Generative AI is a double-edged sword for wholesale distribution, but the benefits may outweigh the risk! The deck discusses threats/opportunities to traditional wholesale distribution at high-level, outlines marketing strategy, and gives examples of how AI is to create content and promotional ads to drive traffic

1. V.S.
WHOLESALE
DISTRIBUTION
Generative AI

2. “
”
YOU ARE AN EXPERT BUSINESS CONSULTANT AND STRATEGIST FOR WHOLESALE KITCHEN AND BATH
DISTRIBUTION BUSINESS IN NORTH AMERICA. YOU OBSERVE AND STUDY TECHNOLOGY, LEADING BRAND
GO-TO-MARKET STRATEGIES, AND CONSULT DISTRIBUTORS THAT OPERATE DISTRIBUTION CENTERS,
SHOWROOMS, STORES, AND, IN LIMITED CASES, E-COMMERCE. THEIR CORE CUSTOMER SEGMENTS ARE
TRADE PROFESSIONALS (CONTRACTORS, DEVELOPERS, REMODELERS, AND BUILDERS.) DISTRIBUTORS CARRY
COMPETITIVE BRANDS.
DESCRIBE THE TOP FIVE BUSINESS THREATS AND OPPORTUNITIES ON SALES, PROFITABILITY, AND TALENT
RETENTION IN CUSTOMER-FACING STORES AND SHOWROOMS DUE TO GENERATIVE AI TECHNOLOGY SUCH
AS GPT4.
… Here Is My Initial Prompt (Step up & Question)
F
2

3. As an expert business consultant in wholesale kitchen and bath distribution, I can
identify the following top five business threats and opportunities that could have
significant impact on sales, profitability, and talent retention in customer-facing
stores and showrooms due to generative AI technology such as GPT4:
… ChatGPT’s Response
3
Continued …….

4. 4

5. Reduced sales due to increased online shopping: The rise of GPT4 and other AI technologies may make online
shopping more personalized and convenient for customers, potentially reducing foot traffic in brick-and-mortar stores
and showrooms.
Competition from AI-powered virtual showrooms: AI technology can enable the creation of virtual
showrooms that simulate physical spaces and allow customers to explore products in a lifelike way. If more customers
shift to virtual showrooms, it could reduce demand for physical showrooms, leading to reduced sales and profitability.
Disruption of customer service roles: GPT4 and other AI technologies can automate customer service roles, such
as providing product recommendations and answering customer queries. This may reduce the need for human staff in
stores and showrooms, leading to potential job losses and reduced talent retention.
Increased competition from new entrants: As AI technology becomes more accessible, it may enable new
entrants to enter the wholesale kitchen and bath distribution market more easily, potentially increasing competition
and reducing profitability.
Data privacy and security concerns: AI technology relies on data, which can create potential privacy and security
risks. A data breach or other privacy incident could erode customer trust and harm the brand reputation, leading to
reduced sales and profitability 5
Continued …….

6. 6

7. Improved customer experience: GPT4 and other AI technologies can provide more personalized and tailored
experiences for customers, increasing customer satisfaction and loyalty. For example, AI-powered chatbots can provide
customers with quick and accurate responses to their queries.
Increased sales through targeted marketing: AI technology can enable targeted marketing campaigns that are
tailored to individual customers based on their preferences and behaviors. This can increase the likelihood of a sale and
improve profitability.
Reduced costs through automation: AI technology can automate repetitive and time-consuming tasks, reducing
the need for human labor and potentially reducing costs.
Improved inventory management: AI technology can provide real-time insights into inventory levels and
customer demand, enabling more efficient inventory management and potentially reducing costs.
Data-driven insights for decision making: AI technology can provide valuable data insights that can inform
strategic decision-making, leading to increased profitability and growth. For example, AI can help identify trends and
patterns in customer behavior and preferences. 7

8. Let’s Make ‘Opportunities’ Actionable…
8

9. Based on opportunity #2 above (Increased sales through targeted marketing: AI technology
can enable targeted marketing campaigns that are tailored to individual customers based
on their preferences and behaviors. This can increase the likelihood of a sale and improve
profitability.) create a marketing campaign to increase foot traffic from 1,000 to
2,000 visitors per month targeting affluent homeowners and remodelers to purchase
kitchen and bath fixtures in Milwaukee MSA.
Sure, here's an example marketing campaign to increase foot traffic from 1,000 to 2,000
visitors per month targeting affluent homeowners and remodelers to purchase kitchen and
bath fixtures in Milwaukee MSA using AI technology:
Using a hypothetical showroom located in downtown Milwaukee, WI…
F
9

10. Data Analysis: The first step would be to collect and analyze data on the target audience's behavior and preferences.
This could include data on their search history, purchase history, and demographics.
Segmentation: Once the data is analyzed, the next step would be to segment the audience based on their
preferences, behaviors, and demographics. For instance, homeowners who have recently renovated their kitchen or
bathroom may be more likely to purchase kitchen and bath fixtures.
Personalization: With the audience segmented, the marketing campaign can be tailored to individual customers
based on their preferences and behaviors. For example, customers who have recently searched for high-end kitchen
fixtures could be targeted with personalized email campaigns or social media ads promoting similar high-end fixtures.
Steps on “How” activate a marketing campaign…
Continued …….
10

11. Retargeting: To further increase the likelihood of a sale, retargeting can be used to remind customers of products
they have previously viewed or abandoned in their cart. This can be done through personalized email campaigns or
display ads.
Local SEO: In addition to targeted marketing campaigns, local SEO can be used to increase foot traffic to the physical
store or showroom. This can include optimizing the website for local keywords and creating local business listings on
Google Maps and other online directories.
Test and Optimize: To ensure the marketing campaign is effective, it should be tested and optimized regularly. This
can include analyzing metrics such as click-through rates, conversion rates, and foot traffic to the physical store or
showroom. Adjustments can then be made to improve the campaign's performance.
Steps on “How” activate a marketing campaign…
11

12. .. Asked ChatGPT to create a tactical marketing activation example
[Edited response. Only Ad creation (creative & copy) is included in this deck.]
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13. Ad:
[Image of a beautiful kitchen or bathroom with high-end fixtures]
Headline: Transform Your Home with Our Premium Kitchen and Bath Fixtures
Description: Visit our showroom in downtown Milwaukee to discover our exclusive collection of high-
quality kitchen and bath fixtures. From elegant faucets to luxurious soaking tubs, we have everything you
need to create your dream space. Plus, take advantage of our in-store design services to personalize your
project.
Copy:
Are you dreaming of a beautiful and functional kitchen or bathroom? Look no further than our showroom
in downtown Milwaukee! Our exclusive collection of high-quality kitchen and bath fixtures will transform
your space into the oasis you've always wanted. From elegant faucets to luxurious soaking tubs, we have
everything you need to create your dream home. Plus, take advantage of our in-store design services to
personalize your project and make it truly your own 13
Based on the recommendation provide a sample ad, copy, budget, timeline and conversion targets to
increase foot traffic from 1000 to 2000 per month.
F

14. .
Used another OpenAI application to create images from text ….
14

15. .
DALL-E2 inquiry… create ‘a kitchen faucet image designed by Tesla shown
by a black model…’
Asked DALL-E2 … generated the four options above…
15

16. .
DALL-E2 inquiry... create ‘an ultra modern, luxurious, kitchen faucet
designed by Tesla, shown in a luxury kitchen…’
DALL-E2 generated the four options above…
16

17. Picked two images from DALL-E2
&
‘copy and description’ from ChatGPT
to create the following ads in MINUTES.
17

18. Our exclusive collection of high-
quality kitchen and bath fixtures
will transform your space into the
oasis you've always wanted. From
elegant faucets to luxurious
soaking tubs, we have everything
you need to create your dream
home. Plus, take advantage of
our in-store design services to
personalize your project and
make it truly your own.
ABC Showroom by PG Supply
123 Main Street,
Milwaukee, WI 53201
www.abcshowroom.com
(414) 202-1234
Look no further than our showroom in downtown Milwaukee!
Are you dreaming of a beautiful and
functional kitchen or bathroom?
18

19. Transform Your Home with
Our Premium Kitchen and
Bath Fixtures
Visit our showroom in downtown Milwaukee
to discover our exclusive collection of high-
quality kitchen and bath fixtures. From
elegant faucets to luxurious soaking tubs, we
have everything you need to create your
dream space. Plus, take advantage of our in-
store design services to personalize your
project.
ABC Showroom by PG Supply
123 Main Street,
Milwaukee, WI 53201
www.abcshowroom.com
(414) 202-1234 19

20. The takeaway for distributors is that generative AI offers both opportunities and threats to their business.
To leverage the potential benefits, here are the top three recommendations for wholesale distribution
businesses in North America:
1) Invest in AI-powered data analytics to gain insights into customer behavior, market trends, and
inventory management. This can help identify patterns, predict demand, and optimize pricing
strategies.
2) Implement AI-powered chatbots and virtual assistants to enhance customer engagement and
support. This can provide personalized assistance, handle routine tasks, and improve response
times.
3) Partner with technology providers or startups that offer AI-powered solutions tailored to the
wholesale distribution industry. This can provide access to expertise, accelerate adoption, and
mitigate the risks associated with technology adoption.
Takeaway for wholesale distribution …
It is important to consider the limitations and challenges that come with integrating AI into primarily
offline businesses, such as the need for significant upfront investment in hardware and software, as well
as the need for employee training and cultural shifts
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