Axalpha helps boost Daesang Japan's conversion rate by 50% to achieve best seller status with strategic ad management

Goals

Founded in 1956, Daesang Corporation is a major Korean manufacturer specializing in fermented foods, offering a wide range of products including the well-known kimchi brand Jongga. In Japan, these products have been sold on Amazon for over two years by their subsidiary Daesang Japan, established in 1979. Despite ongoing advertising efforts, the company faced the challenge of a rising advertising cost of sales (ACOS).

Daesang Japan aimed to optimize their advertising strategy and stabilize ACOS while sustaining long-term sales growth. Daesang Japan sought the expertise of Amazon Ads partner Axalpha, an Amazon-specific consulting agency in Japan. Axalpha began working with Daesang Japan in September 2022. Known for their early adoption of Amazon-focused consulting and management outsourcing services, Axalpha has a track record of helping a diverse range of clients, from startups to large corporations, achieve their sales goals.

Approach

Axalpha began by analyzing Daesang Japan’s sales goals and evaluating conversion rates (CVR) across products. They found that while some products had high CVR but low traffic, others had lower CVR, highlighting different challenges. Axalpha focused on increasing sessions for high-CVR products and improving product pages where CVR was low, while also boosting impressions to strengthen brand visibility.

Before launching and boosting ad campaigns, Axalpha focused on optimizing Daesang Japan’s product listings by integrating visually appealing imagery and compelling text to enhance product appeal, improve click-through rates, and create a more engaging shopping experience. The goal of this step was to help increase browsing sessions and drive sales.

Axalpha utilized Sponsored Products to secure top rankings for major brand keywords, leading to a consistent rise in sales. The strategy combined automated and manual ad setups, featuring campaigns that highlighted Daesang Japan’s products as well as competitor items to achieve more effective ad distribution.

To expand Daesang Japan’s ad reach, Axalpha implemented Sponsored Brands and employed vibrant product photography and compelling text to help customers discover their best-selling items. Axalpha also used the prominent visibility of Sponsored Brands ads to position Daesang Japan’s kimchi as the preferred choice among consumers, intending for impressions to reach shoppers already considering a purchase.

The goal was to help boost Daesang Japan’s share of impressions by more than 5% across various campaigns centered on their best-selling product, kimchi.

Results

Once the minimum impression share in the top search results for each campaign was achieved, Axalpha aimed to further enhance Daesang Japan’s visibility with daily ad adjustment. Recognizing Daesang Japan’s previous success in attaining best seller status during sales events like Prime Day, Axalpha also set a goal to secure best seller status outside of major sales events, facilitating consistent brand growth.

Within six months of partnering with Axalpha, Daesang Japan successfully reached best seller status¹ for their flagship product, Jongga Kimchi. Their conversion rate increased by 50%.² The increased conversion rate, along with a higher volume of orders, led to a 176% rise in ad impressions,³ contributing to overall sales growth. ROAS improved by 87.5%,⁴ while ACOS decreased by 6.7%.⁵ These outcomes supported steady growth in visibility and category performance.

Sources

^1-5 Advertiser-provided data, Japan, 2024.