Intel: Building a Technology Brand

By M.Krishnan Sashidharan.S P.Vijaykumar

The Intel Inside Campaign

Value of Intel Inside Logo to consumers

Market Cap before branding was $1 billion. By 2003, after the campaign was implemented, it reached $5 billion. This growth of shareholder value illustrates the power of Intel s branding strategy. In 1992, the first year of Intel Inside campaign, worldwide sales rose 63%. Awareness of the Intel logo amongst European PC purchasers grew from 24% at the start of Intel Inside campaign in 1991, to 94% by 1995 and in 2001

 Strengths
Intel found a way of taking away the mystery of the product, gaining the confidence of the end consumers that Intel Inside represented quality and reliability It concentrated on increasing derived demand Adopted both push and pull strategy Relevant and simplified understanding of chips to customers Associated Intel with processors, thus helping launch future chip launches

Technology Leader

Company Name

Quality

Intel Inside

CPU Brand

Compatibility

 Weaknesses
Intel Inside theme made it difficult to diversify across other product lines apart from microprocessor without changing the theme Conflict with Tier-1 OEMs

Intel Inside Brand Equity

Active Engagement Marcom Award, Grand Marquis

Resonance
Technology Leader Innovator Customer Focused

Trust Self respect Tech Savvy CPU Brand Linked with PC Technology Driven Name of the Company

Judgmen Feelings ts
Quality Compatibility Speed

Performance

Imagery

Co-operative Advertising with OEM S Intel brand name linked with Microprocessors

Salience

Continued use of Pentium

Intel Pentium had garnered huge brand recognition through press, technical magazines and ads. Discontinuation of this theme would have meant drainage of efforts and resources put into building the brand Pentium Also, introduction of processors happened every next year making it impractical to launch promotion campaign for every product

What should AMD do?

AMD cannot even imagine a campaign like that of Intel s Intel has already established a name for itself in the customer s mind through its campaign, so if AMD does something similar it would not prove to be as effective as Intel s campaign AMD should focus on better value for money, increased efficacy and penetration into frugal markets as PC industry is stagnating

Intel s Segmentation
Intel s segmentation was based on performance which varied with price. Depending on it, the target market also differed. Having a technological product with its specifications upfront actually helps the customer appreciate the benefits and shortcomings at the time of purchase and prevents any dissatisfaction thereafter. It gives a wider coverage of the market Xeon performed poorly in comparison to Opteron and it definitely needs up gradation

Was it the right move?

At the time of the case study the sales and production of computer were stagnating, as PDA s and cell phones were on the rise and it creates a great opportunity for Intel to use their brand equity from the computer market and translate that into the cell phone and PDA. A need to cut through the clutter of competitive activity Marketing with the help of Steve Jobs! Partner with giants in other industries. E.g. Google Electricity, WiFi

Thank You