Online Visibility as a Strategic Advantage:
In this prominent digital age, where consumers rely heavily on online searches to guide their purchasing decisions, a strong Share of Search becomes a strategic advantage. Brands that consistently appear in relevant search results are more likely to be top-of-mind for consumers, contributing to an increased market share.
But here’s the twist: This digital transformation has transformed the traditional shelf – once a static space, into a dynamic virtual battleground. Brands aren’t merely existing; they’re vigorously vying for attention and prominence.
The key takeaway is unmistakable: In this digital age, Search has become the new Shelf. So, let’s delve into captivating insights. Can a brand’s share of the virtual shelf significantly influence the potential sales of your bestsellers?
Uncover the answers as we explore the impact in detail.
The Successor to Share of Voice
While share of voice has always been the norm to understand a brand’s dominance in the market, a new contender has stepped into the limelight. Unlike Share of Voice, which predominantly focuses on paid advertising, Share of Search emphasises the digital shelf space a brand occupies. This space reflects its relevance to users and the strength of its online presence.
Positioned as the natural successor to Share of Voice, Share of Search probes deeply into a brand’s online visibility, examining its footprint in organic search results.
Did you know even the Voice of a Customer (VOC) is a critical element for your brand to pay attention to?
Analysis: Disclosing the Impact of Digital shelf space on Brand visibility and Rankings.
We conducted a detailed analysis to examine how a brand’s digital shelf share influences product rankings.
Methodology: Focusing on Nykaa’s beauty website, specifically the initial four pages and encompassing 80 products under the search term ‘Face Wash’, we estimated the share of search for each brand.
This approach provides valuable insights into the dominance of each brand, allowing us to discern their relative impact on consumer visibility.
In our analysis, Biotique emerges as the market leader with a substantial 7.5% share, closely trailed by Minimalist and Mamaearth at 5%. This data highlights these brands’ heightened visibility, implying a potentially higher likelihood of sales.
Yet, our research went beyond these metrics to understand whether a brand’s overall visibility directly influences the individual ranking of its products.
A closer examination of Mamaearth, a key player, with its best-selling face wash, reveals a compelling pattern within its top-performing product:
Dates | Brand’s Share of Shelf | Rank of Bestseller Product |
01/12/23 | 6.25% | 26 |
06/12/23 | 7.50% | 6 |
08/12/23 | 6.25% | 8 |
11/12/23 | 5.00% | 29 |
The noteworthy observation here is that when Mamaearth increased its share of shelf space from 6.25% to 7.50%, there was a substantial improvement in the rank of the individual product from 26 to an impressive 6.
This shift was pivotal, as the momentum gained during the increased market share helped the product maintain a favourable ranking even when the share fell back to 6.25%.
The significant decline in the product’s popularity on Nykaa may be attributed, in part, to a noteworthy development on December 11th. On this date, Nykaa’s prices were observed to be 3% higher than that on Amazon.
This disparity in pricing could have played a crucial role in the drastic dip in Nykaa’s appeal among consumers. The dynamics of market competition extend beyond mere product pricing; the strategic decision of a brand to list itself on different marketplaces also emerges as a critical factor influencing consumer preferences.
In this context, the careful consideration of both competitive pricing and brand presence across various platforms becomes imperative for sustaining and enhancing a brand’s market standing.
This analysis emphasises how a brand’s overall market shelf presence significantly affects the success of its top-selling products. The observed link between changes in market share and individual product rankings underscores the close relationship between brand’s visibility and its product success.
It reinforces the importance of understanding market dynamics and other factors that affect product performance like inventory, product listing, and pricing strategies.
Share of Search as a Predictive Tool:
Share of Search goes beyond a retrospective analysis of a brand’s online presence; it acts as a powerful predictive tool. The metric’s ability to forecast future market trends is rooted in the understanding that a brand’s visibility in organic search today influences its market position tomorrow.
By tracking changes in Share of Search over time, businesses can anticipate shifts in consumer behavior and market dynamics. BRIO’s Share of Search module can help you with this and more.
BRIO - Your Barometer for Brand Health
As an AI-based dynamic pricing engine, BRIO provides brands with a nuanced understanding of your business’s market position and competitive landscape.
Read how Competitive pricing is crucial for your business to sustain in the marketplace.
Book a free demo of our automated retail solutions or contact our optimization experts at info@sciative.com.
To see how Brio.ai can empower your brand, ensuring it not only survives but thrives, visit sciative.com
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