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Assortment Strategy and New Product Launches Drove Market Share Growth

Three Dog Bakery

Three Dog Bakery is a dog treat company, established in 1989, that specializes in crafting high-quality dog treats. Their commitment to using wholesome, natural ingredients ensures the well-being of dogs while offering a variety of delectable and nutritious treats.

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THE DETAILS

TIMELINE

January 2020 – December 2021

HINGE SERVICES

Assortment Strategy
Whitespace Analysis
Platform Management
AMS/PPC Management
A+ Content (Cross-Sell)

LOCATION

United States

The Challenges

Three Dog Bakery has wholesome, natural dog treats baked in the USA. These treats are sold in bakeries across the US, in national brick-and-mortar chains, and online.

The brand has a 1P relationship, so the largest challenge with the distribution was Amazon driving prices down and competing against other large retailers. This resulted in low profitability for Amazon, putting products at risk of not being ordered through Amazon Vendor Central. As a strategy was put in place for their Amazon assortment, the second challenge was merchandising and advertising strategy for new product launches to ensure optimal visibility and sell-through. Three Dog Bakery also needed help with the following:

  • Assortment Strategy and Profitability on Vendor Central: A product portfolio that does not directly overlap with all other major marketplaces and retail prices being driven down.
  • White Space Analysis: What new products should be launched, and what Amazon data was available to show where there was opportunity in the marketplace?
  • New Product Launches: How to successfully launch new products to ensure a new assortment strategy would still achieve YoY growth on the channel while shutting off top-performing historical ASINs.
The logo of Three Dog Bakery, shaped like a dog bone with the brand name in white text, reflects their market share growth and innovative approach to new product launches.

“We are very impressed with the team at Hinge Commerce. Their eCommerce expertise and dedication to our business have helped propel our Amazon channel. Because of their efforts, Amazon has now become a priority channel for us. We look forward to tapping Hinge to help drive our other eCommerce sites in 2021.

The Solutions

Solving the challenges required a balanced approach to create an Amazon assortment that was more profitable for Three Dog Bakery and Amazon. It was also crucial to conduct a White Space Analysis to look for product development opportunities. Once new products were launched, the solution required a review, variation, and cross-sell strategy. We also needed to align on advertising strategy.

Profitability

Hinge Commerce completed a full profitability analysis for Vendor Central versus Seller Central to ensure that Vendor Central was the right platform to use.

Vendor Central was confirmed to be the correct and most profitable platform. We worked through optimizing their assortment on Vendor Central to remove items with low profitability and shifted consumers to new products (new sizes and new bundles).

For the long term, Hinge provided a White Space Analysis and analyzed competitive pricing for key attributes to determine what opportunities would drive the most incremental growth.

New Product Launches

With so many new products launching, we completed strategic merchandising to ensure all products were retail-ready so consumers had maximum visibility to new ASINs.

Utilizing Vine, having a separate ad budget and KPIs for new products, and ensuring that the Brand Store and A+ Content cross-sells were updated with the new products at the date of their launch made a huge impact.

If possible, we included new products into variations with high traffic and high conversion products. If the new product replaced a product due to a size change, we utilized Vendor Centrals’ widgets to redirect consumers to the new size.

Advertising Strategy

We implemented a growth and competitor conquest test & learn strategy for all new product launches.
We also utilized Sponsored Display Advertising to ensure that there was visibility on all other Three Dog Bakery ASINs, helping cross-sell the new items. On top of that, we drove consumers to the brand store to showcase new product assortment through Sponsored Brand Ads.

The Results

As a result of these strategies and adjustments, in the first 12 months, Hinge Commerce helped Three Dog Bakery grow their Amazon Shipped COGS by +81% and revenue by +61%, outpacing the category growth of +54%. We provided a comprehensive set of solutions to grow Three Dog Bakery’s eCommerce business, including optimizing copy and imagery to maximize search results and conversion rates. We analyzed and advised on pricing, pack sizes, new product opportunities, and fulfillment strategies to improve profitability, and helped drive growth for Three Dog Bakery on other eCommerce channels as well.
Amazon Shipped COGs Growth
12 MONTHS
+ 0 %
YoY
Revenue Growth
12 MONTHS
+ 0 %
YoY
Category Growth
12 MONTHS
+ 0 %
YoY

Isn’t it Time to Start Seeing Results?

Reach out to our expert team today and we’ll be in touch.
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