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*unlr"in' ***ats: Wanfu.*g tk* e*nzpwti?

i*n
l'-' l()5(), riiil rt.scnberg founded the Dunkin'Donuts
chain
(www.trrrrrkirrrr.rruts.corn) by opening
the first rocation in
Qrrirrel,. M;rssrrcltuselts. By 1975, IO00 locations nation_
wi<ltr wcre grossing a collective $300 million in sales.

At
f

thr": bpginning of 200g, there were 7,9gg


Dunkin,
)orruts slorcs worldwide, including 5,769 franchised

rcsfiulriulls irr the United states and 2,219 intemationallv.

'l'lrc c.orrrlrrrry clocked worldwide


sales of $5.3 billion

rrrirrg l'iscal year 2007.


'l lris irrrpressive growth
would not have been possible
without cxtensive marketing research and a commitment
to ryrr;rlity. lJill Rosenberg began the culture within
the
corttl)iiny ol'listening to what the customer wanted and
tf

tlrr'rr providing it, and that tradition continues


todav.
Mlr.kcting research in the form of focus groups and sur_
vey rcscarch revealed that customers select a coffee and
tlorrtrt shoJr based on five factors: accessibility, quality,
viu'icry. irrrage , and affordability. The company,s
busineis
is brrill around these factors. From ,"r"u."h, Dunkin,
l)r)rlrrs lirrlrcr that its customers wanted a coffee and
tlonul s111l11 that was very accessible_close to work or
horrre lurtl citsy lo get to. To accompany its stand-alone

Ioc:ltliorrs, l)unkin'Donuts has opened locations


in Home
[)e;xrt. Wrrl-Mart,7-ll. and Stop & Shop stores.to add
to
lltt' r'orrvcrricncc that customers desire. Every location is
stratcgit'llly placed and designed with these customers,
prclcrcnccs in mind. Because these purchases are
so con_

vt'rricncc tlr.ivcn, the. l-ocations can be placed close

togcthcr

tlrout cannibalizing bus-iness.

Malkcting r.csearch further revealed that quality


translalcs lo lt-eshncss in the donut business. Theiefore,
Dunkin' l)onuts rnakes donuts at least four times a day.
Upon conclucting
survey questionnaires
,rcscarch yllh
and tastc tc:sting in
many different markets, Dunkin,

Donuts lburrd thc hlcrrd of coffee that customers favor


the
col e is brewed and then allowed to *lt for no
Ionger than ltl rninutes. After the 1g_minute window,
the
colfee is ptlurcd out. ancl a fresh pot is brewed. il
;;:
mitment to quality was macle ai a result of researching
what the customer desired in a cup of eoffee.
most. This

124

The company also olTers variety_S2 flavors

ol,

donuts. Recently, Dunkin'Donuts has expanded its


coffee
line (again, due to research and taste testing) to include
iced coffees, cappuccinos, lattes, espressos, and flavorecl
coffees, such as hazelnut coffee.
Marketing research showed that customers preferred
an image that related to the common person. They
did not
want a coffee shop that was flashy with lots of bells
and

whistles; they just wanted a common shop that made


a
great cup of coffee. Therefore, Dunkin' Donuts
appeals to
just about everyone. During the late 1970s
and the l9g0s,
the ad campaign of .,Fred the Baker" brought this
image
to

life. With commercials showing him waking up in the


mid_
dle of the night with a commitirent to quatlty,'tre appealed

to the common person. The Mercede, unO tt" pickup


truck
come together in an egalitarian Dunkin'Donuts parking
Iot. In addition, Dunkin'Donurs is affordable. Just about
any consumer can afford the Dunkin'Donuts experience.

Dunkin' Donuts is much less expensive compared to


Starbucks and other upscale coffee shops.

Dunkin' Donuts realizes that firsi and foremosr its

donuts and coffee need to be up to par to customers,


expec_
tations. Already the retail market leader in donuts
and
bagels, Dunkin'Donuts knows that it takes a commitment
to marketing research to stay there. Bob pitts, the
culrent

Technology Product Developer, demands a continuing


commitment to listening to what the customers pret-er.
Again, this rtlanifusts itself through constant research and

taste testing. The customer is a very important


source of
wisdom and insight at Dunkin'and customer opinion
and
feedback is important. Customers'preferences have
not
only shaped the recipes ofdonuts and bagels, but they
have
also prompted the introduction of the Dunkin' Decaf
and
flavored coffees such as Hazelnut and French Vanilla.
The
huge success of these introductions reaffirmed the impor_

tance.of customers to Dunkin'Donuts and its new products.


This journey of innovation has continued with the launch
of
indulgent coffee drinks, such as cappuccinos, lattes,
and

espreSsoS.InAugust2007,Dunkin,announcedapartnership with Procter

& Gamble. In this alliance, p&G

roasts

specificaDunkin's packaged coffee according to Dunkin's


as well as a nattonal
tions and is responsible for distribution
marketing campaisn based on.t!1 loffee :1"p.
lhe lnltlatlve
current "America runs on Dunkin"' theme'
market' and
coffee
premium
the
into
gain
entry
helps P&G
and a
nuntin' Donuts gets P&G's distribution expertlse
at
of income' The packaged coffee is avallable

Questions
i. O,r.us the role that marketing research tln

::ill.:

new source
Kroeer, Wai-Mart, and other stores'

ts a
Soeakine to customers and getting their insights
part ;f Dunkin' Donuts' marketing research strategy'
"ruciat of focus/consumer groups and market
The use
'o*-".y-:.totu
process'
taste testing and feedback is an ongoing
Yt:l
on marKenng
commanding presence in the market' reliance
that are sur to
research has had obvious positive effects
can contlnue
Donuts
Dunkin'
and
continue in the future,
dunking the comPetition'

Conclusion

pluJ

i"

l:.lp:

ing a coffcc shop such as Dunkin' Donuts formulate sound


markcting strategies.

2. Dunkin' Donuts is considering further expanslon ln

tne

United Statcs. Dol-inc the management decision problem'


3. Define an lppropriatc matketing research problem based on
the management dccision problem you have identified'
4. Use the titernet to detcrminc the market shares of the major
coffee shops for the llst calentlzr year'

5. What typ" of syndicate tlata will be useful to Dunkin'


Donuti?

6.
7.

the role of qualitative research in helping Dunkin'


Donuts expand further in the United States'
with a
Dunkin' Donuts has developed a new line of pastries
consumers'
determine
to
like
tt
would
taste.
distinctive French
them in
response to this new line ofpastries before introducing
to
determine
the marketplace. If a suwey is to be conducted
be used
consumer pt"f"t"n."i' which iurvey method should

;;t;;;t

and why?

8.

Design a taste test comParing

rich benefits tbrl)unkrn' uonuts'

t:.

'l

coffees with

*,t\*t *r *8m

Starting in l92tl as thc Galvin Manufacturing Corporation,


Motorola (www.tnotctrola.com) has evolved into a worldwide cornpany with more than $30,15 billion in revenue in
2008. Toclay. it is a leading manufacturer and provider of
wireless, scrrricontluctt'rr, broadband, and automotive products and scrviccs. With the wireless division, Motorola
knew it nccdctl to change. It had found through focus

groups and survcy rcsearch that many customers and


potential custolllL)l's saw Motorola's phone models as
dependablc, bu1 also as dull, predictable, and boring- With
the mobile phrtttc rnarkct being flashy and consumer driven, Motorola ncedccl answers on how to become more
mainstrcattt ltnrl Popttlrtr.

To {incl thcse answcrs, Motorola turned to marketing


research and an advcrlising agency named Ogilvy &
Mather. Motorola and Ogilvy & Mather conducted focus
groups, depth intcr vicws. lrnd mall-intercept surveys.
Although focus groups gcnerated some innovative'ideas,
depth interviews enahlecl thc prtlbing of emotions related
to mobile phones. Mall intcrccPts were chosen because
the respondents could hc shtlwn models of Motorola and
competing brands. They found llorr thrs research that customers buying mobile phones dicl not buy the phone based
on technical schematic selling points. Customers buy
phones based on how they emotionally feel about the
brand of phone and the parlicular stylc ol'the phone. Most
customers do not understand the tcchnical parameters of
the different phone models enough to make a decision
based on them. So they are choosing among cell phones
based on whether the phone "fits" into their lives or by
considering "Is this phone me?" This researoh challenged
the company's management to think of cell phones not so
much as engineered functional devices but as fashion
accessories that help consumers make statements about
who they are. It pointed Motorola into developing a marketing strategy that developed the brand name instead of
pushing the features of the phone. Moreover, the brand
name had to be a global one based on universal principles.
Marketing research also revealed that consumers were
looking for "intelligence everywhere," and therefore the
rrand had to be developed in that environment.

*\*ut n6
a

tVz* Wr*t

A*a{

*wtug&*

Ogilvy & Mather sought to develop the Motorola


brand to represent a set of universal principles-a set of
core principles that defined the brand-and then send out
this idea to every country and have a localized interpretation for the idea. The result of this is that the core ethos of
the brand is preserved while at the same time offering local
offices the flexibility to mould the brand according to local
conditions and develop the brand such that the people of

it. For
Motorola, Ogilvy developed the core idea of "intelligence
everywhere." This core idea is used as the framework for
all Motorola businesses around the world.
that country can relate to and identify with

This was accomplished by creating the Moto, which is a


cute name for Motorola's global-branded cell phone. The
name is easy to pronounce, and it does not mean anything
bad or weird anywhere in the world. It also carries a part of
the Motorola name, a strong positive brand name that
reminds consumers of the company's heritage. Motorola's
advertising agency, Ogilvy & Mather, created a Moto

lifestyle image (www.hellomoto.com). Knowing from


research that customers wanted to relate to the phone and

brand on a personal level, Motorola's Moto lifestyle


showed the public fast, upbeat, and flashy people living and
using Motorola products in an intelligent way. This created

an emotional connection with customers, as they were


almost saying to themselves, "That's the way I want to
live." This was followed by Motodextrous ads in 2004 that"
projected a perfect balance between design and technology
to enable people to live the Moto lifestyle with the slogan
of "Intelligence Everywhere." This campaign, an obvious
success, was possible due only to the marketing research
conducted to find whv customers buv certain brands and
models of mobile phones. When marketing research indicated a big need for hands-free driving, in October 2001 the
company introduced MOTOROKR T505 Bluetooth, the
In-Car Speakerphone and Digital FM Transmitter, its first
road-ready, music-oriented ROKR accessory and the latest
addition to its portfolio of in-car solutions.
Given the high costs associated with an advertising
campaign, it was well researched and backed with strong
supporting evidence and data. Marketing professionals

ri, ('{i i_s stit}stan'tia'te iheir speraclii:ig on advertising anr,i


i'r:rlrr-i buil,ling with research dafa ihat spells out the ratio-

rr:rf'; foi" thal spend.iag" 'Xhe Motc campaign, instead of


irirlLrcing eusiomers ru i:uy ft,4otorcla phones trecause of
ilri:ir f,eatures . appealed. to consurnens' Iifestyle choices.
'l'he eampaign positioneci
h4otoroia phones as aspirational
that
emtrociied
a
certain attitude. This positioning
;rroducts
r;reated an emotional conneciion with the consumers and
targeted people's desires to be associated with products
that stand f'or quaiities that they consider to be ,,cool',; that
is, fashionable and worthy of being identified with.
The key here is to identify a set of core values the brand
stands for and then be abie to make the brand work in all
pafis of the world. The success of global brand icons such as
Dove, IBM, and others has shown that a brand's sffengths

can indeed be leveraged across countries and cultures.


Identifying this set of core values, though, is no easy task
and requires extensive marketing research" From finding
consumer prefercnces to their desires and perceptions about
the brand, marketing research helps to gain insight into the

consumers' mind-sets. For example, marketing research


showed that style rnatters regardless of income or social
status, an insight Motorola employed while developing the
Motofone for developing countries.

.Questloms
n" Diseuss the role that marketing research carr plrry irr lrt.lpirr;,

2"

Motorola fi:rther build the Moto brancl.


Managei-nent woutrd like to continue rebuitding Motorrrl:r.
They feel this can best be accomplished by irrcrcirsirrri
Ilotorola's U.S. marketing share. Define the managcrucnl

decision probiem.
Define an appropriate marketing research problem basetl orr
the management decision problem you have identified.
4" Use the Internet to determine the rnarket shares of the major
cell phone handset manufacturers (Nokia, Motorola, Samsung,
SonylEricsson, etc.) for the last calendar year.
5. What type of syndicate data will be useful to Motorola?
6. Discuss the role of qualitative research in helping Motorola
expand its market share.
7. Do you think that the mall-intercept interviewing conducted

3.

by Motorola was the best method of administering

the

survey? Why or why not?

8. Discuss the role of experimentation in helping Motorola


9.

design handsets that are preferred by consumers.


Develop a questionnaire for assessing consumer preferences
for cellular handsets.

10. What sampling plan should be adopted for the survey of


question 7?

1L. If Motorola were to conduct markeiing research to determine


consumer preferences for cellular handset manufacturers in
Asia, how would the research process be different?

fonelusic:n
Based on marketing research findings, the Moto campaign
established Motorola as a chic and aspirational brand that
helped it overcome its poor consumer image and branding

problems. The Moto campaign projects Motorola,s core


values and its lifestyle appeals to consumers across the
world. Possessing a Moto was no longer possessing a cell
phone, but having a product whose core values represented
the type of lifestyle the user of the phone desired and lived.
With this dependence on marketingresearch in the forefront of Motorola's actions, it is certain to remain a global
contender in the mobile phone market for years to come.

12. Discuss the ethical issues involved in researching consumer


preferences for cellular handset manufacturers.

References
1. www.motorola.com. accessed February I5, 2009.
2. www.hellomoto.com, accessed February I 5, ZOO}.
3. www.hoovers.com, accessed February lS, 2009.
4. www.wikipedia.org, accessed February I 5, 2009.
5. www.technologyreview.com/read_article.aspx ?id=
accessed June

7663,

4.2007.

6. Soo Youn, "Motorola Chips Away at Nokia's Lead in


Cell-Phone Market," Knight Ridder Tribune Business News
(June

9.2004): l.

ffiuxfumr* :'u

eql

s?

New Jersey, the company serves nearly 600 dealers nationwide. Subaru has offered many different cars over the
years, but as of 2009 it sold five different brands in the
United States. These brands each have a variety of different models. The five brands are the Tribeca, the Outback,
the Forester, the Legacy. and the Impreza. One of the

unique things about Subaru is that 100 percent of its


models come with all-wheel drive.
Subaru's strategy is apparent in one of its key players,
Joe Barstys. Joe has been with Subaru for more than
20 years,and he spends his time worrying about customer
satisfaction. Joe and people like him are the backbone of
Subaru. These people help Subaru focus on its customers

and their wants and needs by conducting marketing


research. Joe has incorporated the use ofcustomer surveys

'i

:.:

5*,": Tv

r.*.y" l {irxzitr:*r

*m mr % mt z,ut,xrgi

Subaru of America (www.subaru.com) is the automobile


division of Fuji Heavy Industries (FHI). Subaru has been
operating in the United States since i968, when it began
selling the 360 Minicar" Headquartered in Cherry Hill,

Mtr.

into his praotice, and for this he has gained the title o[
"Mr. Survey." Joe's goal is to develop a customer satisfaction level that will help build a certain level of loyalty in
Subaru's customers. This lovalty is extremely important in
the car business, because it has historically been much
lower than in other industries. Marketing research has
shown that although approximately 90 percenr of customers are pleased with their automobile purchase, only
40 percent are loyal enough to buy the same brand again.
Surveys are a very valuable tool to Subaru in its quest
for customer loyalty. The company mails a survey to each
customer within 30 to 45 days of purchase to assess the
customer's feelings toward the newly purchased vehicle,
to obtain information on the nature of the interaction with
the dealer, and to learn about other elements of the purchase process. Subsequent to the initial contact, more surveys follow throughout the "lifetime" of the customer (i.e.,

the duration of ownership of the car, on average 6 to 7


years). The latter surveys assess the long-term satisfaction
with the vehicle and the dealership. The mail surveys have
a high 50 percent response rate. As of 2009, about 500,000

:ir

surveys are mailed each yeat. Additional surveys are con_


ducfed over the {nternet. Questions on ihe survey inciude:
How- was your service experience? How does Subaru
compare to other service providers you have visitecl? What

about the buying experience? How satisfied were you?


What were the salespeopte like? These questions help
Subaru determine how customers regard their Subaru
experience and what steps Subaru shouid talce to improve
this experience furlher.

These surveys provide important feedback. allowing


Subaru to adjust its approach based on consumer demands.
An example of the impofiance of adjustments can be lound

in the case of the female consumer. Through surveys,


Subaru found out that it needed to adjust its marketing to
include femaie consurners, who are becoming an increasingly large part of the market. It was importait for Subaru
to understand what types of things would appeal to women
in order to offer a more desirable product to them.
Another benefit of marketing and survey research is
that Subaru has been able to identify the types of people
who are more likely to buy its autornobiles. Subaru believes

that the typical Suba-ru owner is different from the average


consumer. Its average consumer is highly intelligent, highly
independent, and outside the mainstrearn crowd. Thus,
Subaru tries to market automobiles to these types of people
and attempts to distinguish itself from the larg"r, *or"
mainstream competitors. Results of affinity for the company are evident as customers feel motivated to send
pictures of their cars to Subaru.
Joe considers his background in philosophy and theology (he has a BA in philosophy and an MA in rheology) ro
have contributed to the role of Mr. Survey he plays at
Subaru. Joe explains rhat his theology and philosophy
background allows him to look at the huinan experience
with a product. A customer's problem could be a dysfunc- .
"
tion with his car, his dealer, or his own ignorance about
how the car works. All of these are essentially abput
human experience, and hence no matter whether Joe works
in the automobile industry or any other, he is, in ef{cct.
dealing with human experience. This human expericnec is
383

-ii-li;l r)irit ;|1i,,_.i_i i;t:li :i,;

!1..,t1;1;1;

itilOiii hiS jOb,

beCal-f Sr: he
tiIit rrr'.'rlt: ,rrr-l finding nu,
l;t1".1.
rnakes
rhem
.;;,t: j! ,rir,.i ,,st,r.,_.i ilrlri.
"rhu,
he is
il

i-.:rir

r',.'.r rr !ir
i

j.;

ii

ri

Ii

really exciied about is

; ri

rr.i.

Ydhat fype oi resear.ch


design should be adopted
the markering research problem

y"; ;;;"

:lr.what way
s"
^ ln

SUCCeSS-

goai is confinued growth


through 2015,
iljrir ii ir{}ri{'''r trrat wit}r t}re
heip orou.[uu;ng research
it wiil
lrr rrhir' n) achieve this goal.
It believes *rai iistening to the
( rr\rr!rlrr r:,;rnd
adapting its practices to
rneet theirconcerns
will pr.ovide cusromers with
a higher I"";1";; sarisfacrion
;rrct utrimareiy lead to^a
higher t;""i ;f ;y;,rr. ,rouru,,
rrrarketing research staff,
like ,.fvfr. S"rui,,,rrril be
critical
to this endeavor.

7.

Discuss the roie ofqualitative


research in understanding
the
to a particular automobile
brancl'
which qualitar,u"'""tt
research technique(s) should

de.rotion of consur

and

be use6

why?

8. If a survey

is to be conducted to understand
consumer

pref.er_
for various autom-obile brands,
*ni"f,
,uruay
methocl
should be used

ences

9.

and why?
Can Subaru make use ofcausal
research?

10. Design ordinal, interval,


ancl ratio

e*rzent^tsi*n

consumer preferences

The case presents an interesting


overview ofJoe Barstys,s
role at Subaru and the importance
and utility of surveys in
building customer royalty.
?#"0 Subaru
get continuous feedback
on key para*"r".r.r*ru,

S";";;;;"

customer experience res.ulting-in


f,igh

**:
l:

,irup"

;anO loyalty.

markering research tur"rr"rpJ-Buulnl


unc"rrtuno
rts customers better and
hence uOOr"rr-,fr"il needs
and
expectations

11. Design Likerr,

sema

12. Design a questionnaire


to measure consumers, evaluation
of
Subaru brands.
13. Develop a samplins nlan
for the survey of question g.

should rhe ,uiir" ,ir" U.


O.t.r^in"ai"""'
'11. I":
15.
If Subaru were ro .""ou.i

consumer willingness. to

,"*["in;;n

p."*.r'i.

Oif"*",f
16. Dis.cuss the ethical issues
involvejf"..r"*"f,'#g consumer
willingness
to purchase automobile
brands.

l;f

j:y",'JJ:J,il:

2. In

3'

to determine
brands in

purchasel"r"*"fji"

Germany, how would the


research

brand.

Ifyes, how?

,lur"r,io. measuring
for various uuro*oiil u.unor.

.,"u,i,.ing.;;;#1:.$.1T:li'il;,"i,i,iili"*,"j*Jr"J
brands.

better.

Questions
l. Discuss the role that n
subaruuno..,iunJ","iTlili:iljff

to investi_

identified?
can Subaru mtrke use
of data iiom the 2000
(or 20i0) U.S. Census?
Whar are tt, llmitattons
nf rhese
data? How can these lirnitatio",
U" or.."or.
d" whar type of dara available,r."*
",l
.;;;;;;"te
markering
research firms will be usef.ul
fo Subaru?

{he

CecisiOn_making ar-lthOrity
that he
or maintaini;;-";;;;*.,
royarry,

,;1,,'.1",',':
...,.rt]' tri.
, ,I i".1,
: ]':.ijl'll
;rL.frleVe5
! ,ri. ,,.1)ir!pii.y's

4"

order to continue to grow,


Subaru must foster and build
customer toyalry. Define
the manageme*;*;;;
problem.
Define an appropriate markering
rJr"*.r,
based on
the management decision
problem

References

l.

www.subaru.com, accessed
February

20, 2009.
2. www.wikipedia.org. accessed
February io, i6og.
a.
I. Hammo-nds, ..Subaru

Adds Upscale Looks to Its

3""1-19

;;;ffi

Durable Image,,' Knight Ridder

vou rruri. ia.nrrri.a.

(June 16, ZA}e:1.

;r*',k+*;-

:.a,..,

-.-.

irri,lrc irirress

News

Xrztw&:

Ttarl**nry '*** *u:;?;'* *-z ri i'n:l q: *,,.;?t

The lntel Corporation was fcri-rnded in 1968 to buiid sernicondueior rnemory produc;s. trt introeiuced the world's first
micrcprocessar in 191 1. Microprocessors, also ref'erred to
as central processing units iCPUs), often are descrilred as
the"brain" of a computer. Tcday, nntel supplies the building
blocks for the computing and coirrmunications industries
worldwide. These building blocks include chips, boards,

systems, and software, and they are used in computers.


servers, and networking/cornmunicafions products.
Most cf Intel's customers fali into two separate groups:
the original equipment manufacturers (OEMs) and the
PC.ancl neiwcrk communications products users. The
OEMs marufacture con-lputer systems, cellular handsets
and handheid ccmputing rievices, teiecommunications and
networking comrnunications equipment, and peripherals.

The PC arrd network comrnunications pioducts

users

markeling researeh and staried to iocus n-rore effort

a.ncl

money on these areas.


Marketrng research revealed that in order to be ef}'ective
in its overall marketing campaign, Intel would have to
reach the consllmers and convince thcrn that rvhat was
inside the computer was as important as what was on the
outside. This became the key element of the "lntel lnside"
campaign conducted during the early 1990s. This slogan
helped Intel put a name with its products, anci it helped it
encompass several of its products under one title.
Furthermore, marketing research showed that it would
be most efTective to cross-market with its technology paftners. This would help consumers understand the products
that Intel helped make up. it did this by including the "Intel
Inside" logo in its partners'ads. It also helped fund these
advertisements. A probiem with ine luding its slogan in

include individuals, iarge and smail brisinesses, and service


providers, who buy lntells FC enhancements, networking
products, and business communications products through
reseller, retail, e-business, and OEM channels. Intel is an
increasingly global campany" Only 35 percent of its revcnuos are from North America, whereas Asia and Europe
crrrnplisc 3l percent and25 percent, respectively. Revenues
lbr l'iscal ycar 2008 amounted to $37.59 billion.
Intrrl hls shown phenomenal growth as a company. Much
ol' lnte I's success can ire attributed to innovation within its

other ads is that Intel did not want to intrude on the

nrar'kr'{irrg clcpartment. This innovation was required tc


ovcrcourc scvcral obstacles.'The main problem Intel faced
was tlyirrg tii scll an ingredient brand, which is a componenl ol'l lurgel ploduct. Thus, the difficulty is in reaching
consunlcrs wl.ro will ncvcr iiee your product and might not
evcn know wlrat it rlocs or why it is there.
lntcl bognn mar-licting rcsoarch in the i980s because it
was lraving <.lil-l'iculty witlr its customers not upgrading
liom the 286 to the 3li6 rrricroprocessor. Marketing
research showeci that ihis was tltrc to a lack of customer
awareness, and Inte! sel olrl to chlutge that. [t conducted a

microprocessor. This would help it to avoid using the


numbering schr:me, which was nonpatentabie, and to find
a name to hel1J consumers identify their processcrs. After
extensive m.arketing research, Intel chose the name
Pentium, which it found generated positive reactions r,vith

small but effective advertising calnpaign. In fact, in the


process it realized that it had inaclvertcnfly crcated a brand
in intel . Because of the succcss of this srnall carnpaign,
Intel began to realize the importance of marketing and

50 percent of consumers looked for the brand when they


were shopping.By 1994,Intel had captured 95 percent of
the microprocessor market, due in large part to its marketing efforts.

402

commerciais. It decided to help make the small logo sink

in by accompanying it with a jingle every time it was


displayed. This jingle has become extremely recognizable
and synonymous with Intel's slogan. All of this helped
Intel realize its goal of increased consumer awareness.
Longitudinal measurement of advertising effectiveness
via marketing research revealed that the "Intel lnside"
campaign was very effective.
Intel's next idea was to come up with a name for its

its consurners. Intel has been marketing its processors


under thisl name ever since.
Between 1990 and 1993, trntel invested $500 million in
advertising to build its brand equity. By 1993,80 percent of
people in the United States recognized trntel and75 percent

had positive feelings about the brand. Most important.

li

iiii.e i'3

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slippeei tq abe.{i_
a_s a iesult r:1. ine reasecJ
compretition ir<.rr-tl

|.

:::t rti:,r"tt i:i.;mpeiiior.

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*:

af?n,]r,rr!{liir: :,; r.::l:r.inr overhau!

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f
fi

brallcli*g,

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'fransfirrn:atron
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ir: 2i}L15,

,\ldD.

,Ora

Decernher 3t]" 2005" filfel


<1f, its eorporate and proetrr-lcf

,4.,

designed fo s.vrnnollze iiru *furpn


ruir*r,,

ehanges inclucied a new versiol.l


of the

{.*mq\x*si*n

F
F
v

Marketing research has played a critical


role in Intel,s phe_
nomenal growth. Marketing research
was insrumental in
developing the Intel brand, designing
the iintet Inside,,

campaign, and crafting the new togo

*itf,

block supplier inside out.

re r e va n r to n . * oorllii
JJr'J:ff i :T ;:."T: i,?":l,i;
quesrion 3.
6" Discuss the role of qualitative research
in understanding how
businesses select FC and network
***""ir"rr"ns products.
Which qualitative research techniques
,houlO U" used and
why?

#':::::

7. If a survey

8'

is to be conducted to determine
businesses, selection

criteria fbr choosing pC and network


corn*uniau,,on. products,
which survey method should be
ur"O unO rvt

Design a questionnaire for determining

criteria for choosing


products.

pc

and

ui-

brrin"rr"r,

selection

*,r,i".t .".*""r*ii"",

9. Develop

a suitable sampling plan for conducting


the survey
identified in question 7.
10. If Intel were to conduct mall-intercept
interviews to determine
consumer preferences for an ultralight
notebook that uses a
newly. designed chip, describe
tfr.-nrfArorf process that
should be used.

References
1. www.intel.com,

2.

Questions
Discuss the role of marketing research
in helping Intel devise
the "lntel Inside" and ..Leap uheud..

2. Intel would like to

fo gain a better unclerstanding ol


lrrw lrusi

the ,;Leap ahead,,

tag line. Continued reliance on irarketing


research will
enable Intel to enhance its image
u, u pr""i.,inent building

l.

?r}te

,,,,,r,,,,1.,,",,,

5" Discliss the loie of

known "intel trnside', loeo.

preserve its dominant prace in the


market. Intel has been able
to be very successful because ofits
focus on technology, brand
and brand equity. Inrel still fu"",
futur challenges,
irlg::
including increased competition,
tt e op"ning ; new markets,
and the development of new products.
tnt"i,in continue to
rely on marketing research to meet
these challenges.

{ntei w*uid

i,,"

nesses select FC anrj network


communications proilrrcts_ Whirr
fype ol research rJesign should
be adopted?

com_
panv's trliue logo_wittiout ehc lowered .,e,,that
had long
been a part of Intel,s branding_along
with a new tag line,
"J.-eap ahead",'As
of 2006, Intel
i"ng*u ,sed the well_

"o
The increased competition makes Intel,s
marketing
research efforts rnore importan{
than ever as it attempts tJ

prob[enr

qi-aestion 2.

info a supp{ier foi proclurets beyonat


personal

.!ii-re

Def?ne an apprtpriafe nrartrretirig


Frj:jcurch pr.c{rJgl11trrrr1.:;;rr;111
ler the niariegement e{r:cesillm

ing

"ampuignr.
increase the prefeienJe
for Intel chips

among PC users in the individual


user as well as business user
segments. Define the management

decision problem.

3.
4.

accessed January

l7,ZWg.

Don Clark,..Intel Secures Video


iontent for lts Viiv Multimedia
PIan," Wall Street Journal (Ionuuy
A,ZWij,

Don Clark,..Intel to Overhaul


na*.tiig f" S^iO a Oo Beyond
PCs," Walt Street Journal (December gti,iooii,
^a'.'a:
Olga Kharif,..rntel rs Kicking

Silicon;41ii,l, Brrirrrrw""k
ontine (September 24, zboz), **i.iurinJr*""1..o_l
,.""h.Tpgl1"ontent/sep2002 / tc20020924
*iA;;.;*,accessed
April
10,2008.