Multi-billion-dollar consumer packaged goods manufacturers have embraced the direct-to-consumer online movement. In an industry built on shelf space and traditional advertising, CPGs have had to shift their most foundational strategies. Rather than focusing on brick and mortar efforts, they have had to become experts at a new paradigm online. But in the past year, the efforts have continued to pay dividends. In 2018 alone, direct-to-consumer sales grew 35%. This growth made it a nearly $60 billion industry in the U.S., according to Information Resources, Inc. Meanwhile, Amazon’s marketing-driven landscape is making it easier than ever for online-only brands to become best sellers. In this webinar, join Marketplace Strategy’s Co-Founder and CEO Drew Kraemer, who dives into tactics that CPGs should deploy to maintain brand integrity and traditional shelf space.

1. How CPGs are
Mastering
Omnichannel
Growth
Amazon Vendor Strategy Series

2. About Marketplace Strategy

3. Who We Are
ABOUT MPS
60+
Clients
$1.5B+
In Managed Revenue
90+%
Client Retention Rate
Marketplace Strategy is a strategic digital marketing agency focused on partnering with
mid-size to Fortune 100 brands to increase their revenue and market share on Amazon.com

4. Our Clients
ABOUT MPS

5. Housekeeping marketplacestrategy.com
● Session recording & slides will be sent out as a
follow up
● Submit questions to MPS using the question
window
● Any unanswered questions will be answered via
direct email
● Email me for any additional resources or
questions following the webinar:
dina@marketplacestrategy.com

6. TODAY’S SPEAKERS
Drew Kraemer
CEO & Co-Founder
drew@marketplacestrategy.com
Jeff Walcoff
VP of Sales & Marketing
jeff@marketplacestrategy.com

7. AGENDA
01 CPG Landscape
02 Impact of Digital Shelf Space
03 The Rise of Challenger Brands
04 Changing Consumer Buyer Behavior
05 Complexities of Amazon’s Ecosystem
06 Key Takeaways

8. Beyond Brick & Mortar
CPG Landscape
● U.S. CPG market grew 2% in 2018 (Boston Consulting Group)
● Online CPG sales in the United States $58.6 billion (IRI E-Market Insights)
● Online CPG sales grew by 35.4% (Information Resources Inc.)
○ Compared to food and beverage stores 3.4% growth (US
Department of Commerce)
● Strategy shift for CPGs as eCommerce poses both
opportunities and threats

10. How eCommerce is Shaping CPGs Future
CPG Landscape
60%Buy household supplies
online
72%of customers surveyed purchase
personal care products from
CPGs online
80%Of online CPG shoppers buy
from Amazon

11. Four Areas of Consideration to
Maximize Growth
IMPACT OF
THE DIGITAL
SHELF SPACE
1 2 3 4
THE RISE OF
CHALLENGER
BRANDS
CHANGING
CONSUMER
BUYER
BEHAVIOR
COMPLEXITIES
OF AMAZON’S
ECOSYSTEM

12. IMPACT OF
THE DIGITAL
SHELF SPACE
1 2 3 4
THE RISE OF
CHALLENGER
BRANDS
CHANGING
CONSUMER
BUYER
BEHAVIOR
COMPLEXITIES
OF AMAZON’S
ECOSYSTEM
Four Areas of Consideration to
Maximize Growth

13. ● “Infinite” Shelf Myth
● Equal Opportunity for Brands
● Focus on Strategy (not just
relationships)
● Opportunity for Product launches
& variations
FOUR AREAS OF CONSIDERATION TO MAXIMIZE GROWTH
Impact of Digital Shelf Space
70%Of users do not go past Page
One on Amazon

14. Tactical Tips for CPGs
IMPACT OF DIGITAL SHELF SPACE
If 70% of consumers never make it past the first page of search
results, it’s vital to...
○ Focus on Discoverability
■ Focus on Sales Velocity
■ Advertise
○ Focusing on Buyability - Be ‘Retail Ready’
■ Expand product image libraries
■ Optimize titles and images for SERPs
■ Compare your pages to competition
CPGs also use Amazon’s ‘infinite shelf space’ to test new
products prior to launching in brick-and-mortar

15. IMPACT OF
THE DIGITAL
SHELF SPACE
1 2 3 4
THE RISE OF
CHALLENGER
BRANDS
CHANGING
CONSUMER
BUYER
BEHAVIOR
COMPLEXITIES
OF AMAZON’S
ECOSYSTEM
Four Areas of Consideration to
Maximize Growth

16. The Rise of Challenger Brands
FOUR AREAS OF CONSIDERATION TO MAXIMIZE GROWTH
● Low barrier to entry
● New competition
○ Existing threats
○ eCommerce-only brands
○ Amazon private label
products
56%Of shoppers buy a new brand
on Amazon
72%Of shoppers turn to Amazon
to research products

19. Tactical Tips for CPGs
RISE OF CHALLENGER BRANDS
○ Play by the new rules
■ Focus efforts on the tactics that win in the new
e-commerce landscape
■ Brand where Amazon allows [product images, Enhanced
Content, Brand Stores]
○ If you can’t beat ‘em...
■ Understand why consumers like new brands
■ Consider look, feel, pack sizes, variations
○ If you still can’t beat ‘em...
■ Consider acquisition
■ Pursue Amazon private label partnerships

20. IMPACT OF
THE DIGITAL
SHELF SPACE
1 2 3 4
THE RISE OF
CHALLENGE
BRANDS
CHANGING
CONSUMER
BUYER
BEHAVIOR
COMPLEXITIES
OF AMAZON’S
ECOSYSTEM
Four Areas of Consideration to
Maximize Growth

21. Changing Consumer Buyer Behavior
FOUR AREAS OF CONSIDERATION TO MAXIMIZE GROWTH
BRANDS
PROFIT MARGINS
LIMITED PACK SIZES / SKUs
SINGLE PRODUCT TYPE
CONSUMERS
VALUE BUYERS
PRODUCT PACKAGE OPTIONS
VARIETY PACKS

22. Tactical Tips for CPGs
CHANGING CONSUMER BUYING BEHAVIOR
○ Study successful third-party resellers
○ If a variety pack makes sense, do it.
○ Pursue tough internal conversations
■ Cases and eaches won’t do it anymore
■ Address realities of profitability, consumer
preference

23. IMPACT OF
THE DIGITAL
SHELF SPACE
1 2 3 4
THE RISE OF
CHALLENGE
BRANDS
CHANGING
CONSUMER
BUYER
BEHAVIOR
COMPLEXITIES
OF AMAZON’S
ECOSYSTEM
Four Areas of Consideration to
Maximize Growth

24. Why Amazon is Essential
COMPLEXITIES OF AMAZON’S ECOSYSTEM
● Online strategy must include
Amazon
● Amazon accounted for 40.3% of
online sales in 2018
● Your products will be sold on
Amazon!

25. COMPLEXITIES OF AMAZON’S ECOSYSTEM

26. Strategic Levers of Amazon
COMPLEXITIES OF AMAZON’S ECOSYSTEM
Search
Optimization
Product Page
Design &
Content
Technical
Management
Media &
Advertising
Operations
Management
Strategy

27. KEY TAKEAWAYS ❏ eCommerce adaptation is
critical for CPG brands
❏ Strategy vs. relationships
❏ Know your competition
❏ Develop operational muscle
❏ Dedicate resources to win

28. Questions?
marketplacestrategy.com
Drew Kraemer
drew@marketplacestrategy.com
Jeff Walcoff
jeff@marketplacestrategy.com