Scaling Amazon Performance while Improving Profitability
Tempur Sealy International
Tempur Sealy International is the world’s largest bedding provider. The company develops, manufactures, and markets sleep and relaxation products under globally popular brands such as Tempur-Sealy, Tempur-Pedic, and Sealy.
The Challenge
Tempur Sealy sought to accelerate their revenue growth on Amazon while remaining profitable. They partnered with Rise to help them balance their promotional strategy and larger Sponsored Ad strategy to achieve total business goals, beyond just a strong ROAS.
The Strategy
Rise worked with Tempur Sealy to identify their margin costs along with historical ad and promotion performance to generate a set of goals that work for their profitability thresholds, from product line to ASINs. This led to an approach focused on growing market share while maintaining short-term margin and profitability KPIs. Additionally, Rise generated an advertising mix plan for Tempur Sealy that focused on incremental growth.
The multi-phased approach was not only supported by historical profitability metrics, but also customer phasing data to determine Tempur Sealy's greatest opportunities for seizing market share. By evaluating the brand’s retail readiness through customer data (such as reviews), Rise and Tempur Sealy were able to establish a more competitive identity while providing a better experience for the customer.
The Result
With this strategy, Rise determined essential measures for Tempur Sealy:
The Right Goals: Identifying KPIs that matter most to the brand’s bottom line
The Right Products: Aligning assortment to the brand's unique goals
The Right Process: Creating a long-term plan to reassess assortment support