Amazon Performance: Cereal

This is the seventh of our eight part series on driving traffic and conversion on Amazon. Earlier we looked at how traffic is the most fundamental metric in retail and the best way to generate it and  a few ways brands can utilize to actually win at search and improve and maintain conversion rates. Today, we have a look at how a few cereal brands are winning on Amazon in the US and the UK before turning our attention to computer monitors to wrap up. Also included is a Q/A with Content26 co-founder and president Mark White and gen.video’s co-founder and president Jessica Thorpe, as they tackle several key questions generated by attendees of our recent webinar, “Driving Online Retail Store Traffic with Paid Advertising and Influencer Programs,” which can be found here.

Amazon Search Results:
It’s not surprising, but both Kellogg’s and Quaker - two titans of the industry - perform strongly in search for the term ‘cereal.’ Quaker controls 33 of the top 100 ASINs, while Kellogg’s controls 21. General Mills, another bran(d) giant (pun intended) controls only 7 of the top 100 ASINs. This means that the big brands still control over 60% organic search real estate. Nature’s Path seems to be the only independent brand with any kind of substantial foothold in the top 100, with 14 ASINs. So cereal is quietly a very tight space - between the three powerhouses and Nature’s Path, only about a quarter of top 100 search real estate is left for the independents to compete for. This dynamic also plays out in the coveted first-page results. Kellogg’s and Quaker control 14 of the top 20 spots alone.

In the UK, the cereal category is much more dispersed, if a little top heavy. Kellogg’s controls 47 of the top 100 ASINs, while Post comes in second with 7 (largely thanks to its control of the ubiquitous UK brand Weetabix), and General Mills and Morrisons both tie for third, with only 6 ASINs each. So the situation on Amazon.co.uk is fairly similar to Amazon.com, in that the big brands (mostly Kellogg’s) control a sizeable share of search, but in the UK, there’s a little more breathing room for the smaller brands to compete in.

One final observation - cereal in the UK is one of the few categories in which a private label (Morrisons) is holding its own with the category giants.

Amazon Product Detail Page Content:
Content in the US is a mixed bag all around.  

Although Special K was the top seller for Kellogg’s-controlled ASINs, it doesn’t have a brand page, and only some ASINs have A+ content. For example, the Product Detail Page (PDP) for Special K’s 16.9 oz. box of Breakfast Cereal Red Berries has none - its only below-the-fold content includes a brief legal disclaimer, ingredients list, and product description. There are ten images above-the-fold, however - a mix of product and action shots (e.g. someone holding a bowl of Special K). The PDP for Special K’s individual sized Red Berries cereal bowls does have some A+ content, with captioned high-res images that emphasize its health benefits and various serving suggestions (“a crunchy addition to French toast”).

On the other hand, Nature’s Path - the company with the largest share-of-search outside the traditional powerhouses - has an excellent brand page. Its page is clean and image-heavy, and its brand identity is front and center.  The brand uses its core values (small, family-run, works for sustainability, “leaving the Earth better than we found it”) as a marketing tool. They’re communicated clearly and are featured prominently on their PDPs, while the video on their brand page goes a step further and frames buying Nature’s Path cereal almost as an ethical choice. However, like Special K, there’s some inconsistency with A+ content - some ASINs have it, while some have no below-the-fold content at all.

In the UK, page content seems to take a back seat across the board. This is certainly the case for Kellogg’s - there’s no brand page and none of its PDPs have A+ content, aside from a few images and bullet points above-the-fold. And those bullet points aren’t exactly scintillating. In addition to the lack of tight content, all ASINs checked were sold by 3P sellers, despite being listed as “by Kellogg’s.” This leaves Kellogg’s with major room for improvement – but on the bright side, a relatively minor investment here could help them cement their control of the category.

It’s a similar story for General Mills - a mixed bag on images, bullet points, and a lack of A+ content. And just like Kellogg’s, General Mills might not have an Amazon presence at all - every ASIN checked was sold by 3P sellers. This makes their strong share-of-search presence even more impressive, but also means that Amazon.co.uk is a major opportunity for General Mills. Although 3Ps are dominating, the cereal space is wide open for the big brands to jump in and dominate. 

Morrissons seems to be the most prominent search leader that sells its own products (1P presence). It's also the highest-ranking domestic UK brand and a private label to boot. Although none of their ASINs have below-the-fold A+ content, the above-the-fold content is clearly higher quality than Kellogg’s and General Mills.

Many of the smaller UK brands do seem to take content more seriously, although even here it’s a mixed bag. Dorset Cereals, with its three ASINs, is one of the few brands with A+ content below the fold (including video) although it doesn’t show up in all three ASINs. Doves Farm, on the other hand - another small UK-based brand - only has 3P sellers and no A+ content.

It definitely seems like the only brands who invest in A+ content/brand pages are the smaller independent/niche brands but this is far from universal.

Summary
The cereal category on Amazon in both the US and the UK is pretty top heavy - the big brands control upwards of two thirds of the top 100 search results on both sides of the Atlantic. The key difference, however, is that in the UK those big brands are completely absent from Amazon and their products are being sold by 3P sellers. The highest ranking brand with an Amazon presence (aka its a 1P seller) is Morrisons grocery chain’s private label. In other words, this space is ripe for the taking- not just for the big brands, but for any brand. A small investment in an ecommerce team with content/logistics could reap major rewards.
 

To go more in depth on how to succeed in this crucial space, download our whitepaper “Turning Amazon traffic into Amazon sales” here, or give our on-demand webinar “Driving Traffic and Conversion with Paid Advertising” a listen here, and check out the rest of this blog series, and all of our expert insights here.

Danny Silverman
Article by:
Danny Silverman
Marketing

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