Intentwise helps Lavazza achieve 136% ad revenue growth during Prime Day

Goals

For over 125 years, Lavazza has been crafting premium Italian coffee, establishing themselves as a global leader in coffee manufacturing since 1895. The brand's journey into digital retail began in 2015 when they expanded to Amazon, seeking to connect with new generations of coffee enthusiasts. As a multinational brand operating across several international markets, Lavazza recognized the importance of leveraging insights to enhance their advertising performance.

During Fall Prime Day 2024, Lavazza faced a unique challenge: optimizing their advertising strategy during crucial sales periods. The brand understood that success during these high-stakes events required precise timing and strategic positioning in search results. Working with Intentwise, a sophisticated software platform specializing in Amazon analytics, Lavazza aimed to revolutionize their approach to major sales events by incorporating real-time organic insights into their bidding decisions.

Approach

The approach centered on a sophisticated two-pronged strategy developed through the collaboration between Lavazza and Intentwise. The foundation of this strategy was built upon the integration of rapid retail analytics, which provided crucial real-time insights into consumer behavior patterns.

First, Intentwise conducted a comprehensive historical analysis of Lavazza's previous Prime Day performance by analyzing the prior year’s hourly sales and traffic trends in rapid retail analytics. This analysis revealed valuable insights about peak organic sales periods, particularly during morning hours. The Intentwise platform enabled Lavazza to analyze this insight across multiple dimensions, including individual products and sub-brands, creating a detailed blueprint for success.

The second phase involved implementing a calculated advertising strategy during these identified peak periods. Leveraging Sponsored Products, Sponsored Brands, and Sponsored Display advertisements, Lavazza made a bold move by increasing their advertising investment by 85%¹ during the prime morning hours of Prime Day. This strategy was based on the hypothesis that increased advertising during periods of high organic activity would amplify overall performance.

During Prime Day, rapid retail analytics provided hourly performance metrics on ordered revenue and units, which allowed Intentwise to act immediately by increasing bids during periods where ordered units were outperforming and reducing spend in other hours to conserve it for peak periods. Rapid retail analytics gave real-time insights showing which products were selling fastest, at what hours, and how price or stock changes affected conversions, so the team could shift budget and bids instantly to maximize sales during peak times. This combination of historical hourly insights for planning and real-time hourly analytics for execution ensured optimal budget pacing, higher ROAS, and maximum visibility during the most profitable moments of the event.

Results

The results of this insights-driven approach exceeded expectations, demonstrating the power of strategic timing and advertising investment. The campaign delivered remarkable results across multiple key performance indicators. Ad revenue experienced a surge of 136%,² while Return on Ad Spend (ROAS) improved by an impressive 28%³ compared to the previous year. Perhaps most significantly, the campaign proved highly effective in acquiring new customers. New-to-brand (NTB) orders increased by 104%⁴ compared to the previous Prime Day, indicating strong success in expanding Lavazza's customer base. As Jessica Maldonado, the E-commerce and Digital Performance Manager at Lavazza, noted, "When the biggest traffic is on Amazon, we know it's going to get highly competitive, and we need to up our game. Intentwise helps us be present and make sure that our Lavazza brand is in a top position."

The success of this campaign has established a new blueprint for Lavazza's approach to major sales events. Moving forward, the brand plans to continue leveraging rapid retail analytics during all significant sales periods, recognizing that hourly optimization can make a substantial difference in campaign performance. This tool will enable Lavazza to not only analyze historical trends for strategic planning but also maintain flexibility in their bidding strategy as conditions change during sales events.

As Raghu Kashyap, CTO of Intentwise, observed, "Rapid retail analytics is a must-have for vendors who want to get ahead during major sales events. Amazon gives savvy brands incredibly sophisticated tools for experimentation. Those who take advantage can unlock dramatic improvements in their campaign performance." This case study demonstrates how combining historical analysis with real-time insights can transform advertising performance during crucial sales periods, setting new standards for success in digital retail advertising.

Sources

^1-4 Lavazza, U.S., 2023-2024.