There is no question McCormick is the best positioned brand in the Single Herbs & Spices category on Amazon, from a marketing perspective. However, every brand in the category exhibits signs it's suffering from significant revenue leakage.
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.
What else can you say about a brand with 15.6% share of voice that's 3x its nearest competitor? This all makes McCormick a top 2% marketing brand among the 1,000s we've analyzed on Amazon.
McCormick dominates in organic and paid share of voice with 14.7% and 19.1%, respectively. No other brand is in the same ballpark in this category. However, McCormick stumbles on revenue leakage losing 19.7% to availability issues and 6.9% to loss of the buy box to 3Ps. Its 3P issue is only moderate, but its availability issues are very real.
The Laggards quadrant is packed with 12 brands (and there are even more logos then this that we didn't include). But there is a clear separation between brands. For instance, Frontier, Simply Organic (Frontier), Badia, NatureVibe and 365 all have a respectable share of voice ranging from 5.1% to 2.8% (they are listed in order of largest to smallest). The other brands quickly fall off to 1.7%, all the way down to below 1%.
On the revenue leakage side the brands range from 21.7% (Frontier) to 75%+. Essentially, all the brands have a revenue leakage problem. Although we suspect many simply have a hybrid 1P/3P strategy on Amazon, so further analysis would have to be done. However, there are some glimmers of hope:
- Frontier is only losing 9.3% to 3Ps.
- Badia has a miserly 1.7% loss due to availability issues.
- Simply Organic is losing a moderate 9% to availability issues.
- Starwest Botanicals is losing a moderate 7.5% to 3Ps.
- Spicy World is leaking only 1% of revenue to availability issues.
- Spicely Organics is losing only 3.7% to availability issues.
As you can imagine, the other side of the revenue leakage ledger is bad enough for each brand that they fell into the Laggards quadrant. But, good to see each brand getting part of their house in order.
Our data was drawn from an automated, daily analysis of top keywords in the Amazon L3 Single Herbs & Spices 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 Single Herbs & Spices 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.