As consumer preferences evolve at an unprecedented pace, legacy brands are seeking innovative solutions to stay ahead. Mondelēz International, the global giant behind household names like Oreo, Ritz, and Chips Ahoy, is betting big on Generative AI to redefine its marketing strategy. With the support of partners Accenture and Publicis Groupe, Mondelēz has launched a new AI-powered platform aimed at delivering hyper-personalized, data-driven content more efficiently. This move marks a significant leap for the company as it navigates the ever-changing consumer goods landscape.

The Rise of AI in CPG Marketing

Generative AI is fast becoming a pivotal tool in the marketing landscape, especially for consumer-packaged goods (CPG) companies. By utilizing advanced software like OpenAI’s ChatGPT, businesses can create content—whether text, images, or videos—faster and more tailored to individual consumer preferences. For Mondelēz, embracing this technology offers an opportunity to address several key challenges:

• Speed and Efficiency: Creating and distributing personalized assets at scale is now crucial in a market that demands constant adaptation to new trends.
• Consumer Engagement: AI-powered personalization ensures that consumers are met with content that resonates with their interests, increasing engagement and loyalty.
• Data Utilization: Accenture’s “digital core” enables Mondelēz to process real-time data, ensuring that marketing decisions are grounded in insights that reflect the current market dynamics.

Partnerships with Industry Giants

Mondelēz’s latest foray into generative AI is supported by two major players: Accenture and Publicis Groupe.

• Accenture, a long-term partner, is responsible for building the platform’s “digital core,” a hub of real-time data that drives Mondelēz’s AI initiatives. Their role doesn’t stop there—they are also tasked with employee training to ensure the company can maximize the platform’s potential.
• Publicis Groupe, on the other hand, is leading the charge in translating this AI technology into creative execution. Publicis’s expanded scope now includes creative ideation, content production, and measurement, helping Mondelēz bring its AI ambitions to life. The ad agency’s Power of One strategy, an integrated approach, is set to propel Mondelēz’s marketing initiatives forward.

Responsible AI at the Forefront

One of the more notable aspects of Mondelēz’s generative AI strategy is its commitment to responsible AI use. As AI technology advances, so too does regulatory scrutiny around its ethical implications, particularly regarding the use of scraped media. Mondelēz has pledged to ensure its AI efforts are aligned with legal and ethical guidelines, prioritizing brand integrity and consumer safety.

“Harnessing the power of gen AI will empower our people to play a proactive role in how our brands show up in the market,” said Jon Halvorson, Senior VP of Global Consumer Experiences and Digital Commerce at Mondelēz. His emphasis on safe and secure AI use reflects the company’s forward-thinking approach in balancing innovation with responsibility.

The Competitive Edge of AI

Incorporating generative AI into its marketing operations places Mondelēz at the forefront of the AI revolution within the CPG sector. Other major players, like Coca-Cola, have already made strides in this area, forming strategic partnerships with Bain & Company and OpenAI. The race to harness AI is not just about innovation—it’s a matter of survival in a market where consumers are increasingly price-sensitive and competition is intensifying.

While Mondelēz’s net revenue saw a slight dip of 1.9% in Q2 2024, and underlying volumes declined by 2.2%, the investment in AI could be the key to reversing this trend. By delivering more relevant and timely content to consumers, the company hopes to enhance brand loyalty and ultimately drive growth.

Conclusion

Mondelēz International’s strategic investment in generative AI is a bold move to stay ahead in an ever-competitive market. By partnering with Accenture and Publicis Groupe, the brand is well-positioned to achieve greater efficiency, personalization, and consumer engagement in its marketing efforts. As generative AI continues to transform the industry, Mondelēz is poised to lead the charge—driving real value for its business while maintaining its commitment to ethical AI use.

Reference: https://www.marketingdive.com/news/mondelez-generative-ai-in-marketing-accenture-publicis-groupe/728283/