Brand Management

Case Assignment - Tailor Brands: Artificial Intelligence -

Driven Branding

Submitted To: Submitted By:

Prof. J. Daniel Inbaraj Kunal Sehgal 22PGP025
Ankita Kumar 22PGP028
Akshit Johri 22PGP057
Samiksha Jain 22PGP077
Saurabh Kumar 22PGP284
Assignment Questions

1. Go to tailorbrands.com and create a free brand logo for an organization that is

important to you. Based on your experience as a consumer, how would you rate
the service? By which criteria are you assigning your rating?

"We made the logo for a brand of kids' watches, we gave the input, and we are in the idea
generation phase and want a brand logo based on which we made this logo.

1. Ease of Use: The Tailor Brands platform was relatively easy to use when
creating the logo for my kids' watch brand. While we didn't encounter major
challenges, there were moments when the process could have been even more
intuitive.
2. Personalization: We found that Tailor Brands offered a moderate level of
personalization. However, the AI-generated logos didn't fully align with my
specific vision for the kids' watch brand. More options for customization would
have been appreciated.
3. Design Options: There were design options available, but we felt that the variety
and quality of choices could have been more extensive. We had to spend some
time searching for designs that closely matched the identity we had in mind for
my brand.
4. Customization Tools: The customization tools provided by Tailor Brands
allowed me to make some adjustments to icons, colors, layout and fonts, but they
were somewhat limited in terms of making precise changes to fully match our
preferences.
 5. Download Options: The download options were satisfactory. Although we were
not able to obtain the logo in the format we needed. However, we did consider
the cost and quality of the files when making my decision.
6. Subscription Plans: We did explore the subscription plans available on Tailor
Brands. While they offered some flexibility, We preferred a more basic plan as
we didn't see significant added value in the higher-tier plans for my specific logo
creation needs.

7. Customer Support: Our interaction with customer support was minimal, as we

didn't require extensive assistance during the logo creation process. The platform
was relatively self-explanatory. The chat bot of the website provided the solution
to a query by giving articles to read.

2. How strong/weak is Tailor Brands' brand value proposition? Why? What

contributes to its strength and what contributes to its weaknesses? If you were
running the brand, how would you improve the value proposition?
Tailor Brands' brand value proposition is very strong. It is a company that uses artificial
intelligence to help businesses create professional-looking logos and branding materials
in minutes. This is a valuable proposition for many businesses, especially small
businesses that do not have the resources to hire a professional designer. However,
Tailor Brands' brand value proposition appears to have both strengths and weaknesses,
which are as follows:

Strengths Weaknesses

Affordability: The platform offers cost- Limited Design Depth: The AI-driven
effective branding solutions, making it approach may result in logos that lack the
accessible to startups, small businesses, depth, uniqueness, and creativity that
and individuals with limited budgets. professional designers can provide.

Ease of Use: Tailor Brands emphasizes Design Quality and Uniqueness:: The
a user-friendly, straightforward process, AI algorithm might struggle to produce
making it easy for non-designers to create logos that stand out, potentially affecting
logos and other branding materials brand recall and recognition.
without the need for extensive design
skills.

AI-Powered Design: The use of artificial Perceived Lack of Creativity: Some

intelligence for logo design allows for critics argue that the automated process
quick and automated logo generation, might lack the creativity of a human
saving users time and effort. designer.

Product Range Expansion: Expansion Template-Based: Tailor Brands relies on

of the product range from logos to other templates, which can limit the originality
branding tools and services, like of the designs. Users may find that their
presentation templates, business decks, logos resemble those of other businesses
and social media designs strengthens the that use the same platform.
brand's value proposition by providing a
comprehensive branding solution.

Fast Turnaround: Users can create

logos and branding materials relatively
quickly, which can be advantageous for
businesses that need a logo in a short
timeframe.

Recommendations for Improvement:

 ● Enhance Customization: Provide users with even more advanced customization
options, allowing them to have greater control over every aspect of the design.
● Continuous AI Improvement: Invest in ongoing AI development to improve the
algorithm's creativity and ability to produce unique and memorable designs.
● Feedback Loop Integration: Implement a feedback loop system where users'
feedback on generated designs contributes to refining the AI algorithm.
● Expand Customer Support: Strengthen customer support channels to address
user queries promptly and offer assistance throughout the branding process.
● Highlight Success Stories: Showcase success stories of businesses that have
effectively used Tailor Brands for branding, emphasizing the positive outcomes.
● Collaboration Opportunities: Explore partnerships with other creative platforms or
designers to offer users additional options for customization or advanced design
services.

By addressing these recommendations, Tailor Brands could enhance its value proposition
by providing a more personalized, creative, and comprehensive branding experience for
its users.

3. What does it take to create a world-class brand? Can Tailor Brands' artificial
intelligence platform achieve this goal? Why or why not?

Creating a world-class brand involves a combination of strategic elements, creativity,

consistency, and resonating with the target audience. Let's evaluate how Tailor Brands'
artificial intelligence platform contributes to this goal:

Brand Strategy: A world-class brand starts with a clear and well-defined brand strategy.
This includes defining your brand's personality, values, and mission, as well as identifying
your target audience and understanding your unique value proposition. Tailor Brands'
platform may not offer the strategic consulting and in-depth brand analysis needed to
create a comprehensive brand strategy.

Consistency: Branding relies heavily on consistency. A world-class brand keeps its

identity consistent across all touchpoints, from logos and colour schemes to messaging
and customer experiences. While Tailor Brands can assist in the creation of a logo, it
cannot guarantee consistency across all branding elements and customer interactions.

Originality and Creativity: World-class brands are frequently known for their originality
and creativity. Tailor Brands' AI-driven approach is template-based, which may result in
less unique or creative designs. Originality and creativity may necessitate the assistance
of human designers.

Customer Experience: Delivering exceptional customer experiences is essential to

building a world-class brand. This includes how customers are treated, the quality of
products or services, and how the brand interacts with its audience, in addition to logo
design. AI cannot manage the customer experience on its own.

Adaptability: World-class brands must be able to change in response to changing market

conditions and consumer preferences. This necessitates ongoing brand management
and evolution, which may be outside the scope of an AI platform like Tailor Brands.

Emotional Connection: Successful brands frequently form emotional bonds with their
customers. This necessitates storytelling, community-building, and engagement efforts
that an AI platform may not provide.

Cultural Sensitivity: Brands must be sensitive to cultural differences and relevant to their
target markets. Understanding cultural nuances and adapting branding to fit is a labor-
intensive process.

Marketing and Promotion: Brand visibility and growth require effective marketing and
promotion. While AI can help with data analysis and marketing automation, successful
marketing campaigns typically require human creativity and strategic thinking.

In conclusion, while Tailor Brands' AI platform can help with logo design and some
branding materials, it may not cover all of the elements needed to build a world-class
brand. Achieving world-class status usually necessitates a comprehensive approach that
includes strategy, creativity, consistency, customer experience, and adaptability. To truly
achieve world-class status, Tailor Brands' platform should be supplemented with other
branding efforts and possibly the expertise of human designers and brand strategists.

4. Analyze Tailor Brand's process for generating a brand. How could you improve
the process to increase the value of the brands created? What's missing from the
process or what could be enhanced to make it better? Why?

The Tailor Brands user experience is designed to replicate the interactive process
between a client and a designer, allowing users to create a professional-quality brand
logo in minutes without requiring design or technical skills. The process involves the
following steps:
Input Information:

● Enter the business name, industry, and a short business description.

● Choose a logo type: icon-based, text logo, or initial-based.

Logo Design Selection:

● Engage in eight rounds of a choice task named "This or That?" where users choose
between two logos or neither.
● View 6–12 AI-generated logos and assess how they appear across various media.

Customization:

● Customize logo designs by changing colors, texts, or fonts using do-it-yourself

tools.

Registration and Subscription:

● Register by providing an email address.

● Choose a subscription plan to purchase the new logo, with options for immediate
subscription cancellation post-purchase.

Download:

● Download the logo as a personalized design file with full commercial and usage
rights.

The company aims to make the user experience akin to working with an actual designer,
involving a brief game-like process of selecting preferences. Users can generate a logo
and download a low-resolution version for free, with options for subscription-based plans
providing high-resolution logos and additional branding tools. The subscription plans
include a basic plan ($2.99 per month billed annually or $9.99 month-to-month) and a
premium plan ($10.99 per month billed annually or $49.99 month-to-month). The premium
plan offers a vector EPS file, which is editable and scalable for high-quality printed
images.

Tailor Brands introduced subscription plans in May 2017, replacing a fixed-fee pricing
structure. Customers are assured they can use their design files even after cancelling
their subscription, as long as the files are saved to their computers before cancellation.
However, post-subscription end users lose the ability to download their logo or access
branding tools on the Tailor Brands website.
In order to increase the value of the brands created, there are some improvements that
the company can do:

1. Enhanced Customization:
● Current State: While there is some customization, enhancing this aspect would
allow users to have more control over the final design.
● Improvement: Implement advanced customization tools, enabling users to modify
design elements more extensively.

2. Quality of AI-Generated Logos:

● Current State: The AI may sometimes produce logos that users find generic or
less creative.
● Improvement: Invest in refining the AI algorithms to consistently generate high-
quality, unique, and creative designs.

3. User Feedback Integration:

● Current State: Tailor Brands mentions learning from users but doesn't explicitly
detail how user feedback shapes improvements.
● Improvement: Develop a more transparent feedback loop, actively soliciting and
incorporating user suggestions in the platform's evolution.

4. Advanced Design Preferences:

● Current State: The "This or That" choice task may not capture nuanced design
preferences effectively.
● Improvement: Implement more sophisticated design preference gathering
methods, possibly through interactive quizzes or a wider variety of choice
scenarios.

5. High-Resolution Downloads for Free Users:

● Current State: Free users receive a low-resolution version; high-resolution

requires a subscription.
● Improvement: Offer higher resolution downloads for free users on a limited basis
or as part of a referral program.

6. Collaborative Design Features:

● Current State: The process is user-driven; collaboration features are limited.

● Improvement: Introduce collaborative tools, allowing users to invite team
members for feedback and collaboration during the design process.
7. Storytelling and Brand Guidance:

● Current State: While there are tutorials and guides, there's room for a more
engaging narrative around brand creation.
● Improvement: Develop interactive guides or videos that guide users in not just
creating a logo but understanding the essence of brand storytelling and identity.

These improvements were required because of the following reasons:

● Enhancing customization and integrating user feedback ensures that the platform
caters to diverse user preferences, fostering a sense of ownership.
● Improving the quality of AI-generated logos and offering high-resolution downloads
to free users can set Tailor Brands apart from competitors, attracting a larger user
base.
● Advanced design preference gathering and more sophisticated tutorials empower
users with a deeper understanding of design principles, contributing to better brand
creation.
● Introducing collaborative features acknowledges that brand creation is often a
collaborative process. This attracts businesses and teams looking to collectively
shape their brand.
● By guiding users not just in logo creation but in understanding brand identity, Tailor
Brands can foster long-term relationships, positioning itself as an educational
partner in brand development.

5. How would you assess the move to a subscription pricing model? What is likely
to happen to Tailor Brand's brand equity and customer equity as a result of this
change?

To assess the move to a subscription pricing model, we will look at the advantages which
will be received:

● Subscription models provide a predictable and recurring revenue stream,

enhancing financial stability.
● Subscribers are more likely to continue using the platform, fostering customer
loyalty and reducing churn.
● Subscription plans often include additional services and features, increasing the
perceived value for customers.
● Subscription plans offer different tiers, providing flexibility for users to choose
based on their needs and budget.

In order to make the customers consider these services, they need to see that:
 ● The success of the subscription model depends on how well users adapt to paying
regularly for the service.
● The pricing model should align with the perceived value, especially considering the
presence of competitors with alternative pricing structures.
● Tailor Brands needs to continuously ensure that the value provided justifies the
subscription cost to retain customer satisfaction.

As a result of these changes, the impact on brand’s equity and customer equity can be:
1. Impact on Brand Equity:

● The move can enhance brand equity by signalling stability, improved services, and
a commitment to long-term customer relationships.
● If customers perceive the subscription plans as providing significant added value,
it can positively influence brand perception.
● Subscription models often foster brand loyalty as customers commit to the service
on an ongoing basis.

2. Impact on Customer Equity:

● Subscription models contribute to customer retention, thereby increasing the

overall customer lifetime value.
● The introduction of subscription plans may lead to increased engagement with the
platform as users seek to maximise the benefits of their subscription.
● Satisfied subscribers are likely to become advocates for Tailor Brands, contributing
to positive word-of-mouth marketing.

In order to gain success for this change, the company can look into:

● Clearly communicate the benefits of the subscription model, emphasizing added

value and ongoing improvements.
● Offer tiered subscription plans to cater to different user needs, providing flexibility
and accommodating a broader user base.
● Actively gather customer feedback and be prepared to adapt the subscription
model based on user preferences and market dynamics.
● Continuously introduce value-added features to make the subscription more
appealing and aligned with user expectations.

6. How would you assess the expansion of Tailor Brand's product assortment? Will
consumers find value in it? Why or why not?

The assessment of Tailor Brands' Expansion of Product Assortment is as follows:

Advantages

1. Comprehensive Branding Solutions:

Tailor Brands' expanded product assortment offers a wide array of branding tools,
providing users with a holistic solution beyond just logo creation. This inclusivity ensures
that users can address various aspects of their brand identity using a single platform.

2. Consistency in Branding:

By offering additional products, Tailor Brands helps users maintain brand consistency
across diverse platforms and materials. Consistency is crucial in establishing a
recognizable and trustworthy brand identity, and these tools contribute significantly to
achieving this goal.

3. Time Efficiency:

The platform's expanded toolkit allows users to save time and effort. By offering tools for
multiple aspects of branding, from presentations to social media posts, Tailor Brands
enhances efficiency, making it a go-to choice for users aiming to streamline their branding
efforts.

4. Professionalism:

Inclusion of tools like presentation templates and business card designs elevates the
professional image of brands using Tailor Brands. These professionally crafted materials
can leave a lasting impression on clients and partners, enhancing the credibility of
businesses utilising the platform.

Considerations

1. Perceived Value:

The success of Tailor Brands' expanded assortment depends on whether users perceive
value in the additional tools and services offered. Tailor Brands must effectively
communicate the utility of these tools to ensure users understand the value they bring to
their branding efforts.

2. User Adoption:

Users may or may not fully adopt the entire suite of tools. Tailor Brands needs to ensure
that each tool addresses a genuine need for its users. Understanding user behaviour and
preferences is crucial in refining the assortment to cater to the actual requirements of the
user base.
3. Competitive Landscape:

Tailor Brands must align its value proposition with or surpass offerings from competitors.
Continuous market analysis is essential to stay ahead of the competition and ensure that
the assortment remains attractive and competitive in comparison to similar services in the
market.

4. Consumer Value Perception:

Positive Value Perception:

Users seeking an all-in-one branding solution may find significant value in having various
tools accessible in one platform. This convenience can attract businesses and individuals
looking for efficiency and effectiveness in their branding endeavours.

Enhanced Creativity:

The diverse tools provided by Tailor Brands may empower users to explore and enhance
their creativity. A platform that encourages creativity can attract a wide range of users,
from startups to creative professionals, seeking unique and dynamic brand
representation.

Professional Output:

Small businesses and freelancers may find immense value in the ability to create
professional materials such as presentations and business cards. Tailor Brands' tools can
serve as a cost-effective solution for professionals who may not have the resources to
hire design agencies for such tasks.

Mitigation Strategies

1. Educational Resources:

Tailor Brands should invest in providing tutorials and educational resources. These
resources can guide users on effectively utilising the expanded assortment, ensuring they
derive maximum value from the platform. Knowledgeable users are more likely to make
the most out of the available tools.
2. User Feedback Integration:

Continuous gathering of user feedback is vital. Tailor Brands should actively seek user
opinions to understand which tools are most valued and to identify areas for improvement.
User feedback serves as a goldmine of information, allowing Tailor Brands to make data-
driven decisions to enhance its offerings.

3. Customization Features:

Offering customization features within subscription plans is crucial. Allowing users to

select only the tools they need prevents potential overwhelm. Tailor Brands can
implement tiered subscription models, ensuring users have the flexibility to choose tools
based on their specific branding requirements and budget constraints.

Conclusion

The expansion of Tailor Brands' product assortment holds substantial potential value,
especially for users seeking comprehensive and efficient branding solutions. The
platform's success in this endeavour will depend on several key factors: effective
communication of the benefits to users, continuous user education, and a flexible
approach that enables users to tailor their usage based on their specific branding needs.
By addressing these considerations and implementing the suggested mitigation
strategies, Tailor Brands can maximise the value proposition of its expanded product
assortment, making it a preferred choice for individuals and businesses looking to
enhance their brand identity seamlessly and professionally.

7. Would you invest in Tailor Brands as a venture investor? Why or why not?

Investing in Tailor Brands would depend on various factors, including the investor's risk
tolerance, investment goals, and evaluation of the company's potential.
Positives:

1. Innovative Use of AI in Branding: Tailor Brands leverages AI in a creative field,

which is a pioneering move. This application of AI could potentially revolutionize
how brands approach their visual identities.
2. Strong User Base and Engagement: The fact that Tailor Brands has over
600,000 users actively designing on their platform is a promising sign. It indicates
a substantial demand for their service and suggests a level of customer
satisfaction.
3. Iterative Learning for Improved Designs: Tailor Brands' approach to learning
from user input and refining their design algorithms is in alignment with the
principles of continuous improvement in branding. This iterative process can lead
to more effective brand designs.
4. Diversification of Offerings: Expanding beyond logo design to offer a suite of
brand management tools demonstrates a strategic move towards providing end-
to-end solutions for brand identity. This diversification can enhance customer
loyalty and revenue streams.

Considerations:

5. Subjectivity in Design: The field of design is inherently subjective, and creating

a universally appealing brand identity is challenging. Tailor Brands must navigate
this subjectivity to ensure their designs resonate with a diverse audience.
6. Competition in the Design Industry: The design and branding sector is highly
competitive, with established players and new entrants vying for market share.
Tailor Brands would need a clear differentiation strategy to stand out.
7. Technological Reliance: Given that Tailor Brands' success hinges on the
effectiveness of its AI algorithms, any technical glitches or limitations could lead
to dissatisfaction among users.
8. Monetization and Profitability: While Tailor Brands has a large user base, it's
important to scrutinize their revenue model and assess its sustainability.
Additionally, understanding their path to profitability is crucial for long-term
viability.
9. Scalability and Execution of Vision: The ambition to become a fully automated
branding agency is commendable but also poses challenges in terms of
scalability and flawless execution. This would require a robust infrastructure and
strategic partnerships.

I would cautiously consider investing in Tailor Brands as a venture investor. The

company's innovative use of AI in branding, substantial user base, and commitment to
iterative learning are commendable. Additionally, their expansion into a suite of brand
management tools demonstrates a strategic vision for growth.