Intel Inside Decision Essay
Pamela Pollace has to make a very important decision that will shape Intel’s future. The Group 8 marketing team would like to persuade Intel’s Vice President and director of worldwide marketing operations, Pamela Pollace, to extend Intel’s “Intel Inside” campaign to other electronic devices such as cell phones and PDA’s. We believe that extending Intel’s brand campaign would be beneficial to the brand and the company. Extending the “Intel Inside” brand campaign to cell phones and PDA’s will bring Intel a stronger presence in such markets and will become a sought after “ingredient” for all mobile handheld devices. The strategic importance of, Intel’s campaign, successes in the cell phone and PDA industry requires Intel to meet all campaign objectives. With the rapid decline in PC sales, which result in 39% of Intel’s income, failure to extend its brand campaign into other product categories could be detrimental to Intel’s future as a leader of innovation.
The Group 8 Marketing team has identifies two possible campaign options: 1. Extend its “Intel inside” brand equity to PDA’s and cell phones. 2. Continue with Intel’s current branding campaign
To make her decision Pamela should use the following criteria: 1. The increasing rate of cell phone an PDA usage
2. The financial impact of extending Intel’s product line 3. Achieve a brand presence among competitors in the cell phone and PDA market
1. Extend “Intel Inside’s” brand equity to PDA’s and cell phones
Implementation of the “Intel Inside” ad campaign will increase Intel’s presence in the mobile handheld device market. Due to an increase of units sold of 250% (mobile phones), and PDA’s (units sold) increasing about 380% over the past five years, it would be financially beneficial for Intel to grab hold of a larger market share in the ever expanding mobile handheld device market. Also recent studies have shown that there has been a 9.2% decrease in PC units sold which happens to be main income stream for Intel. Diversifying Intel’s product line campaign will ensure Intel’s financial stability as well as their brand image in the mind of the consumers. Currently only holding 1% of the market share among cell phones and PDA’s; extending their campaign would surely mean an increase in market share among the competition in the mobile device category. Fears among Intel employees that extending the brand campaign could potentially dilute the brands equity are not well founded. Extending the campaign would further concentrate the brand image adding value to mobile devices carrying the “Intel Inside” Logo. Cell phone manufacturers being aware of the reputation that Intel has built up would begin immediately using Intel processors and flash memory when developing their mobile devices, furthering the market share and brand equity. If Intel were to fail due to lack of revenue based on PC sales declining, their brand equity would be more so diluted than if they were to extend their brand campaign. Evolving with the market is essential for any business to survive. Intel has had the opportunity to learn from their competitors’ mistakes, and the market being mature proves that this is a valuable time to enter it. Consumers are not currently aware that Intel is “Inside” their mobile hand help devices. Letting people be aware of this provides an opportunity for Intel to increase brand awareness and equity. Intel assures quality and makes something worth paying more for. Intel could position their chips as a premium product due to an already established reputation as a quality producer of microprocessors and in turn sell their chips at a premium price. Consumers who are more willing to pay a higher prices make both Intel and the phone developers carrying their chips happy. Consumers in the computer market have been conditioned to immediately...