How Nestlé is using AI to set creative rules for its 15,000 marketers?
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Starting Feb 2023, Nestlé is using AI to set creative rules for its 15,000 marketers to improve the effectiveness and efficiency of their marketing campaigns.
Specifically, they are using an AI system called "Cortex" to provide creative guidelines and guardrails to ensure brand consistency and compliance with advertising standards.
This move is likely to lead to increased demand for Nestlé's products and potentially set a chain of actions amongst leading food industry players, especially if other companies adopt similar AI-driven marketing strategies.
The top 3 areas where this can impact significantly in the future:
- Personalization - By using AI to analyze customer data, Nestlé can better understand the preferences and behavior of individual consumers and create personalized marketing campaigns that are tailored to their specific needs and interests. This could lead to more targeted and effective advertising, as well as more loyal customers.
- Innovation - By using AI to analyze market trends and customer feedback, Nestlé can identify emerging opportunities for product development and innovation. This could lead to the creation of more appealing and innovative food products that meet changing consumer demands and preferences.
- Sustainability - Nestlé has stated that it is using AI to help it achieve its sustainability goals, such as reducing waste and improving the environmental impact of its products. By using AI to optimize its supply chain and production processes, Nestlé could reduce its environmental footprint and appeal to customers who are increasingly concerned about sustainability. This could have a positive impact on the food industry as a whole by promoting more sustainable and responsible practices.
Which other 5 industries which depend upon food will get impacted?
The food industry is a complex ecosystem that includes many different sectors and industries, and the impact of Nestlé's AI-driven marketing strategies on these industries will depend on various factors. Here are five industries that could potentially be impacted by Nestlé's use of AI in their marketing campaigns:
- Retail industry - Nestlé's AI-driven marketing strategies could potentially impact the retail industry, as retailers may need to adapt their marketing strategies to keep up with Nestlé's more targeted and effective campaigns. Retailers may need to find ways to incorporate AI and data analytics into their marketing efforts to remain competitive
- Foodservice industry - The foodservice industry, which includes restaurants and catering companies, could also be impacted by Nestlé's AI-driven marketing strategies. If Nestlé's more effective marketing campaigns lead to increased demand for their products, restaurants and catering companies may need to adjust their menus and offerings to meet customer demand.
- Advertising industry -Nestlé's use of AI to generate creative guidelines and guardrails for its marketers could potentially impact the advertising industry as a whole. If more companies adopt similar AI-driven marketing strategies, it could change the way advertising agencies operate and the skills that are in demand.
- Agriculture industry - Nestlé's sustainability goals and use of AI to optimize its supply chain and production processes could have a positive impact on the agriculture industry. If Nestlé is able to reduce waste and improve its environmental impact, it could encourage other food companies to adopt more sustainable practices as well. This could potentially lead to more sustainable and responsible agriculture practices.
- Technology industry - Nestlé's use of AI in their marketing campaigns could also impact the technology industry, as it highlights the importance of AI and data analytics in the modern business landscape. Companies that provide AI and data analytics solutions could see increased demand for their services as more businesses seek to incorporate these technologies into their operations.
Top 5 countries that are highly likely to be impacted in near future:
If you live amongst any of the below countries, you are likely to see the impact more than others
Nestlé is a global company with operations in many countries, and its use of AI in its marketing strategies could potentially impact a wide range of countries. Here are five countries that could potentially be impacted by Nestlé's use of AI in its marketing:
- Switzerland - Nestlé's headquarters are in Vevey, Switzerland, and the company has a significant presence in the country. The use of AI in Nestlé's marketing strategies could lead to increased demand for the company's products, which could benefit the Swiss economy.
- United States - The United States is one of Nestlé's largest markets, and the use of AI in marketing could potentially help the company to better target American consumers. This could lead to increased demand for Nestlé products in the US and potentially benefit the US economy.
- China - Nestlé has a significant presence in China and has made a concerted effort to expand its operations in the country. The use of AI in Nestlé's marketing strategies could help the company to better understand Chinese consumers and improve its marketing efforts in the country.
- Brazil - Nestlé is a major player in the Brazilian food and beverage market and has made significant investments in the country. The use of AI in Nestlé's marketing strategies could help the company to better target Brazilian consumers and potentially increase demand for its products in the country.
- India - Nestlé has a significant presence in the Indian market and has been expanding its operations in the country. The use of AI in Nestlé's marketing strategies could help the company to better understand Indian consumers and improve its marketing efforts in the country, potentially leading to increased demand for Nestlé products in India.
What will be the impact of this deal in next 5 years at global level?
It is difficult to predict with certainty the exact impact of Nestlé's use of AI in its marketing strategies over the next five years at a global level. However, there are several potential outcomes that could result from this development:
- Increased demand for Nestlé products - If Nestlé's use of AI in its marketing strategies is successful in improving the effectiveness of its campaigns, it could lead to increased demand for the company's products. This could result in increased sales and revenue for Nestlé over the next five years.
- Adoption of AI-driven marketing strategies - If Nestlé's use of AI in its marketing strategies proves to be successful, it could encourage other companies in the food and beverage industry to adopt similar AI-driven marketing strategies. This could lead to a broader shift towards AI-driven marketing strategies in other industries as well.
- Advancements in AI and machine learning technology - Nestlé's use of AI in its marketing strategies could contribute to advancements in AI and machine learning technology more broadly. As more companies adopt AI-driven marketing strategies, it could lead to increased investment in AI and machine learning research and development, resulting in new and more advanced technologies.
- Improved sustainability and responsible production practices - Nestlé's sustainability goals and use of AI to optimize its supply chain and production processes could lead to improved sustainability and responsible production practices in the food and beverage industry. If other companies follow Nestlé's lead, it could lead to more sustainable and responsible practices in the industry as a whole.
Overall, it is likely that Nestlé's use of AI in its marketing strategies will have a significant impact on the company over the next five years, as well as potentially contributing to broader changes in the food and beverage industry and in AI and machine learning technology.
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