Goal : To educate the Aryaa team about the demand and competitors for GHEE .
Understanding how competitors list, strategize pricing, and promotions would help the launching of Aryaa Organic A2 Ghee be seamless and compete right away.
A. Market Overview
A.1 Market Size and Growth
Current market size, historical growth, and future projections.
If we search A2 Ghee on Amazon, these are the data that shows up on using Helium10
Daily Search Volume - 713 Searches Average Competitor Pricing - $46.86 Average Competitor Rating - 4.3 Stars Monthly Units Sold - 22,359 Units (30 Day Basis) , 745 Daily units sold 30 Day Revenue - $ 397,669.75 (30 Day Basis), $ 13,255.66 Daily sales Other Keyword Data related to A2 Ghee (Top 2)
a. Keyword : Ghee
Competing Products : 261
Daily Search Volume - 21,048 Searches Average Competitor Pricing - $28.01 Average Competitor Rating - 4.5 Stars Monthly Units Sold - 29,427 Units (30 Day Basis) , 975 Daily units sold 30 Day Revenue - $ $503,576.38 (30 Day Basis), $ 16,785.87 Daily sales
b. Keyword : ghee butter organic grass fed
Competing Products : 151
Daily Search Volume - 27,617 Searches Average Competitor Pricing - $30.61 Average Competitor Rating - 4.5 Stars Monthly Units Sold - 27,617 Units (30 Day Basis) , 921 Daily units sold 30 Day Revenue - $459,437.37 (30 Day Basis), $ 15,315 Daily sales Key Insights
Search Volume and Interest: The keyword "A2 Ghee" has a daily search volume of 713, which indicates a niche but potentially growing interest in this specific type of ghee. The more generic keyword "Ghee" has a significantly higher daily search volume of 21,048, indicating broader consumer interest. The keyword "ghee butter organic grass fed" has an even higher daily search volume of 27,617, showing a strong interest in organic and grass-fed ghee products. Pricing and Consumer Willingness to Pay: The average competitor pricing for "A2 Ghee" is $46.86, which is considerably higher compared to the average prices for "Ghee" ($28.01) and "ghee butter organic grass fed" ($30.61). This suggests that consumers might be willing to pay a premium for A2 Ghee, likely due to perceived health benefits or unique qualities. The pricing difference also implies that A2 Ghee targets a more niche, possibly health-conscious and affluent consumer segment. Competitor Ratings and Consumer Satisfaction: The average competitor rating for "A2 Ghee" is 4.3 stars, slightly lower than the 4.5 stars for both "Ghee" and "ghee butter organic grass fed." This indicates room for improvement in product quality or customer satisfaction for A2 Ghee products. High ratings across all keywords suggest overall consumer satisfaction with ghee products, making it a competitive but positive market environment. Sales Performance and Market Share: A2 Ghee sells 22,359 units monthly, generating $397,669.75 in revenue. While the sales volume is lower than the other keywords, the high price point results in substantial revenue. "Ghee" and "ghee butter organic grass fed" have higher unit sales (29,427 and 27,617 units, respectively) but generate slightly higher revenues due to lower price points. The revenue figures indicate a healthy demand for ghee products, with organic and grass-fed variants performing strongly in the market. A.2 Industry Trends (3 month projection)
Let's assume a modest growth rate typically seen in niche markets, which can range from 5-15% per month.
Current Data Summary for A2 Ghee:
Daily Search Volume: 713 searches Average Competitor Pricing: $46.86 Average Competitor Rating: 4.3 stars Monthly Units Sold: 22,359 units Monthly Revenue: $397,669.75 Daily Units Sold: 745 units Daily Revenue: $13,255.66 Projected Growth Rates:
For a conservative projection, we will use a 5% monthly growth rate. For an optimistic projection, we will use a 15% monthly growth rate.
Conservative Growth Projection (5% Monthly Growth):
Next Month (1 Month Projection): Units Sold: 22,359 * 1.05 = 23,477 units Revenue: $397,669.75 * 1.05 = $417,553.24 Second Month (2 Months Projection): Units Sold: 23,477 * 1.05 = 24,651 units Revenue: $417,553.24 * 1.05 = $438,430.90 Third Month (3 Months Projection): Units Sold: 24,651 * 1.05 = 25,883 units Revenue: $438,430.90 * 1.05 = $460,352.44 Optimistic Growth Projection (15% Monthly Growth):
Next Month (1 Month Projection): Units Sold: 22,359 * 1.15 = 25,713 units Revenue: $397,669.75 * 1.15 = $457,320.21 Second Month (2 Months Projection): Units Sold: 25,713 * 1.15 = 29,570 units Revenue: $457,320.21 * 1.15 = $526,918.24 Third Month (3 Months Projection): Units Sold: 29,570 * 1.15 = 34,006 units Revenue: $526,918.24 * 1.15 = $605,956.98 A.3 Rationale Behind the Market Growth for A2 Ghee
Health and Wellness Trends:
Increased Awareness: Consumers are seeking healthier options, and A2 Ghee, known for its digestibility and health benefits, fits this trend. Dietary Trends: Popular diets like keto and paleo favor high-fat sources, boosting demand for A2 Ghee. Effective Marketing:
Educational Campaigns: Highlighting the benefits of A2 Ghee attracts health-conscious buyers. Influencer Endorsements: Recommendations from influencers drive awareness and demand. Product Differentiation:
Premium Positioning: A2 Ghee's higher price point is justified by its perceived quality, attracting premium buyers. Unique Selling Proposition: The A2 protein content differentiates it from regular ghee, appealing to health-focused consumers. Market Dynamics:
Natural and Organic Preference: Growing demand for natural, minimally processed products aligns with A2 Ghee. Cultural Appeal: Ghee's significance in South Asian cuisine boosts demand within ethnic communities. Distribution Expansion:
Online Marketplaces: Availability on platforms like Amazon increases accessibility. Global Reach: Expanding into international markets taps into global demand for traditional foods. Positive Feedback:
High Ratings: Positive reviews drive sales by influencing potential buyers.
Word of Mouth: Satisfied customers recommend A2 Ghee, further boosting demand. Summary
The market growth for A2 Ghee is driven by health trends, effective marketing, product differentiation, favorable market dynamics, expanded distribution, and positive consumer feedback. These factors collectively ensure a steady increase in demand and sales.
A.4 Target Market
Def: Detailed description of the target audience, including demographics, psychographics, and buying behavior.
Source : Audience Demographics for Ghee based on our data from Q1 this 2024 where we had our best selling quarter.
Analysis of Demographic Trends for Patanjali Grocery Products
1. Age Group Trends:
Unique Customers: 10.65% of total Ordered Units: 10.39% of total Insight: This age group shows a steady engagement with a slight increase in both unique customers and ordered units, indicating consistent interest and potential for further growth with targeted marketing. Unique Customers: 18.75% of total Ordered Units: 17.71% of total Insight: This is the largest age demographic, showing significant engagement. The slight increase suggests continued strong interest, and this group is critical for maintaining sales volume. Unique Customers: 15.29% of total Ordered Units: 15.71% of total Insight: This age group is also highly engaged, with increasing participation and purchases. It suggests a stable and growing market segment. Unique Customers: 8.47% of total Ordered Units: 8.62% of total Insight: There is a notable increase in interest and purchases among this age group, indicating growing popularity and trust in the products. 2. Income Group Trends:
Unique Customers: 7.06% of total Ordered Units: 7.45% of total Insight: This income group shows a positive trend in both unique customers and ordered units, suggesting growing affordability and appeal of the products. Unique Customers: 8.47% of total Ordered Units: 9.18% of total Insight: There is significant growth in this middle-income group, indicating strong market penetration and potential for targeted promotions. Unique Customers: 6.14% of total Ordered Units: 5.55% of total Insight: While the unique customer percentage remains stable, there is a slight decrease in ordered units. It suggests a need for renewed engagement with this income group. 3. Gender Trends:
Unique Customers: 25.58% of total Ordered Units: 25.94% of total Insight: While the number of female customers has slightly increased, the ordered units have decreased. This could indicate a shift in purchasing behavior or frequency. Unique Customers: 33.64% of total Ordered Units: 33.62% of total Insight: There is a positive trend among male customers, both in terms of unique customers and ordered units. This indicates a growing male customer base and increased engagement. 4. Education Trends:
Unique Customers: 21.21% of total Ordered Units: 20.25% of total Insight: There is a decline in both unique customers and ordered units among customers with a bachelor's degree. This demographic might require targeted marketing to re-engage and address their concerns. Unique Customers: 14.93% of total Ordered Units: 15.78% of total Insight: Despite a slight decrease in unique customers, the ordered units have increased. This suggests that although fewer customers are purchasing, those who do are buying more. 5. Marital Status Trends:
Unique Customers: 37.78% of total Ordered Units: 38.32% of total Insight: There is a positive trend among married customers, indicating stable and growing engagement and purchases. Unique Customers: 8.78% of total Ordered Units: 9.05% of total Insight: Single customers show a healthy increase in both unique customers and ordered units, suggesting a growing interest in the product. General Observations:
Positive Growth Segments: Middle-income groups ($50,000 to $99,999) and younger age groups (25-44) are showing strong growth. Both married and single demographics are increasing in engagement and purchases. Stagnant or Declining Segments: Customers with higher education levels (Bachelor's degree) are showing a decrease, indicating potential issues that need addressing. The decrease in ordered units from female customers despite an increase in unique customers suggests changing purchasing behaviors that need to be understood.
B. Competitive Analysis
A2 Ghee Analysis