Intel: Building A Technology Brand: by M.Krishnan Sashidharan.S P.Vijaykumar
Intel: Building A Technology Brand: by M.Krishnan Sashidharan.S P.Vijaykumar
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
Intel
Inside
• Active Engagement
• Marcom Award, Grand
Marquis
Resonance
• Technology Leader • Trust
• Innovator • Self respect
• Customer Focused • Tech Savvy
Judgmen Feelings
ts
• Quality • CPU Brand
• Compatibility • Linked with PC
• Speed • Technology Driven
Performance Imagery • Name of the Company
• Co-operative Advertising
with OEM’S Salience
• Intel brand name linked
with Microprocessors
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