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Photo by Jessica Loaiza on Unsplash

Is Ghirardelli on the Right Track With Recent AI Utilization?

In today’s digital age, visuals play a crucial role in capturing consumers’ attention and driving sales in the online marketplace. Recognizing this, Ghirardelli, a prominent chocolate brand, has embarked on a journey to enhance its direct-to-consumer (DTC) channel through the power of artificial intelligence (AI).

The challenge Ghirardelli faced was clear: how to analyze and optimize visual content effectively to engage consumers and drive conversions. Pam Perino, Ghirardelli’s digital content operations and development manager, revealed that captivating visual content is key to keeping consumers engaged and ultimately making a purchase.

To tackle this challenge, Ghirardelli turned to AI, specifically “leveraging the AI-based Visit Conversion Optimizer App into the Salsify PXM Advance product experience management platform in an effort to maximize the effectiveness of visual imagery on its Amazon store.” This AI-driven solution offered several advantages, including in-depth insights, rapid analysis, and scalability.


Using AI, Ghirardelli gained valuable insights into consumer preferences and behaviors, enabling the company to tailor visual content to specific target audiences. Traditional methods of analysis were time-consuming and costly, making AI a more efficient and cost-effective solution for Ghirardelli’s needs.

The results speak for themselves. Ghirardelli was able to identify areas for improvement in its visual content and test changes in real time, leading to a significant uplift in conversion rates for key products, according to Perino. This success has paved the way for future AI initiatives, including the use of AI for generating marketing copy tailored to specific retailers and a new focus on “seasonalization,” where the brand can create content to capitalize on peak shopping periods.

Last September, Ghirardelli utilized generative AI technology to edit images on its product detail pages, with the aim of expediting the process and enhancing conversion rates. While hesitant to fully rely on AI for image creation due to concerns about accuracy, the brand used AI tools to guide decisions on image adjustments. Vizit, an image-scoring software, aided Ghirardelli in evaluating and improving images for better performance, though Perino noted at the time that the brand was awaiting further advancements in AI before entrusting it with tasks such as generating product copy. Despite reservations, Ghirardelli remains optimistic about the potential of AI to streamline content creation and enhance digital marketing efforts in the future.


The confectionery company has also made a major milestone this year with its first store opened in New York this past January, followed by a shop in the California Napa Valley.

“Ghirardelli Chocolate is excited to open our first shop in New York. We are proud of our 171-year history that started in San Francisco, and pride ourselves in making quality chocolate so delicious it Makes Life a Bite Better. We can’t wait to welcome our guests in New York to create sweet memories with friends and family for many generations to come. Our shops are designed to showcase our history and heritage and highlight our craft in handmaking our hot fudge. It truly feels like the cherry on top to open in New York City’s iconic Empire State Building. We welcome everyone to visit and grab our World Famous Hot Fudge Sundae this summer!”

Ghirardelli Chocolate Company Spokesperson via NYBiz Daily

As Ghirardelli continues to harness the power of AI, it is poised to further enhance its online shopping experience and drive growth in its DTC channel.

Discussion Questions

What implications does Ghirardelli’s successful integration of AI into its direct-to-consumer strategy hold for traditional retail models and brick-and-mortar stores?

As Ghirardelli expands its online presence and opens physical stores, how can it ensure a seamless omnichannel experience for consumers?

What strategies can the company employ to integrate AI-driven personalization and data analytics with the tactile and sensory elements of in-store shopping to create a cohesive brand experience that resonates with consumers across all touchpoints?

Poll

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BrainTrust

"If done with a healthy dose of skepticism and practicality, it makes sense. When food is involved, one must be careful to not have the images conflict with reality."
Avatar of Zel Bianco

Zel Bianco

President, founder and CEO Interactive Edge


"It’s important to remember that despite the excitement surrounding AI, it is a tool that works better for some tasks than others…We can’t make AI the new age singular tool."
Avatar of Richard J. George, Ph.D.

Richard J. George, Ph.D.

Professor of Food Marketing, Haub School of Business, Saint Joseph's University


"Ghirardelli is smart to test AI-powered marketing tools for optimizing visual content and copy. They’re even smarter to proceed with caution."
Avatar of Sarah Pelton

Sarah Pelton

Partner, Cambridge Retail Advisors