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    Building A Technology Brand: Intel

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    Ashiqnavaz Shaikh
    Intel faced branding issues in the late 1980s as the PC market shifted to mass consumers. It developed the "Intel Inside" campaign in 1991 to build brand awareness and preference. The campaign was highly successful, helping Intel achieve over 90% market share by 1992. However, competition from AMD increased in the late 1990s. Intel renewed its focus on advertising and launched new processor lines. It eventually transitioned to positioning itself for the emerging digital home market in the 2000s.

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    Building A Technology Brand: Intel

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    Ashiqnavaz Shaikh
    123 views32 pages
    Intel faced branding issues in the late 1980s as the PC market shifted to mass consumers. It developed the "Intel Inside" campaign in 1991 to build brand awareness and preference. The campaign was highly successful, helping Intel achieve over 90% market share by 1992. However, competition from AMD increased in the late 1990s. Intel renewed its focus on advertising and launched new processor lines. It eventually transitioned to positioning itself for the emerging digital home market in the 2000s.

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    Intel faced branding issues in the late 1980s as the PC market shifted to mass consumers. It developed the "Intel Inside" campaign in 1991 to build brand awareness and preference. The campaign was highly successful, helping Intel achieve over 90% market share by 1992. However, competition from AMD increased in the late 1990s. Intel renewed its focus on advertising and launched new processor lines. It eventually transitioned to positioning itself for the emerging digital home market in the 2000s.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    123 views32 pages

    Building A Technology Brand: Intel

    Uploaded by

    Ashiqnavaz Shaikh
    Intel faced branding issues in the late 1980s as the PC market shifted to mass consumers. It developed the "Intel Inside" campaign in 1991 to build brand awareness and preference. The campaign was highly successful, helping Intel achieve over 90% market share by 1992. However, competition from AMD increased in the late 1990s. Intel renewed its focus on advertising and launched new processor lines. It eventually transitioned to positioning itself for the emerging digital home market in the 2000s.

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    © All Rights Reserved
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    of 32

    INTEL

    BUILDING A TECHNOLOGY BRAND

    • Submmited by
    • Ashiqnavaz M Shaikh (MB040)
    • Vibha Bhat (MB049)

    • Submitted to
    • Prof. Dr. Naresh Patel
    • CMS - DDU
    Content
    • Brief & Analysis of Case
    • Conclusion
    • Q&A
    Introduction
    • Corporate Branding Strategy
    • “386” could not be trademarked
     Develop a trademark name
     Launch a corporate branding campaign
    • 2006: Retooled and launched “Intel Leap
    Ahead” campaign
    Company Background
    • Founded in 1968 by Robert Noyce and Gordan
    Moore
    • 1978, 16-bit 8086 Processor
    • 1979, 16-bit 8088 Processor
    • Competition with Motorola 68000
    • 1980:- IBM’s selection
    • 1988:- Intel 386 SX backbone of IBM
    • April 1989:- 486 Processor
    • 1990:- 7.5 million sales
    Microprocessor Industry in the early 1990’s

    • 1986, only supplier of 386 and 486 technology


    • 0ct. 1990,(Advanced Micro Devices) AMD
    i386SX most serious threat
    • 1991, Chips and Technology and NextGen
    microsystems announced 386 chip in
    competition to Intel’s i486 chip
    • Competitor's chip can be named as 386 & 486.
    Intel can not do anything about it.
    Intel’s Branding Issues
    • Late 1980’s : Shift from PC industry to mass
    market, non technical business and home PC

    Strategy shift
    • Create Brand awareness and brand preference
    • How to differentiate it’s products
    • June 1989: Mimicked Grafatti by spray
    painting over 286 and inserting 386 SX. Tagline
    : Now get 386 system performance at 286
    system performance price
    • 1991: Sold 8 million units (30386 best selling
    chip)
    Evolution of Intel’s Branding Strategy

    • March 1991: lost “386” trademark case


    • To become Ingredient supplier to PC OEM’s
    • Combining both Push and Pull communication
    • Use of logo to represent it ‘Intel Inside’
    • Use of co-op marketing funds to share ad. expenses
    • Build brand equity
    • Intel: “The Computer Inside” – Quick-Do you know
    the first name in microprocessors? Turn the page
    and answer in the blank line was Intel.
    • Range of products: PC enhancement, multimedia,
    microprocessor peripherals
    • Brand offering “Safety” and “Technology”
    Intel inside
    • “The Computer Inside” campaign
    • “Intel In It”
    • Finally to “Intel Inside”

    • Enlisting OEM Support


    • Coop Advertising Program
    • Rebates between 30 to 40 percent of the cost
    of print add up to a maximum of 3% of
    company’s Intel processor purchases
    Launching the “Intel Inside” Program

    • 1991:- $125 million in the next 18 months


    • 240 OEM customers agreed
    • To create a brand image for the products that
    fall under the Intel Inside umbrella
    • Aimed at:- “Microchip maker to quality
    standard bearer”
    Relationship with OEM’s
    • IBM was the first major OEM to use Intel Inside Logo, in April 1991.
    • Followed by Zenith Data Systems, Everex Systems, NCR Corp, Dell Computers and AST Research
    but by then first tier companies like Compaq and IBM left using the Intel Inside Logo.

    Intel’s AD Campaign
    • The first Intel Inside ad was a print ad called “measles”.
    • The objective was to get the new logo in front of consumers and get them familiar with the
    Intel name.
    • In November 1991, Intel launched its first T.V. ad named “Room for future” using special effects
    to take the viewer inside the computer.

    Branding and Naming “P5”


    • As the numbers were not trade-markable, Intel decided to create a new brand that would –
    a. Be difficult for competitors to copy
    b. Be trade-markable
    c. Indicate a new generation of technology
    d. Have positive association and work globally
    e. Support Intel’s brand equity
    f. Sound like an ingredient which worked with Intel’s partner’s brand name
    The Pentium Name
    • Announced October 20, 1992
    • Pentium Name chosen
    • “Pent” – Fifth generation processor
    • “ium” – Elemental component
    • Great emphasis on PR and media
    Product Announcement
    • Employed extensively detailed ads
    • Elite positioning
    • For “all but the most demanding users”
    • Went back to the roots
    Success
    • $500 million invested in advertising
    • Ingredient branding was the focus
    • Intel Inside
    • Competition ignored and rejected the strategy
    • Won several awards:
    – Marcom award
    – Grand marquis excellence award
    Success (Contd.)
    • Intel conducted market research globally
    • Users perceived Intel as tech leader vs. AMD and
    Cyrix
    • Brand recognition increased highly after the
    campaign
    • Intel and Intel Inside confusing for non-technical
    users
    • Foreign languages also created a little confusion
    The Hit
    • Initial sales only 10% of revenue
    • Price cuts showed rapid surge in sales
    • In 1992, Intel had 90% of the market share
    • In 1994, the revenues sored 24% from the previous
    year
    • 1997 – Pentium II launched
    • Used Super Bowl and Bunny People Ad
    • $100 million spent on campaign
    Renewed Competition
    • 1998- HP and Compaq chose cheaper AMD and Cyrix
    • Intel ignored the low-end market
    • By 97 summer, AMD and Cyrix gained 20% of low end
    market
    • Intel dropped below 30%
    • Intel release low-end Celeron
    • The slow Celeron resulted in drop of market share
    from 68 to 56%
    Renewed Competition (Contd.)
    • 1999 – Release of Pentium III
    • Positioned as tool to enhance home PC user`s
    Internet experience
    • Double advertising budget in 1998 – $300 million
    • More PC centered campaign
    • Featured trio – Blue Man Group
    • Reinforced number “III”
    AMD in market place

    • AMD launched its Opteron chip against Intel’s Xeon in 2003


    • It was favored by HP, Sun microsystems and IBM as it
    consumed lesser electricity and generated lesser heat
    • AMD also launched Turion chip against Centrino
    • It managed to beat Intel in many areas
    New Opportunities

    • Expansion in china as it was the 3rd largest market for chips


    • Apple started using Intel
    • Intel focused on ‘digital household’

    • Leap Ahead:
    • Changed its brand identity and logo after 37 years
    • Intel was now ‘Leap Ahead’
    • Focused on boosting wireless computing
    Conclusion

    • The share price went from a high of $71 in


    2000 to a low of $18 in 2005
    • But it gradually became one of the five most
    valued brands in the world
    Q.1 What were the strengths and
    weaknesses of Intel Inside campaign?
    • Weakness
    – Conflict with 1st tier OEMs
    – Product is under advertised

    • Strengths
    – Clear conversion
    – Build brand equity and pull preference
    – Co-op support from OEMs
    Q.2. Evaluate Intel’s continued the use of the Pentium family of
    processors. Did Intel make the right decision by extending the
    name through the Pentium processor?
    • Flaws of the previous processor model names
    • Hence it took the right decision by extending the name through the
    Pentium processor
    • This helped the company:
    1. Differentiate its products from its competitors like AMD
    2. Maintain its brand equity and avoiding brand dilution
    3. Trademark its products to avoid copying
    4. The word ‘Pentium’ connected with the product and this name
    became synonymous with processors
    Q. 3 Suppose you were the Chief Marketing Officer for
    AMD. How would you propose the company position itself
    to better compete with Intel? Would you propose that
    AMD institute an Inside – like ad campaign?

    • AMD management does not believe in “Inside” campaigns.


    Besides, it is not recommended to imitate Intel to avoid a
    “follower” image.

    •AMD is half the size of Intel, there was no need of similar


    marketing strategy

    • AMD should focus on its core competencies, excel in the


    commodity-like memory business, and try to be ahead in cutting-
    edge technology, support its brands Athlon 64 and Opteron and
    buil a better experience and better lifestyle by bridging the digital
    gap between poor and rich
    • AMD should concentrate on Flash memory- mobile
    technology

    • They have a better, less expensive product, both consumer


    and business.
    Q. 4 Evaluate Intel’s segmentation strategy.
    Is having a good/better/best product line
    ( Celeron, Pentium, Xeon) the best positioning for Intel?
    Should it discontinue a line(s) and focus on other(s)??
    • Yes, it was a good segmentation strategy by Intel
     Having a product line like Celeron, Pentium, Xeon, it
    will cover whole market from low end to high end
    chip. So it was a good positioning for Intel
     No need to discontinue any line but try to focus on
    speed and product performance
    Q. 5 In light of Intel’s move to a digital home, did the company’s executives make the right decision in launching
    an entirely new brand identity? Did it make the right decision in changing a 37 year old Intel logo and dropping
    the Intel inside campaign for Leap Ahead? What other marketing strategies might the company employ?

    • Yes, a company like Intel must progress and develop new


    applications for its products because the customer base is
    comfortable with technology and have the buying power.
    • Not wasted the 37 year impression that they had made on
    the consumer’s consciousness, they have kept the essential
    logo and the Intel name.
    • Easy to use products that enhances life and the liveability of a
    home is the best way to go.
    • By using a strategy of combining products in computer
    systems, Intel can sell more of its non-processor products by
    including them with Intel Processors
    • Intel has stated that Viiv-based PCs will feature dual-core
    processing, remote control operation, gigabit Ethernet controllers
    and wireless network cards. Viiv-based PC’s will also act as a
    personal video recorder with the addition of a TV tuner card.
    • It will also feature a “Quick Resume” Technology” which will allow
    users to turn off and on the computer in a manner of seconds.
    • This new campaign has established an emotional connection with
    the customers. It also credited the engineers behind Intel's
    technology.
    • The ad voiced optimism about the future in the backdrop of the
    global economic slowdown.
    Q.6 Intel moved into consumer electronics products such as
    digital cameras in 2000, only to withdraw after receiving
    complains from OEM`s such as Dell. Does Intel face a similar
    issue with its move into the “digital home”? Does this move too
    far outside its core competency of producing micro-processors?
    • Shortcomings:
    – Major competition
    – Diluted focus
    – Lack of expertise

    • Digital Home:
    – Employs DLNA (Digital Living Network Alliance) organization
    – Co-operation between several brands (245)
    – Focus on combining ideas and providing a unique experience
    – Connect and enjoy
    Q.6 Intel moved into consumer electronics products such as
    digital cameras in 2000, only to withdraw after receiving
    complains from OEM`s such as Dell. Does Intel face a similar
    issue with its move into the “digital home”? Does this move too
    far outside its core competency of producing micro-processors?
    • Intel`s competency:
    – Digital home integrates software and hardware
    – Exploits Intel`s expertise of micro-processors
    – Integrates it with expertise from different partners
    – Enhances Intel`s “Intel Inside” image
    – Expands range of functionality keeping in mind the need of the
    times
    – Moves outside the core competency
    Thank you

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