Tailor Brands' mission is to "help build a brand that stands out." Right now, the company focuses on a simple, no skills required, quality logo in under ten minutes. It encourages branding by giving small businesses the opportunity to come up with their own generated logos in minutes at a very affordable price. Now, the founders of the company are looking into improving their services. They can still focus on some of these, but their mission should be refined slightly. Developing a logo that defines business and provides brand recognition allowing you to leverage that logo can take longer than 10 minutes, but it can remain cost-effective and straightforward.
Harvard Business Review (519017-PDF-ENG)
August 06, 2018
Case questions answered:
- If you were asked to take over as the CEO of the company Tailor Brands, what changes (if any) would you make to focus on the company? What will be your primary target market and why?
- Can algorithms, machine learning, and artificial intelligence help Tailor Brands outperform graphic designers and branding agencies in developing brand identities? And, can Tailor Brands differentiate itself from the many other logo generators popping up in the market?
- Choose between growing or walking away from the company. Explain your position.
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Case answers for Tailor Brands: Artificial Intelligence-Driven Branding
1. If you were asked to take over as the CEO of the company Tailor Brands, what changes (if any) would you make to focus on the company? What will be your primary target market, and why?
Tailor Brands has a unique position within the branding and marketing markets that have captured twenty percent growth despite having an abundance of substitutes available. The growth of this simplistic logo design creator has been driven primarily by the companies vast social media presence.
As far as maintaining this type of growth year after year, it is not likely with the numerous substitutes available which offer very similar value propositions at equal price points or, in some cases, no cost at all to the consumer. Lacking from this study is the relevant financial data necessary to tell the whole story of Tailor Brands.
Tailor Brands currently services five million businesses, but the circumstances around these are not disclosed. The primary concern comes from the current revenue structure in that Tailor Brands only gets paid if the consumer is happy with the result and opts to pay either the monthly amount or the lump sum annual fee.
The ownership of the logo is transferred upon payment, and the customer can cancel immediately and take the image to any other competitor to receive favorable pricing on the products they desire to market their business.
The target market for Tailor Brands should focus on young professionals, small businesses, and entrepreneurs looking for a low-cost, simple, time-saving alternative utilizing new technological advances such as AI to help create a brand identity. Younger generations tend to be early adopters of new trends and technology. Reaching these customers first can help increase our brand awareness and customer base. The saying goes: there is no free lunch.
Many entrepreneurs and start-up companies need to invest much more time into refining their business models and do not have the time to invest in a previously cumbersome process of designing a logo or creating a brand. The time-efficient and straightforward process allow them to be able to create a brand in a short time, allowing them to focus on different and possibly more important aspects of their business. The younger generation seems to be drawn to technology, targeting young professionals through the ever-popular social media, which can increase their reach to new clients.
Also, running referral programs such as a discount on monthly subscriptions can help increase brand awareness. As we refine our process of creating logos through customer feedback, we can try and target more prominent firms, as a low-cost alternative to their previously expensive design process. Customer testimonials and successful logos will increase our recognition among more prominent firms, as they tend to be later once the kinks have been worked out, and the processes are shown to be successful.
2. Can algorithms, machine learning, and artificial intelligence help Tailor Brands outperform graphic designers and branding agencies in developing brand identities? And, can Tailor Brands differentiate itself from the many other logo generators popping up in the market?
The AI-based system has many benefits that make it ideal for businesses to utilize. The most significant advantage is that the AI allows the customer to receive a more customized and relevant experience in the creation of a logo and marketing plan/materials. This value proposition needs to be the primary focus for sustainable growth.
There are twenty-four alternatives listed that are in direct competition for Tailor Brands market share. Of these substitutes, over twenty percent are no-cost options that would be the apparent decision of many of the businesses within the target market. Among the remaining competitors, Tailor Brands is…