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This Festive Rush Quick Commerce Platforms Transform Into Prime Hubs For Sponsored Product Ads: mFilterIt

mFilterIt’s "Sweet Success on Chocolate Craving across Digital Commerce Platforms" report identified four key pillars that chocolate brands should focus on to ensure e-commerce success during the festive season- visibility, pricing, availability, and content quality. Furthermore, quick commerce platforms such as Zepto (23%) and Instamart (38%) emerged as key channels for sponsored product ads.

| Published on October 29, 2024

This Festive Rush Quick Commerce Platforms Transform Into Prime Hubs For Sponsored Product Ads: mFilterIt

Quick commerce platforms such as Zepto (23%) and Instamart (38%) emerged as key channels for sponsored product ads, indicating a heavy focus on impulse buying and immediacy, as per mFilterIt’s “Sweet Success on Chocolate Craving across Digital Commerce Platforms” report.

The report takes a deep dive into the chocolate category’s performance across major e-Commerce marketplaces and quick commerce platforms. It provides a glimpse of what are the critical success mantras in the chocolate category to win and capture digital shelf share and satisfy consumers’ sweet tooth during the festive period.

The analysis covers multiple elements such as visibility through sponsored ads, pricing strategies, content quality, availability, and product assortment. It provides valuable insights for brands aiming to optimise their digital presence in the competitive landscape of the chocolate category.

Key Insights from the Report are as follows-

  • Platform Dominance: A Battle for Visibility

The report reveals that visibility played a critical role in driving sales, especially during the festive rush. With quick commerce platforms emerging as key channels for sponsored product ads, traditional e-commerce platforms, Amazon (21%) and Flipkart (12%) were the primary contenders for chocolate ads, showcasing the importance of sponsored efforts in increasing product exposure.

  • Premium Pricing on Quick Commerce vs. Marketplaces

The festive season saw a notable trend towards premium pricing on quick commerce platforms, where chocolate products commanded higher average selling prices. For example, dark chocolate gift packs were priced 10% higher on quick commerce than on marketplaces, capitalising on consumers’ willingness to pay for convenience and rapid delivery. Conversely, competitive pricing strategies dominated e-commerce marketplaces, where bulk buyers and value-seekers opted for multipacks and larger quantities.

  • The Importance of Content: E-commerce vs. Quick Commerce

While content quality significantly influenced organic traffic on e-commerce marketplaces, it played a less prominent role on quick commerce platforms. On sites like Amazon Fresh, high-quality images, A+ content, and detailed descriptions helped brands drive organic visibility. In contrast, impulse-driven platforms like Instamart saw less emphasis on content as consumer behaviour was more oriented towards convenience and immediate purchase.

  • Availability Strategies: Stocking Up for Festive Demand

The festive sales period highlighted the importance of maintaining high availability, especially on quick commerce platforms where immediacy is critical. Brands that leveraged automated monitoring tools to track inventory and raise alerts for stock outs were able to meet the high consumer demand and avoid lost sales. However, availability remained a challenge in marketplaces like Flipkart, where some brands faced stock inconsistencies.

  • Assortment Insights: Tailored Offerings for Different Platforms

The analysis underscored the need for brands to tailor product assortments based on platform-specific buying behaviours. Single packs were more popular on quick commerce platforms, catering to impulse buyers, while multipacks and combo offers found greater success on marketplaces, appealing to consumers seeking value and bulk purchases. Brands that optimised their assortment strategies accordingly were able to better meet customer expectations and drive higher sales.

The report identified four key pillars that chocolate brands should focus on to ensure e-commerce success during the festive season-

  1. Visibility: Sponsored ads played a crucial role in capturing consumer attention, with brands like Cadbury dominating both sponsored and organic share across platforms.
  2. Pricing: Brands leveraged platform-specific pricing tactics, positioning products as premium options on quick commerce while offering competitive prices on marketplaces.
  3. Availability: Maintaining consistent stock levels was essential, especially on quick commerce platforms, where out-of-stock products could mean lost sales.
  4. Content Quality: High-quality content on product detail pages (PDP) helped drive organic traffic, particularly on e-commerce marketplaces.

As the report highlights, brands must take a data-driven approach to optimise their digital shelf presence. The festive season’s increased demand offers an ideal opportunity for chocolate brands to capture market share by refining their strategies across e-commerce and quick commerce channels.

Ajay Macaden, Chief Evangelist, mFilterIt, said, “One of the most exciting aspects of the e-commerce channel is its ability to disrupt the status quo, allowing new brands to challenge established players. It’s equally interesting to observe how these established brands consistently bring their A-game to stay relevant in such a dynamic space, especially during festive periods. Through this report, we aim to demystify the e-Commerce landscape and provide key insights to consider when crafting strategies for the chocolate category during the festive season- insights that can extend across other categories as well.”

Click here to access the full report.

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