Out of Scope Issue 116: Brand Identity: A Game of Tick Tock & TikTok
Plus: Celebrity AI deals and "cell-cultivated" chicken.
This week brought several globally recognized brands to the fore, and reminded us that no matter what’s happening in the corporate world, companies will always need a strong foundation rooted in brand trust, authenticity, and innovation. Along with the latest developments in AI, the corporate power of TikTok, food trends and more, Hirsch Leatherwood takes a closer look at it all.
📡ON OUR RADAR
As TikTok continues to grab the world's attention (and keep it for at least 30 minutes longer than anticipated), brands are no exception. Off-menu "hacks" and product ideas created via the platform are becoming increasingly popular, forcing brands like Chipotle, Tarte Cosmetics, Dave's Gourmet, and more to think on their feet to meet trending demands (see: Chipotle's viral "Keithadilla"). There's no doubt keeping an eye on TikTok can provide brands with the insight they need to give the people what they want. However, the increasing speed of content creation can make it difficult for even the most agile companies to keep up levels of quality and attention.
If you caught Black Mirror’s “Joan is Awful,” the twisty concept behind the episode might not be as far-flung as we think. As generative AI becomes increasingly pervasive, celebrities are starting to embrace the trend by partnering with brands to create AI duplicates of themselves for marketing purposes. This tech could enable stars to walk the runway, appear in a commercial, or even interact with audiences without showing up to work. On the one hand, it’s a way for talent to regain control of their likeness as deep fakes continue taking the internet by storm; on the other, it raises concerns for brands and celebs alike about a potential lack of control. Either way, this could change how celebrities partner with brands in the future.
The US Federal Trade Commission has filed a second lawsuit against Amazon, accusing the company of engaging in deceptive practices by making it challenging for consumers to cancel their Prime subscriptions. The complaint highlights the contribution of Prime subscriptions, which generate $25 billion in annual revenue, as a potential motive behind what regulators call "non-consensual enrollment." Amazon recently introduced changes to its Prime enrollment and cancellation process, internally known as the "Iliad." Authorities argue that these modifications were implemented to obstruct subscribers' cancellation attempts.
Last week's 134th Annual CEO Summit provided a look into how America's top executives are approaching A.I. and applying models to their businesses. Amid the takeaways: While executives recognize professional services and "knowledge work" are most likely to be displaced, they overwhelmingly believe A.I. is no substitute for human judgment and empathy.
💡ON OUR MINDS: Trust, Authenticity, and Innovation.
No matter what’s happening in the corporate world, companies will always need a strong foundation rooted in brand trust, authenticity, and innovation. Disney, Target, Bud Light, and even Chick-fil-A have all been targeted by campaigns due to their messaging on LGBTQ and diversity issues this year—a direct side effect: executives are increasingly wary of wading into the fraught cultural landscape.
But in an interview with Fortune, Lisa Osborne Ross, CEO of Edelman U.S., argues for the importance of sticking to your company’s values, despite the backlash some companies have faced this year for taking a stand on social issues. If brands don’t stand up consistently for their beliefs, they risk losing consumer trust and credibility.
This is especially important with younger consumers. Gen Z values brand trust more highly than any other generation. A recent report reveals that 62% of Gen Z believe if a brand doesn’t communicate its actions to address an issue, they assume it’s doing nothing or hiding something.
In other brand news, Burger King is on a mission to "reclaim the flame" amidst declining revenue and profitability. The fast food chain has devised a strategic approach to strengthen its market position, emphasizing brand compliance and sticking to what works. They are doubling down on investments for top-performing operators, including new equipment, remodeling, marketing, and digital initiatives. Simultaneously, they're encouraging weaker performers to cut back. It will be interesting to witness how (or, even, if) these measures revitalize the brand fighting for relevancy and customers in this fiercely competitive landscape.
🥊QUICK HITS:
In case you missed these reads.
Kate Moss returns to 90s aesthetics and Diet Coke as the brand's new Creative Director for their Season 2 brand campaign. For this, we are grateful.
The latest in food tech: "cell-cultivated" chicken grown outside animals could be headed to a dinner table near you.
Another day, another warning of how AI has the potential to upend society: this time, with biological warfare.
Thanks for reading,
HL
===
This week’s newsletter is brought to you by Billionaire Bout: Musk vs. Zuckerberg.