In the age of artificial intelligence (AI), food brands have a unique opportunity to stand out and win consumer loyalty. However, this challenge requires smart, informed strategies. Below, we explore how companies can succeed in this competitive digital environment.
1. Develop the best digital datasets
- Prioritise quality over quantity: In a world awash with data, quality trumps quantity. It is crucial to collect and analyse accurate and relevant consumer data to deliver personalised and effective experiences. Well-curated data enables brands to better understand their customers’ needs and preferences, facilitating more informed decisions and better marketing strategies.
- The human experience is more important than ever: While AI is powerful, human experience and judgement remain essential. Analysts and marketers must interpret data and translate it into actions that reach consumers. The combination of human intuition and advanced analytics can generate more creative and authentic campaigns.
- Pay attention to private labels: Private labels represent significant competition. To tackle them, the focus should be on differentiation and building a strong, recognisable identity. Data can help identify which elements resonate most with consumers and how to strengthen the brand’s value proposition.
- Use DTC to access more data: The Direct-to-Consumer (DTC) model allows brands to collect valuable data directly from their customers, without intermediaries. This strategy not only facilitates a better understanding of consumer behaviour, but also improves service personalisation and customer loyalty.
2. Act as a competing brand to navigate a “real time world”
- Be faster to be first: In a fast-paced market, speed is key. Brands must be prepared to respond and adapt quickly to consumer trends and demands. The ability to be the first to react can provide a significant competitive advantage.
- Winning the race for “white space”: Identifying and exploiting opportunities not yet saturated by competitors is crucial. Brands that succeed in discovering and exploiting these “white spaces” will be able to capture unexplored market segments and gain ground quickly.
- Targeting profitable “niches”: Focusing on specific niches allows brands to offer highly customised products that meet particular needs. These niches, although smaller, can be extremely profitable due to the loyalty and engagement of their consumers.
- Use algorithms to power innovation: AI algorithms can analyse market trends and behaviours to inspire and guide innovation. Brands should use these tools to develop new products and services that anticipate and meet future consumer demands.
3. Target consumers earlier and collaborate with “technology gatekeepers”
- Focus on the ‘sub-zero moment of truth’: Engaging early with consumers allows brands to create stronger and more lasting connections. In addition, collaborating with technology companies and digital platforms can provide strategic advantages, such as access to advanced technology and new distribution channels.
- Ensure AI food algorithms choose your brands: It is vital that brands ensure their visibility in AI-generated recommendations. This involves optimising product data and collaborating with platforms to ensure that algorithms prioritise their offerings.
4. Get more personal
- Tapping into specific and localised tastes: Data-driven personalisation allows brands to tailor their products and messages to local and individual preferences. This increases relevance and emotional connection with the consumer.
- Use dynamic pricing intelligently: Dynamic pricing, adjusted in real time according to demand and other factors, can maximise profits. However, they must be implemented in a way that consumers perceive value, not unfairness.
- Monetise personalised nutrition: With the growing interest in health, offering products that are tailored to individual nutritional needs can be highly lucrative. Brands should leverage technology to develop personalised solutions that promote consumer wellness.
5. Exploiting the (inevitable) counter-trend
- It is important to recognise and capitalise on counter-trends. As AI and technology advance, some consumers will seek more traditional, less tech-savvy options. Brands that can balance innovation with an authentic human touch will be better positioned to satisfy all market segments.