m





Ú

 

Ú  
 
 






 

!

 
"
 ! #
$%
" 
V Urge for branding in microprocessor industry
V Branding strategies by Intel
V Product life cycle of microprocessor
V Future challenges for Intel
V In late 70ǯs, Intel introduced 8086 processor followed by 8088
V Endorsement of 8088 microprocessor by IBM for its first PC
V In late 80ǯs, launched successful products in 386 and 486
technology of microprocessor
V Threat from competitors with similar naming products
V Trademark battle with AMD over 386 naming convention of
microprocessors
V March 1, 1991 lost the court battle for explanation of being generic
and hence not trademark worthy
V aise awareness of Intel brand name

V Associate Intel with its family of

microprocessors

V PC industry becoming mass market, non

technical and home buyers
 ' ()*  +),, ,, + - .
& 
,
-))-
)

' (),,,
 *), + ,

"& ,
 )))
  *)-- +,

' (.
/
),  ),.!)))+))

&
)
0+ +)!).

' ( +,
)+,

&
R

   
m

  
 
 R  
  





R



 # 






   


!"
$
%
 R


 




   

&%
'$ &%
  

"%

  
  
V The DzIntel Insidedz campaign aimed to Dzeducate both the
retail sales associates and the consumer about the value of
Intel microprocessors, and to explain to them the difference
between the microprocessorsdz Ȃ without the technical jargon

V Many consumers were uncertain about the quality and

reliability of microprocessors, and Intel found a way of taking
away the mystery of the product, gaining the confidence of
the end consumers that DzIntel Insidedz represented quality
and reliability
V Early exercise followed on linking
microprocessors with Intel

V Mission was to transfer the Intel brand to

launch new products and technologies

V Intel Inside to convey its presence in PC

V !ought support from PC manufacturers
under its co-op advertising program

V !elf advertisement through print, billboard

and spot TV ads promoted equity building
V Awarded with Marcom Award, Grand Marquis

V Marketing research showed high end user

awareness

V !trongest image on quality and compatibility

attributes
 
 



(    

 )



m
 
R 

 

!
 
 ' Active Engagement
'Marcom Award, Grand
Marquis




' Technology Leader 'Trust
'Innovator ' !elf respect
'Customer Focused 'Tech !avvy
( 
)



' Quality ' CPU Brand
' Compatibility 'Linked with PC
'!peed 'Technology Driven
m
 
R 
 'Name of the Company

' Co-operative Advertising

with OEMǯ! !

' Intel brand name linked
with Microprocessors
V Fifth generation microprocessor, P5, named
Pentium
V P Team spread the name to industry writers,
press and corrected errors by editors
V Launched Pentium ads before sale
V Introduction:
V Targeted to high end consumers
V Priced at $5000; double of 486 systems
V Low accountability in Intelǯs revenues (10%)
V Growth:
V Increased production and cut prices
V In 1994, Pentium sales grew 8 times
V 90% of worldǯs PC owned Pentium
V Launched Pentium Pro (94) and Pentium II
(97)
V Maturity
V In 1999, launched Pentium III catering to PC
user Internet experience
V In 2000, launched Pentium IV as desktop
processor
V Pentium IV boasted of superior processor
speed
V In 1997, growth of discount PC segment
V HP and Compaq bought cheaper chips
V Intel ignored this segment; drop in shares of
low end market below 30%
V Launched Celeron in April 1998
V Poor reviews and sales reduced Intelǯs share
in the segment to 56%
V In 1999, performance oriented competition
from AMD
V Intelǯs problem compounded by product
flaws, shortages and delays
V By June 2000, AMDǯs microprocessors bought
by every major OEM
V AMDǯs market share increased to 17%
V Celeron promotion received fillip
V Improves speed and reduces price by 30% for
Celeron
V In fourth quarter of 1998, Intel share
increased to 80% in overall market
V Market segmentation by price and
performance; Xeon, Pentium and Celeron in
descending order of price and performance
V Decline
V In January 2001, Pentium IV prices slashed by 23% in
wake of declining PC market
V !low sales of Pentium IV with less than 4% owners
by April 2001
V Cheaper computers in demand led to cheaper
processors
V In 2006, Intel announced phase out of Pentium
V Ventured into consumer electronics, e-
commerce and Internet hosting

V In 1999, acquired 12 companies for $6 billion

V Invested in 25 communication technology

and over 125 internet-focused startups
V Internet venture proved futile due to lack of
experience and stiff competition from
established players
V Exited non-processor business
V !topped manufacturing network servers and
routers on complaints from big customers of
microprocessors
V In 2003, launched Centrino, with bundled products of
new processor (Pentium M) and wireless
communication
V OEMs favorable about new processor, but had
reservations about entire bundle
V Views of better alternate products and poaching by Intel
in systems design being aired
V OEMs endorsed Centrino but offered up gradation for
interested customers
V Expansion into China
V Worked on developing processors for flat panel TV
V Became leader in entertainment PCs
V Intel reorganized its business divisions into mobile,
digital home, enterprise and health
V In January 2006, Intel launched new brand identity
campaign of DzIntel. Leap aheaddz
V Launched Viiv, Merom and Conroe (two new PC
chips) and announced Core 2 Duo launch
V !trength:
V Adopted both push and pull strategy
V elevant and simplified understanding of chips to
customers
V Used print, billboard and spot TV medium
extensively for 18 months
V Associated Intel with processors, thus helping
launch future chip launches
 Technology
Leader

Company
Quality
Name
Intel
Inside

CPU Brand compatibility

V Weakness
V Intel Inside theme made it difficult to
diversify across other product lines apart
from microprocessor without changing the
theme
V Intel Pentium had garnered huge brand recognition
through press, technical magazines and ads.
V Discontinuation of this theme would have meant
drainage of efforts and resources put into building
the brand Pentium
V Also, introduction of processors happened every
next year making it impractical to launch promotion
campaign for every product
V Intel has made chip importance firm in
customerǯs mind through Intel Inside theme,
so wont propose for AMD Inside ads
V AMD should focus on better value for money,
increased efficacy and penetration into frugal
markets as PC industry is stagnating
V Intelǯs segmentation was based on price and
performance. Depending on it, the target market also
differed.
V Having a technological product with its specifications
upfront actually helps the customer appreciate the
benefits and shortcoming at the time of purchase and
prevents any dissatisfaction thereafter.
V Xeon performed poorly in comparison to Opteron and
needed up gradation
V For the digital home, Intel Inside theme is not
appropriate because itǯs a new technology. Intel Viiv will
help it project the new product by breaking its link from
microprocessors
V Leap Ahead was a slogan adopted for changing
situations and sighting new opportunities in
microprocessor industry. With a new outlook, there
should be a new association, and hence warranted
changing the old logo to a dropped Ǯeǯ
for new age electronics
V Failure occurred in product lines of digital cameras
and routers because Intel did not have expertise,
stiff competition from dedicated players and
complaints from Intelǯs own customers
V Digital home is also based on a new technology
though it has links with PC applications
V There is fear of competition from an established
player in this product segment and to evade it Intel
has to adopt industry standards and offers