Introduction to Branding and AI

To understand the role of artificial intelligence (AI) in branding, a thorough understanding of branding must be in place. It is more or less the take-off point of our knowledge and the firm base on which one can build.

The American Marketing Association defines a brand as

In simple words, the brand is the identity that creates a mark that keeps the firm or the product alive in the customers’ minds. Amidst the torrent of choices, a lasting brand keeps up the product’s glow in the customers’ minds and, by default, creating a permanent space in the market from where it can expand and grow. However, the catch is about juxtaposing the term “lasting” with the brand. And, when looked through an unfiltered lens, it can seem like a Herculean task. However, with a strategy filter, it is clear that creating a lasting brand is all about prudent and wise planning blended with creativity and innovation. When working toward this end, the prime place should be given to the customer since; ultimately, it is a satisfied customer that rockets the brand to a place of success. That’s where the how, when, and what of branding comes in.

How to satisfy the customer? What is the best strategy to make them stay? And the answer is straightforward yet complex, just like the Sphinx puzzle that Oedipus cracked with a tiny bit of sense. The customer visits when they feel special. When they are treated with a certain level of personal care adhering to their likes and dislikes, that’s when they feel at home and home, as we know, is where people stay. The next focus is on personalized customer care, which is where AI makes its entry. It offers a peek into the future while having a firm footing on the present and a cautious eye toward the past.

To answer the “how” related to AI, some success stories of certain brands have made that mark and established themselves as unique and special.

The Amazing Journey of Amazon

As a firm, Amazon doesn’t need any introduction. Every single human who has knocked on the door of online shopping and retail must indeed have met the king of retail whose throne has remained in the zenith of success for quite a long time. Despite the backbreaking competition, its position has remained atop, and it doesn’t seem like the global leader in retail is going to step down any time soon. With its high net worth that just crossed 170 billion USD, Bezos and Amazon are moving forward with its unstoppable energy.

Every success will have a story behind it. The key. The reason and, in a more dramatic sense, the trade secret. And, what is Amazon’s? Apart from excellent sales and great marketing strategies, what was the extra ingredient that accelerated its success? And, if it is not yet evident, it is nothing but the subtle art of employing AI that made all the difference. They tapped into the vast ocean of advancing technology and reaped the fruit. They call it “Flywheel.” Their approach to AI fueled their growth and success and still keeps doing so. In engineering jargon, a flywheel is a simple tool that stores rotational energy when a machine is not working at a constant level. It saves the energy that is usually lost while switching on and off and spreads it to other parts of the machine.

And, the flywheel approach keeps the innovation on track by spreading the energy and knowledge from one area to another. It’s a fine example of channeling the power from the matrix to specific parts, thereby powering up the whole. The innovation around machine learning in one area enhances the efforts of other teams, who employ this technology to fuel their products, thereby spreading the innovative streak throughout the organization. And, to add to this is Amazon was one among the pioneers who ventured into the then murky waters of AI, and inevitably, their courage to think out of the box paid off. And by default, it also enjoys the advantages that come with the territory of tapping into a field that experiences growth bursts day by day.

AI connects and maintains the balance between different parts of the firm. If the technical explanation is hard to comprehend, let us try to understand it through a very famous name. A name that has indeed become a household star and the most extraordinary proof that Amazon has managed to create its mark—Alexa. It was the most incredible machine learning stunt that was an absolute success. Alexa’s integrations with Amazon Music, Prime, and personalized product recommendations round off this picture. Another essential role of AI is how it caters to the recommendation engine, the primary revenue source, which is a perfect example of how personalized customer experience powered by AI can take a brand to the topmost position.

What paved the way for their success was the timely and innovative use of AI and the willingness to take up the risk of trying out a technology that was still a half foot present and half foot future. We all know what happened later; the rest is history.

The Mile Hike of Nike

Who can be a stranger to the smooth “swoosh” and the ringing words “Just Do It.” True to their essence, they just did it as well. Athletics is all about sportsman spirit and to rush forward with energy and confidence. And Nike, being one of the top brands that brought some of the finest and coolest sportswear, tapped into their spirit for novelty, and it made all the difference. With AI, they made sure that they have fitted shoes to top this competition to reach the top place in the market, and they did.

And, with their system that allows customers to design their sneakers in-store, Nike touches the finish line of personalized service. The trophy is visible in how Nike’s name spills out during any conversation that lurks around sports. The cleverness quotient is also intact because the sneaker designing is more than just a stunt to impress the customers. It helps to collect a considerable amount of data that can be used by machine learning algorithms to design future apparel and to deliver personalized recommendations. Talk about pairing innovation with intelligence, and it’s evident that Nike has bagged it. And, as it is apparent, AI has equipped the brand to face any race and retain its position without fail. And, the brand can shout with its head held high, “Just Do It.”

Success Behind Starbucks

The aromatic cup of coffee with its mesmerizing flavors and old-school charm and “Starbucks” might have already crossed your mind. Starbucks uses its loyalty card and mobile app to collect customer data, which can be productively used to offer personalized customer service. Anyone will be happy to see recommendations made, especially according to their preferences while driving into a cafe, and that happiness is widely reflected in Starbucks’ sales success. It uses predictive analytics to achieve this end, and also the virtual barista app powered by AI adds a perfect frame to this picture.

This prudent use of technology helped Starbucks keep up its pace and place with the avalanche of competition and come out unscratched and victorious. It is all about strategy and planning and a pinch of confidence to think out of the box, not very different from the courage one needs while switching from Frappuccino to Vanilla Latte. The courage that results in a happy experience, which makes the risk worth it.

Coca-Cola: The King of Soft Drinks Market

1.9 billion drinks, 500 brands, 200 countries. The daunting numbers aren’t a matter of concern for Coca-Cola because it’s fuel is sourced from the advancing domain of AI, which smoothens the rough patches and hard turns. It is with the help of AI that the company keeps a balance between the multitude of choices and the corresponding amount of data. They prudently use their vending machines fitted with AI algorithms that promote drinks and flavors most likely to be preferred in diverse locations. The company also uses AI in social media to analyze customer preferences and choices.

Suppose we talk about a company with a long-standing legacy, Coca-Cola. There would always be a curious question as to how the empire kept standing despite the advent of newer brands and challenging competition. The answer is as simple as it’s tricky. They upgraded themselves with time and technology, keeping a sharp focus on the market’s pulse and customers’ preferences. Their road to success is smooth now because they put in efforts in the base labor, which is paying off now.

These are very few among the long list of success stories written by the ink of advancing technologies like AI, making a world of difference in branding and marketing. AI is no longer a nebulous domain filled with hazy mazes. It has evolved and is evolving into a promising technology that can rocket businesses to the top of the market.