Application of Artificial Intelligence in Marketing Strategy: A Case Study in the Retail Industry

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DOI: https://doi.org/10.28924/2291-8639-23-2025-125
Published: May 26, 2025
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Yvonne Wangdra, Tukino, Ronald Wangdra, Application of Artificial Intelligence in Marketing Strategy: A Case Study in the Retail Industry, Int. J. Anal. Appl., 23 (2025), 125.

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Yvonne Wangdra, Tukino, Ronald Wangdra

Abstract

The retail industry has undergone significant transformations due to integrating Artificial Intelligence (AI) in marketing strategies. AI's ability to process vast amounts of data has revolutionized how businesses approach customer engagement, product management, and operational efficiency. This study explores how AI has enhanced decision-making in retail, particularly in optimizing dynamic pricing, product recommendations, and personalized marketing strategies. Retailers can analyze consumer behavior through AI-powered algorithms, offering targeted promotions and tailored product suggestions. This personalization increases customer satisfaction and fosters long-term loyalty. The study also highlights the role of AI in streamlining supply chain operations by predicting product demand, thus reducing the risk of stock shortages or excess inventory. The case study focuses on several large retail companies that have successfully implemented AI in their marketing strategies, resulting in improved customer experiences and significant cost savings. However, while AI offers numerous advantages, its implementation faces challenges such as technological investment, data management, and ethical concerns regarding customer privacy. These challenges necessitate a strong infrastructure and responsible data governance to ensure success. The findings of this research provide valuable insights into the practical applications of AI in the retail industry and its potential to offer a competitive edge. In conclusion, AI continues to play a pivotal role in enhancing marketing strategies, making retail operations more efficient, and improving customer satisfaction.

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