Freudenberg Gala improved total sales by double digits while improving ACOS by 40%

About the brand:

Freudenberg Home and Cleaning Solutions is a leading international company for branded cleaning products and systems as well as laundry care products. Their products are sold under the brand names Vileda®, Vileda Professional®, O-Cedar®, Gimi, Oates, Gala®, Wettex, and Marigold®. This case study is about one of their brands, Gala, which is a market leader in the cleaning tools category in India. Gala has a large assortment of products like spin mops, mops, wipers, brooms, dusters, scourers etc.

Key Challenges Addressed:

The brand wanted to solve 3 challenges with atom11:

(a)    Drive better and more profitable ACOS:

They brand wanted to improve their ACOS and maintain it at profitable levels for Amazon. They did this by using the following strategy:

a.      Dayparting: The team analyzed hourly customer shopping patterns using Atom11’s Amazon Marketing Stream data. Learning from this data, they set up dayparting to spend more on days when their organic sales were higher. They also eliminated wastage by reducing bids when ad conversions were lower, leading to >30% reduction in wasted spend.

b.      Being retail-aware: The brand was able to control ad spends when their products were low in stock. On Atom11, they were able to set up automation to pause ad spend on a low stock products . This not only helped them lower their ACOS but also prevented stockouts.

c.      Automated search term negations: Since the brand wanted to increase their sales, they went broad with their targeting. Even with broad targeting, they were able to maintain their target ACOS, with Atom11’s automated search term negations and harvesting.

d.      Bid recommendations: In 2024, bid recommendations by software are table stakes. Atom11 also provides bid recommendations based on its proprietary algorithm. Using recommended bids, they were able to increase bids on high-performing campaigns and vice versa.

With Atom11, Gala’s ACOS improved by 40% despite increasing spend by a substantial amount. Once the team had trust on the software capabilities, they moved to surmount their next big challenge:

(b)    Expanding core catalogue beyond spin mops:

In 2023, the brand’s top products were spin mops, i.e. products that brought in the majority of sales. However, they wanted to expand their catalogue beyond spin mops. They used Atom11’s product-wise tracking capabilities to do the same:

a.      Moving spend allocation between different products: With Atom11’s product dashboard, the brand team reallocated budgets to new focus ASINs. More importantly, they were able to do it without making any changes to their existing campaign structure.

b.      Tracking impact of all variables on total sales: Using Atom11’s sales tracker, the brand was able to measure impact of Ad spends, Product Price, Glance views on Total Sales. With this data, they fine-tuned variables and gradually increased Total Sales of their non-hero products.

c.      Used real-time data to target competitors: With Atom11’s digital shelf capabilities, the team was able to target their competitors when they increased their price. Packed with such insights, they were able to take timely actions to increase their sales.

The results were astonishing - the brand expanded their non-core catalogue while diverting spend to these new ASINs significantly. With higher ad sales, their organic search ranks started improving by 66% there by increasing their organic sales.

(c)    Simplify analytics for multiple teams:

Amazon’s data is siloed. Inventory, pricing, ads and overall sales management data are available in different reports. The brand’s ecommerce team found it difficult to communicate all changes amongst themselves.  With Atom11’s ads and analytics capabilities, they were able to streamline communications not only amongst each other but also with their retail partners. This saved them over 80 hours a month. 

Result:

In the span of 6 months, the Freudenberg Gala team was able to reduce their ACOS by 40%. By advertising better and also increasing the number of hero products, they were able to increase their overall BAU sales by double digits. Overall, they are winning at Amazon while saving 80+ operational hours in a month.