Marketing & Sales · Digital Marketing

AI in the Marketing Mix — Rebuild Lumio's Engine Without Burning the Brand

A four-round, advanced marketing-strategy simulation set inside Lumio, a London-headquartered direct-to-consumer beauty brand (GBP 240M revenue, GBP 38M marketing spend, 2.1M customers) built on an 'honest beauty' promise of transparency and clinically backed claims.

4 rounds Executive

Preview

About this simulation

A four-round, advanced marketing-strategy simulation set inside Lumio, a London-headquartered direct-to-consumer beauty brand (GBP 240M revenue, GBP 38M marketing spend, 2.1M customers) built on an 'honest beauty' promise of transparency and clinically backed claims.

On the eve of Black Friday, a viral screenshot exposes an AI-generated paid-social ad that fabricated a 'reverses ageing by 40%' claim Lumio never substantiated — shared 60,000 times in 48 hours, it has already cost an estimated GBP 1.2M and dropped the brand-trust tracker from 71 to 64.

The board responds with a double mandate: rebuild the marketing operating model around AI within the quarter AND cut blended cost-per-acquisition from GBP 24 toward GBP 19 (−21%) within two quarters — without another trust collapse.

Playing the CMO with a fixed GBP 4.0M transformation budget and a brand-safety guardrail (GBP 150,000 per verified incident; two further incidents freeze the AI programme), you (1) diagnose AI not as one switch but as a PORTFOLIO of use cases — targeting, content, and pricing — plotted on value created versus brand-trust risk, with a deploy/pilot/hold call for each; (2) deploy AI across the mix under constraint, setting the autonomy level (human-led with AI assist, AI-led with human approval, or fully autonomous) per use case and splitting the GBP 4.0M across AI tooling, human oversight, and brand-building; (3) write the human-oversight and brand-safety policy — claim-substantiation gates, fairness checks on targeting, pricing transparency, and an incident-response playbook — calibrated strong where claims and fairness are at stake and light where risk is low; and (4) commit and defend a two-quarter plan to the CEO and the board's risk chair, naming a CPA trajectory, a conversion-lift figure, an incident tolerance, and a brand-trust recovery path from 64 back toward 71.

The math rewards a risk-weighted portfolio with peer-credible oversight and genuine brand investment, and punishes the five classic errors — treating AI as one decision, chasing CPA with autonomous content and personalised pricing, writing oversight so heavy it kills the efficiency, ignoring algorithmic bias in targeting, and starving brand-building to maximise tooling spend.

Final KPIs track blended CPA (GBP), Brand Trust (0-100), Conversion Lift (%), and verified Incidents against the freeze trigger.

Who it is for

An advanced simulation for participants used to working with the main frameworks and trade-offs of the subject, designed for executive education and experienced professionals.

How a session runs

  1. The instructor creates a session from the Eureka dashboard and invites the participants.
  2. Participants play 4 rounds. In each one they submit their decisions and the simulation calculates the results.
  3. The instructor follows each participant's progress and results from the dashboard, and uses the class results for the debrief.

Decisions participants make

The decisions participants make during the simulation:

  • Is "adopt AI" one decision, or a portfolio of use cases with different risk?
  • Targeting / bid optimisation — lower risk, high value. Your first-cut call
  • Autonomous content generation — high risk, high value (this is what fabricated the claim)
  • Personalised dynamic pricing — high risk, medium value (transparency exposure)
  • Set the AI autonomy level for each use case (human-led → AI-led → autonomous)
  • Split the £4.0M transformation budget (£M, must total 4.00)
  • Claim-substantiation gate — what must a human approve before AI content ships?
  • Algorithmic fairness — how do you stop the optimiser quietly excluding a core segment?
  • Pricing transparency — your rule for AI-set prices and promotions
  • Incident-response playbook for the next viral moment — how ready? (%)

What participants track

What participants follow on screen as the rounds go by:

  • CPA & Brand-Trust Trajectory

Subjects covered

Designed for courses in Digital Marketing.

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