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Premier Polmarex: Optimizing Sales & Operations of CPG products on Amazon

Case Study Introduction

As the digital marketing and sales coordinator at Premier Polmarex, I played a pivotal role in driving sales, improving operational efficiency, and maximizing profitability for the company. This case study showcases my strategic efforts and achievements from June 2020 to 2023, with a specific focus on the period from September 2020 onwards when I assumed complete control of marketing and sales operations.

I. Business Background & Challenges

A. Premier Polmarex's Entry into the B2C Online CPG Food Market

Premier Polmarex, a renowned company in the consumer packaged goods (CPG) food industry, recognized the immense potential of the online marketplace. In 2020, the company embarked on a strategic initiative to establish a strong presence on Amazon, one of the largest e-commerce platforms. This move aimed to tap into a broader customer base and leverage the platform's extensive reach to maximize sales and revenue.

B. Initial Challenges: High FBM Order Cancellations and Inventory Issues

As Premier Polmarex made its foray into the online CPG food market, it encountered a set of initial challenges that demanded immediate attention. One of the primary hurdles was the high rate of order cancellations for FBM (Fulfillment by Merchant) orders. This issue had a detrimental impact on the company's reputation, as customers experienced delays and uncertainty with their orders.

Furthermore, inventory management became a significant concern. The COVID-19 pandemic disrupted global supply chains, causing delays in sourcing raw materials and finished products. This led to a shortage of inventory, making it difficult for Premier Polmarex to fulfill customer orders promptly. Additionally, fluctuating demand patterns during the pandemic further exacerbated inventory management challenges.

C. Importance of Scaling Operations and Building a Solid Foundation for Growth

Understanding the criticality of addressing these challenges, Premier Polmarex realized the importance of scaling operations and establishing a robust foundation for sustainable growth. This necessitated a comprehensive approach that focused on multiple aspects, including inventory management, order fulfillment, marketing strategies, and operational efficiency.

To overcome these challenges and achieve success in the competitive online CPG food market, Premier Polmarex required a strategic roadmap that would enable them to enhance customer experience, streamline operations, optimize costs, and drive sales growth. It was evident that significant efforts and expertise would be necessary to address these complex issues and position the company for long-term success.

In light of these circumstances, I joined Premier Polmarex as the digital marketing and sales coordinator in June 2020. With a strong passion for e-commerce and expertise in digital marketing strategies, I took on the responsibility of devising and implementing effective plans to address the challenges and transform Premier Polmarex into a thriving online CPG food business.

Through meticulous analysis, collaboration with cross-functional teams, and a data-driven approach, I embarked on a journey to optimize sales, enhance operational efficiency, and drive profitability for Premier Polmarex. The subsequent phases of my tenure outline the specific strategies and achievements that were instrumental in overcoming the challenges and propelling Premier Polmarex to new heights in the online CPG food market.

II. Phase 1: Laying the Groundwork

A. Expansion of Product Listings: Broadening the Product Portfolio

During this period, my manager and I worked collaboratively to introduce thousands of new product listings, aiming to attract a wider customer base and boost sales potential.

B. Learning the Basics of Online E-commerce Business Operations

Under the guidance of my manager, I dedicated myself to learning the fundamentals of online e-commerce business operations. This included gaining a deep understanding of Amazon's platform, optimizing product listings, and leveraging advertising tools to enhance visibility and drive sales.

C. Monthly Sales Volume Growth of 15%

Our collective efforts in expanding the product catalog and acquiring e-commerce business expertise resulted in an impressive monthly sales volume growth of 15%. This positive trend demonstrated the business's potential for future growth and success.

III. Phase 2: Driving Sales and Improving Operational Efficiency

A. Assumption of Complete Control over Marketing and Sales Operations

In July 2021, I took over full control of Premier Polmarex's marketing and sales operations. This provided me with the opportunity to implement focused strategies and drive sales growth while enhancing operational efficiency.

B. Monthly Sales Growth

1. FBM: 25% Sales Growth

With complete control over marketing and sales operations, I implemented targeted marketing campaigns and optimized inventory management practices. As a result, the FBM segment experienced substantial monthly sales growth of 25%, surpassing our expectations.

2. FBA: 20% Sales Growth

Capitalizing on the benefits of Amazon's FBA program, I leveraged the platform's vast customer base and streamlined logistics to achieve consistent monthly sales growth of 20%. This expansion in the FBA channel contributed significantly to overall sales performance.

C. Reduction of FBM Order Cancellations through Improved Inventory Management

To address the challenge of high FBM order cancellations, I focused on implementing robust inventory management practices. This involved optimizing stock levels, improving supply chain coordination, and closely monitoring customer demand patterns. As a result, we significantly reduced FBM order cancellations, leading to enhanced customer satisfaction and retention.

D. IPI Score Enhancement: Achieving a 30% Increase

I dedicated myself to enhancing Premier Polmarex's Inventory Performance Index (IPI) score, a key performance metric on Amazon. Through efficient inventory management practices and timely restocking, we achieved an impressive 30% increase in the IPI score. This improvement signified enhanced inventory performance, reduced storage fees, and eligibility for promotions and benefits.

E. Buy Box Success: Significant Increase in Buy Box Wins

By implementing effective marketing strategies, optimizing product listings, and improving our overall customer metrics, we achieved a considerable increase in Buy Box wins. Winning the Buy Box resulted in prime product placement on Amazon's product detail pages, significantly boosting visibility and driving higher sales volumes.

F. Cost Optimization

1. Shipping: 35% Cost Reduction through Shipping Aggregator

Recognizing the opportunity to optimize shipping costs, I made the strategic decision to switch to a shipping aggregator. By consolidating shipments and leveraging the aggregator's negotiated rates, we achieved a remarkable 35% reduction in shipping costs. This cost-saving measure directly contributed to improving profit margins and overall profitability.

2. Profit Margin Improvement: Adjusting Margins to Increase Profitability

Through meticulous analysis of product pricing and costs, I adjusted profit margins to optimize profitability. This strategic pricing approach, coupled with the aforementioned cost optimizations, resulted in improved profit margins and enhanced financial performance.

IV. Operational Efficiency Enhancements

A. Introduction of a Paperless Order Management System

To streamline order processing and reduce manual workload, I introduced a paperless order management system at Premier Polmarex. This involved integrating ShipStation and utilizing third-party plugins to consolidate orders into one centralized platform. The implementation of this system reduced the average daily order preparation time from 6 hours to 4 hours, significantly increasing operational efficiency and enabling faster order fulfillment.

B. Increased Order Volume by 30%

As a result of the streamlined processes and reduced preparation time brought about by the paperless order management system, we experienced a remarkable 30% increase in daily order volume. This boost in order capacity allowed us to handle a higher number of orders, further driving sales growth and enhancing customer satisfaction.

V. Conclusion

Throughout my tenure as the digital marketing and sales coordinator at Premier Polmarex, I successfully implemented various strategies to optimize sales and operational efficiency. By addressing challenges such as high FBM order cancellations, improving inventory management, and leveraging the benefits of Amazon's FBA program, I was able to drive significant sales growth, improve customer satisfaction, and enhance profitability.

The introduction of a paperless order management system streamlined our processes, reduced order preparation time, and increased our capacity to handle higher order volumes. Additionally, through cost optimization measures, including switching to a shipping aggregator and adjusting profit margins, we achieved notable cost reductions and improved profit margins.

The monthly performance summary demonstrates consistent sales growth and a reduction in order cancellations, validating the effectiveness of the strategies implemented. Premier Polmarex's success story serves as a testament to the impact of well-executed marketing and operational initiatives in the highly competitive online CPG food market.

By showcasing these achievements in your portfolio, you can highlight your role in driving the company's growth and success, making it an impressive addition to your professional journey as a digital marketing and sales coordinator.

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