Tailor Brands: Artificial Intelligence-Driven Branding

Submission by:

Ayushi Gupta

Panguluri Sarvani

Raghav Agarwal

Rashmi Jain

Surabhi Arya

Vaibhav Tiwari
 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?

The above shown logo was generated for HUL (Indian subsidiary of Unilever). Based on my
experience I would rate the service somewhere around 4 out of 5. The reason being as follows

● Quality of logos: The quality of logos seems to be as per my expectation since I wanted
something that was minimal and actually carried an essence of premiumness
● Variety of logos: The was a good number of options available for me to choose from
● Customization options: I had the options to customize the logo on various aspects such
as font style, presentation, etc.
● Ease of use: The site was user friendly and asked the right amount of questions for one
to generate a logo.
● Affordability: The pricing seems to be competitive when you compare various logo
generation sites

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: Create a professional brand identity in minutes.

This value proposition is effective because Tailor Brands' target market of small businesses and
entrepreneurs will find it to be clear, succinct, and pertinent. Additionally, it makes a bold claim: clients
can quickly and easily establish a professional brand identity without any design knowledge or
experience.
The value proposition of Tailor Brands does have some flaws, though. First, some clients might not
believe that a professional brand identity can be created in a matter of minutes. Second, Tailor Brands'
distinct advantages over alternative branding solutions are not emphasized in the value proposition.

Following are some suggestions for how Tailor Brands could strengthen its value proposition:

· Consider the special advantages of working with Tailor Brands: With the aid of artificial intelligence,
Tailor Brands assists clients in developing a brand identity that is personalized to their particular
requirements and sector. Tailor Brands could highlight this special benefit in its value offer.

· Give further details regarding the length of time needed to develop a brand identity: Tailor Brands
might state that consumers can establish a brand identity in a small portion of the time it would take
to work with a conventional branding agency instead of making the claim that they can do it in a
matter of minutes.

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

Developing a world-class brand requires a corporation to:

· Clearly communicate your brand's story: What distinguishes your brand? What do you believe in?
What makes consumers care? From your website to your marketing collateral to your customer
service contacts, your brand story needs to be delivered consistently.

· Offer top-notch goods or services: Your company's reputation is only as strong as the goods or
services you provide. Aim to continually meet and exceed client expectations with your services.

· Make the consumer experience better: Each encounter a customer has with your brand has to be
satisfying and memorable. This entails being accommodating, helpful, and willing to go above and
above.

· Establish a solid emotional bond with your customers: When consumers engage emotionally with a
brand, they are more likely to stay loyal to it. Storytelling, shared ideals, and experiences can do this.

The artificial intelligence platform from Tailor Brands can assist businesses in developing a distinctive
brand identity, but it cannot develop a top-tier brand by itself. Companies must concentrate on the other
factors mentioned above, such as providing high-quality goods or services, a superior customer
experience, and forging a strong emotional bond with clients, in order to accomplish this goal.
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?

Tailor Brands is known for its artificial intelligence-driven approach to brand creation. The process
involves using AI algorithms to generate brand identities, including logos, business cards, and other
branding materials. To analyze and improve this process, we can consider several factors:

Strengths of Tailor Brands' Process:

● Efficiency: Tailor Brands' process is highly efficient, providing users with brand assets quickly and
at a lower cost compared to traditional branding agencies.

● Affordability: The cost of using Tailor Brands is typically lower than hiring a professional branding
agency, making it accessible to small businesses and individuals.

● User-Friendly: The platform is user-friendly and requires no design skills, making it accessible to
a wide audience.

● AI-Powered Customization: AI helps in tailoring brand assets to user preferences and business
needs.

Areas for Improvement:

● Creativity and Uniqueness: While AI can generate brand assets efficiently, it may lack the creative
spark and uniqueness that human designers can offer. Tailor Brands could work on enhancing AI
algorithms to provide more distinctive designs.

● Customization: While it allows some customization, Tailor Brands' options can still be somewhat
limiting. Expanding the range of design choices and elements could improve the process.

● Branding Strategy: The process primarily focuses on visual aspects of branding, such as logos and
business cards. It could be improved by including guidance on branding strategy, messaging, and
positioning to create a more holistic brand.

● User Feedback: Tailor Brands could implement a feedback mechanism where users can provide
input on the generated designs and suggest improvements. This would make the process more
interactive and user-centered.

● Market Research: To enhance the value of the brands created, Tailor Brands could incorporate
market research data into its AI algorithms. This would help ensure that the generated brands
are more aligned with current market trends and consumer preferences.
 ● Integration with Other Tools: Tailor Brands could consider integrating with other business tools
and platforms to offer a more comprehensive branding and marketing solution for businesses.

Things missing from the process:

Several aspects are missing from Tailor Brands' AI-driven branding process, and enhancing these areas
could make it a more comprehensive and effective solution for users:

● Comprehensive Brand Strategy: Tailor Brands primarily focuses on visual brand elements, like
logos and business cards. What's missing is a comprehensive approach to brand strategy, which
includes defining the brand's purpose, values, target audience, messaging, and positioning.
Enhancing this area would help users develop a more robust and holistic brand identity.

● Brand Storytelling: Effective branding often relies on storytelling. Incorporating the ability to
create and tell the brand's story, mission, and values can make the brand more relatable and
engaging to customers.

● Content Creation: Beyond logos and business cards, brands require various types of content,
such as social media graphics, website designs, and marketing collateral. Tailor Brands could
expand its offerings to include these elements for a more comprehensive brand-building
experience.

● User Collaboration: Allowing multiple users or team members to collaborate on the branding
project could be valuable for businesses with multiple stakeholders. This feature could facilitate
input and feedback, enhancing the quality of the branding process.

● Integration with E-commerce and Marketing Platforms: Businesses often require integration with
e-commerce platforms (e.g., Shopify, WooCommerce) and marketing tools (e.g., Mailchimp,
HubSpot). Tailor Brands could enhance its service by providing easy integration with these
platforms, simplifying the process of implementing the brand across different channels.

● A/B Testing and Analytics: Providing tools for A/B testing different branding elements (e.g., logo
variations, ad designs) and analytics to measure the effectiveness of the brand assets could help
users make data-driven decisions about their branding efforts.

● Legal Considerations: A feature that checks for trademark availability and other legal
considerations when generating a brand name or logo could prevent users from infringing on
existing trademarks, saving them legal trouble in the future.
 ● Industry-Specific Branding: Tailor Brands could provide industry-specific templates and guidance
to better cater to the unique needs and expectations of different industries. This would help
users create brands that resonate with their specific target markets.

● Localized and Global Branding: Enhancing the ability to create brands tailored to specific
geographic regions or for global markets would make Tailor Brands more versatile and adaptable
for businesses with diverse audiences.

Why These Enhancements Are Important:

These enhancements are important because they address the limitations of Tailor Brands' current
offering and cater to a broader range of user needs. A comprehensive brand strategy and storytelling
approach can create a more authentic and engaging brand. Content creation and collaboration tools can
streamline the branding process. Integration with other platforms and legal considerations add practical
value, while industry-specific and localized/global features increase Tailor Brands' versatility. These
enhancements would make the platform a more one-stop-shop for a wide range of branding needs,
benefiting businesses and individuals seeking to establish a strong and effective brand presence.

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?

It is possible to assess Tailor Brands' strategic shift to a subscription-based pricing model as having both
potential advantages and disadvantages. While it might result in improved customer loyalty and income
stability, it also presents difficulties in terms of customer acquisition and perceived value.

Benefits of the Subscription Model

● Recurring Revenue Stream: Tailor Brands can more accurately forecast the financial performance
and make strategic business decisions due to a subscription model's predictable and recurring
revenue stream. This consistency might draw investors and aid long-term growth plans.
● Customer Retention: Users are more likely to continue using a service they have already paid for,
hence subscriptions promote customer retention. Opportunities to strengthen client
connections and raise lifetime value are presented by this continual involvement and new
product offerings.
● Funding for Product Development: Tailor Brands can expand its services and keep a competitive
advantage by using recurring subscription money to support product development. This ongoing
improvement might bring in new clients while keeping old ones.

Challenges with the Subscription Model:

 ● Customer Acquisition: Some potential customers who prefer a one-time payment or are afraid to
commit to a recurrent expense may be turned off by a subscription model. To draw in new
customers, Tailor Brands needs to promote its value proposition and provide free trials.
● Perceived Value: Customers may doubt the worth of a subscription if they believe the service is
unreliable or lacking in features. Tailor Brands must make sure that its offerings are worth the
continuous expense and give customers a strong incentive to renew their subscriptions.
● Pricing Sensitivity: Under a subscription model, price rises may be more apparent and significant
because customers are frequently reminded of the cost. Tailor Brands needs to give pricing
adjustments significant thought and make sure they correspond with the service's perceived
value.

Impact on Brand Equity and Customer Equity:

The move to a subscription model could have both positive and negative implications:

Positive Impact:

● Enhanced Brand impression: Tailor Brands' brand reputation may be strengthened by the
impression of stability, dependability, and commitment to ongoing improvement that a
subscription model can convey.
● Increased Customer Loyalty: Recurring subscriptions can encourage client loyalty, which
promotes favorable word-of-mouth marketing and builds a stronger consumer base.

Negative Impact:

● Customer Dissatisfaction & Churn: If customers feel they are not getting their money's worth,
they would be dissatisfied to use it further and they may cancel their subscriptions, leading to
customer churn and a decline in customer equity.

In conclusion, we think that Tailor Brands may benefit from a subscription model if it strikes balance
carefully in aspects of the pricing strategy, presenting the value proposition, and placing a priority on
customer satisfaction.

6) How would you assess the expansion of Tailor Brand’s product assortment? Will consumers find
value in it? Why or why not?
After the Series B round of funding, Tailor Brands' product line was expanded so that it could go from
just making logos to a fully automated branding firm that gave its customers ongoing services and value.
The goal was to make AI that learned the best ways to design, write copy, and use social media so that
everything could be done automatically, from making logos and sales materials to making, sharing, and
tracking social media advertising campaigns. Fans of Tailor Brands would be able to use a set of advanced
branding tools that are powered by these new technologies.
By the middle of 2018, the firm was selling the following products, all of which were driven by the
original logo design that was created by AI and were intended to assist the company's clients in
developing a consistent and high-quality brand identity for their businesses:
• Presentation Design Templates: A design template for Microsoft PowerPoint that is customised to
reflect the brand.
• Business Deck Design Templates: Templates for business proposals, corporate letterhead, and invoices
that are brand-personalized and available for use in Microsoft Word.
• Business Card and Letterhead Designs: Templates for a personalized and branded business card.
• Landing Page Designs: A template for a brand-personalized landing page, also known as a website with
a single page, that enabled businesses to mix textual information about their company with relevant
graphics.
• Social Media Channel Cover Designs: A piece of software that allowed users to generate individualized
cover images for their social networking networks, such as Facebook, Twitter, and LinkedIn. The user's
brand logo was superimposed on top of a picture that they either uploaded themselves or selected from
a collection of available images on the website. The user may quickly submit the PNG and JPG files that
were instantaneously created in formats that were compatible with their social media accounts.
• Facebook Ads: A tool that generated brand-personalized Facebook ads.
• Social Posts: A programme that can create postings for social networking platforms like Facebook,
Instagram, and Twitter that can be personalized. Users submitted their own photographs or chose one
from an online image library, selected a filter that mirrored the colors of their brand, added text, and
then downloaded a PNG file that was ready to be published on social media networks.

Additionally, Tailor Brands offered its customers three strategic tools to help them manage their brand:

• Brand Strategy Weekly Planner: A method of planning and executing social media postings and
campaigns that includes an integrated organizational and distribution structure. Users were able to save,
save, and schedule their posts with the help of the weekly planner. Additionally, it automatically created
weekly updates that were ready to be posted to social media on a predetermined schedule and could be
planned in advance.

• Brand Analytics: A programme that is used to keep track of the social media activity of a client and
improve the effectiveness of that customer's advertisements. Brand analytics offered clients a real-time
picture of the brand's digital exposure and outcomes; enabled clients to view likes, engagement metrics,
and follower counts; and enabled clients to gauge the level of brand awareness over the course of time.

• Online Brand Book: A brand bible or style guide that assists customers in maintaining brand
consistency throughout various creative executions. The brand book contained principles that may direct
the imaginative work of any designers who were tasked with working with the brand. These rules
included guidelines for spacing, logo variants, scaling, complimentary typefaces, primary and
complementary colours, and backdrop usage.
To accompany its expanding product assortment, Tailor Brands tweaked its own logo in a 2017
rebranding effort.

Yes consumers will find Value in the Tailor Brands products assortment because of the following factors:
1. Diversification- Tailor Brands targets several prominent tools like Microsoft Presentation,
Microsoft Word and Facebook ads which are heavily used by consumers directly and indirectly,
which will create value and unique proposition for customers.
2. Customization and Personalization- The focus of the product assortment of Tailor brands was
customization of tools and their use cases in order to fit and fulfill the unique needs of their
clients. This will create high levels of customer satisfaction as the exact needs of the consumers
will be fulfilled.
3. Building on existing platforms and data- By providing data analytics and advanced tools like
brand books, weekly planners etc, Tailor Brands helps customers to take the next step on the
available information and help use it to fulfill advanced requirements, which is not available
easily on other platforms.

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

Yes, we would invest in Tailor Brands as a venture investor.

Investment Rationale:

➢ Growth Potential: We are investing in Tailor Brands because we see substantial growth potential
in the company. Tailor Brands operates in the digital branding and design space, which is
experiencing significant demand due to the increasing need for an online presence. We believe
that as more businesses and individuals seek to establish their brands and digital identities,
Tailor Brands can capture a larger share of the market, leading to potential revenue growth.

➢ Cost-Efficiency and Accessibility: We are attracted to Tailor Brands because it offers an

affordable, user-friendly solution for individuals and small businesses, making it accessible to a
broad user base. We anticipate that this accessibility will lead to a larger user base and increased
revenue.

➢ Technology and AI Focus: We believe that Tailor Brands' strong reliance on AI and technology
positions it well in the ever-evolving tech landscape. As AI and automation continue to transform
industries, we see potential for the company's technological advantage to drive sustained
growth and innovation.

➢ Brand Recognition: Tailor Brands has built a reputation in the industry, and we consider brand
recognition to be a valuable asset that can attract more customers and investors.
 ➢ Monetization Model: We have confidence in the company's monetization model, whether it's
subscription plans, one-time purchases, or other revenue streams. We believe that this model is
sustainable and has the potential to generate significant returns on our investment.

➢ Market Trends: We have conducted thorough market analysis and believe that Tailor Brands is
well-positioned to adapt to changing design and branding trends and shifting user preferences.
We see this adaptability as a factor ensuring the company's continued relevance and
competitiveness.

➢ Exit Strategy: We have considered potential exit strategies for our investment, such as
acquisition opportunities or an initial public offering (IPO). These strategies provide a clear path
to realize our investment and generate returns.

➢ Risk Assessment: We have assessed the risks associated with the investment and are
comfortable with our risk tolerance. While we acknowledge the inherent risks in any investment,
we believe that the potential rewards outweigh the risks in the case of Tailor Brands.

➢ Alignment with Investment Goals: This investment aligns with our financial goals. Whether
seeking long-term growth, diversification, or other financial objectives, we believe that Tailor
Brands can help us achieve these goals.

➢ Professional Advice and Due Diligence: We have consulted with financial advisors and conducted
thorough due diligence to understand the company's financials, market position, competition,
and growth prospects. Our investment decision is informed and based on professional guidance.

Our investment in Tailor Brands represents our confidence in the company's growth potential,
cost-efficiency, technology focus, and market positioning. We consider it a strategic addition to our
investment portfolio with the potential to provide returns in the future.

8) What could be two general questions about the case or industry that may generate in-class
discussion?
1. With disruption of generative AI tools like chatgpt, Bard and many others, How can Tailor Brands
differentiate itself from other AI-powered branding tools and sustain in the competitive market?
What unique features or value propositions can it offer to attract and retain customers?
2. What potential long-term effects might AI-driven branding have on the field of design and the
function of human designers? How can designers adapt their abilities to stay relevant in this
changing environment?
3. [In terms of originality, cultural sensitivity, and potential biases in algorithms, what are the
ethical issues and hazards associated with employing AI to build brand identities?]
Case Discussion - On 15th October(Sunday)

In the case discussion held on Sunday involving all the members of the group namely Raghav, Surabhi,
Rashmi, Vaibhav, Ayushi, and Sarvani, several key points emerged regarding Tailor Brands:

Raghav and Surabhi found Tailor Brands to be a cost-effective and user-friendly branding solution,
particularly appealing to small businesses.

Rashmi emphasized the need for more unique and creative designs, as Tailor Brands' offerings were
perceived as somewhat templated.

Sarvani shed light on the sophistication of Tailor Brands' AI algorithms in automating the design process
but highlighted the need for further refinement to enhance design creativity.

Ayushi discussed the competitive landscape in the AI-driven design space, with recognition that Tailor
Brands might have an edge due to its existing user base, brand recognition, and strategic acquisitions.

The group, including Raghav and Surabhi, suggested a more holistic approach, calling for Tailor Brands to
provide guidance on brand strategy, messaging, and positioning.

The participants, including Rashmi and Sarvani, stressed the importance of expanding the range of
design choices and incorporating user feedback and market research data into AI algorithms to better
align with market trends and consumer preferences.

From an investment perspective, Ayushi and Vaibhav noted the significance of monitoring how Tailor
Brands addresses these challenges and maintains a competitive edge in the AI-driven branding space.

The discussion brought to light the potential of Tailor Brands as a cost-effective and user-friendly
branding solution, coupled with the need for improvements in design creativity and comprehensive
support for brand strategy. Participants expressed optimism about Tailor Brands' ability to evolve and
address these concerns within the competitive AI-driven branding landscape.