AI Marketing Campaign (Peer Graded Assignment)

Artificial Intelligence in Marketing

University of Virginia
Instructor: Rajkumar Venkatesan
Submitted by: Sarada Priyadarsini

1. Introduction:

Kajaria Ceramics is the largest manufacturer of ceramic and vitrified tiles in India and
among the top 10 worldwide players in the tile industry. Kajaria stands out due to its
established presence in the home improvement sector, its extensive product line, and its
potential for leveraging AI in marketing to enhance customer engagement.

The brand is a classic example of a node as its products are sold through a vast
network of channel partners consisting of independent wholesale dealers & retail
distributors. Apart from dealers with physical stores in all major Indian cities, there are
many exclusive online platforms lately that specialize in construction materials and,
selling Kajaria products. (Eg: BuildersMart)

This multi-tier distribution model ensures that Kajaria products are available in various
regions across India, catering to a wide customer base.

2. Proposed AI-Powered Marketing Campaign:

a. Campaign Focus:

Growth

b. Use AI to Personalize Based on Individual Consumer Preferences:

To facilitate growth, Kajaria can implement an AI-powered recommendation system

that tailors product recommendations to individual consumer preferences. Using AI
algorithms, Kajaria can analyze consumer data to understand their past purchase
 history, style preferences, and browsing behaviour. This data can then be used to
suggest relevant tile collections, designs, and complementary products to each
customer. Personalized emails, app notifications, and website recommendations will
drive engagement and conversions.

Kajaria can also improve growth through improving their current supply chain and
inventory management using AI. Over years of operation, Kajaria has accumulated
a vast data trove detailing tile types, colours, patterns, quantities, and purchase
patterns across India's varied retail landscapes. Harnessing this data with
sophisticated AI and ML tools, Kajaria will be able to predict the demand for specific
tile types on particular days in specific locations. Such precise forecasting means that
the right varieties and quantities of tiles reach retailers just when they need them,
facilitating very precise just-in-time inventory management.

c. Role for Channel Partner(s):

Kajaria can involve its channel partners in the campaign by providing them with access
to the AI-powered recommendation system. Channel partners can use this tool to offer
personalized product suggestions to customers visiting their stores or engaging online.
Additionally, Kajaria can incentivise channel partners based on the success of these
personalised recommendations in driving sales.

Similarly, the proposed AI-based inventory forecasting & management tool can also be
linked with the individual warehouse/inventory management systems of the various
channel partners which will lead to improved accuracy and better time/cost
management for everyone.

3. Identify the Data:

a. Based on its current business model, Kajaria likely possesses data related to:

● Customer purchase history

● Customer demographics (e.g., location, age, income)
● Product preferences and interests
● Interaction history (website visits, app usage, email engagement)
● Channel partner performance metrics
b. How the Brand Acquired This Data Using Its Current Business Model:

Kajaria would have collected this data through various touchpoints with consumers and
channel partners. For instance, point-of-sale data from retailers/dealers, online
customer registration, loyalty programs if any, and website/app analytics would
contribute to this data collection.

c. Data Types (First-party or third-party):

Most of the data collected by Kajaria is likely first-party & second-party data, as it is
directly obtained from customer interactions with the brand, its products, and its channel
partners.

d. Data Directly About Consumers:

Yes, the data collected by Kajaria is primarily about consumers and their interactions
with the brand and its products through their network partners as well as the company
website & app.

4. Propose a New Business Model:

a. Allow for the Collection of Consumer Data:

To collect more comprehensive consumer data, Kajaria can additionally adopt a

direct-to-consumer (D2C) model, by also selling products directly to consumers
through an online platform. This would enable the collection of data such as individual
browsing behaviour, preferences, and real-time interactions with the brand.

Based on historical and real-time data relating to the demand for specific tiles in a
particular location, Kajaria can additionally develop Predictive AI-powered inventory
management tools that will be able to anticipate and deliver the required amount of
stock in advance, preventing stock-outs and overstocking. This will lead to an overall
improvement in customer experience and in turn, boost sales and help trigger further
market growth.
b. Enable the Implementation of the Proposed Marketing Campaign:

An added D2C approach along with its current network channels will provide Kajaria
with a direct channel to interact with consumers and implement the AI-powered
personalized marketing campaign seamlessly. It would allow Kajaria to gather richer
data, track customer journeys, and offer personalized recommendations more
effectively.

c. Include a Role for the Channel Partner(s):

Channel partners can still play a vital role in the D2C model by acting as service
partners, offering installation services, executing training for tile technicians, and
providing local expertise. Kajaria can provide them with tools and training to use
consumer data for better customer service and product recommendations.

d. Include Network Effects:

By implementing a D2C model and leveraging AI for personalization, Kajaria can create
network effects. As more consumers interact with the brand directly, the AI algorithms
become more accurate in recommending products, leading to increased customer
satisfaction and loyalty and triggering new customers to join in. Additionally, channel
partners benefit from increased foot traffic driven by the brand's online presence,
creating a mutually reinforcing network effect.

Also, AI tools if implemented for improved stock/inventory management will improve

sales and after-sales service for customers, which can again improve consumer
goodwill and through word-of-mouth/network effects create room for more first-time
buyers to choose Kajaria. Again the ongoing real-time data collected from all customer
touch points can help AI tools to improve precision in terms of forecasting the right
stocks needed according to customer and location needs.

Therefore, overall the above AI-powered campaign & processes will satisfy the
proposed growth strategy and create significant value addition for Kajaria Ceramics.