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