Case Study:
Renewed Approach to Market Share
Client Overview:
In the fast-paced world of consumer electronics, staying relevant and competitive requires more than just innovative products; it demands a robust online presence and strategic digital marketing. Our client, a well-established electronics brand, recognized the need to revamp their e-commerce strategy as they were losing market share due to a weak online presence. Our consultancy was enlisted to overhaul their e-commerce operations and drive significant growth.
Challenges:
The brand faced several key challenges:
Lack of a compelling e-commerce presence: Despite being a reputable name in the industry, the brand’s online presence was not effectively capturing or converting potential customers.
Underperforming product lines: Both new and older product lines were not meeting sales expectations.
Inefficient account management: Previous efforts did not effectively nurture retailer relationships or optimize account performance.
Suboptimal staffing for e-commerce: The existing team lacked specific roles crucial for successful e-commerce operations.
Poor performance in certified refurbished products: There was untapped potential in the resale market that was not being effectively capitalized.
Strategy
Our approach encompassed several strategic actions to address these challenges:
E-commerce Strategy Overhaul: We developed a comprehensive strategy focused on enhancing traffic and conversion for multiple categories on Amazon.
Product Line Revitalization: We helped launch new product lines and implemented targeted strategies to rejuvenate older ones, improving overall market appeal and sales.
Account Management Takeover: By taking over account management functions, we strengthened retailer relationships and optimized platform performance.
Building an E-commerce Team: We established critical roles necessary for e-commerce success, wrote job descriptions, assisted in the recruitment process, and helped hire the right talent.
Third-Party (3P) Strategy Implementation: To boost the sales of the tail end of the assortment, we developed and executed a 3P strategy that included setting up a seller account and all necessary supporting internal functions so that the brand could realize the value of selling direct.
Channel Partner Development for Refurbished Goods: We set up a new suite of channel partners and streamlined operations to improve the control of pricing and reseller partnerships, enhancing the sales velocity of certified refurbished products.
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Results
The implementation of these strategies led to remarkable outcomes for the brand:
Established Market Dominance: The brand achieved a number one market share position in both e-commerce and retail for their product categories. On Amazon, the sub-category market share increased by 19.7 and 14.9 basis points, respectively.
Dramatic Increase in Sales Velocity: The revenueof the refurbished product line sales increased by 44% in just one year under our management.
Doubled Sales Velocity: The velocity of the refurbished product line sales doubled year over year, under our strategic management.
Enhanced Online Presence: The new e-commerce strategy significantly improved the brand’s online visibility and customer engagement.
Optimized Account Management: Improved relationships and performance on digital sales platforms contributed to overall sales success.
Streamlined Operations: The establishment of a skilled e-commerce team and strategic channel partnerships led to more efficient operations and increased profitability.
This case study, Renewed Approach to Market Share, exemplifies how comprehensive strategic planning and execution can transform an electronics brand’s e-commerce presence and overall market performance. Our client’s success story highlights the importance of adapting to market demands and continuously innovating not just in product development but also in online marketing strategies. As a result, the brand not only reversed its decline in market share but also set new benchmarks in the industry for online sales and customer engagement.