, so they’re really pressing hard on batteries. Further, across all brands, they are in the top 1% in paid share of voice.
Amazon is firing on all terminals (battery joke!) when it comes to revenue leakage. As is typical of Amazon, no matter the category, they have less than 2% revenue leakage. Rayovac has a more pedestrian 9% revenue leakage, due mostly to loss of revenue to 3Ps. This puts them on the border and at risk of sliding into the Laggards or Leakers quadrants.
Energizer is a marketing power with 26.5% share of voice, driven by both a high level of paid and organic share of voice. That makes Energizer one of the top five holders of share of voice across all the categories and hundreds of brands we’ve analyzed.
However, Energizer loses its energy on the supply chain side. Its revenue leakage is a painful 28%, split almost evenly among availability issues and loss of the buy box to 3Ps. Being the sole resident of the large leakers quadrant is a lonely place to be.
Ah, the laggards. With eight brands this is a highly concentrated quadrant. Their share of voice ranges from a light 1.2% (Sony) all the way up to a very respectable 9.1% (Duracell). As is typical, there are no major spenders on advertising, though LiCB is making a legitimate effort with 4.5% paid share of voice.
The story on supply chain is what you might expect from the laggard’s quadrant. All brands have at least 28% revenue leakage, which is pretty heavy. And it appears loss of the buy box to 3Ps is the primary culprit. I suspect there may be several brands in this quadrant that are pushing hybrid 1P/3P business models.
The Paper & Plastic category on Amazon is quite similar in structure to the Household Batteries category. Its High IQ Brand quadrant is empty, and the brands are fairly evenly distributed throughout the other quadrants. Kimberley-Clark, P&G and Georgia-Pacific are the top marketers with what we can characterize as relatively large shares of voice for a CPG category. Household Batteries has a similar structure with its top brands also garnering a large share of voice. Also, both categories have Amazon itself as a significant competitor situated in the Niche Performer quadrant.
Our data was drawn from an automated, daily analysis of top keywords in the Amazon L3 Household Batteries 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 Household Batteries 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.